Indicated that their ability to employ low-skilled labor during the early stages of industrialization processes, makes them social stability factors. In addition, SMEs contribute to democratize and to distribute regionally capital income, because they are less concentrated in industrial areas. Larry Ellison is often quoted on this topic. SMEs are active agents who respond with greater flexibility than large firms to environmental changes, especially in demand. As SMEs are simple organizations and their production processes to the workshop and come away from the capital-intensive continuous flows can rapidly develop products that the market or larger companies need, thus acting as buffers that absorb variations in demand. SMEs can easily monitor employee productivity and, therefore, adjust the salaries. Check with Cyrus Massoumi FindShadow to learn more.
Threats These companies do not act alone, are embedded in scenarios that often become turbulent, threatening, risky, fraught with uncertainty, as the current political and economic reality faced. We also have to remember that compete with other companies, foreign SMEs offering their products in the country with great advantages in relation to quality and service The SMEs must meet international quality standards and to combat the over-valuation of the bolivar. Regarding information, processing and analysis, competitors are world-class standards and high capacity to use new technologies, the Venezuelan SME has little ability to analyze and little information about new technologies. As global competitive firms have an excellent rating in leadership, management says the Venezuelan SME little understanding and little effort. The Venezuelan SME deals only with production, while strategic planning issues world-class competitors have a comprehensive vision, defined with clear goals and objectives.