Small and medium-sized enterprises (SMEs) are among the most powerful engines of global growth. In the UAE, they are the backbone of the economy and contribute more than 60 percent to the country’s gross domestic product (GDP). So, their success is vital to economic stability and sustainable growth.
Today, SMEs are creating more jobs than large enterprises and have become a key contributor to labor markets around the world. According to a World Bank survey, 85% of total employment growth in recent years was attributable to SMEs.
What ERP systems actually do
Enterprise resource planning (ERP) systems are increasingly becoming a popular and valuable resource for SMEs for a number of reasons. They provide a practical software solution for managing various aspects of a business by automating many back office functions related to technology, services and human resources. ERP software usually integrates key facets such as development, sales and marketing, product planning in a single application and user interface.
Big benefits for businesses and economies
ERP systems also offer various other advantages for SMEs that help them safeguard their business and boost productivity and growth. They assure financial safety, fight masked unemployment, and make a lasting contribution to their economies. In addition, they provide SMEs with a better overview of their business activities, in addition to valuable data that helps them analyze their performance and make more informed decisions.
Assuring financial safety
Many SMEs are probably not aware of key legal aspects of business bankruptcy as they devote most of their focus and time to meeting performance targets and managing the day-to-day tasks. Yet, bankruptcy laws are crucial to safeguarding SMEs by helping manage difficulties that may impact their financial health and operations.
In recent years, the UAE witnessed a rise in the number of SME owners with bad debts who were fleeing the country. Before the country introduced its bankruptcy law, defaulting on a loan or bouncing a cheque was considered to be a criminal offense that could potentially land someone in jail.
The good news is that the UAE has put into place an insolvency law that gives SMEs the option to restructure financials, negotiate with creditors and raise new capital. At the same time the new law instills confidence in the local business community and economy.
The beauty of ERP systems is that they provide another level of awareness for SMEs on their financial situation. By using a system that helps businesses reduce costs, easily access financial reports, they can be more prepared and take steps to avoid bankruptcy. In addition, they can tackle any financial obstacles early on and eliminate barriers to their success.
Great technology for better business
Over the last few years, the business world has witnessed a wave of new technology trends which have had a major impact on the growth of enterprise ERP software. Mobile ERP, Cloud ERP, and Social ERP, have surfaced in response to the changing needs of business leaders and employees.
Today, it is essential to have real-time access to data at any time or place which is where mobile ERP and Cloud ERP. ERP providers have been quick to include social media features and tools to their systems, but many industry experts still question if social media measurement is compatible with ERP.
Compared with other business management programs, ERP systems are by far the most popular option for large companies and SMEs alike. They provide businesses with better technology that enables their success and growth by helping them to manage their resources and operations effectively.
Know more about how our ERP services can boost your SME’s growth by clicking here