CHALLENGES AND WINNING STRATEGIES OF SME’s
- Key challenges faced by SME’s: There are some of the key challenges faced by SME’s. They are:
– Increase in Operating Costs.
– Scarcity of Resources.
– Lack of Foreign Direct Investment’s.
– Lack of Technology.
– Lack of Marketing Assistance.
– Lack of Finance.
– Bad Economic Environment.
- Winning strategies of SME’s: There are some of the strategies of SME’s. They are:
– Focus on customer retention strategies.
– Focus on customer acquisition strategies.
– Business activity in new markets.
– Number of products/services offered by the business.
– Amount paid to staff.
– Sale of products/services online and offline.
– Number of sales promotions conducted over the year.
– Number of part-time or casual staff in the business.
– Dollar value of spending on marketing and advertising the business online.
Conclusion: Finally, SMEs are not exploiting other avenues such as Ghana Venture Capital Trust Funds, Micro-finance and Small Loans Center (MASLOC) among others to access loans to operate their businesses other than the banks and non-bank financial institutions. Even though these two institutions remain the major source of credit for SMEs, the SMEs inability to meet the stringent requirements of these institutions make these sources unviable unless there is a total change in the financial institutions lending methodologies, which will relax the criteria of these institutions to allow SMEs easy access to loans.