Authors : Nur Raihana Mohd Sallem, Noor Emilina Mohd Nasir, Wan Mohd Nazif Wan Mohd Nori and Che Ku Hisam Che Ku Kassim
Abstract: Small and Medium Enterprises (SMEs) play a profound role in the economic development in many countries including Malaysia. However, due to an array of critical problems, many SMEs are unable to compete and sustain long enough in the marketplace. This scenario is worrying as SMEs form an essential economic component and are often considered as the engine of economic growth. In Malaysia, SMEs have been widely recognized as the backbone of Malaysian economic due to their strong contributions in promoting endogenous growth in industrial expansion and development. The significance of SMEs to the nation’s economic survival makes a discussion on numerous issues impinging the success of SMEs highly relevant and timely. The aim of the study is to discuss the critical problems affecting the SMES and the effects of such problems to the SMEs’ success and economic sustainability. In addition, the paper offers some suggestive actions that can be performed by the SMEs in overcoming the identified problems. It is hoped that the paper may add to the growing literature on SMEs in general and specifically in a developing country’s perspective. In view of the fact that SMEs are vulnerable to business failure, the actions suggested in the paper may offer some assistance to the SMEs in resolving internal weaknesses and help them become the organizations that are not only successful financially but also sustainable in the hostile business environment.
Nur Raihana Mohd Sallem, Noor Emilina Mohd Nasir, Wan Mohd Nazif Wan Mohd Nori and Che Ku Hisam Che Ku Kassim, 2017. Small and Medium Enterprises: Critical Problems and Possible Solutions. International Business Management, 11: 47-52.