According to the EU definition adopted on January 1, 2005, small and medium enterprises are based on the amount used in the firm. A micro organization is defined as a small firm that employs 9 employees, with a turnover of fewer than 2 million Euros, 10-50 employees, and a turnover of fewer than 10 million Euros. A medium-sized company is defined as having 50-250 employees and a turnover of no more than € 50 million. Small and Medium Enterprises (SMEs) are considered as organizations that contribute to the economies of many countries and new opportunities are opened to them in the domestic and foreign markets. SMEs need to grow to remain competitive in this market. According to researchers, there is no single theory that can explain the growth of SMEs adequately, but the importance and use of the Internet are becoming increasingly clear among small and medium businesses.
However, despite the Internet’s potential, most companies don’t see it as the key to their growth strategy. The purpose of this article is to examine how SMEs use the internet in their growth strategies. These companies use the Internet in their specific growth strategies to improve internal and external communications, shorten new product development cycles, expand regional and global geographic markets, export at low cost, and provide customer support. However, the firm does not use much of the Internet for advertising and creating new distribution channels. The companies surveyed have embraced mid-level Internet integration and recognized the importance of higher levels to maximize their growth strategy. This article will discuss some background information on growth strategies for SMEs. Next, the role of the Internet in specific growth strategies will be discussed.
Small and medium enterprises (SMEs) are widely recognized as important sectors for national and international economic development. Growth-driven small businesses contribute significantly to economic development and job creation in the local community and the national economy. The use of the Internet and communication technologies have been found to increase business competitiveness, with SMEs having the opportunity to compete on a par with larger organizations. The development of e-commerce around the world over the last decade has included an increasing number of businesses. A company must continue to grow if it wants to maintain its competitive advantage, otherwise its competitors will continue to grow. Continuous growth enables companies to survive in a competitive environment. Therefore, companies must strive for continuous growth to increase or simply maintain their sales and profit levels to ensure their survival.
However, other firms can increase sales while reducing employment. Fast-growing companies tend to differ significantly in terms of growth smoothly or in one or several large steps and grow organically or through acquisition. Besides, these firms can grow within the original legal entity or by adding additional assets and thus creating corporate groups. Winning the growth game requires the company to be successful in key areas. Based on a realistic assessment of their strengths and limitations, they truly understand their capabilities and develop operating models to support their growth strategy.
Finally, while many companies develop excellent plans, growth-oriented companies truly succeed in developing trust throughout the organization that translates intentions into actions for everyone from top leaders to frontline executives. Mintzberg et al. (1998) argue that strategies implemented due to imposed and emerging conditions that interfere in the strategic process are rarely the same as the intended strategy. According to Keogh and Evans (1998), issues involving competition strategies can be very important for small companies and experience significant pressure, especially when they operate in specialized markets. It is also possible that they will not have a specialized department that can plan their corporate strategy and become the owner or senior manager of the company that needs to formulate and implement their strategies – which may have an ‘entrepreneurial strategy for some companies. For others, it may arise as strategies develop. Organizational sociologists study the dynamics of strategic evolution because survival and growth factors often look beyond strategic “operational” issues. Instead of focusing on sales and profits, organizational sociology focuses on the development of the environment and the impact of the structures that drive organizational change. Researchers often challenge conventional thinking in dealing with strategic problems; they frequently question traditional strategy approaches based on long-term planning and competitive advantage through robust strategies for short-term, flexible, and easily adaptable processes.Let’s refer to the Growth Strategy for Small and Medium Enterprises (SMEs). TIME is an Internet Communications Service Provider that provides the fastest internet speed in Malaysia. Therefore, apply “Time internet” Malaysia for the progress of your small and medium enterprises as technology has changed and this has led to a major development for business success.