Introduction to Small and Medium Enterprise

Small to medium size business have particular problems that their face and that need attention. Small businesses do not have the facility for extensive division of labour the men are also able to purchase state-of-the-art technology and their overall balance sheet may be weak. Medium size businesses by contrast are larger but the smell may have some of the problems encountered by small businesses. For example, cash flow may be a problem whereas in large businesses it’s unlikely the cash flow will be a problem.
Despite the problems faced by both small and medium enterprises, they are an extremely important part of the economy. They contribute extensively to the national wealth, the extensive employment, and they are flexible and adapt to meet changing customer needs. Overall the small to medium size enterprise sector is highly desirable and is prized by most governments.

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