Question

Choose two functioning MSME (Micro / Small / Medium enterprise - any business sector
of your choice) based in Oman. Describe at least two drawbacks or limitations each of
them is facing. Explain what you would do to improve efficiency of the companies.

Answer 1

We know that there are different types of enterprises like micro, small and medium enterprise. Each of these businesses have both advantages and disadvantages. In Oman small enterprises establishes with less than five workers and annual sales of less than O.R 25,000. Like that medium enterprises establishes with 10-99 workers and annual sales ranging from O.R 250,000 to O.R 1.5 million. There are somany drawbacks for small and medium enterprises.

Drawbacks of Small Enterprises 1. Financial Risk - Every new enterprise, eventhough it is small the start up required amount for purchasing materials and buiness establishments. The enterprise will incure certain cost. It is a burden for the start ups and it is a great risk for them. Many business owners take loans for starting business, which means they are in dbt from the first day onwards. It is difficult for the new entrepreneurs to repay the amount without attaining profit.

2. Time Management - For the success of a new enterprise, the owner wnat to spent more time. He needs an ability to manage the time for smooth functioning of the business.It We have our freedom to start our working. It is very difficult for new entrepreneur to work for more than 12 hours. It is only through the maximum utilization of time we can gain success fastly.

3. Stress and Health Issues - The tension and stress of business persons is very high. Because they always want to think and find way for the new sales and revenues. Most of the business persons are ther in debt. Repayment of this debt amount is a great burden for them. If the income varies every month, it will become difficult for the owner to repay the debt. Over work will generate lot of health issues and stress.

Drawbacks of Medium Enterprises

1.Working Condition - Medium size companies often offer less flexibility than a small company, where the boss and employees are close. This can lead to poor communication between the management if the company is large to have meeting with all staffs. Resources like laptop, mobile etc. for employees are limited in these type of companies because they dont have enough funding.

2. Advancement Opportunities - There is only less employees in a medium company and the possibility for promotion is very less. Like that there will be no transfer facilities in medium enterprises. Because there will be no branches for the company. The salary and other incentives provided to the employees will also low. Because the revenue of this type of companies is low.

3. Employee Training - There will be complicated works in medium sized enterprises. But there will be no trained and skilled employees for taking this task. Employees may also have vague job descriptions because there are fewer workers in each department. This type of companies also dont have enough money for giving traiing to its employees.

It is very necessary to improve the efficiency of the company to attain greater success. There are many ways to improve the efficiency of the company. They are:

  a) Implement New Technologies - Through introducing new technologies in the company it will help to increase the production fastly. It will save time and money. Through updating employees computer software he will become some more efficient to do job.

b) Streamline Social Media Marketing Efforts - In the modern world with the help of modern technologies we can promote products of the companies. Like that through social edia we can popularise the company to the world.

c) Analyse employees Processes - It is the responsibility of the company to provide necessary training to the employees. To become skilled and efficient they need proper training. Like that supervisors want to spend their time with the employees for helping and correcting their doubts.

d) Set Goals - Through setting certains goals of the company, employees become ready to complete the task within the specific period of time. Task must to be divided tmeach department and employees of the company.

e) Promote Open Communication - If there is a proper communication between the employees and management of the company, the productivity of the company will improve. It will help the employees to share the ideas with their boss. Team work will help to achieve the goals of the company fastly. If there is a friendly atmosphere in the company, it will help the employees to improve their confidence and to work efficiently.. Employees will become sincere to their company.