Some problems face by small and medium business owners

[btaliat]

Most of the time, unemployment and passion for business make some people to venture into business. However, lack of enough capital turns them to small and medium scale business persons.


There are many problems that these SMEs (Small and Medium Scale Enterprises) face. These problems are dream killers for anyone who doesn't have solid determination.


Access to loan is the first on my list. We all know loan is mostly used by the business owners to expand their business. But because the banks don't always belive in the future of the SMEs owners, or maybe there is other reasons, they don't always give them loans.


Another one is survival amidst stiff competitions. The large scale business owners intentionally don't want the medium ones to grow. They hereby intentionally frustrate their efforts especially if they are situated in the same place. They may intentionally introduce promo or furnish their shops to entice buyers against the medium owners

Which other problems can you think of?

 

[Bookwormlux]

Another problem faced by small businesses owners is lack of online presence which makes them to lose out, especially when their services could be very useful to people online too, but because they are still struggling to get it right, they end up not being able to establish an online presence for their businesses.

 

[Augusta]

Most of the time, unemployment and passion for business make some people to venture into business. However, lack of enough capital turns them to small and medium scale business persons.


There are many problems that these SMEs (Small and Medium Scale Enterprises) face. These problems are dream killers for anyone who doesn't have solid determination.


Access to loan is the first on my list. We all know loan is mostly used by the business owners to expand their business. But because the banks don't always belive in the future of the SMEs owners, or maybe there is other reasons, they don't always give them loans.


Another one is survival amidst stiff competitions. The large scale business owners intentionally don't want the medium ones to grow. They hereby intentionally frustrate their efforts especially if they are situated in the same place. They may intentionally introduce promo or furnish their shops to entice buyers against the medium owners

Which other problems can you think of?

I think you just mentioned the two issues that really affect businesses in general, some businesses need good capital and savings can’t cut it. So one needs a loan to push the business forward but without any, it becomes a bit difficult. Competition is also a problem but it can be fought with good strategies

 

[Chibson]

this is the reason why it is very important for any business man to have proper knowledge of the kind of business he is venturing into. There are some problems faced by small and medium scale businesses. Some of the problems may be traced financially and some maybe to do with lack of proper knowledge or understanding of how such businesses operate.

 

[funmi]

Another challenge I believe they are facing with is the lack of technical know how. Many of them do not know about the business they are venturing into. They just dabbled into the business because they heard that some people are making it, so they too just went for it. This is one of the problems I know.

 

[Alexandoy]

It is so difficult to obtain a business loan from the bank for small businesses. There are so many requirements to prove your capacity to pay back the loan. Another issue are the validity of the documents like business permits, tax returns and some banks would even require the certification of the major customers.

 

[Jasmine]

I do not think getting a loan is difficult if you have a legit business. Banks will always be interested in investing in small and medium businesses because these business can scale provided they have enough funding. However, you need a business that is already making profit and also have something for collateral.

 

[Abigael]

Those are real problems that SMEs face that you have mentioned there. Indeed it gets so hard for small and medium businesses to secure loans. Then there is the issue of high competition rates. Both between the SMEs and from large scale businesses. Another challenge that they face is the taxes imposed on them. Sometimes they can go so high hence affecting the business.

 

[niche]

One of the main problems faced by SMEs is the lack of orders. In some countries, large companies are well connected and steal the leads, orders of small business owners with the help of security agencies, who make fake security threat allegations. So even if the business is spending time and money for lead generation, no leads are received because of lead, order theft.