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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
The Importance of Small and Medium Enterprise Development for Efficient Global Market Environment
Author(s)
Darko Popadić
Vlada Živanović
Nada Živanovic
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DOI:10.17265/1537-1506/2022.03.003
Affiliation(s)
University “MB”, Belgrade, Serbia
State Audit Office, Belgrade, Serbia
University “MB”, Belgrade, Serbia
ABSTRACT
Small and medium enterprises (SMEs) play an important role in the world economy. Modern trends in the development of small and medium enterprises imply a constant increase in their role in the total income of an economy. For such an approach, it is important to achieve quality organizational and managerial concepts of planning strategy development.In many countries, small businesses dominate in the production of a number of smaller products, higher consumption, and high quality of these products. The concept of a small economy consists of a group of companies that stand out in terms of their characteristics in relation to large companies.In relation to large companies as business systems, SMEs differ based on the concept of their own organization’s business, the volume of business, and the availability of resources. Research data show that the main obstacle to efficient continuous business of SMEs in the world is the procurement and maintenance of business resources. Ensuring continuity in production is often a problem of lack of resources, which primarily characterizes them in relation to large companies.Small business and entrepreneurship are the main backbone of today’s economic development, viewed globally. The purpose of the development of small and medium enterprises in the world is to enable the development of a successful and flexible entrepreneurial climate as an important organizational determinant, which is a prerequisite for progress in the modern world economy.The feature of SME development is the innovation of employees that needs to be constantly developed. In that way, conditions are provided for technological development, formation of flexible organizations, and new employment.In practice, small and medium enterprises are the engine of economic development. It is a sector that promotes private property and entrepreneurial skills. According to experts on economic issues, SMEs are today and in the future, not only in Serbia, the Region, but also in the world, a synonym for the private sector—for entrepreneurship.Comparative analysis shows the advantage of SMEs, especially in flexible business, where they can quickly adapt to change and can fully meet market demands.
KEYWORDS
Small and medium enterprises, efficiency, market competitiveness,development strategy, global business
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