Crisis Management in SMEs
Journal Title: Acta Economica - Year 2007, Vol 5, Issue 6
Abstract
It is certain that every enterprise will in certain period and in a way face a treath of crisis or even „get into” one. The question is how to overcome the state of crisis or even better, how to prevent such situation. The key is in hands of people who manage the enterprise. Their ability to perceive external as well as internal events within the company that indicate potential crisis is a secure barrier to the virus of crisis. Small and medium companies are much more exposed to a crisis than big ones due to many factors such as lack of cadres, small producion lines, indebtedness, lack of turnover assets and a number of other reasons, thus the consequences that such company suffer are much more radical than those to companies that can be characterized as big based on sertain criteria. It is therefore essential to follow the development of the environment, first of all the competition, as well as to survey internal economics with a special emphasis on internal relationships within the company and the absenteeism. Any crisis causes negative consequences to an enterprise. However, it is our duty to prevent the enterprise from getting into a phase of acuteuncontrollable crisis when collapse is inevitable. Such consequences are not only disastrous to the company itself, but to the executive whose careers are undoubttedly questionable. The stakes are big. The risk must be controlled not to become a gambling where there is no option of foreseeing the certainty of future development.
Authors and Affiliations
Миладин Јовичић, PhD
Keywords
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