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The fall in employment in UK, as stated by the DBIS is estimated at 0.74 percent to 13.6 percent million workers. It has likewise estimated a decrease in private sector employment in UK by 309,000, or 1.3% as compared to its 2008 employment figures.
Reasons for employment reduction in the SME sector will be investigated to provide information that could be used as basis for government policy decisions. Since the problems of SMEs lead to failure and eventually employment reduction, it is also important that that these problems be pinpointed as well.
The European Commission and McQuaid (2003) gave distinctions to a small and medium sized enterprise. In this respect, SME is categorized as
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However, the common perception about SMEs suggests that such firms involve less than 500 employees. It has been identified that SMEs in EU countries generally operate with less than 250 employees. SMEs are the prime indicators for the job creation and income generation opportunities for the economies of the world.
characteristics of the business organization, its management, its relationships with other entities and other contextual variables that lead or contribute to the business becoming successful. Furthermore, the focus is on a particular type of business and on those belonging to a particular country.
But times have changed with the globalisation regime multinational enterprises have made a distinctive mark on the local markets as well. While on the one hand this affected the economic factors of the region or country, on the other the SMEs started realising the need for pressing changes in the management of different aspects of the enterprise.
According to the essay, SMEs have become serious victims of jeopardy of late, due to various unfavourable factors making it difficult for them to sustain their existence. In order to eradicate such vulnerability, a number of practices like supportive tax reforms, financial aids, agreements with creditors and banks have been embraced by government.
urism sections, varying demand prototypes, the assertion for hospitality products in good quality and presents, the lessening charisma and mounting standardization of presents time after time initiate new questions for the quality assertion of SMHEs. Great quality of services
Hence, it provides a virtual medium where two parties can interact with one another and make financial commitments without necessitating any physical communication (Schniederjans & Cao, 2002). Financial commitments imply any business transaction characterised by an
The effect of globalization has consequently resulted in industrialization in developing countries. Many SMEs have then been set up through industrialization and therefore it has created employment opportunities.
Developing countries are among other factors,
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