Importance of SME for the Economy

This report discusses the importance of SMEs for the economy and their role in innovation and entrepreneurship. It explores various practices in innovation management, marketing challenges faced by SMEs and large companies, and effective marketing strategies and tools for small businesses.

INDIVIDUAL RESEARCH
REPORT AS1

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
a).............................................................................................................................................1
b).............................................................................................................................................2
c).............................................................................................................................................4
e).............................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
In a digital era, innovation is believe as an crucial action for firm that leads to new
products, services and business venture to set its positive and competitive image. In a
competitive or crowded business environment, manager and entrepreneurs needs to develop
innovative ways with the aim of creating as well as exploiting new opportunities. It mat
contributes in accomplishing competitive advantage and also assist in heighten positive brand
image at agonistic market (Caneque and Hart, 2017). Mainly, the activity of innovation may also
support in improving customers tending about its innovative aspects. Current report is based on
Rowlinson knitwear, is a medium company that run their enterprise in UK for make larger
profitability. Company offer clothing products to people to fulfil their needs and wants. It
directly contributes in improving the positive brand image at market. The primary centring of
business organisation is to see innovation within their manufacturing process that support in
accomplishing agonistic edge from its challenger. This project is going to discuss about business
opportunities and its centrality to innovation and entrepreneurship. In addition of this, range of
actual pattern within the management of innovation is also mentioned. Furthermore, effective
communication with specialist audience is also discussed that support in evaluating appropriate
information for inclusion.
TASK
SME and entrepreneurial theories
Innovation management is refers to the process that used to handling entire activities that
required by company in introducing something new. As it is related with the practices that
coming up with new ideas, developing, prioritising and implementing the same within the
organisational activities in heighten their positive and competitive image. In this regards,
Rowlinson knitwear also focus in managing their innovation that support them in keeping their
brand unique in market place. As there are some range of current practices within the innovation
management that assist business to capture huge market share from its rival and establishing its
competitive image so that large number of customers get easily attracted towards its services. All
these are as follows:
 Constant improvement: It is one of the essential practices that refers to the regular
improvement within the company and its product line as well. If company needs to attain
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success at competitive market they have to create as well as compare their desire progress
that support them in making better at market. For attaining the same, company set a clear
goals and at the same time also build a plan that support them in keep moving to the right
path or direction (Etzkowitz and Zhou, 2017). This will assist in capturing customers
attention towards the company and its offerings as well.
 Value creation: It is also consider as an essential aspect or practice for innovation
management as it is help in creating values that focus on customers taste and preferences.
In this, Rowlinson knitwear is responsible for undertaking their customers and their
prospectives. By providing services as per customers demand and their taste, firm easily
amend their execution. In this, firm also introduce innovative ways within the production
process to meet customers requirements. It support in establishing its agonistic image at
market place.
 Lean Start up model: Under this practice, company can assess the customers demand and
also find the best product that assist in meeting their needs and wants (Fadaee and Abd
Alzahrh, 2014). It is a technique that includes the speed and urgency in area to address all
the risk instead of planning about new ideas. Along with this, company also take
feedback from the customers in order to improve their services and innovation that
implement within the business and its production activities.
 Resource allocation: In market place, it is crucial for company to find the right and
appropriate areas of focus to effectively allocate the resources. This will assist in
evaluating entire assets like human and financial as well. At the time of growing,
company face greater risk and issues that negatively affect the overall activities of
company. In this, organisation sgould allocate proper resources that support in managing
the risk and also make organisation able to compete their competitors.
 Company culture: Management of innovation is refers to the group that support in
attaining success at market by making their production activities more innovative. In
context of this, Rowlinson knitwear create a culture of innovation wherein employees are
motivated and excited to improve each and every activities. As trust and openness is the
key aspect that support in increasing the possibilities of accomplishing all the set targets
in an stipulated time frame. As workers also share their new and innovative ideas that
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help in encouraging as well as promoting innovation at workplace. By this, company can
improve their positive image and also acquiring customers attention.
 Focus: This practice of innovation management is also effective in which company focus
on all the risk factors and mistakes that they make at the time of implementing innovation
within the operational activities (Galindo and Méndez, 2014). In this, manager of
company also lead their team members and motivate them to stay focused towards the
goals and objectives. It supports in rising the performance of company and also serve
unique and innovative products. This will directly contributes in increasing profitableness
level and develop competing image. By this large customers get easily pull towards its
innovative substance or products as well.
