Role of SMEs in Economic Development

All over the world, there is growing evidence that Small and medium-sized enterprises (SMEs) play an important role in the national economic development of any country. SMEs are becoming more and more a subject of high attention in the developing countries, countries in transition but also in the countries with developed economies.

In market economies, SMEs are the engine of economic development. Thanks to their private ownership, entrepreneurial spirit, their flexibility and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner.

Until latest, the private sectors of many emerging economies were missing the middle level of development.… Read the rest

National Income Statistics: Meaning and Uses

What is National Income Statistics?

According to most dictionaries, national income is literally the total amount of money earned by a certain country. But in order to calculate the total funds and asset of the country, National Income Statistics are used, which are basically a set of rules, techniques and calculation to measure the total value of final goods and services produced. However, The National Income Statistics are only valid to calculate the national income of a country in a year.

The Uses of National Income Statistics

Like every other calculations, The National Income Statistics also have their own uses. The National Income Statistics are very important to the development of a certain country as it is the result of hard works done in a year to contribute in the enhancement of a certain country.… Read the rest

Circular Flow of Income in a Three-Sector Economy and National Income Calculation

There are three main sectors of economy consists of household sectors, business sectors and government sectors. Household sector provides the factors of the production such as land, labor and capital and enterprise that the producers require to produce goods and services. They also receive payments as in rent, wages, interest and profits from the business sector. It is also stated that in general, household sector consists of the greatest number of consumers among all sectors and satisfying the wants will cause consume of their climate aim. Business sector act as a part as in receiving economy resources from household sector and in exchange for consumer expenditure, they also provide household sectors goods and services.… Read the rest

Resource Based View (RBV) and Sustainable Competitive Advantage

Resource based view (RBV) focuses on the internal factors that contribute to a firm’s growth and performance. It highlights the importance of firm’s resources and capabilities. Both of them will together form a competency that can create a competitive advantage. Resources can also be divided into tangible resources and intangible resources. Capabilities of the firm in utilizing the resources have a big impact on how a firm will be able to stand out among other competitors. Competitive advantage arises when a firm has a lower cost structure, products differentiation and niche markets. RBV also concerns in value creation in order to compete with others.… Read the rest

Business Storytelling in 2021: How to Brush Up on Your Storytelling for a Successful Business Presentation

All memorable presentations have at least one story. And who doesn’t love a good story? Storytelling is a natural form of communication and an age-old tradition passed down for ages to help others understand backgrounds, experiences, beliefs and be remembered. 

But although we all use storytelling in our day-to-day lives, we often underestimate its role in business. Needless to say, this will need to change. 

Using stories as a tool in the corporate world is gaining a lot of attention. However, despite studies on this topic proving how well-crafted stories can be more persuasive and memorable, the value of this art has not been entirely accepted nor practiced.Read the rest

Case Study: The Collaboration Between Sony and Ericsson

Nowadays, it’s very common for companies from different countries and sector to work together. In 2001, a joint venture company – Sony Ericsson Mobile communication has been established by a Japanese electronics company Sony Corporation and Swedish telecommunications company Ericsson. The aim of this cooperation is to produce the mobile phone with multimedia communication solution to customers all over the world. The initial for this collaboration is to associate the Sony’s multimedia consumer electronics expertise and Ericsson’s technical knowledge in telecommunications. Once Sony Ericsson established, both of the companies stopped their individual mobile business. The Sony Ericsson Mobile Communications is a London-based 50:50 joint venture business.… Read the rest