Issues for Small and Medium Sized Businesses
| The coming of the euro
will profoundly affect the European market place.
Companies are facing a plethora of important strategic,
technical and organisational issues that they need to
analyse and address.
As early as November 1996, the Prisma supermarket in Mikkeli
Finland has been part of an EMU project of their central
European businesses need to assess the impact of
increased cross-border competition. In theory, a common
currency will make European businesses and products
easier to compare and therefore market forces should
exert pressure on prices. In turn, increased competition
might make business mergers within the euro zone more
likely. Likewise, distribution and purchasing issues
might become simpler and cheaper since businesses will
not have to worry about currency fluctuations.
Among the technical issues facing European enterprises is the need to adapt their financial and accounting systems. How will the euro affect the companys accounts? How and when will the company change pay-slips to the euro? If your enterprise uses information systems, you may want to find out whether your IT system will be able to handle the euro. If not, will you provide and install new euro-compatible version? At what cost?
Organisational issues appearing with the euro will include the necessity to find programs to educate, train or retrain your staff, and possibly hire more staff to help during the transition period and beyond. In the retail business, you will need to raise the awareness about the euro, how it will come about, which countries are involved, etc. Your staff should be able to negotiate in euros both buying and selling. They will need training in cash handling and operating the till.
Felin & Stéphan Martin / Nettiradio Mikaeli 1998