Sme Sector In South Arica

CHAPTER 2 AN OVERVIEW OF SME SECTOR IN southerly AFRICA 2.1 INTRODUCTION 2.2 Nature of SMEs Researchers and scholars have failed to accomplishment up with a universally accepted definition of SMEs. A issue forth of countries define SMEs ground on the characteristics of the market in which the enterprise operates which has led to more or less countries defining SMEs based on the level of economic emergence (Analoui and Al-Madhoun, 2006:2). The future(a) section highlights on the major characteristics of SMEs: Characteristics of SMEs Pandey, Prasad and Shivesh (2007:2) identify the following characteristics in SMEs: ?Born by of individual initiatives &skills ?Greater in operation(p) flexibility ?Low cost of production ? higher(prenominal) desire to adapt technology ? eminent capableness to innovate & export ?High practice session orientation ?Utilization of locally available human & visible resources ?reducing of regional imbalances There atomic number 18 opposite features which atomic number 18 essential for SMEs besides the above mentioned for instance, contribution towards growth stomach servant product, providing a nationwide pool of skilled and train manpower and enhancing social aliveness in the country.

The characteristics differ accord to dissimilar countries though a number of common elements are identified such as number of employees, turnover and assets. ground on these facts, there is indispensableness to define SMEs comprehensively in legal injury of internationalist and South African perspectives. The planetary Perspective The European league military commission defines SMEs based on ternion major components which are the number of employees, the firms turnover and the balance sheet. As from 1 January 2005, the Union classified SMEs if the quantity stated in the prorogue which follows is met (European Commission opening and Industry, 2005); Enterprise category passing CountTurnoverBalance Sheet moderate sized little than or fitted to 250Less than or match to 50 one one thousand thousand million poundsLess than or equal to 43 million pounds SmallLess than or to...If you want to get a full essay, order it on our website: Ordercustompaper.com

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