Small businesses profit from lower costs

Dubai: According to the organisers of the Small and Medium Enterprises (SME) Expo and Conference, small and medium businesses have been successful in weathering the storm of the global financial crisis thanks to lower operating costs and sufficient liquidity.

The SME Expo and Conference, which will be held at the Dubai International Convention and Exhibition Centre on February 2-4, 2010, will allow visitors to explore business opportunities and learn about the latest SME market trends. Small enterprises are companies whose staff count is 50 or less, while medium enterprises have a headcount of 100 or less, said Satisha Khanna, General Manager at Al Fajer Information and Services, the organiser of the SME Expo and Conference.

SMEs constitute 94 per cent of the projects in the UAE, followed by 92 per cent in Bahrain, Oman and Qatar, 78 per cent in Kuwait and 75 per cent in Saudi Arabia, according to the Planning and Economy Department in Abu Dhabi,

"These enterprises are able to face the financial crisis very well because they've got limited sources and limited revenue. Most of them are privately owned and so they can keep a good grip on their manpower and capital," said Khanna.

"They don't stretch their limits."