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At least we have dwelled in an economy that is SME driven for decades. Our very nation is known to recycle most of its transactions through the SME. It has stayed long no doubt but for another ‘how long?’. Why are many businesses folding?
The economic shift came with many disfavors and to add to that, many were just switching to whatever can put food on the table for at least. What was working became hot cake. Easily set up businesses were pondered upon and when it reached its peak, we starting seeing a free fall followed suit.
We are going to look into this industry in a larger scope. So what are SME; an easy to set up business model. It could be a sole proprietorship with few hands as the working force.
I was listening to such business talks few days ago as concerning how a big opportunity is opening up for SMEs. It was researched that big companies are not standing the test of time in our state. Well, there is also a comma here because these companies in quote are government owned companies.
There is nothing to doubt as concerning this one, there has been lots of flaws and mismanagement. Huge capitals are been pumped into projects with little to no auditing at all. So it turns back to the managers rather than the business itself.
We have seen private sectors thriving and the few companies around are more of hot cakes controlling and dominating a much larger market. So if you are to ask me, I wouldn't side with the idea that the future belongs to SMEs.
In short, they are the one suffering and going to suffer much of what is coming. How many SMEs have control over daily energy? It has laid to lot of delay in production. For instance, we had a black out for three days and there was little to nothing we could achieve by that time.
The reverse is the case for big business, they understand the volume matrix. Every expenses is been paid for by customers. In such down time, the greater masses including SMEs turn their attention to them.
So what am I saying; think big, executive bigger, SMEs are likely not to survive the next phase of business operations that is coming. Energy, equipment and the working force are becoming very expensive to handle on a daily basis. We can even talk of maintenance and technology.
The advertising industry is becoming very crowded with highest bidders making waves. You will need to be able to pull out bulk services and products daily to meet up and this is not what SMEs can achieve.