Feedback For Marketing Strategy for Micro, Small and Medium Enterprises Cooperatives

Small and mid-size enterprises (SMEs) are businesses that maintain revenues, assets or a number of employees below a certain threshold. Each country has its own definition of what constitutes a small and medium-sized enterprise (SME). Certain size criteria must be met and occasionally the industry in which the company operates in is taken into account as well. Understanding Small and Mid-size Enterprise (SME) In the United States, there is no distinct way to identify small and mid-size enterprises (SMEs). The European Union (EU) offers clearer definitions, characterizing a small-sized enterprise as a company with fewer than 50 employees and a medium-sized enterprise as one with less than 250 employees. In addition to small and mid-size companies, there are micro-companies, which employ up to 10 employees. Special Considerations Small and mid-size enterprises (SMEs) are often considered to be the heartbeat of both emerging and developed economies. They are responsible for providing many jobs and in the U.S. contributed 46% of private non-farm gross domestic product (GDP) in 2008. Jobs and GDP Many people in emerging economies find work in small and mid-size enterprises (SMEs). SMEs contribute roughly 45% of total employment and 33% of GDP in these countries, according to the Organisation for Economic Co-operation and Development (OCED). The importance of small and mid-size enterprises (SMEs) is not limited to emerging nations. Between 2002 and 2012, small and mid-size enterprises (SMEs) created 77% of new jobs in Canada, nearly the same percentage as in most emerging economies. These companies are vastly important to the country's well-being, both in terms of creating jobs and generating tax revenues. The same is true in the U.S., where small businesses accounted for 64% of the net new jobs created between 1993 and 2011. Government Incentives Life as a small and mid-size enterprise (SME) isn’t always easy though. These businesses generally struggle to attract capital to fund their endeavors and often have difficulty paying taxes and meeting regulatory compliance obligations. Governments recognize the importance of small and mid-size enterprises (SMEs) in the economy and regularly offer incentives, including favorable tax treatment and better access to loans, to help keep them in business. They also offer education programs, coaching small and mid-size enterprise (SME) business owners on how to make their businesses grow and survive, as well as special audit programs to target high-risk areas and boost tax compliance. Compete Risk Free with $100,000 in Virtual Cash Put your trading skills to the test with our FREE Stock Simulator. Compete with thousands of Investopedia traders and trade your way to the top! Submit trades in a virtual environment before you start risking your own money. Practice trading strategies so that when you're ready to enter the real market, you've had the practice you need. What We Do A key area of the World Bank Group’s work is to improve SMEs’ access to finance and find innovative solutions to unlock sources of capital. Our approach is holistic, combining advisory and lending services to clients to increase the contribution that SMEs can make to the economy including underserved segments such as women owned SMEs. Advisory and Policy Support for SME finance mainly includes diagnostics, implementation support, global advocacy and knowledge sharing of good practice. For example we provide; Financial sector assessments to determine areas of improvement in regulatory and policy aspects enabling increased responsible SME access to finance Implementation support of initiatives such as development of enabling environment, design and set up of credit guarantee schemes Improving credit infrastructure (credit reporting systems, secured transactions and collateral registries, and insolvency regimes) which can lead to greater SME access to finance. Introducing innovation in SME finance such as e-lending platforms, use of alternative data for credit decisioning, e-invoicing, e-factoring and supply chain financing. Policy work, analytical work, and other Advisory Services can also be provided in support of SME finance activities. Advocacy for SME finance at global level through participating and supporting G20 Global Partnership for Financial Inclusion, Financial Stability Board, International Credit Committee for Credit Reporting on SME Finance related issues. Knowledge management tools and flagship publications on good practice, successful models and policy frameworks Lending Operations: SME Lines of Credit provide dedicated bank financing – frequently for longer tenors than are generally available in the market – to support SMEs for investment, growth, export, and diversification. Partial Credit Guarantee Schemes (PCGs) – the design of PCGs is crucial to SMEs’ success, and support can be provided to design and capitalize such facilities.