Inevitably is always better than large organizations at making Essay

Inevitably is always better than large organizations at making innovations - Essay Example Small and medium-sized enterprises are business enterprises which are seen to variously exhibit some common characteristics, which are; these business enterprises employ an average of up to about 250 employees, they have an annual turnover that is approximated as being not more than ?50 million and their management is also seen as largely independent in addition to being free from any outside control and influence in taking various principal decisions (European Commission, 2013). The Role/Place of Small and Medium-sized Business Enterprises in the Economy SMEs are important to all the different economies in the world, this is especially so to those economies found in the world’s developing countries that happen to be struggling with income distribution and employment challenges. During the 1980s, the total turnover, stocks and employment in most of the firms operating a wide range of business activities and services in the United Kingdom was seen to record spectacular growth. This growth was witnessed in the operations of all the large and small business enterprises. ... The number of SMEs within the United Kingdom has managed to record rapid growth during both the 1980s and the 1990s with estimates showing growth margins of from 57 percent to an average of 67 percent (Analoui and Karami 2003). The United Kingdom’s over 3.7 million SMEs are approximated to account for about 40 percent of the country’s total GDP. The SMEs also generate an annual turn over of about one trillion pounds in addition to employing approximately over 12 million people. Of the 2.3 million jobs that were created in the United Kingdom by the formation of new businesses between the years ranging from 1995 through to 1999, SMEs account for about 85 percent of this figure while they also accounted for more than 50 percent of the more than 3.5 million jobs that were gained as companies in the United Kingdom expanded over the same time period (Analoui and Karami 2003). Despite small firms accounting for such a large portion of the country’s GDP, Britain has been show to be relatively poorly endowed with small firms (Nelson, 1993). As a consequence of the trend showing constant growth of SME’s both in the United Kingdom and the world, SMEs have been noted as accounting for an average of about 99 percent of all businesses in the United Kingdom, while globally, SMEs are seen to account for business enterprise in excess of 99 percent of all the businesses that have been established. It is due to this that SME are considered to be the largest contributor to both the gross domestic product and the employment rates of all the countries in the world (Nwankwo and Gbadamosi, 2010). In order for SMEs to compete successfully and improve their chances of