Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
|
Common Characteristics of SMEs (Name a few)
|
|
|
|
Quantitative and Qualitative
|
* number of employees
* type of ownership * sources of finance * legal structure * market share * management structure |
|
|
The Number of SMEs
|
Approximately 98% of all private sector businesses.
|
|
|
The Role of SMEs
|
* employ about 73 per cent of all the people working in the private sector.
* have created 80 per cent of Australia's employment gains during the past ten years. * produces approximately 50 per cent of all the products produced each year * generate an increasing amount of our total exports * account for 20 per cent of all money spent on Research and Development * provide a wide range of products used by large businesses. * earn more profits and pay more taxes than do large businesses. |
|
|
Contribution (3)
|
Gross Domestic Product
* Economic growth occurs when a nation increases the real value of goods and services over time. * Gross Domestic Product (GDP) --> economic growth = increase in GDP Employment Employed Australians will use the wage they have earned to buy goods and services to satisfy their needs and wants, supporting business and opening up further opportunities for job creation. Balance of Payments * The balance of payments (BOP) is a record of a country's trade and financial transactions with the rest of the world over time, usually one year. |
|
|
Success of SMEs
|
1. Entrepreneurial abilities --> People in SMEs are crucial to the success of the enterprise.
2. Access to information --> SME operator must have information regarding profitability, the quality of products and services and the performance of employees. 3. Flexibility --> the small size of the business allows the owner to adapt quickly to changes in the external environment. Fewer levels of management = quick decisions. 4. Focus on market niche --> Small business can concentrate their efforts on a few key customers or a specific segment of the market. More specialised and a higher level of service. 5. Reputation --> Develop a reputation for quality and service. |
|
|
Failure of SMEs
|
* A SME is classified as a failure when it is:
* unincorporated and declared bankrupt * incorporated and either forced into liquidation or voluntarily closes down because it cannot pay its debts and faces a cash flow problem. |
