BUSINESS SUPPORT

Effectiveness of Business support for SMEs

[Name of Write]

[Name of Instructor]Effectiveness of Business support for SMEs

Introduction

The SEMs sector makes a vital contribution to the state's economy. There are over 470 000 SMEs comprising 96 per cent of all businesses and employing 43 per cent of the private sector workforce. It is estimated that the sector accounts for 35 per cent of the gross state product. There is considerable diversity within the sector (Mole, 2002, 137). According to 2009 Statistics figures, over 60 per cent of these SMEs are non-employing businesses, 32 per cent are run by women, 33 per cent by people over 50 years of age and 29 per cent by overseas-born migrants. SME business support programs need to acknowledge this diversity and offer assistance through the provision of:

Coordinated and relevant business information to a very large number of small businesses through low-transaction-cost methods, for example through the internet

An environment that encourages the growth of small businesses, including macro-economic management, regulation review and tax reform

Support programs, where warranted, to eligible small businesses.

The practice of countries with developed market economies suggests that SMEs are successfully operating with the active participation of government and management in formulating and implementing economic policies that support small firms. In UK, the development potential of SMEs in many ways is not used: in industrialized countries, SMEs account for over half of GDP, - in five to seven times less (Mole, 2006, 885). Because of the nature of SMEs is most sensitive to changes in the environment even in the stable functioning of the economy, and because the external environment in the contemporary economy is extremely agile and variability, it significantly complicates the activities of small businesses. In this context, the questions become particularly acute increase the effectiveness of public policies to support SMEs, the need to develop a clear vertical structure that can effectively resolve conflicts that arise between small businesses and local, state and federal government.

Objective

The objective of this paper is to assess the effectiveness of SME business support Programs. To address the objective, the research will examine whether:

Business cases underpinned the development of support programs, and whether these were designed to address identified sector needs

Monitoring and evaluation of programs are regular and results are used to inform program management and delivery

The objectives of the support programs are being achieved

Statement of Research Question

What is the impact of effective business support on small medium enterprises?

Theoretical Rationale

The aim of the study is to investigate the effectiveness of business support for SMEs because the current situation is significantly different from the previous decade, when it came to shaping the institute of public support. At that time the principal was to create a regulatory framework to support and increase its volume. Today marked the problem to some extent resolved. More popular is the problem of the effectiveness of business support for SMEs. This, in turn, involves the production of adequate methods for evaluating effectiveness.

Implications for the Organization

SMEs play a huge role in ...