Prelim Business Studies Mod 2 - Business Planning

What is an SME

A business that has less than 200 employees and / or less than $10m in annual sales revenue

What is the role of SME’s

Profit employment income choice innovation entrepreneurship and risk wealth quality of life

What are the 4 economic contributiosn of SMEs

GDP - total value of goods and services produced in a country over a period of time, employment, balance of payments - record of a country’s financial transactions with the rest of the world, innovation and invention

Success and failure of an SME

Success - flexibility, entrepreneurship, access to information, market niche, reputation. Failure - insufficient leadership, planning and execution. Failure of an unincorporated business leads to bankruptcy either voluntarily or involuntarily and failure of an incorporated business leads to liquidation either voluntarily or involuntarily

Personal quality influence in sme

Skills motivation entrepreneurship gender cultural background qualifications

What are the influences in an SME PEBSHFMLT

Personal qualities, establishment options, business idea, sources of information, human resources, finance, market considerations, legal, taxation