Challenges Faced by Small and Medium Scale Enterprises PDF
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Added on 2021-02-20
Challenges Faced by Small and Medium Scale Enterprises PDF
Added on 2021-02-20
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Table of ContentsINTRODUCTION...........................................................................................................................1LITERATURE REVIEW ...............................................................................................................1Basic understanding of SMEs in United Kingdom.....................................................................1Difficulties faced by small and medium enterprises in daily operations and attracting orretaining suitable staff.................................................................................................................2Several ways by which SMEs can overcome problem in retaining and attracting suitable staff3CRITICAL REFLECTION..............................................................................................................4Learning preferences and discussion of implications for learning development on theprogramme..................................................................................................................................4CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
TITLE: To identify the issues faced by small and medium scale enterprise in attracting andretaining talented staff.INTRODUCTIONSMEs are abbreviated as small and medium enterprises. These are those businesseswhich which maintains assets, number of employees and revenues under certain threshold (Allen& Hartman, 2012). These companies plays a considerable role in the economy by offering jobopportunities, providing taxes to develop infrastructure etc. To prepare this report, Chez Bruce istaken which is a SME operating in London, UK. It is a restaurant established in 1995. This reportis going to cover about different challenges which are faced by SMEs in attracting and retainingtheir employees. Also, a critical appraisal based on individual learning is performed to identifywhat is learned from this research. Aim:To identify the major challenges faced by SMEs in providing financial and non financialbenefits to employees for retaining them in organisation. A study on Chez Bruce. Objectives:To develop basic understanding about the SMEs within United Kingdom. To identify difficulties experienced by SMEs in their day-to-day operations as well asattracting and retaining suitable staff. Recommend different ways through which SMEs can easily overcome issues faced inattracting and retaining suitable staff. LITERATURE REVIEW Basic understanding of SMEs in United KingdomAccording to Hall, J., 2018, SMEs are treated as the beating heart for economy in UK asmost of the people are operating SMEs for their livelihood. SME is known as small and mediumenterprise which hires less than 250 employees and earns annual turnover of less than 50 millionpounds. In context with UK, these SMEs make up around 99% of business and benefits instabilising the economy in UK. Under this umbrella of SMEs, there are 3 categories i.e. micro,small and medium sized businesses. But even if SMEs is providing job to more than 60% of1
employees, their retention rate is less. This is due to the lack of financial benefits, employees arenot satisfied and their turnover rate are increased in a considerable manner. In the year of 2016,5.5 million businesses were operating in private sector where majority of businesses were SMEs.These businesses aims to provide good living standard to the local people by employmentopportunities and payment of taxes which is used by government in developing infrastructuresuch as roads, hospitals, schools (Passey and Zozimo, 2016).On contrary opinion of Rhodes, C., 2018 are different, Because of limited size andfinancially instability of SMEs, these companies require loans and grants for their business. Dueto small size, these companies are not eligible for loans and grants due to which 60% of SMEsmanage capital through external funding. This acts as a big hindrance in their success. If thesebusinesses will be offered required loans and funds, they will be able to serve customers in amore proper manner. This will helps in earning more capital, due to which retaining andattracting employees will be easy. But as people and technology is getting advanced in UK,owners of SMEs can take online loans with the help of Peer-to-peer platforms. After Brexit,government is also providing support to these firms by offering subsidy and loans. This helpsbusiness owner of SMEs in a positive manner in performing their business operations. Difficulties faced by small and medium enterprises in daily operations and attracting or retainingsuitable staffAs per the belief of Beattie, A., 2019, Starting and managing a new business is a bigachievement for business owners but maintaining its revenues and sales is another big challenge.There are several challenges which are faced by medium and small sized companies such aslimited size, deficiency of talented staff and skills, financial and capital assessing as well asretaining suitable staff. Due to these problems, these businesses are not able to deliver their bestperformance and their growth faces hindrance. If these problems will be resolved, SMEs likeChez Bruce will be able to achieve a strong position within UK marketplace. In this context,some of the difficulties which are faced by Chez Bruce in performing their daily basis activitiesare mentioned below: Limited size and lack of finance: Size of these companies is small due to which theyhave less number of employees for serving customers. In comparison with largeorganisations, SMEs faces more difficulty in raising money from capital markets orbanks. This is because different financial institution require some collateral or assets2
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