Challenges Faced by SME: Financial, Marketing and Technology

ENGLISH COLLEGE
WRITTING

1
Challenges Faced by SME
(A)INTRODUCTION
In the time of globalisation, there are many problems faced by the SME especially due to lack
of resources when compared with bigger firms. Essay will include the financial challenges
faced by the SME. Marketing challenges faced by the company. It also illustrates the
challenges related to availability of the advanced technologies.
B) Body
i. Financial credit challenges faced SME
a) In the time when the financial condition of the world is not so stable, getting financial
credits have become a major challenge for the company. SMEs are confronting
circumstances of complex securities by the banks, payment delays and high interest
rates on the credits given to SME. Since Central banks are facing financial challenges
in maintaining the economy of the nation hence this problem widens. For example in
India, Banks charge interest rates of 10-20%, this is very high in the time when
demand and supply gaps is fluctuating very fast and companies are unable to fulfil
this gap (Kumar, 2019).
b) https://www.thehindubusinessline.com/opinion/Challenge-of-financing-SMEs/
article20254951.ece
ii. Marketing challenges faced by SME
a) Bigger companies have higher resources hence they have taken control of the larger
part of the marketing space on every platform. SMEs are unable to compete with them
with the linkages they have in the market. There are no separate platforms for the
SME and they are constantly obliged about the shortage of budget. Since SMEs also
have to utilise the same platforms where bigger companies are doing their promotions
hence they are unable to place them better than their rival having larger amount of
resources (Lundin, 2018). For example SMEs have poor visibility on the bigger