A review of academic research undertaken in relation to Small and Essay

A review of academician research undertaken in relation to Small and Medium Sized Enterprises - Essay ExampleIn the study, join Kingdoms SMEs have been observed. It has been place that SMEs also have a role to play in the economy of the UK. However, there be underlying challenges and problems that the countrys SMEs present which need to be communicate by the government and other stakeholders involved. The paper intends to identify the current academic research into minor(ip) and medium sized enterprises and the major issues faced by these firms. It also tries to present the role of SMEs in the UK. The paper volition try to cater a brief summary of the overall scenario at the end and pass on provide recommendation based on the challenges that the SMEs in the UK face so that significant improvements in the SMEs can be introduced and better opportunities created. Table of Contents 1 Executive Summary 2 Introduction 4 circumstantial round into Current Academic Research 5 Cha llenges of SMEs 7 Role played by SMEs in the United Kingdom 8 Conclusion and Recommendation 12 References 14 Introduction Small and medium-sized enterprises (SMEs) are those firms that do not have any subsidiary and are independent in nature thereof employing a certain number of employees. The number of employees may be different in different countries. In European Union, the limit set for employing the employees has been set to 250 for SMEs. However, certain countries lay down the limit of employing 200 employees. The aim of the financial assets is also evident in order to define SMEs. A new European definition of SMEs came into existence in the year 2005. The new definition offers increase in the financial upper limits and and then it states that the turnover of medium-sized enterprises must not be more than EUR 50 millions. Similarly, the turnover of small enterprises must not be more than EUR 10 millions and for the micro firms the turnover must not go above EUR 2 million. Co nsequently, the balance sheet of the medium enterprises must not surpass EUR 43 millions. The balance sheet of small and micro enterprises must not go above EUR 10 million and EUR 2 million independently (OECD, 2005). The SME sector comprises a wide range of firms such as recognized conventional family businesses that utilize considerably-nigh hundreds of workers. The SME sector also makes use of survivalist self-employed workers functioning in unorganised micro enterprises (International Institute for sustainable Development, 2004). The main aim of the paper is to identify the role of the SME in the economy of the United Kingdom. The study will try to focus upon the current academic research on SMEs. Theories on SMEs will be identified and the role of SMEs in an international context as a mechanism for job creation, innovation and dogged term growth will be studied in detail in the sections below. Critical Review into Current Academic Research Small and medium-sized enterprises c an avail innumerable behavioural benefits in likeness to their larger counterparts in the process of innovation. However, it has been identified that they also face certain material disadvantages. The problem they face has been evident in the process of developing suitable network of contacts with outside sources of both mechanical and technological expertise as well as advice (Rothwell & Dodgson, 1991). It is quite difficult to measure the importance of SMEs. However, it is a well known fact that small and medium enterprises are considered as the basis of most of the economies, generally in relation to influences on employment as well as