ABSTRACT
In this section we focus on the role of internal and external economies of scale and consider how some of the problems facing the SME sector may be overcome via a coherent industrial strategy designed to capture the potential dynamism of SMEs. In this respect we aim to address the specific objectives and problems concerning SMEs outlined in the 1993 EC White Paper. To quote,
It is important…to underpin the dynamism of SMEs. It is clearly more difficult and relatively more costly for SMEs than for very large firms to find their proper place in the globalized economy, to have access to world technological capital and to avail themselves of the most sophisticated management techniques and business services. The policies in support of SMEs must, therefore, take account of these new constraints and be strengthened accordingly.
