|| By using an analytical framework, this paper deals with the turnaround strategy in small and medium
enterprises (SMEs) which were once on the brink of bankruptcy. The framework we use comprises two
dimensions. On the horizontal dimension, we divide two stages, one is withdrawal stage, the other recovery
stage as time passes. On the vertical dimension, seven factors which are needed to make the company revive are
As a result, we are able to find at least two characteristics of the turnaround process in SMEs. First, it takes longer time for SMEs to get recovered, because they do not realize the importance of withdrawal stage, just drifting at the mercy of economic decline. Second, since SMEs are often short of business resources, they are
not able to respond quickly to their economic crisis, even if they have a will.