SMEs : Small Medium Enterprises
Posted On Tuesday, September 9, 2008 at by Sun JunHere are some interesting facts about SMEs here in the Philippines.
- Small and Medium Enterprises are businesses with a maximum of P100 million in assets and employing 200 employees, regardless of industry or ownership type.
- 99.6% of all businesses registered with the Department of Trade and Industry are SMEs.
- 97.1% of these are Micro enterprises, 8% are Small enterprises, 1% are Medium enterprises
- Micro enterprises are businesses with assets of P1 million and below
- SMEs are the biggest job creators in the country employing 67.9% of the country's labor force or 3,877,369 people.
- Top 5 job creating sectors: Wholesale and Retail, Manufacturing, Hotel and Restaurant, Real Estate, and Intermediation
Observation fact: Small and medium business owners are known to shy away from research and development and information technology, finding these either to be too costly or don't serve their companies' needs. For instance, SMEs are averse to developing product standards because it means having to share their "trade secrets." This renders many enterprise operations to be labor-intensive, resulting in low productivity and product quality, inefficient operations, and sluggish growth rates.
Source: I'ts About Time by Katrina Tan from The Ultimate Guide to Starting Your Own Business
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