Operational Effectiveness Essay

Factors Affecting Operational Effectiveness

The study has anticipated zero-order correlation of all twenty variables considered for the study. The correlation matrix has shown that variables under study have formed several groups on the basis of relationship underlying between variables. Variables within the group have been found to have significant relationship at different level of significance. The correlation matrix of all 20 variables has been added subjected to principal component analysis. The Eigen values, the percentage of total variance, and rotated sum of squared loadings have been shown in appendix I. The factor matrix as obtained in the principal component analysis has also been Varimax Rotation. An examination of Eigen values

This factor includes three variables such as Tax reduction is facilitating SMES development/progress/growth, Simplification of tax payment/system/return process/procedure is effective and in fixing duty on finished products, under-invoicing and dumping should be considered. This has really reflected the actual scenario of being measures that should be considered for the progress of SMEs. The second most important factor is Custom Duty Reduction. This factor includes the variables such as reduction in tariff rate results higher productivity and import tariffs have been lowered and quantitative limitations were eliminated. These variables have been found that representing SMEs growth. The third important factor is one stop services which includes variables such as The registration/ formation of new company are simple, Capital funds are easily available and one stop existing agencies are supportive. These variables have been representing ideally the measures should be taken from the governmental level for the progress of SMEs of Bangladesh. Other important factors are access to information and SME policy reform factor in order to their

Now what is most important is giving due attention to its operational effectiveness. The current study reveals that among the factors, inter alia, the success of SMEs depend to a large extent upon such factors as management expertise skills, financial resources, government support, marketing strategy, technological base, strategic business plans and entrepreneur skills., product / service marketing, marketing research information, demand forecasting and analyzing, pricing policy and strategy, trained sales staff and market segmentation. Since this study covers only a very small number of SMEs located in a city having the ingredients of both commercial and industrial enterprises, a broad based study may provide detailed facts and information to be quite useful both for academic purposes and future