Structure and Culture of Small Medium Enterprises

Topics: Customer, Communication, Customer service Pages: 8 (2598 words) Published: March 24, 2011
SMEs Communication Development

What is SMEs?
‘ The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro.’ (Definition, 2011) Above explained is the new definition reconstructed by European Commission based on the developments to business environment. This was published in the year 2005 in their website further talking about the importance of SME’s to the European community in the report they issued. Looking further into how and why SMEs plays a major role in the business environment the report explains that, the 25 million SMEs provides 75 million jobs covering 99% enterprises in 25 European union countries. Nonetheless, SMEs has to face difficulties in capital and other important factors such as investment loans especially during the early stage which makes it less stable and short period existence for these types of businesses. (Introduction, 2011) However, some determined minds working through this field tend to survive the obstacles faced in the early stage and carry on with the other phases. Usually SMEs have less than 250 employees. This small community also has to have an intranet among them to be updated and connected to each another. One of the most common tools is paper based communication. Paper based communication requires plenty of paper, more procedure, and more time, which is less reliable and difficult to manage. It also has its advantage of having long time proof of records. But that is not the basic factor highly prioritized in today’s business world. As alternatives keeps the place tidy and stores the record internally in any hard disk or any software. Most importantly, company records are much safer where there is more IT involved. Though, communication is a basic factor in every business organization, not every company has established the latest technology of communication. Different industries or companies have communication process based on their level. Like, huge companies use modern and efficient and/or costly ways of communication whereas; small and medium enterprises (SMEs) use alternative modes which are cheaper and more procedure involved means of communication. This report is based on SME’s highlighting their ways of communication with their stake holders and most importantly, upon how they can improve the method of communication with lower cost. Instead of complicated communication systems these SMEs also could rely on more efficient ways which is more IT related. Among every possible upgrade the key factor for SMEs would be to analyze and go with the minimal cost plan.

Executive Summary
The introduction of the report explains about what exactly are SMEs. This highlights upon the business culture and structure also the methods they could apply in order to upgrade the existing techniques for an easier method of communication. Alongside, coming up with low cost upgrades as SMEs would not have huge amount in their turnover, moreover it would not be valuable for them for spend abundantly on communication within the organization. Hence, I have shared some opinions which they could rely on and at the same time which would fix into their budget.

The report further gives explanations on how the SMEs could grow in its scale by following some method to aware the customers of its existence. And what other IT related yet cheaper ways in which they could keep records like, stock, daily sales and attendance.

As far as record keeping is concern in a business organization, SMEs also needs to maintain daily stock report and sales report in a daily basis in order to avoid stock imbalance. If stock is not handled well as a daily/weekly, at the end of the year, missing stocks would be numerous and mysterious. This is going to be a hard task for the company to investigate specially for SMEs. The...

References: Definition, 2011, [Online] Accessed on February 7, 2011, via
Introduction, 2011 [Online] Accessed on February 7, 2011, via
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