Small- and Medium-Sized Enterprises (SMEs) contribute hugely to the economic status of different states. However, these businesses face numerous challenges that prevent them from achieving their potential.
From finances to marketing challenges, there is a lot that governments can do to support SMEs. Some of these challenges have blocked potential entrepreneurs from entering the business world.
If proper measures were put into effect, SMEs would have better chances of thriving.
The following are a number of ways governments could extend help to struggling SMEs.
The most critical challenge faced by a majority of SMEs is the lack of adequate finances to run their businesses. This particularly affects start-ups when it comes to accessing loans.
In most cases, a lack of security prevents them from acquiring loans from creditors. This is a potential area where governments can help boost their prospects.
For instance, governments can offer collateral and allocate funds for supporting SMEs. Coming up with financial programs to boost SMEs may bear positive results.
Another problem involves large taxation fees that stunt the growth of SMEs. If governments can reduce taxes on SMEs, this could serve to enhance their chances of success.
The next most challenging issue among SMEs is how to derive revenue after getting funds. Unfortunately, marketing is a common challenge even for professional entrepreneurs.
Knowing which marketing tools work well for your business is a daunting task. Moreover, it is expensive for SMEs to hire marketing consultants – and this is where governments can come in.
For instance, a possible solution could be the provision of free or subsidised marketing consultation services. If not consultations, then maybe the holding of business marketing workshops for SMEs.
Governments should also support SMEs in their effort to enter the export market. This would expose them to international markets and improve their overall economic status.