Provide a 5 pages analysis while answering the following question: SMEs and Growing Approach. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. The presence, efficiency, and growth of SMEs are crucial for any country’s economy this paper focuses on the ways in which SMEs can attain sustainable growth. Moreover, the paper would also critically analyze the advantages and disadvantages of any one of the possible strategies adopted for growth by any SME.
It is important here to understand that many SMEs all over the world suffer from this problem of sustainable and continuous growth. One may question that the concept of growth comes in when survival is not under threat. Obviously, growth precedes existence and ensuring existence comes first. However, existence is just not the problem of SMEs. This is because most of the SMEs operate those businesses, which are “recession proof.” These businesses actually sell products are services which are either necessity goods or supplements of necessary goods. Moreover, many SMEs actually witness a boom in their sales during tough financial times. The signal is towards the businesses of repairs and maintenance.
During the recession, people restrain themselves from buying brand new items and products. They prefer paying a little for the repair or maintenance of the old one to extend its life to little further (Levy & Powell, 2005). In addition, the SMEs, which have their business online, just seem to be immune to all these. Therefore, the question is all about the growth of these businesses. Most of the SMEs just attain some growth while they are young and once they grow a little older, the trend takes a U-turn (Hallberg, 2000). Therefore, it is important to come up with a formula with which an SME can actually attain sustainable, continuous, and long-term growth. Therefore, the paper would now move forward with discussing the same.
The first problem and the biggest problem that these SMEs face, have links with the type of the businesses they operate. Most of these businesses are those with seasonal sales and occasional booms. .