Managing Small and Medium Enterprise

This article discusses the challenges and growth tactics of managing small and medium enterprises. It covers the nature of the entrepreneur behind the venture, SME start-up procedures, business concepts, and sources of competitive advantage. It also talks about the current level of demand and competitive environment, growth and development of the business, challenges faced, SMEs current growth and development tactics, government support measures, and sustainability aims for businesses.

MANAGING SMALL AND
MEDIUM ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................3
FINDING.........................................................................................................................................3
The nature of entrepreneur behind venture..................................................................................3
SME start up procedure...............................................................................................................4
Business concept and any source of competitive advantage.......................................................4
The current level of demand and competitive environment........................................................5
Growth and development of business to date..............................................................................5
Challenges of managing and running venture.............................................................................6
SMEs current growth and development tactic.............................................................................6
Any government support measures that may be accessible to help venture overcome
challenges faced...........................................................................................................................7
The extent to which, any venture considers social or sustainability aims and whether there is
chance here for business..............................................................................................................7
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
The process of managing small and medium size companies is quite challenging as it
encompasses different form of activities and practices that affect sales and their success factors.
Each activity and practice is quite essential for administration to conduct in appropriate manner,
which in turn provide desire outcomes of management. The current assignment will be based on
Oak Cash and Carry, which falls under the category of small and medium size retailers in the
UK. The aim of this study is to explain nature of entrepreneur behind chosen company, process
to start SME, and venture concept along with source of competitive benefit. It will also specify
current extent of demand, competitive environment, growth and development of venture to date.
Furthermore, the report will justify challenges, SMEs current growth and development tactic, as
well as support from governmental bodies that aid to overcome each challenge. Lastly, the study
will clarify extent to which any business has consider sustainability or social aim and whether
there is chance here for venture.
FINDING
The nature of entrepreneur behind venture.
Mr Nicholas John Dale is the director of Oak Cash & carry Ltd, and owner of this SME,
who take decision to grow organization, in the retail market effectively. Risk taking, innovation
and open communication, are those terms that falls under the category of his nature. He is a
risk taking person, who always take initiative to deal number of challenges in term of forming
effective tactics and plans. Innovation term also included in category of similar concept, which
specify that the director of SME is innovative as he always appreciate innovative ideas provide
by the employees and other stakeholders. He may prefer to communicate people by using
specific communication tools, which enable everyone to share their creative ideas with him that
is essential and beneficial in organizational success context. Adaptability is also cover in list of
attribute that the current organization entrepreneur may have. It may affect the way he takes
decision and grow his company effectively and in competitive manner, which is quite essential
for him to do so. It is fact that an entrepreneur may always adapt and consider current trends that
in turn provide unpredictable benefit to them (Entrepreneurs and Entrepreneurship Defined,
2021).

SME start up procedure.
The process of small medium enterprise start-up consists number of stages or steps that
contribute to develop better understanding regarding how a SME is develop and establish in the
specific market. These steps are;
Business idea identification-
This step may drive an entrepreneur attention toward formulation and select specific
business idea.
Validate business idea-
Then they move to second phase such as current one, which enable them to take decision
to form plan with tactics (15 Steps to Start Your Own Small Business; A Complete Guide, 2022).
Get a memorable business logo and name-
After idea selection, they may move to third phase, such as current term, which enable
them to select specific logo and name of venture.
Develop a business plan-
It is essential for management and business man to develop the best business plan,
including decision making process that impact positive in term of gathering resources, etc.
Select a funding source-
The selection of specific funding source is essential which consider as major step of SME
start- up process (İncekara, 2022).
Choose organizational structure-
It is important to select a particular legal organizational structure that drive toward
unpredictable success.
Get permits and licenses-
They may follow legal process in term of getting license to start new small and medium
size company.
Business concept and any source of competitive advantage.
In case of Oak Cash and Carry Ltd, consumer goods concept it the best venture term, that
define reason and reach of existence of chosen venture idea. According to this concept, firm may
take approach to sold its product from a wholesale warehouse (Nosratabadi and et.al., 2019). It
may target consumers such as caterers, professional users, retailers, and institutional buyers. This

concept may put positive impact on company in form of increasing profitability as management
may take approach to sold those goods that are produce and manufacture by skilled individuals.
Sources of competitive advantages-
Product attribute differentiation, price discrimination, technology advancement and
market trend consideration, are the best sources that enable organization to obtain competitive
benefits in bulk. The appropriate utilization and consideration of each source may allow firm to
take pleasure of increasing sales, which is not possible for any company to do so appropriately
and successfully. It may enable them to reach desire outcome such as generate revenue that is a
biggest challenge in case of SMEs. Price, quality of goods, and product packaging as well as
trend identification will give organization sources of competitive advantages.
The current level of demand and competitive environment.
In the recent time, individual person prefers to and demand for quality grocery and other
items, which they may purchase online and offline. This form of demand or requirement may put
positive impact on company in term of increasing profitability and productivity. It may allow
organization to take pleasure of increasing customer base, that encompasses different activities
and procedures.
Competitive environment refers to extent to which companies give tough competition to
each other. This form of environment may put negative impact on chosen company in term of
increasing work pressure upon employees and management, which is not suitable for their
performance and organizational productivity (Iriyadi, Maulana and Nurjanah, 2018). In the retail
industry, the competitive environment or level is high that affect negatively upon SME. It may
lead to decrease sales and effectiveness of success factors that organization take into its
consideration. It is important for venture and its management to analyse business environment
and identify the extent of competitiveness in the market.
Growth and development of business to date.
Oak Cash and Carry Limited is a private organization, which founded in 19 October 2000
with appropriate registered office located in UK (OAK CASH & CARRY LIMITED, 2022). The
growth and development of chose company to date may define in term of specifying how much
to may earn and generate revenue. It is fact that current financial study of organization specify
that it may earn £87,643.00, Total-Assets of £410,283.00, while performing capital is 314,
793.00. As compare to previous financial year, organization may report a cash minimize of -

