Do you know what SMEs stands for? For those who haven’t heard about SMEs before, keep on reading to know more about small and medium-sized enterprises.
It has been defined by Bank Negara Malaysia that in the manufacturing sector, a business falls under medium-sized enterprise when the total number of employees are not exceeding 200. For businesses with less than 75 employees, they are known as small-sized enterprises.
It differs for services and other sectors. A business that provides services with no more than 75 employees will fall under medium-sized enterprise while small-sized enterprise means a company with less than 30 employees. A detailed definition can be seen in the table below.
|Category||Small-sized Enterprise||Medium-sized Enterprise|
|Manufacturing||Sales turnover from RM300,000 to less than RM15 million OR full-time employees from 5 to less than 75||Sales turnover from RM15 million to not exceeding RM50 million OR full-time employees from 75 to not exceeding 200|
|Services & Other Sector||Sales turnover from RM300,000 to less than RM3 million OR full-time employees from 5 to less than 30||Sales turnover from RM3 million to not exceeding RM20 million OR full-time employees from 30 to not exceeding 75|
There are about 907,065 SME business establishments in Malaysia. They are important as they open up and provide job opportunities for a lot of people. Other than employment, SMEs also help sustain our nation’s economic growth. They contribute to exports and assist in maintaining the demand and supply chain.
If you are thinking of opening up a small to medium-sized enterprise of your own, then come up with a business idea as well as a business structure. Don’t forget to do thorough research on your target market and competitors. Once your have identify your niche, plan your finances well and get ready to register your business. After that, it is time to get all the licenses and permits for your business. Don’t forget to choose your accounting system wisely. To keep track of your cash flow as well as expenses, it would be best to use a cloud accounting software which is highly convenient as nowadays everything is online based.
Starting an online business for SME is also a good idea because an online business startup is more flexible in comparison to brick-and-mortar stores. You can decide where to open up your headquarter for online business, not necessarily in a busy city such as Kuala Lumpur. All of your customers and transactions will be present and done virtually. So, think smart and choose the type of business that suits you well.