SMEs is the term for small and medium-sized businesses – a type of business that thrives in an open market economy. But what are the characteristics of SMEs and what determines the existence of this type of company which represents 95% of companies in this market?
To learn more about small and medium businesses, please refer to the article below from HRchannels.com on “6 Things You May Not Know About SMBs”.
1. What is an SME?
SME Business means the expression small and medium enterprise or small and medium enterprise), also known as small and medium sized enterprises.
It’s no surprise that “SME customers” is the name banks give to small and medium-sized businesses, as most SMEs are close “partners” who borrow capital from banks. Thanks to this, SMEs have the opportunity to expand their business market and be healthy competitive in the market.
2. Intellectual property – the value “lever” of SMEs
Business assets are divided into two types: tangible assets including offices, facilities, infrastructure and intellectual assets including human resources, ideas – product brands and other creative products of the company. business.
Intellectual property helps protect the legality of the products/services provided by the company as well as intellectual properties such as the company’s brand and reputation among investors, partners and potential customers.
Additionally, registering intellectual property rights can help SMEs increase their market value when they make sales, mergers or acquisitions with partners of products or any other value they create.
Therefore, protecting intellectual property rights is a “huge” profitable investment because the values your business brings to customers will be unique, not allowing any copying or hybridization without receiving your permission.
3. SMEs in the era of digital marketing
Contrary to traditional thinking, SME managers today invest heavily in technological applications to optimize communication channels for company products.
Not to mention, artificial intelligence, such as commerce applications on mobile platforms (mobile apps), is helping to fuel the e-commerce market – a shopping channel that generates “huge” revenue for SMEs.
This helps SMEs “get closer” to the opportunity to cooperate with FDI companies with foreign investment capital to transfer technologies to improve product/service quality, improve customer experience and attract future investors.
>>See more: 6 differences between SMEs and Startups
4. Contribution of SMEs
SMEs also contribute 30-53% of total GDP revenue and produce between 19-31% of total exports to foreign markets.
In addition, small and medium-sized enterprises also provide career opportunities for millions of domestic workers, especially local workers employed by large companies or foreign-invested multinational companies. This contributes significantly to solving the problem of unemployment and economic restructuring.
5. Size and revenue of SMEs
In Vietnam, according to the fields of agriculture, industry, commerce and services, small and medium-sized businesses are divided into 3 large groups:
Micro-enterprise: size not exceeding 50 to 100 employees with a total annual turnover not exceeding VND 10 billion or total capital not exceeding VND 3 billion.
Small businesses with no more than 50 to 100 employees with a total annual turnover not exceeding VND 50 to 100 billion or total capital not exceeding VND 20 to 50 billion.
Medium-sized enterprises with no more than 100 to 200 employees, a total annual turnover of no more than VND 200 to 300 billion, or total capital of no more than VND 100 billion.
6. In which areas do Vietnamese SMEs operate?
Most SMEs focus on areas that do not require high capital resources such as: Nurseries, Beauty Spas, Clinics, Restaurants – Hotels, Fitness Centers,…
However, only 21% of these companies participate in the global supply chain to maximize connections with other countries. FDI companies. To do this, SMEs must guarantee certificates of social responsibility, factory safety and production management, etc.
Above is information revealing “6 Things You Don’t Know About SMEs – Small and Medium Enterprises”. Hopefully the above article from HRchannels.com will provide you with useful information before operating and managing a small and medium-sized business. If readers have any questions or suggestions, please comment in the comments section below the article.
If readers have any questions or suggestions, please comment in the comments section below the article.