Entrepenurship-6.What factors affect the development and Essay

Entrepenurship-6.What factors affect the development and implementation of effective strategies in small businesses(SME) - Essay Example The survival of SMEs within the modern market is a challenging task: the increase of competition globally has led SMEs to change their strategies in order to meet the demands of the market. Despite the fact that SMEs operate locally (i.e. only within a specific country, with exception in case of online activity) they should continuously review their strategic choices in order to ensure the effectiveness of their plans in terms of the market’s demands and the customer preferences. Current paper refers to the factors that can affect the development and the implementation of effective strategies in SMEs. There is no reference to specific country; rather a series of data and findings related with SMEs that operate around the world will be employed in this study. Potential suggestions will be also made under the terms that the strategic restructuring of a small firm is feasible under the conditions of its market and its financial strength to respond to the demands of the relevant e ffort. As already noticed above small businesses have a limited number of employees – that could be depended on the relevant governmental regulations (in the example mentioned above, the New Zealand, the number of employees of SMEs cannot be higher than 5). In this context, entrepreneurship in SMEs has to be appropriately customized in order to meet the demands of the market but also to respond to the needs of the firm. In SMEs their owner is usually actively involved in all operational activities; he’s not just a supervisor of the employees (although this option would be also available). In accordance with the above, entrepreneurship in SMEs should focus on the design and the development of the appropriate strategies that would support the increase of the firm’s productivity towards the stabilization of the firm’s position in the market. If the above target is achieved, the