transition In developing countries (transition and developing countries), small and medium enterprises (SMEs) account for more than 90 percent of the total number of businesses in the country. The very important in terms of job creation and domestic and foreign trade. Improving the competitiveness of small and medium enterprises is an important policy for economic and social development and poverty reduction.
Looking at many countries in the world, we see a change in the basic policies used to support the development of small and medium enterprises. In the past, small and medium-sized businesses were seen as businesses to be protected and policies were often adopted. However, these policies do not allow small and medium enterprises to develop, and tend to become more dependent on policy-making institutions, and in the long run, it is found that the competitiveness of enterprises decreases. Therefore, many countries have adopted policies aimed at creating a good environment that can help improve the competitiveness of small and medium businesses from protection policies (OECD, 2004).
An important factor in the competitiveness of businesses is the ability to quickly assess market needs and seize opportunities that arise. In order to improve the competitiveness of small and medium businesses in particular, it is necessary to effectively apply the following points.
- Knowing the market of his product and the needs of consumers;
- flexibility (if market needs change);
- Being able to create new products or services;
- Ability to cooperate with other businesses (manufacturers of raw materials, distributors of finished products).
- Being able to think and prepare for the long term.
The points mentioned above, In particular, in order to prepare for the long term. The needs of consumers and the easy availability of information about new production technologies. New management systems and training to improve worker performance. However, organizations that will guarantee the standard of manufactured goods. Access to capital need to improve production systems (Wignaraja, 2003 quoted in OECD, 2004).
Transition like Myanmar One method that is being used in developing countries is to provide business development services (Business Development Services). They help small and medium enterprises learn the business practices and strategies needed to improve their competitiveness. Primarily, organizing trainings necessary for the development of small businesses. Providing advice for business development. Assisting in market research; Finding the necessary information. Assisting in technology development and transfer of new technologies. So, liaising with relevant business organizations at home and abroad.
Another requirement for improving the competitiveness of small and medium enterprises is the development of human resources. It is the ability of small and medium enterprises to respond to the competitive pressures . Therefore, they will come with globalization and trade liberalization depends on the level of skills available in the country. These enterprises are located. A common problem in developing countries is the lack of connection between the country’s education system and human resource development. It is necessary for business competitiveness.
As described above, arranging training courses needed for the development of businesses cannot replace the regular education system. But it can link the education system with the skills of the workforce.