The definition of an SME varies by country.
Pyme is the acronym for small and medium-sized enterprise . This is a commercial, industrial or other type of company that has a small number of workers and that registers moderate income: "My father works in an SME" , "Osvaldo started with an SME and today he is the owner of a national chain" .
Pyme is also often written as PYME and PyME . A related term is mipyme or MIPyME , the acronym for micro, small and medium enterprise , which takes into account the smallest types of business, such as sole proprietorships.
What is an SME
The definition of an SME varies by country . In Argentina , for example, companies are classified according to their annual sales and their sector (an industrial SME may have a turnover volume that, in another economic sector, would place it among the highest volume).
In other countries, the concept of SME is associated with the number of employees . Between 1 and 10 employees, it is called a microenterprise; between 11 and 50, from SMEs. These figures, however, may vary according to the region .
Instruments for its development
SMEs have specific needs that must be addressed by the State . This type of company generates, overall, great wealth for each country in addition to being one of the main drivers of employment . However, due to their particularities, they need protection and incentives to compete against large corporations.
Lines of credit with special conditions, tax benefits and free consulting are some of the instruments that the State usually offers to SMEs to develop.
The Internet is an essential tool for the development of SMEs.
Advantages of SMEs
* They present more flexibility than conventional companies in the production system ;
* allow you to establish a much closer relationship with customers;
* thanks to the greater simplicity of its infrastructure, it is easier to change market niches (the space where potential users or consumers of a service or product are located);
* jobs are broader, less strict, and workers are more open to change ;
* the higher level of specific knowledge and know-how , which occurs thanks to the closeness of the members to the day-to-day life of the company, can become an important advantage over the competition;
* the time required to make strategic decisions can be considerably less, given that the management processes are less complex;
* present a less strict vision , more focused on the needs and demands of clients (ever changing) than on their own roots, which gives rise to important modifications at a structural level, adopting the technologies and personnel necessary to face the challenges that They present themselves at every step.
Some disadvantages
* given that they move through emergent processes , they do not have specific guidelines related to their creation, but rather they experience constant changes and evolutions;
* They do not have significant financial support, which prevents them from embarking on large-scale businesses;
* require a constant review of their structure, given that their adaptable nature can become the reason for their dissolution due to the loss of organizational control;
* the greater closeness between workers can be negative if they transfer their personal problems to the office;
* It usually happens that there is no strict control of the entry and exit of money;
* the reduced production volume is reflected in the amount of orders placed with suppliers, which can lead to cost overruns ;
* If an effective and constant advertising campaign is not carried out, the company may go unnoticed by consumers.