SME Challenges to Access to Finance

1. SMEs usually have limited financial resources compared to a full-grown company. Often it is hard to finance the standard model for software process advancement (SPI) activities. They try to parry excessive overhead for the full custom standard process implementation. 2. The proven best practices for the large companies qualification be too expensive or time consuming to perform in SMEs because of their limited resources and commercial enterprise model. 3. The majority of midget companies are independently financed.That causes a tight financial situation for many small businesses. So they cant always afford to buy required expertise that possesses the skills required in a particular position. 4. A first step toward process improvement is identifying the strengths and weaknesses of organization software processes. For this, an discernment to examine the processes against a reference model which helps to determine the processes capability to meet the required quality, cost, an d schedule goals is required, however small companies have difficulty running those. 5. The small size of a company not scoop shovelly causes for the challenges of networking, marketing and business issues for small software companies. It also creates problems for gaining and leveraging technological know-how. 6. Large companies can improve the work efficiency using all needed toolkits. Small company also need these tools in every step of software process but high licensing costs often put their parturiency cost over expectable levels. 7. SMEs suffer from the lack of literature and publications describing efforts on an improvement initiative.But bridal of internationally accepted software process practices is essential for the success of all software companies to compete in the global software development market. 8. Many SMEs have multiple business operations like service, product, and consultancy. A given employee whitethorn have to change the projects more frequently. This le ads to additional challenges to improve the required level of competence for dissimilar projects with different technologies. 9. A given employee of SMEs may simultaneously play multiple roles. For that, he may ignore tasks or consider many tasks as low priority. Thus many important tasks may be left undone. In some cases, these tasks may be contradictory or mutually exclusive (e. g. A person is responsible for product cost reduction and improvement of customer service simultaneously). 10. In SMEs the average project duration is shorter than in large companies. Manager faces challenges to reallocate employees more frequently to different projects.