The Challenges for SME Business
In their first few years of business, small companies come up against a lot of different challenges. Some are harder than others to overcome — and according to the U.S. Bureau of Labor Statistics, about 20% of small businesses fail by the end of their first year. By the end of their fifth year, 50% go under; and by the tenth year, that number rises to 80%.
With survival rates like that, it’s easy to understand why business owners face the first few years of business with trepidation. But in fact, many common business problems and challenges are actually fixable, from difficulty finding customers, generating leads, and building an email list, all the way to hiring the right people and balancing quality, finance and growth. Many times, you’ll find you need to take a step back, take the time to understand the pain points you’re feeling, and re-think your strategy.
There is an increasing demand for expert support, advice, tools and processes that are effective, affordable and practical. And it’s even more critical during challenging economic times.
Most companies need specialist expertise and skills in key areas to be successful in a competitive business environment. Unfortunately it’s not always affordable to employ a team of full time ‘experts’. SME bBusinesses are constantly faced with the dilemma of which expertise is most needed at a particular moment in time in order to achieve ongoing growth and reach their business goals.
Business owners who need to outsource often get frustrated juggling the various providers across each of the marketing disciplines. Providers may provide good expertise in their specific discipline, but are often “blind” to the other business disciplines outside their area of expertise. This results in “pressuring” the client towards a solution that is perhaps not the best option to solve their problem.
SME Business in New Zealand
Did you know that around 92% of New Zealand businesses employ less than ten people, and that over 80% of these small businesses fail in the first 3 years? This market is vastly different to the USA market, which has economies of scale working in their favour.
SME Business in the USA
It is a common misconception that the U.S. economy is dominated by huge corporations when in fact roughly 99 percent of all independent enterprises in the country employ fewer than 500 people, meaning small businesses technically dominate the market in the United States, accounting for 52 percent of all workers