Are You Micro, Small, Medium, or Enterprise?
November 20, 2024 | Blog
Overview of the Event
Everything starts small. Nothing great comes in oversized packages right away, especially when we talk about business. The appreciation of humble beginnings to where you are now is a testament to continued growth and never-ending learning on surviving, thriving, and never giving up on having a dream of a successful and sustainable business.
But how do you know when you make it? Does the size of your business is the ultimate indication of success? Or it is the performance that matters the most. One can argue that both are equally important and valuable indicators of where your business stands at the moment. Today, IT Group, Inc. (ITG), the leading IT Solution Partner in the Philippines and ASEAN region, will deep dive into knowing what the size would be.
The Importance of Knowing Your Business Size
- Micro-sized Business
- Small and Midsize Business
- Enterprise Level of Company
- Let’s Venture Business Together
Micro-sized Business
A micro business is a diminutive business that employs a few employees ranging from 15 to less. Microbusinesses are modest ventures financed by small loans, personal savings, and/or microcredit to get the business off the ground. It is a start-up company with no standardized processes and much room for opportunities and improvement. Its sole purpose is to begin and test the water of the market with a new approach, moving from existing to trending new products and services.
In terms of scale and importance, the micro business provides an opportunity to boost the local economy, interact with the people, and create close-knit relationships with suppliers, buyers, co-business owners, and the community in which they are located. It empowers businesses to be independent and boom in their local market. Meanwhile, the digital presence of micro businesses creates a better way to reach their potential customers outside their market and location. “There are ways microenterprises can grow into more established small businesses and even larger companies. If they can secure the financial resources, one approach is to acquire multiple comparable businesses and then combine them into a larger entity that operates across several distinct areas,” said Investopedia.
Also read: Modernize Your Financial Management with Digital Transformation, Here’s Why
Small and Midsize Business
Next to micro is small to midsize business. The difference between small and micro small companies ranges between 20 to 99 employees. “Small and midsize enterprises can exist in almost any industry but are more likely to reside within industries requiring fewer employees and smaller up-front capital investments. Common types of SMEs include legal firms, dental offices, restaurants, and bars,” said Investopedia.”Small and midsize enterprises (SMEs) are businesses that have revenues, assets, or a number of employees below a certain threshold. SMEs play an important role in an economy, employing vast numbers of people and helping to shape innovation.”
Also read: Digital Transformation Journey: Things You Need to Know
The good thing about small and medium enterprises is that they are flexible to make or break the economy. “They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development,” World Bank Group said. “According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development.”
Enterprise Level of Company
The end game for all companies is to grow as much as possible, from micro to small to medium, and finally, to be an enterprise-level company. But how exactly do enterprise-level companies impact the economy? Enterprise-level companies are movers and shakers of any economy. They provide many opportunities, including jobs, careers, revenue, and long-term economic strength and growth. However, more than revenue growth, enterprise-level companies have bigger responsibilities than nation-building; it’s how they can shape the future with their people and customers.
Also read: Do’s and Don’ts When Your Business Starts to Expand
McKinsey and Company shared that when you reach a certain point in your company, let’s say as an enterprise, you are held accountable for redefining and seeing your purpose as a company. “Future-ready organizations accomplish this in three ways: they get clear on their purpose; they know how they create value and why they’re unique; and they create strong and distinct cultures that help attract and retain the best people,” they said. “Future-ready companies recognize that purpose helps attract people to join an organization, remain there, and thrive. Investors understand why this is valuable, and factor purpose into their decision making: the rise of environmental, social, and governance (ESG)–related funds is just one of the ways they acknowledge that purpose links to value creation in tangible ways.”
Let’s Venture Business Together
With over 20 years of experience in the IT industry, ITG understands that the way to make your business successful is to go through all the stages of its growth. “Risk is part of every business. Without risk, no business will ever thrive. From small and medium to enterprise-level companies, all sacrificed something to achieve where they are now. It’s like legit gambling. The only difference between actual gambling and business is that businesses do support other people. When your company succeeds, your people thrive, and the business continues to provide job and career opportunities,” ITG said. “Do the actual investment with business goals in mind. If your company starts to expand, the common question is always where to invest first. People.”
IT Group, Inc. has been the leading IT Solution Partner in the Philippines and ASEAN Region, with regional offices located in the Philippines, Indonesia, Malaysia, and Singapore, helping 200+ clients across the ASEAN region on their digital transformation journey and has a solid portfolio of 250+ successful projects. We’re an ISO 9001:2015 Certified company, the leading technology partner for system-wide innovative solutions that deliver seamless integrations and processes, from Business Management Solutions, IT Management, Integration & Automation, and Enterprise Data Management to IT Infrastructure.
Let’s Venture Together to learn more about how we can help you.
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