Every business has its own share of challenges and opportunities for growth. SMEs, just like any other business, needs to be very strategic with the use of their resources. But unlike other businesses, SMEs face a set of challenges that are unique to their kind.
With the help of business strategies and growth tactics like outsourcing, SMEs have a way to operate their enterprises better. Regardless of the challenges, SMEs can still be successful and grow into large enterprises. These are the eight hurdles that SMEs face which outsourcing can help them address:
1. Limited access to world-class skills and talent. Studies show that this is one of the major challenges SMEs all around the world need help with. The best industry practitioners and experts typically go to SME’s large-scale competitors who can afford to pay higher salaries and more attractive benefit packages. Outsourcing provides SMEs direct access to these qualified professionals to help them achieve their business goals.
2. Limited access to state-of-the-art office equipment and tools. The smaller budget of SMEs hinders them from investing in their own office or technological equipment and training on how to use them. By outsourcing, SMEs get a chance to work with suppliers who possess quality and reliable computer technology and infrastructure without having to pay for the expensive equipment and tools themselves.
3. High operating costs. The cost of running an office with monthly utilities plus salaries and benefits of in-house employees can easily drain the finances of SMEs. Outsourcing helps SMEs continue running their businesses without shouldering these huge expenses.
4. Less financial capacity. Most SMEs have lower financial capacity than their bigger sized competitors, which ultimately impacts their operations, productivity and efficiency. Outsourcing is a cost-effective and practical solution for SMEs to sustain their businesses with their existing budget and cash flow.
5. Insufficient knowledge on specialized business practices. Many SME entrepreneurs have limited knowledge on certain aspects of running a business such as HR, finance and IT, to name a few. Outsourcing comes to the rescue of these SMEs by providing access to professional service providers who possess these specialized skills.
6. Uneven playing field. The extremely competitive nature of business puts SMEs at a disadvantage because of their smaller size and resources and their limited awareness and information on the industry trends and practices. Outsourcing helps SMEs become more competitive by providing them access to the knowledge, skills and talent that their bigger competitors have.
7. Less scalability. SMEs have more difficulty reaching their scalability goals due to their limitations in terms of financial and human capital. Outsourcing grants them the opportunity to be more flexible in staffing whenever the need arises at budget-friendly prices.
8. Bureaucratic and tedious processes. Regardless of the SME’s country of origin, doing business usually involves long procedures and protocols that can keep them from launching new developments and projects according to their desired schedule. Outsourcing to a reputable provider can help SMEs carry out their planned projects on time because they already have everything they need to do so.
With the adequate and proper business support, SMEs have just about the same chance of succeeding as the larger and more established enterprises. Outsourcing can help SMEs grow by giving them high quality professional assistance at very competitive rates. Contact a dependable small business outsourcing provider today.