Importance of SME for the economy
A business opportunity refers to the sale of lease any kind of products and services that
contributes in enabling the purchased and licenses to begin a business activities in an effective
manner. As it also provide different scale to company in which firm acquire the same by
providing bet quality of products and service in market. Furthermore, it is also crucial for every
organisation to manage opportunities as it help in creating as well as developing meaningful job
along with greater satisfaction. It also foster local economies and at the same time also keeping
money close to economics (Cecora, 2019). This is the reason that, manager of business
organisation to effective manage all the business opportunities. By this, company easily promote
innovation within the firm and manufacturing unique and quality products. This support in
establishing positive and competitive image at market place. One of the main advantage of
managing business opportunities is that it requires lower initial charge than a franchise. Along
with this, it also support in maximizing the efficiency and returns that reduce the possibilities of
arising any kind of issues and obstacles at the time of operating business activities. In context of
this, Rowlinson knitwear is also focus on developing as well as introducing innovation within the
activities in order to enhance huge opportunities. This can be lead in making better financing
options as it improve the positive bran image of company by setting their positive image
(Drucker, 2014). Due to innovation, firm can easily ask for number of consumers over its
services and give them better gratification. It support in capturing market share from its
challenger at market place
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Entrepreneurial Marketing
Marketing challenges for SME and large companies
In complex business environment, every business organisation required to flexible
working activities wherein they can easily change their activities and at the same time also
reduce any kind of risk factors (Greenstein, 2015). In context of this, Rowlinson knitwear direct
their business concern in UK market for improving their positive and competitive performance.
Currently, company focus on providing best quality of clothing products to its consumers in
order to make them satisfied. This will positively influence the company in capturing larger
market share from its competitors. As, it is crucial for manager of company to have a better
experience, management skills, necessity of change, capacity for opportunities recognition and
many more aspects. All these are help Rowlinson knitwear to attain innovation opportunities
through which firm can serve best quality services to its customers. It will contributes in
establishing its competitive and famous brand image by meeting customers needs in an effective
manner. Along with this, firm also focus on analysing the customer trends, market analysis,
external factors and many more. With the help of these aspects, firm can easily introduce
innovation within the business activities and product line as well. If business organisation focus
on their product line and customers trends then they easily succeed their business in market and
also attain growth opportunities. In addition of this, Rowlinson knitwear is also responsible for
having proper fund, resources and human resources to create better innovation that provide better
opportunities to keep customers satisfied and acquiring customers attention. Without proper fund
and resources company can not be able and ready for any kind of innovation as it create negative
influence over the image and its customers value as well (Matthews and Brueggemann, 2015).
Thus, it is crucial for Rowlinson knitwear to keep enough fund and allocated resources so that
they can amend their execution and create innovation in market place to establishing its
combative image.
Advantage and disadvantage between small and large company
Developing a new business is not an easy job, there are many things that are to be looked
after in order to be successful. Nature of business can be different and to remain in the market
small companies can face difficulties and reasons can be many such as size, legal structure,
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finances etc., therefore, below are some points that can make both small-medium enterprise and
large organisation different.
Business Size: Size of the business can be determined by the number of employees working in
an organisation. With the help of this one can understand whether corporation is a small-medium
enterprise or it is a large company. Former includes employees around 150 – 500 workers
whereas latter may include 1,500 employees or above.
Decision-Making Process: While operating a business it is important that owners could make
effective decision through mutual understanding. Thus, if compared than small-medium
enterprise can decide things for the betterment of the corporation in quick time. While large
companies can face difficulties because for making any kind of urgent decision they have to go
through different bureaucratic levels which can be time consuming.
Business Legal Structure: Businesses are managed with the help of legal structure possessed by
any company because that look after taxation process, debts etc., As small-medium enterprise
can have sole owner or sole proprietorships so their business legal structure might not be so
effective. Whereas large companies are legally stronger they have separate departments for
reporting responsibilities for example: SEC filings. Therefore, if any problem arises than
company can conduct board meeting and issues can be resolved.
Finance and allocation of resources: In this portion small-medium enterprise lag behind
because as they have limited funds so company can only afford partial resources which can result
in delay of production process. Reasons behind this can be a smaller number of investors.
Whereas if compared getting raw material is not a difficult task because they may have relatively
free spenders, capital firms etc.,
Marketing strategies
It is important for every business organization to use effective marketing strategies to sustain
in market. Mainly it is related to the long-term activities that support company in attaining all the
fundamental goals and objectives in stipulated period of time. In context of SMEs, all the
companies are responsible for implementing best suitable marketing strategies with the aim of
attaining their targets and at the same time also may increase its profitability level. In this
context, there are some appropriate marketing strategies which can be used by small companies
to operate their business are as follows:
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Facebook advertising: It is one of common and famous strategy by which company spread
awareness in market place by posting their products on their Facebook page. This can be
effective because it invites large number of people towards its offering at a time. It also increases
customers base profitability level of company at market place.
