Focusing on the customer is becoming very important for SMEs to survive in the market. SMEs needs to fulfill the diversity needs and wants of customer to achieve competitive advantages. It is known that SMEs may spend up to five times more money to obtain new customers than to retain the existing customers (Payne, 2002). Therefore, SMEs need to keep their customers due to limited resources compare to acquiring new customers. Despite this, customer relationship management (CRM) has the potential to help SMEs in keeping customers more easily and also help SMEs seeking more potential customers.
In the raging markets of today’s economy, innovation is considered to be a tonic for the survival of all sized businesses. The growth and survival of firms are directly linked to their ability of continuous innovation. The above literature also proves the importance of SMEs on the overall economic growth Bowen and Ricketts, 1992; Henderson, 2002). SMEs are the most evaluated firms under the radar of growth by innovation. (Oke, Burke and Myers, 2007) suggests that one of the major reason for SMEs to come into existence is the development of radical innovation.
Small and medium enterprises schemes can be regulated after seeing the growth of Switzerland business schemes. Adopting small and medium enterprise schemes can be helpful in reducing poverty of the African countries. For the growth of SME’s African needs increased bank credit than before. The main reason behind the lack in the growth of South Africa is that they have less access to finance and financial activities. But in Switzerland they have all these facility that’s why they are a forward country.
Enterprise can benefit in managerial autonomy and these practices enable them in the commercial opportunities (Lu, 1997). The government allows small scale private enterprise to be set up in the urban areas. Private business also grows rapidly. Banks remain as state owned. There is a reformation of the State Owned Enterprise (SOE) so as to strengthen the economy.
This can be achieved through training but also requires commitment and trust in the process. • Another problem is of Investment. For a lot of SME’s still this is a long term investment, and it is difficult for them to make decisions around Branding. The budget allocated for
In recognizing the need for innovation and change in SMEs, the owner/manager needs to understand the strategic framework within which the organization is operating. This requires a full understanding of the firm's existing strengths, weaknesses, opportunities and threats. This should involve the consultation of all staff as to gain commitment to change and innovation (RT & Dale, 2008). Moreover, SMTE can gain sustainable competitive advantage through its ability to develop a set of core competencies that enables it to serve its selected target customers better than its rivals. Core competencies are a unique set of capabilities that a company develops in key areas such as geographic specialization and providing niche products (Yilmaz, 2009, p.162).Adopting recent advances technologies can also aid SMTEs in producing new products and services.
Until the late 20th century, business management 's issues and theories were following the giant companies model and the importance of SME in economic research was almost neglected. In the last two decades, SMEs started to be seen as a topic of research and studies and not just as a miniature of large company due to the differences between them and large companies in the way they operate and due to their significant importance to the economy of a country. It is clear now that the management of an SME requires specific methods which are customized this environment 's challenges. Managing an SME means many times managing a company where there is a lack of resources which influences the definition of its organizational structure. But we can state some common characteristics of SMEs:
However, the agency should to some extent work with the private MSEs and enhance networking between the government supported and private MSEs. This on one hand will solve the current delineation between the two categories especially among customers in offering lower price for government supported MSEs and empower the government supported MSEs from its business perspective. The manufacturing sector is crucial sector in transforming an economy. In Ethiopia its contribution to GDP is still very low and its growth has remained static for the past consecutive years. Thus, attention needs to be given to this sector.
Various studies revealed that SMEs use their practice more to manage the human resources in realizing their aspiration such as “compensation and rewarding”. Good management of human resource helps three fundamental intention of each enterprise: surviving, increasing and raising their incomes. On the other hand, it offers to them an easy confrontation with the market competitors which is very crucial. Key Words: Human Resource Management, SME, Organization, Recruitment, Appraisal etc Introduction Globalization, which has been alluded for years, is now much more of a reality. While its benefits are clear in terms of the new markets it opens, many business