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The term used by SMEs in the European Union and other
international organizations to refer to small and medium
enterprises – companies that have a limited number of
employees is determined. The United States often use the
term SMB, for small to medium business. Classification as
an SME based on the number of employees, as a rule,
from 10 to 250 to 500, depending on the country where the
business is set up. All small and medium-sized enterprises
have common features, regardless of the industry and local
DEPENDENCE ON FEW EMPLOYEES
Many myanmar SMEs companies are quite small and have
only a few employees. This is a limited time to perform all
the necessary tasks, such as innovation, manufacturing,
marketing, sales and accounting for all business-required
personnel; for example, a business owner can also be a
manager, who oversees all aspects of the company. This
can be a disadvantage if the workers do not have the
necessary skill sets to perform several tasks well;
Nevertheless, this type of business structure contributes to
the long-term stability, rather than concentrating on short-
Most small and medium-sized enterprises concentrated in a
small number of products and services; This limited
approach allows these companies to establish strong
relationships with its business partners, which in turn,
provides stability for small and medium-sized businesses.
Small and medium-sized businesses, as a rule, makes the
necessary changes to their services or products that are
tailored to customers’ needs; The downside of this is that
SMEs are mainly based on existing partnerships and may
suffer financially if the relationship ends.
Small and medium business is a simple business structure
that allows us to be very flexible and make the necessary
changes quickly and without requirements such as address
or boardmembers shareholders for approval. This flexibility,
however, does not necessarily mean that the company is in
compliance with local and national regulations advice or
legal team of a larger organization to consider before
putting the changes into place.
The small size of the company can be an advantage when it
comes to specialization and fill niche markets with
products. However, size can be a disadvantage when it
comes to obtaining financing for the business. Many SMEs
based on the personal assets of the owners and
management to finance companies. Resource limitations
also affect the marketing and the ability to enter new
markets with their products, due to budgetary constraints.
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