Small and medium sized businesses, also called SMBs or small and medium enterprises or SMEs are
companies whose headcount or turnover falls below a certain limit. (Wikipedia, 2007).
SME is an abbreviation which is common particularly in the European Union and other international
organizations like World Bank, the United Nations as well as the WTO. It also commonly occurs as a standard term in other
countries as well.
In the past, the European Union Member States had a definitive explanation of exactly an SME constitutes.
For example, conventionally; Germany had a limit of 500 employees, while, for example, in Belgium it could have been 100. (Wikipedia, 2007). Now, the European Union has
standardized the concept, in which a “small business” would constitute a company with less than 50 employees and
a company with less than 250 employees would come under the definition of “medium sized business”. In the United States there is a variation in terms of the above figures
to fit the SME definition. In the United
States, a small business refers to fewer than 100 employees while a medium-sized business
constitutes less than 500 employees.
Business Enterprises which comprise of less than 10 employees are categorized under SOHO
(for Small Office/Home Office). Among the majority of economies of the world, the number of small enterprises is greater in
number. In the European Union itself, Small and Medium Enterprises comprise approximately 99% of all firms and employ between
about 65 million people. (Wikipedia, 2007). These SMEs are often the driving force of creativity and innovation and impart
the impetus for future competition as well.
While financing the Small and Medium Businesses forms a vital aspect of economic policies, the SMEs
find themselves constantly competing with the large firms. This is primarily because they possess a relatively smaller reserve
of resources; be it human or financial. Resultantly, due to limited resources, SMEs are able to afford only a few IT initiatives
as compared to the bigger giants.
“BI or Business Intelligence includes all the technologies that support end-user access to,
and analysis of, quantitative information resources”. (Gdspublishing, 2007). Business Intelligence can facilitate planning
of future strategies by enabling analysis of information, thereby strengthening the small and medium businesses. Successful BI initiative can help enhance competition and offer the required flexibility. When equipped
with Business Intelligence; small and medium businesses can take advantage of the changing market environments and conditions.
The small and medium businesses usually avoid the risk and trial and error methods of testing technology.
Only when a particular technology starts to mature; that the company is willing to try it after careful investigations and
its degree of success or failure with the larger companies. In time the IT pricing usually dips making it more affordable
for the small and medium businesses (SMBs). The SMBs are constantly revolutionizing themselves primarily because of adopting
advanced technologies. In order to retain and enhance market credibility and a competitive edge, channelization of resources
into e-business activities can further the growth of the SMBs.
Wikipedia: The Free Encyclopedia (2007) “Small and
Available from: http://en.wikipedia.org/wiki/ Small_and_medium_enterprise
Plumb, Stewart, Arcplan (2007) “Empowering small and
medium businesses with BI” Available from:
http://www.busmanagement.com/pastissue/ article.asp?art=24055&issue=115 Accessed: 10/25/2007
Venner, Susan, Business Credit (2000) “Help for small
and medium-size businesses: A clear path online through the telecommunications maze”
http://www.allbusiness.com/technology/ telecommunications/660819-1.html Accessed: 10/25/2007