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the ownership. Most SME’s are initiated by a family member who is an entrepreneur who sets up the business and the ownership is then transferred to a close family member and decision-making is mostly autocratic. This is often the case in countries like India, Pakistan and Bangladesh etc. where the culture is more family-oriented. This forms a key part of the internal business environment for SME firms. The equity of the SME is confined to close members of the family and the decision-making is autocratic. The managerial positions are taken up by family members irrespective of their qualifications or expertise. This is a double-edged sword which has its own advantages and disadvantages. In a family oriented business, decision-making is faster and there is a lot of trust between the members of the organisation which reduces transactional uncertainties. 

They have long-term goals and do not look for short-term profits. They develop strong ties which are long-lasting with their employees, suppliers and customers. The disadvantages are that shareholders misuse their power for their own benefits rather than looking at overall benefit of the firm. Also, it is not necessary that the successor possesses the expertise and managerial & entrepreneurial skills like the founder family member which might lead to failure or deteriorating performance of the firm. This also limits the opportunity for deserving employees to take up top managerial positions (Wenyi Chu, 2009). MNE’s on the other hand though having large equity holding amongst the founding family members’ show a more corporate governance structure where ownership and management are often different.

The influence of family ownership on SME performance: evidence from public firms in Taiwan Wenyi Chu

https://www.lib.strath.ac.uk/busweb/guides/smedefine.htm

https://www.bankofindia.com/smepol.aspx

India is a developing country and every country has a unique business environment. There are various elements that constitute the business environment of a particular firm or business. The environment includes competitors, buyers, suppliers, financial institutions, government, and law etc. which affects a way a firm conducts its business. The business might be sensitive towards one or more of those elements of the business environment and it might affect their strategy and survival. Hence, it is important to understand and analyse the environment of a particular business and use it our advantage.

High labour regulations, power shortage, access to finance and corruption are four major obstacles affecting small-business growth in India and are a big part of the environment in evolving economy like India. Corruption plays an important role and impacts the other three obstacles and has also led to uneven growth rates of SME. (Maddalena Honnorati & Taye Mengistae, 2007). Corruption is one of the major elements of the business environment in India and more so for Small-scale businesses as they lack the power to influence governments and bureaucrats which MNE’s seem to have a good hold over. Access to finance is another important factor which is a major obstacle to SME’s due to high rates of interests, lack of collateral securities etc. Often, firms remain small throughout du本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。