Key Success Factors for Small and Medium Enterprises

IntroductionThis research has been conducted on the basis of the exploratory research as we have referred to the information of previous studies and data to figure out the major success factors that can affect any small and medium enterprises.

Abstract

Since the last century, SME`s began to affect most of the countries'economy. It is almost certain that it can’t reach a specific definitionof the SMEs. Hence, SMEs have no exact definition thus, it differfrom country to another depending on the country’s understanding& acceptance of concept.

The World Bank:

Small facility has employs fewer than 50 workers.

Research ObjectivesAccording to the importance of the SMEs sector all over the world, its impact on the global economy, the direction of most states to encourage small and medium projects, and the direction of the banks for funding them, we need to:

Exploring the success factors of these projects and how to control the implementation of SME`s processes to avoid problems or projects failure.

Research ImportanceThirty years ago, the important of these enterprises become to show up and affect the economy and support the countries in most of the developing countries, which led to most of the countries government’s tend to help and support these enterprises by set programs and systems to finance and support them to provide more work opportunities, improve the social and economic life for the country.

Literature Review Papers about SME`s from Malaysia ‘’SME`s Experience in Malaysia”.

Papers from Egyptian banking institute (EBD) about the SME`s with title ‘’Determines of success of small and medium enterprises (SME`s).

From World Bank ‘’ Small and medium enterprises across country analysis with new data set” Jan 2011.

Small and medium enterprises with its boundaries and importance for Dr. Maher Hassan El-mahrok.

Personal experiences from working in banking sector.

Problem StatementThis research is very important as it will dig to identify the success factors in small businesses and especially the common factors which applies in most of businesses regardless the business field and country.

Besides some emphasis on developing countries, those factors besides each project specific factors if carefully taken into consideration should lead to the business success !

Research Questions1. From which aspect we could judge on the business weather it is successful or not?

2. Why some small businesses are successful and some others are not?

3. Do success factors in small business are the same in all fields and countries?

4. What are the most common success factors in small businesses?

5. What are the successes factors in small businesses in developing countries?

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VariablesAccording to the literature review findings, most important variables have been selected by which they explain the SME`s success factor, the success of the SME`s as a Dependent Variable.

This list is based on a collective reading of the previous studies literature reviews.

Key Success FactorsSource of

capital

Planning

Enterprise Size

Company Creation

Human resources

development

Management Information

Systems (MIS)

Actions of a Board

Perceptual Focus

Organizational Structure

Market Orientation

Owner / manager training

Entrepreneur Age

Owner`s Motivation

External environment-related factors

Independent variables

External environment-

related factors

Planning

Market orientation

Owner / manager training

Management Information

Systems (MIS)

Human resources

development

Key Success Factors

Research DesignOur research relied on Secondary Data; it has been a in-depth journey among a lots ofresources in an attempt to decode by exploring which has led us to the truth behind thesuccess of SMEs which is:

Identify Key Success Factors. Arrange Key Success Factors by influence & by Effect degree.

Data Sources: Financial Strategy Institute. Banking Institute. World Bank’s Papers & Magazine. International Monetary Fund’s Papers & Magazine. African Development Bank’s Papers & Magazine. Personal experience.

ConclusionFrom our point of view, we believe that there must be some general framework to the success of SMEs across the globe.

Recommendations1. Try to study the Business profitability, sustainability means to keep the improvement scale leading to an on-going

growth leverage.

2. There are factors that are common across borders not so apparent in different fields, of which we believe that we have shown:

I. Capital management

II. Objectives achievement

III. Future Planning.

IV. Efficient Enterprise Size.

V. Unique Company Creation.

VI. Intelligent Market Orientation

These could be only reached by strong, capable & experienced staff; either top management or employees

Thanks for your attention…….