SMEs are small and medium enterprises, that is, companies that have no more than 250 workers in total and a moderate turnover. They are companies of no large size or turnover, with a limited number of workers and that do not have the large resources of larger companies.
ADVANTAGES OF BEING AN SME
-They are closer to their customers.
It is one of the most obvious advantages. The medians and above all the small companies will deal more directly with their clients, which will enable them to more easily know their needs and offer a more individualized service, and even establish personal and attachment relationships with their users. Once they know the business, linking the client with the SME will often be easier than with a large company.
-They are more flexible.
Because of their size and simpler structure, they will have a greater capacity to adapt to changes. In addition, it will help them to be closer to their clients, which will allow them to know the variations in the market before anyone else. For example, they will have greater capacity to reduce their offer at times when there is no usual demand.
-They have greater facility to detect and take advantage of small niche markets.
Whenever you have your eyes wide open, an SME will have a greater capacity to detect and satisfy very specific needs of its customers than a large company, or will not detect, or will not be interested in covering, as it is a bit too small for her.
-They are faster making decisions.
In SMEs, decision-making capacity will normally fall on one person or on a small group. This will make them much more agile taking decisions than large companies, in which certain decisions often require activating complex decision mechanisms.
-It will be easier to link the staff with the company.
The greater proximity to the management and a more global vision of the business (in large companies the work of each employee is less comprehensive and more specialized) will make it easier to emotionally connect the worker with the company’s objectives. Often this will increase their motivation, and therefore their productivity.