What is the size of micro enterprises in your country in terms of establishment and contribution to country's GDP? How to transform Micro enterprise to Small enterprise, and small to medium enterprise?
Dear Rafiq Idris : small businesses can turn into medium, if government authorities want to care seriously about the suffering of small businesses, the government makes small businesses as partners to move forward together, the problem of small businesses is lack of funds, production processes, namely good materials, technological adaptation (including digital) , how to penetrate global markets (saturated local markets). multilateral cooperation with at least ASEAN-level small business actors. if the government and the private sector can overcome the above problems ... small businesses can fly and succeed slowly but surely. then making regulations for small businesses unmitigated must be focused and serious. Regards.
The real engine of sustainable and equitable growth for a country is the private sector where the Small, medium and micro-enterprises represent an important vehicle to address the challenges of job creation, economic growth and equity in a country.
Paul: In the United States economy, a Micro-enterprise is generally 10 employees or less. A small business is between 11 and 100 employees. Medium size companies employ between 101 and 500 workers. Large firms have over 500 employees.
I would be inclined to define micro-entrepreneur and SME by number of people employed, reflecting their respective business models. Micro-entrepreneurs are the designer, developer and provider of a product or service, with almost all functions outsourced--sales, logistics, payment processing, etc. SME use a wider range of internal services and outsource much less. Typically they have greater capital to invest in the business or lack the proper judgment to outsource.
In Brazil, public policies and the tax system leads SMEs to remain small, because when they grow, the incentives for companies reduces. This leads Brazil to become an environment of dwarf companies, they become old but do not grow.
Also I understand that the problem of the company is not its size, but to act alone in the market. Interorganizational cooperation seems to be a good alternative to them.
According to the Small and Medium Enterprises General Authority (SMEA) in the Kingdom of Saudi Arabia (Monshaat, 2016), it aims at regulating the small and medium enterprises sector in Saudi Arabia, supporting, developing and sponsoring it based on the best international practices, to increase the productivity of these establishments and increase their contribution to the GDP from 20% to 35% by 2030. In micro, the number of employees is between 1 and 5 employees, and the annual income is between 0 and 3 Million Saudi Riyals (SR). In small business, the number of employees is from 6 to 49 and their revenues are 3-40 million SR. Wheres medium companies, the number of employees is between 50 and 249, and annual income is between 40 and 200 million SR.