Content marketing: This type of marketing strategy is also playing a significant role as it
put greatest commercial impact over the business and its image as well. Mainly, it is considered
as a process of creating as well as distributing valuable content to invite or retain loyal customers
towards its services. With the help of this, company can easily sustain at market for longer period
of time.
Marketing tools
For accomplishing success at market, effective communication is one of the significant
element that needs to follow by company at the time of interacting with specialist audience to
introduce innovation at market. In this providing best and relevant information to all the
audience to make its activities and activities more effective. This will support in eliminating any
kind of issues and obstacles in introducing innovation (Prabhu and Jain, 2015). In context of this,
operations specialist, customers who likes innovative products, investors and other specialist.
These are the crucial specialist for Rowlinson knitwear that support them in developing
innovation within the company. With the assistance of this, firm can introduce innovation within
the manufacturing and operational activities in order to invite large number of customers over
there. In addition of this, company also provide them proper data and their aim to audience and
take their feedback. It may support in promoting creativity within the company that may assist in
attaining higher growth at market and getting bigger market share from its competitors.
 Innovation: It is considered as an important tool that consist new and innovative ideas
that supports in discovering the valuable products help in meeting new requirements of
customers in market place. With the assistance of this tool, company can easily increase
their profitability level and also established its competitive and unique brand image that
influence more and more consumers towards its services.
 Opportunities: In market place, there is number of opportunities of small business
organization through which they can easily expand their business and attain success. This
type of market tool also contributes in increasing the possibilities of grabbing huge
opportunities to deliver its quality products and services to its customers. With the
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assistance of this, firm can easily sustain at market for long duration and also established
its strong presence.
 Word of mouth: it is also considered as an important marketing tool that can be effective
for company to increasing their awareness and at the same time also assist in
communicating with large number of customers towards its products and services. In
addition of this, it is an unpaid form of promotion in which happy and satisfied customers
share their positive experience about company and its services with others. With the help
of this, larger number of people get attracted and aware about the same. This can be
effective in increasing profitability level of company at market place.
 Social media: This type of marketing tool is also effective and it help company in
connecting with customers and at the same time also increase awareness about its brand
and services. By this firm can easily boost their sales and leads in increasing overall
profitability level.
CONCLUSION
As per preceding project, it has been ended that innovation and entrepreneurial
opportunities play a crucial role in every business organisation as it provides path and direction
in which company easily gain competitive advantage by offering best quality products and
services. In context of this, various practices of innovation management is also help in providing
opportunities that grab firm with the aim of making their brand image more competitive and
famous as well. This is the reason that innovation is crucial within the company as it provide a
path and direction in which company can meet customers’ needs by providing them best qualities
of products and services as per their requirements. Furthermore, business organisation is also
readiness for entrepreneurial and innovation opportunities that directly contributes in enhancing
positive brand image.
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REFERENCES
Books and journals
Caneque, F. C. and Hart, S. L. eds., 2017. Base of the pyramid 3.0: sustainable development
through innovation and entrepreneurship. Routledge.
Cecora, J., 2019. Cultivating grass-roots for regional development in a globalising economy:
innovation and entrepreneurship in organised markets. Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Fadaee, A. and Abd Alzahrh, H. O., 2014. Explaining the relationship between creativity,
innovation and entrepreneurship. International Journal of Economy, Management and
Social Sciences. 3(12). pp.1-4.
Galindo, M. Á. and Méndez, M. T., 2014. Entrepreneurship, economic growth, and innovation:
Are feedback effects at work?. Journal of business research. 67(5). pp.825-829.
Greenstein, S., 2015. How the internet became commercial: Innovation, privatization, and the
birth of a new network. Princeton University Press.
Matthews, C. H. and Brueggemann, R., 2015. Innovation and entrepreneurship: A competency
framework. Routledge.
Prabhu, J. and Jain, S., 2015. Innovation and entrepreneurship in India: Understanding
jugaad. Asia Pacific Journal of Management. 32(4). pp.843-868.
Sart, G., 2014. The new leadership model of university management for innovation and
entrepreneurship. Eurasian Journal of Educational Research. (57). pp.73-90.
Wagner, M. ed., 2017. Entrepreneurship, innovation and sustainability. Routledge.
Zhou, J., 2015. The Oxford handbook of creativity, innovation, and entrepreneurship. Oxford
University Press.
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