Small and medium-sized enterprises, also known as SMEs, earn assets and employ workers in a relatively smaller proportion. Its definition is relative to each country. For instance, SMEs in the Philippines are those that have only 10-199 employees, with all their assets valuing from a range of PHP3 million to PHP100 million. Regardless of where these establishments are situated, one thing common across SMEs globally is that it undoubtedly plays a vital role in economic development, as it offers job opportunities and revolutionizes innovation. These enterprises have various ways to keep their businesses strong and successful, pursuant to the goal of such development. This article aims to unfold the possible driving forces that can enable SMEs to realize their full potential in helping develop the economy.
One is an emphasis on customer service and satisfaction. Upon the full actualization of good customer service and attainment of customer satisfaction, the companies may grow a relationship with their markets built on customer loyalty. Consequently, customer loyalty brings about an assurance in sales given that these customers already deem the company as their priority, even amidst a competitive industry. However, a good customer experience achieved through customer service may not always suffice. For customers to be truly loyal, they need a memorable and meaningful experience. Imprinting a good mark on these customers through their personal experiences with the company helps small businesses strike a balance between acquiring value-adding customer relationships and taking more opportunities for the business to grow both in support and profit. Apart from customer-oriented practices, another possible driving success factor for SMEs is an understanding of their businesses’ risks and rewards. Indeed, SMEs fuel innovation for the economy, but such innovation may sometimes be a gamble with unforeseeable risks lying ahead. Thus, it is imperative that SME owners carefully calculate their creative leap and analyze its consequences and benefits. This is all the more relevant during the COVID-19 crisis, wherein health risks may pose impediments on business growth, challenging owners to think beyond and reimagine their innovations given the risks and rewards the current situation can impose upon them. Once all calculated strategies are in order, what furthers these endeavors are their marketing supplements. The impact of promotional efforts for a SME’s initiative may never be overestimated; in fact, investing in these marketing ventures may assist the SMEs in acquiring a good spot in the local market. Such has been made more cost-effective and convenient through the numerous promotional platforms made accessible through social media. Lastly, a key practice that SMEs may adopt is the careful integration of passion and wisdom. While business ideas, especially those centered around radical innovations, may be promising enough for their proponents to develop an immense sense of passion, it is important for the same proponents to still consider the facts and realities that surround their undertakings. Indeed, passion is imperative to empower a business and its growth, but these SME owners must make wise decision-making at the forefront of their planning and preparation to ultimately achieve all aforementioned ways to achieve their own version of success.
With all of this said, it has been evident that three recurrent components are important to account for in running a successful SME: 1) customers, 2) careful assessment, and 3) promotions. Putting these together, it could be said that what drives SMEs into successful growth are careful assessments of risks and rewards, materialized by initiatives aggressively promoted in the market, in pursuit of customer service and loyalty. All of these may come together to reach a sustainable system of business for SMEs, holding promise in their integral role in economic development.