SMALL BUSINESS ENTERPRISES

Small Business Enterprises

Executive Summary

Small and Medium Enterprises (SMEs) in Malaysia assist to economic development by virtue of their sheer figures and expanding share in paid work and Gross Domestic Product. Their function in the Malaysian finances will reinforce the resilience of the homeland to face a comparable and demanding international environment.

The National SME Development Council, chaired by the Prime Minister of Malaysia, has drawn out plans to journal the main heading and accelerated development of SMEs. These encompass the establishment and upkeep of a comprehensive National SME Database, expansion of amenities to enhance get access to financing, trading and promotion. In line with the aspirations of the Council, a baseline Census of Establishments and Enterprises covering the major economic parts of constructing, services and agriculture was undertook in 2005. Preliminary outcome got from the Census are offered to focus the rank and development of SMEs in accomplishing economic growth.

Table of Contents

EXECUTIVE SUMMARY2

INTRODUCTION4

DISCUSSION4

Defining SME4

Difference Between Micro, Small And Medium Sized Enterprises5

Problems SMEs Face6

Lack of IT Support6

Lack of IT Literacy6

Lack of Formal Procedure and Discipline7

Uneven IT Awareness and Management Skill7

Lack of Financial Resources7

Lack of Human Resources7

Lack of Experience of Using Consultants8

Contribution of SMEs to National Economy8

CONCLUSION13

REFERENCES15

APPENDIX17

Small Business Enterprises

Introduction

Malaysian SMEs are a crucial constituent of the country's economic development. According to SMIDEC (2002), SMEs accounted for 93.8 percent of businesses in the constructing sector. They assist 27.3 percent of total constructing yield, 25.8 percent to value-added output, own 27.6 percent of repaired assets, and provide work 38.9 percent of the country's workforce. In supplement, value-added goods from SMEs are anticipated to be worth RM 120 billion - or 50 percent of total output - in the constructing part by 2020.Despite these statistics, Malaysian SMEs' share of total trade items is roughly 20 percent smaller than numerous other countries', for example the Philippines, Hong Kong, Taiwan and even the US (SMIDEC, 2002). SMEs in Malaysia are intensified in the textile and apparel, nourishment and beverages, metals and metals goods and timber and timber goods sectors.

Discussion

Defining SME

SME is the identified abbreviation for Small and Medium Sized Enterprises. The most of the workforce is engaged by SMEs. In the UK, parts 382 and 465 of the Companies Act 2006 characterise a SME for the reason of accounting requirements. According to this a small business is one that has a revenue of not more than £6.5 million, a balance sheet total of not more than £3.26 million and not more than 50 employees. A medium-sized business has a revenue of not more than £25.9 million, a balance sheet total of not more than £12.9 million and not more than 250 employees. It is worth noting that even inside the UK this delineation is not unanimously applied.

Difference Between Micro, Small And Medium Sized Enterprises

Small and medium enterprises occasionally furthermore called small- and medium dimensions enterprises (SMEs) are advised significant drivers of discovery and change in Europe. Nonetheless, it is not habitually clear what is an SME and what is ...