IMPLEMENTATION OF QUALITY MANAGEMENT IN SMALL AND MEDIUM ENTERPRISES: PROBLEMS AND SOLUTIONS

The benefits of Quality Management are widely recognized following reports of its successful implementation in many large companies. It has led to these companies becoming highly competitive both locally and internationally through the production of quality products that meet customer requirements at the lowest cost, significantly increasing their market share and profitability. Quality standards make life safer, they create a level playing field on which to compete, they allow access to state-of-the-art technology, strengthen innovation capacity, and help achieve the most effective allocation of resources. For SMEs, they are particularly vital as they remove many of the obstacles that would otherwise hinder their entry into and expansion within a market. Small and medium sized enterprises (SMEs) are a very important part of the European economy, accounting for 99.8 % of all businesses, 675 % of all jobs and 58.4 % of value added. Their central role has been recognized by the European Commission and the Member States through various policy pronouncements. Quality management at small business companies is one of major factors affecting entrepreneurship success. The product quality is one of the indispensable preconditions of a company's success on the market. SMEs have a central role to play in growth and job creation, but their use of standards and their involvement with standardization is typically low. Both SMEs and the economy more widely could benefit from SMEs being more involved in the standardization process. The aim of this research is to investigate problems antecedents for Implementation of Quality Management in Small and Medium Enterprises, thereby contributing to the knowledge on how to adopt Quality Management in SMEs.