SME Write for Us
SME is an acronym that means the “small and medium company.” It refers to a company made up of a small number of workers and a moderate net income volume. They are free to develop commercial activities in any sector or activity, be it production, marketing, or service provision.
SMEs include micro, small and medium-sized companies operated by a natural or legal person under some form of organization.
These companies comprise professionals with sufficient skills to perform in finance, marketing, production, or service in any other area.
SMEs are essential in a country’s economy because they participate in job creation and contribute to production, which gets positively reflected in its gross domestic product (GDP).
Thus, due to their size, objective, capacity, and need to compete, SMEs also usually need some help and protection from the State by granting loans or financing and aid in management, innovation, and technological development.
Advantages and disadvantages of SMEs
Advantages of SMEs
- Ability to generate jobs.
- Flexibility to adapt to new market modalities due to its size.
- Greater involvement of workers, thanks to their proximity to the company.
- Personalized service and treatment close to customers.
Disadvantages of SMEs
- Vulnerability to fluctuations in the economy (currency devaluations, for example).
- Limitations on economic capacity and, consequently, on the ability to compete.
- Less possibility of expansion.
- Dependence on State aid (financing) to make investments necessary for their growth, staff, and work tools.
SMEs in Mexico
In Mexico, the Undersecretariat of Small and Medium Enterprises has the fundamental task of designing and promoting tools and programs to develop, consolidate, and create micro, small, and medium enterprises.
The undersecretary established companies’ classification based on their activity sector and the number of employees through the Law on SMEs’ development and competitiveness.
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