Small and medium-sized businesses (SMEs) are the lifeblood of any economy.
They account for 99% of businesses in the UK and employ 60% of the workforce.
SMEs also contribute £600 billion to the economy, which is equivalent to 47% of GDP.
This makes them a critical engine of growth and innovation.
They provide jobs, support local communities, and drive innovation.
What is an SME?
An SME, or small and medium-sized enterprise, is a company that employs fewer than 250 people.
They are also responsible for creating two out of every three new jobs.
SMEs are often referred to as the backbone of the economy because they are so important for growth.
They are nimble and can quickly adapt to changes in the market.
SMEs also tend to be more innovative than larger businesses, which can lead to new products and services that can help drive the economy forward.
SMEs are an important part of the financial landscape, too.
When it comes to obtaining credit SMEs only receive 37% of all loans.
This is where neobanks come in.
Neobanks are designed specifically for SMEs and offer them a range of products and services that are tailored to their needs.
This includes things like invoicing, payments, and credit products.
The importance of SMEs in emerging and developed economies
SMEs are a vital part of the economy because they drive innovation.
SMEs are more nimble and agile than larger businesses, which allows them to respond quickly to changes in the market.
They also have a lower overhead, which gives them a competitive advantage.
SMEs are often at the forefront of new trends and technologies, and they are more likely to experiment with new ideas.
This makes them an important part of the innovation ecosystem.
SMEs also play an important role in supporting local communities.
They provide jobs and tax revenue, which helps to sustain local businesses and services.
SMEs are often involved in community projects.
They also contribute to the local economy by buying goods and services from local businesses.
In most countries, SMEs account for the majority of all businesses and provide the majority of all jobs.
SMEs are also responsible for a large portion of economic activity, including innovation and exporting.
For these reasons, SMEs are critical to a healthy economy.
How do SMEs operate?
SMEs are often family-owned and operated.
They are usually very lean, with a small staff that is dedicated to the business.
SMEs typically have a shorter turnaround time than larger businesses, which allows them to be more responsive to changes in the market.
They also tend to be more customer-focused and provide better service than their larger counterparts.
SMEs typically have a narrower focus than larger businesses.
They may specialize in a particular product or service, which allows them to be more competitive in the market.
SMEs also tend to be more flexible and can quickly adapt to changes in technology or the economy.
Can Neobanks Benefit SMEs?
SMEs are a valuable part of the economy and play a critical role in its growth.
Neobanks are designed specifically for SMEs and offer them a range of products and services that are tailored to their needs.
This includes things like invoicing, payments, and credit products.
One of the benefits of using a neobank is that SMEs can access these products and services quickly and easily.
This makes it easier for them to manage their finances and grow their business.
Another benefit of neobanks is that they offer low-cost banking products and services.
This helps SMEs save money, which can be reinvested back into their business.
Neobanks are also becoming more popular with SMEs due to the fact that they offer innovative products and services.
This includes things like neobank cards, which allow SMEs to make contactless payments.
Overall, neobanks offer a wide range of benefits to SMEs, which makes them a valuable tool for the economy.
By using a neobank, SMEs can save money, grow their business, and access innovative products and services.
Foreign SMEs in Hong Kong
For SME owners who are not located in Hong Kong, alternative banking may be the most convenient and efficient banking solution as it does not require them to travel to Hong Kong to open a bank account or manage their banking affairs. (check our article on how to open a business account).
Not to mention that the lower transaction fees, reduced foreign exchange commissions, and better customer support are also appealing incentives to go down the route of alternative banking.
Our service is 100% online and it only takes 10 minutes to apply for a business account on Statrys.
- Platform 100% digital: no need to visit a branch
- 10 minutes of your time – skip your next coffee break, and you will have finished the application
- Quick response – guaranteed to hear back from us within 48 hours after the request is submitted.
- Our pricing plans are easy to understand and transparent.
- Phone, Wechat, WhatsApp, Live Chat – get in touch with a real person to answer your questions!
We host several innovative tools and services catered specifically for SMEs looking to manage their banking activities online.
Find out how Statrys can benefit your small business operations today!
FAQs
How does SMEs operate in U.S.?
It can be tied by standards for both revenue and the number of employees they have, depending on the industry they are in. Sometimes these standards are further broken down by product within an industry. A manufacturing business in rice milling is not permitted to have over 500 employees, whereas a manufacturing business in wet corn milling identifies as a small business as long as it has less than 1,250 employees. And for other forms of farming, the limits are set at a revenue cap rather than an employee count. SME standards are maintained by the U.S. Small Business Administration.
How does neobanks benefit SMEs?
What does SMEs stand for?
