1. Insufficient capital
It is the biggest barrier for both potential SME and existing SME. Insufficient capital makes operation of a company hard. Generally, SME know that they can make loans from the Government and banks. However, the amount of which are usually not enough for long-term operational uses, normally within the range from HKD 20,000 to HKD 100,000. Therefore, how to utilize this sum of money is crucial for the survival of SME.
Government and banks are not willing to lend SME large sum of money since their expected abilities to pay back loans are low. So, helping SME to build credibility in their respective industries is important. To achieve this, employing a firm with huge background in providing marketing services is worthy. With its specialized experience, a marketing firm can help the SME promote, build brand awareness, and consolidate the position of the SME effectively, triggering large-scale companies to cooperate with the SME.
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Cooperation with large-scale companies can be in several ways: it may be a business relationship between them, in which the large-scale company aids the SME by paying to the SME before receiving goods/services from it; or it may be an investment on the SME by the large-scale company after developing confidence in the SME (succeeded by marketing services). Both possibilities assist in the rise of SMEˇ¦s amount of capital, and support SME in a way that normal operation of which (like buying input/ materials) can be continued.To get SME out of the hard situation of insufficient capital/fund permanently, a long-term perspective to adopt marketing services is needed, but not only making loans from financial institutions can help.
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