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Small and Medium-sized Enterprises

As a consultant specializing in SMEs, I would like to share some of my knowledge on that. Small and Medium-sized Enterprises have different impacts on business consultancy. There are three primary results of SME business consultation. The first one will be implied through the positivity effect on the productivity of ROA or return on assets. Additionally, on calculating the profits of the enterprise after the business consultant will in included in the 1 year follow up tenure. The ROA and productivity of SMEs increase by one-fifth of a standard deviation. There is an increase in profits by one-tenth of a standard deviation compared to the original management.


However, the increase in profits and ROA of that SME are not robust on the coefficient of individual economic specifications. While the coefficient on individual input factors such as change is assets, sales, and the total number of employees that are to statistically significant other than zero. The result is consistent when the mistakes of that firm and the impact of consultation are heterogeneous. This results in different realizations by the firm to perform better.


The second is done for the long run when the administrative data is collected from IMSS that reveals important impacts on employment. By this time the consultant moves on to a five years SME plan. The year-on-year change is imprecisely estimated, while the difference between the treatment and control increases every year except the fifth. Therefore, resulting in suggestions of a persistent impact of the consultation on the managerial capital. The long-term results from the administrative data suggest that 1-year survey tenure results were not just a by-product of a positive reporting bias.


The third and final result through which businesses improve in response to the interventions in marketing, finance, managing operations, among others. It has often been noticed that small and medium-sized enterprises or SMEs seek heterogeneity in their business practices. Further, this helps in engaging in the market efforts as well as keeping a formal accounting for the firm.
Over the years I have seen most of the SMEs flourish due to intensive consultancy. This helps the firm to focus on the important matters while the consultant can focus on the other areas of expansion.


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