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Sohal, Amrik --- "SME success rests on networks in and links to the local community" [2008] MonashBusRw 21; (2008) 4(2) Monash Business Review 3

SME success rests on networks in and links to the local community

Amrik Sohal

To be successful, small to medium-sized enterprises (SMEs) must build confidence and strong links with their local communities. That’s the message that comes through strongly from the many papers in this issue of Monash Business Review that focus on the SME. You will note that many of the articles not included in our cover story theme are also relevant to SMEs. This is because, as pointed out in our cover story, SMEs are the engine room of the economy in both the developed and developing world. Many large businesses depend on SMEs as suppliers of products and services for their own success. This means that the very large numbers of SMEs operating across the country, employing a very high proportion of the total working population, are critical for the growth of our economy. Addressing the issues raised in the articles, in particular the cover story, presents us all a major challenge that requires immediate attention.

As highlighted in a number of articles, SMEs should become members of appropriate industry clusters and strengthen their relationships with other businesses, associations and institutions. Networking and linkages can provide SMEs with highly useful experiences and information on how to tackle issues relating to skills shortages, technology and regulatory compliance. The articles on ethnic entrepreneurs and the two articles on SMEs in Vietnam highlight the importance of networking. Even the paper on Australian football clubs, a different kind of SME, identifies links with the local community as important for survival.

Other articles highlight the importance of market and entrepreneurial orientation for highly successful SMEs and the challenges facing businesses in one of Australia’s cereal-growing regions (many of which are SMEs) affected by the prolonged drought. While home-based businesses fall into the ‘micro-business’ category, many face similar challenges to SMEs, especially those relating to government regulations. The remaining articles that focus on public-private partnerships, intellectual property, franchising, developing leadership skills and the GST also contain useful messages for managers and entrepreneurs working in SMEs.

Professor Amrik Sohal

Cite this article as

Sohal, Amrik. 'SME success rests on networks in and links to the local community'. Monash Business Review. 2008.; Monash University ePress: Victoria, Australia. http://www.epress.monash.edu.au/. : 3–3. DOI:10.2104/mbr08021

About the author

Amrik Sohal

Associate Dean (India Development), Faculty of Business and Economics and Deputy Head, Department of Management, Monash University.


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