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Setting Strategic Directions in Small and Medium Enterprises: A Guide for Professional Accounting Advisors, Part 1
Birkett, F.
Publication Date: 2000
Published by: IFAC International Federation of Accountants
Document Type: Paper
Why do some small and medium enterprises fail?
This paper states that small and medium enterprises (SMEs) are a major source of employment and they both sustain and stimulate the growth of national economies, however many fail because of an inability to manage their finances, or because their aspirations fall short of their capabilities. This article presents the strategic issues facing SMEs. It draws together thinking about financial, business, and organizational options, as a platform for addressing the future. The papers states that professional accounting advisors can add value to SMEs by assisting them to understand themselves, and by offering guidance to directions that are appropriate and feasible for them. Specifically, it presents a Guide to assist SMEs to flourish and provides the professional advisor with a structured approach that can be understood and implemented easily. This document is designed to guide the development of understanding underlying the setting of strategic directions in SMEs in two ways- Supplies a conceptual framework to guide the development of appropriate forms of mutual understanding;
- Supplies a series of prompts, in the form of questions or structuring templates to guide or stimulate conversations about strategic issues or directions in an SME.
Works a resource for professional accounting advisors who wish to add value to SMEs and help understand what is of strategic importance. Concludes that most SMEs benefit by a disciplined approach to direction setting, which harnesses enterprise and capabilities to their provision of goods and services.
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