Issues challenges and key success factor in SME in Malaysia

SME

Traditionally, small and medium-sized enterprises (SMEs) have been on the back foot when it comes to attracting talent. SMEs are competing with much larger businesses for the best candidates. These larger organizations have far greater resources to commit to the recruitment process and often a more high profile brand as well.
An organisation’s workforce will always be its most valuable asset, in good times and bad. Over the last year recruitment may have slowed across the board, but now, with signs that the worst of the recession is over, companies need to bring the right talent onboard so they can take advantage of the upturn.

For many small business owners, whilst they may have a great deal of talent and experience in the core areas of their business, very few have the skills required to succeed in the recruitment and people management space. Attracting candidates, promoting the business as an employer and identifying the best applicants require very specific skills and experience. It is often unrealistic to expect SMEs to have these abilities within the organization

• Identify and meet the needs and expectations of its customers and other interested parties, i.e. employees, suppliers, owners, society, to achieve competitive advantage and to do this in an effective and efficient manner.

• Achieve, maintain and improve overall performance and capabilities
Small- and medium-sized companies are the growth generators for economies worldwide, the frequent incubators of ideas and inventions and the basis of the U.S. economy. Ninety percent of new jobs in the United States are generated through small- and medium-sized (SME) enterprises. Most businesses fall into this category. Therefore, governments (federal, state and local) are interested in helping to make them successful. Big business also is interested in SMEs because of the ideas and technology they generate. Many large businesses grow from the acquisition of smaller firms. So it is natural to ask whether the existing services and businesses that purport to help SMEs do an adequate job and how they might do it better

Unique Features of SME

 have an owner/manager with few generic business skills or a particular technical expertise

 have personal assets committed as security for the business

 operate flexibly rather than on a strict observance of regulations

 have a vision and outlook that is bounded by the skills and experience of the founder/owner and tight resource constraints

 operate in provincial areas, be a key part of the social fabric of the community