The Importance Of SME In Business Management

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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
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The stability and the financial success of the company have a vital impact on the owner 's living . Most of the capital is usually supplied by the owner so he is heavily involved with personal…show more content…
The whole business depends on the owner or the few managers which makes the management significantly important for the company . This centralization of decision making into a narrow chain of command strains heavily the management and can lead to the risk of neglecting managerial responsibilities that can 't be delegated which can lead to "scape-goating" in situations of unsuccessful activities. Usually, the owners of SMEs are experts in their field. In many situations letting the decision making to handful people can be a factor of success for the company and this arises the importance of the managerial behavior for SMEs.
-Reflected owner culture and objectives
In most SMEs, the owner is the one who gives the instructions to the employees which provides a better overview, creates a personal trust relationship between employees and owner and motivates the employees as they responsibilities are rarely limited to individual functions.
The objectives of the SMEs are set by the owner, influenced by his personal values, willingness to take risks and possibly by personal fulfillment. Usually, and in contrast to large enterprises, there is no investors or supervising board intervention. So the owner-manager sets his own economic goals without being restricted by any supervising committee but only by legal requirements and by the profitability of the

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