{"id":2154,"date":"2023-12-15T14:52:56","date_gmt":"2023-12-15T06:52:56","guid":{"rendered":"https:\/\/salesninja.asia\/ninja-blog\/?p=2154"},"modified":"2024-08-01T11:29:09","modified_gmt":"2024-08-01T03:29:09","slug":"the-challenges-smes-are-facing-over-the-years","status":"publish","type":"post","link":"https:\/\/salesninja.asia\/the-challenges-smes-are-facing-over-the-years\/","title":{"rendered":"The Challenges SMEs Are Facing Over The Years"},"content":{"rendered":"

Small and medium-sized enterprises, commonly called SMEs, significantly contribute to economic growth and innovation. Despite their ability to adapt and recover from setbacks, these businesses consistently encounter a range of challenges that hinder their sustained growth. These challenges have persisted, posing obstacles to SMEs’ development and longevity.<\/p>\n

Some of these challenges are tough to tackle. Shockingly, the U.S. Bureau of Labor Statistics says that about 20%<\/a> of these businesses close down in their first year. With those numbers, it’s no wonder people get nervous about starting a business. But the good news is many of the common problems businesses face can be fixed. Sometimes, you just need to take a step back, figure out what’s causing the problems, and change your plan.<\/p>\n

So, here we’ll discuss common SME growth challenges and provide practical solutions to ensure business resilience and success.<\/p>\n

Small and Medium-sized Enterprises (SMEs) – What do they entail?<\/h2>\n
\"SMEs,

Small and Medium-sized Businesses<\/p><\/div>\n

SMEs, which stand for small and medium-sized enterprises, make up the majority of businesses worldwide, and they are often independent firms striving for growth and success in their respective markets. However, they can be defined in various ways depending on the country. Each country has its specific criteria for categorizing a business as an SME. These criteria may include factors such as the company’s annual sales, the number of employees it has, the value of its assets, its market capitalization, or a combination of these factors. Additionally, the definition of an SME may vary between different industries within the same country.<\/p>\n

In general, SMEs are businesses that are smaller in size and typically have fewer than 50 employees. However, the maximum number of employees that qualify as an SME can differ from one country to another. For most companies, the upper limit is around 250 employees, although some countries set it at 200.<\/p>\n

Key Challenges That Small and Medium-sized Enterprises (SMEs) Encounter<\/h2>\n

SMEs encounter challenges due to increased competition, adapting to changing market demands, technology shifts, and limitations in knowledge, innovation, and creativity. However, the significant challenges they face with their small size, and limited resources are:<\/p>\n

    \n
  1. \n

    Finding\/Attracting New Customers<\/h3>\n<\/li>\n<\/ol>\n

    Statista’s research<\/a> revealed that between 2016 and 2018, the most significant challenge faced by SMEs in the UK was attracting new customers. However, this challenge isn’t exclusive to the UK or that specific time frame\u2014it’s a global issue that even the largest and most successful companies continually grapple with.<\/p>\n

    \"SMEs,

    Statista’s Research<\/p><\/div>\n

    But, larger companies often have an advantage in attracting new customers due to their strong branding and financial resources. In contrast, SMEs frequently find themselves challenged by their limited resources and smaller budgets. Compounding this challenge, the cost of acquiring new customers has surged by almost 60% over the past six years, intensifying the pressure on businesses of all sizes, particularly small and medium-sized enterprises.<\/p>\n

    So, what should small and medium-sized enterprises do to address this persistent challenge?<\/b><\/p>\n