This book is written for the students and entrepreneurs who will want to understand the role and meaning of SMEs (Small Medium-Sized Enterprises) in the globalization. In all countries of the world are the most companies small and medium-sized, but in the public and political focus stand mostly the "big ones". This is inappropriate because of the real role of "sustainable, smart, innovative SMEs" of global.
Experts from the "German Mittelstand", and International Sustainability Management has written this book which is oriented directly to Managers of Global SMEs 4.0 to Gain Sustainable Development Globally.
These days, SMEs (Small and Medium Sized Enterprises) play significant roles in economic situation of countries as well as sustainability and wealth. Therefore, creating successful and productive SMEs could influence on future of the countries.
An important shift has occurred from the “managed” to the “entrepreneurial” economy, associated with a fall in the importance of economies of scale in production, management, finance, and R&D. It mischaracterized by a series of trends encompassing the emergence of the knowledge economy, open innovation, global connections, non-technological innovation, the, Silicon Valley Business Model” and social entrepreneurship and social innovation. SMEs and new business ventures are important players in this new environment. They have a key role in processes of creative destruction, knowledge exploitation, breakthrough and incremental innovation, and interactive learning. Ensuring they reach their full potential requires a new innovation policy approach that facilitates entrepreneurship and SME innovation. Priorities include inserting new and small firms in knowledge transfer networks, strengthening entrepreneurship skills, and improving institutional environments for social entrepreneurship.
Small and medium-sized enterprises (SMEs) have a vital role in the private sector of each nation. Moreover, as the globalization increases, they began to have a very important role of opening the local products/services to the international markets, as well as competing with multinational competitors in the local markets. In the process of internalization, there appear various pros and cons for SMEs in global market. The benefits of smallness, flexibility, and rapid response to changes, on the other hand, the disadvantages of size may provide SMEs different paths in globalization phase. The factors that will provide SMEs through internalization vary from one country to another based on the economic, geographical, and cultural differences. This sort of investigation is very critical for the developing countries because the research outcome could be useful for the economic development planners as well as to individual entrepreneurs in the countries concerned.
The creation of new business ventures and innovation and sustainability in existing small and medium-sized enterprises (SMEs) are critical parts of today’s innovation process and should take a central place in government strategies to promote innovation. Despite their importance, however, SME and entrepreneurship support is not yet fully embedded in innovation policy, and the requirements for effective policies in this area are still not well enough understood. New firms and innovating SMEs are best seen as agents of change in the economy, introducing new products and services and more efficient ways of working. They underpin the adaptation of our economies and societies to new challenges and drive economic development. Not all new and small firms are equal in innovation, of course. On one hand, there is a small group of highly innovative and high-growth-potential firms with important individual impacts on jobs and productivity. But their numbers from the Entrepreneurship Indicators Project should not be exaggerated. They make up only a small minority of all SMEs.
Small and Medium Enterprises (SMEs) contribute significantly to the GDP growth and the economic development of a country be it developing or developed. SMEs provide, significant employment avenues, platform for creativity and innovation that stimulates national income, as well as entrepreneurial opportunities and social stability. Based on a study, International Finance Corporation (IFC) surmised that there is a positive correlation between the overall level of income of a country and the no of SMEs measured on a unit (per thousand) of population. According to the Organization for Economic Cooperation and Development (OECD), internationally SMEs account for 50% of GDP, 30% of exports, 10% of FDIs and 60-70% of the private sector employment. During the boom period of early years of the current decade (immediately preceding the recent slowdown), as per a nine country Asia-Pacific Survey done in 2007, HSBC bank opined that SMEs are considered to be the backbone of the economy in developing countries. There is certain degree of resurgence but in order to have an all-inclusive growth and to sustain it for a long time, it is imperative to focus on the development of millions of SMEs.
In previous case of the book, fundamental definitions and discussions related to SME, global SMEs and tools required to create successful and sustainable SMEs are mentioned. In particular, SME definition, leadership and management definition, entrepreneurship, business plan, human resource and SME growth, family business, marketing for SMEs, different kinds of management including risk management, human resource management, international management, international cross cultural management, international cutting edge management, behavioral economics; innovation and SMEs success; growing SMEs and technologies, roles of education, knowledge and intellectual capitals in SMEs success and sustainable SMEs were declared.
In this book, relation among sustainable development and sustainable, successful SMEs are declared. In addition, models to create sustainable, smart and successful SMEs as tools towards sustainable development and high quality of humans’ life are mentioned.
This book will be write based on the newest updated SME articles, books, the experience of Professor Dr. Hamid Doost Mohammadian and some other management and leadership books that is my main focus in the concept to bring target point of each item to prevent any time and resource wasting to whom they want to read and follow SME subjects and along with the descriptions we will bring real examples from both success and fail companies and also give shortcut to their abilities and disabilities.