Small sized entity is described as that organization, in which there are 10 to 50 employees. Medium sized entities are defined as those companies in which there are maximum 500 employees working under same conditions. Corporations are considered as the highest level of organizations, which contain more than 500 employees. While trying to computerize any SME, I would consider certain factors important i.e. employees or owners of that specific SME.
According to Null, analyzing conditions and environment of any certain company before implementing new system is very important. If the employees are very well versed with the working conditions of the company and they can handle the data without the help of computerized system, then there is no need to introduce such system, as it would increase the cost of the company.
Secondly, SMEs are not supposed to face any principal agent problem, as shares held by investors are limited; hence the decisions taken by business owners are already known and obeyed by emplyees. In my opinion, computerizing SME would not be feasible in these conditions. Since, SME is limited to a certain size, where it is easier to get an overview of the performance of the employees, so it is more flexible.
The owner is able to co-ordinate his decisions with his employees directly, hence there is no communication gap between the managing director and operatives. The owner is usually more experienced and has a sound business insight together with the ability to directly control his sub-ordinates. Therefore, the feasibility of computerization of a SME would depend upon the nature and size of an organization and the willingness of its owner in relying on computerized system decisions.