275.22 percent which is a comparable of 241208. At the same year, sum assets went down by -
1.6 percent. From beginning two current years, organization may earn a lot of profit, which is
quite essential for its further rapid success in the industry, where competition level is intense and
put direct impact on current management planning process. In 2011, organization may earn 8.4
million, which is more than 2014-year success in the market, when firm may face varied
challenges.
Challenges of managing and running venture.
While managing and running a small business in the market, organizations and
entrepreneurs, may face number of issues. Lack of skilled employees in one of the biggest
issues that they may face. It may affect negatively upon venture success and growth in the
market, which is important and beneficial. Along with current challenge, another issue that
company face is lack of funding source that may create barriers and unable to grow effectively.
In the recent time, it is essential for a company to have good financial base and option that they
may use when it is requiring. Managing venture appropriately is the biggest challenge that for
small company, it may affect the way management may take decision and implement the same.
This challenge may require number of effective and useful resources that contribute to provide
desire results. It is essential for administration to consider each form of challenges that allow to
deal with these appropriately and systematically, by applying key techniques.
SMEs current growth and development tactic.
For purpose of venture growth small medium size company apply and formulated different
strategies. For example, market trend identification, it the best strategy that enable a company,
either medium or small to grow and develop successfully. It may enable organization to gain the
attention of new customers and retain existing for longer time. With this tactic, management may
take pleasure of increasing sales and generate revenue more than other companies that exist in
the market and sustain for long time.
The development of small company entails different practices such as strategy formulation.
For purpose of development, SMEs develop tactic in term of developing effective marketing
plans that help to generate excellent awareness of venture and product that company tend to sell
in the market. This form of tactic affects positively in term of gaining customer attention and
enabling them to collect info about anything relate to specific SMEs. It is essential for

management and marketer to create the best development tactic, that in return support to increase
sales.
Any government support measures that may be accessible to help venture overcome challenges
faced.
There are different types of policies, offering and regulations accessible in the corporate
world that considered as governmental support measures. Each measure may available in the
world that aid company to overcome key issues effectively and successfully. For example, bank
loans, in the recent time may play significant role in the context of organizational success, it may
enable company to take right decision to overcome financial issues or challenges. It may drive its
attention toward providing application for bank loan related to specific amount that management
may use to gain competitive benefit and reach desire outcomes. Employment laws may also
enable firm to reach desire result and support to overcome number of challenge such. It may give
company chance to hire people according to job requirement and prevent venture from legal
issues. It is important from venture and its stakeholder to select a suitable government support
measure that in return provide desire outcomes, instead of creating more challenges.
The extent to which, any venture considers social or sustainability aims and whether there is
chance here for business.
Recently, if a company consider social and sustainability related aims, it may gain
unpredictable benefits. It is fact that the consideration of these form of goals, may provide
organization chance to build their strong brand image in the market, which is beneficial for each
and every stakeholder. It may provide organization benefit to gain the attention of those
customers who are international and also offer reason to retain with company for longer time
duration, in order to obtain benefits in term of quality goods. At high extent, it may affect
positively in form of building wide customer base, that is not possible for other companies to do
that because the overall concept requires a lot of fund and other resources. It is important for
each company in the recent time to become a sustainable company. It affects in term of
generating revenue more than other firms in the market accessible to reach target aim.
CONCLUSION
On the basis of above discussion, it has been concluded that by developing effective plans
and strategies, small company has achieved its target aim and objectives. It has sustained for
longer in the market in term of following the overall process of starting new venture in the

market. Furthermore, by summing up above analysis, it has been summarized formulation of
effective strategies enabled organization to overcome the major challenges that impacted
negatively upon its success and growth. By using appropriate market analysis tool, it has
collected data in the context of rivals and their impact on company success.
RECOMMENDATIONS
 In order to gain competitive advantages in the future, organization can focus on using
digital marketing tools as it don’t have any form of online existence on social media
platform.
 Furthermore, the development of SMEs is quite essential for which management can take
approach to select specific and reliable source of finance such as bank loan, which in turn
provide organization chance to obtain competitive benefit in term of start new venture
and enhancing customer satisfaction level.
 It is also important for small and medium enterprise to consider current market trend that
help to increase profitability and productivity level.

REFERENCES
Books and journals
Chien, F and et.al., 2022. Assessing the prioritization of barriers toward green innovation: small
and medium enterprises Nexus. Environment, Development and Sustainability. 24(2).
pp.1897-1927.
Dey, P. K and et.al., 2019. Could lean practices and process innovation enhance supply chain
sustainability of small and medium‐sized enterprises?. Business Strategy and the
Environment. 28(4). pp.582-598.
Gupta, G and et.al., 2018. Resource-based view of information systems: Sustainable and
transient competitive advantage perspectives. Australasian Journal of Information
Systems. 22.
İncekara, M., 2022. Determinants of process reengineering and waste management as resource
efficiency practices and their impact on production cost performance of Small and
Medium Enterprises in the manufacturing sector. Journal of Cleaner Production.
p.131712.
Iriyadi, I., Maulana, M. A. and Nurjanah, Y., 2018, December. Financial Reporting for Micro
Small and Medium Enterprises Towards Industrial Revolution Era 4.0. In International
Conference On Accounting And Management Science 2018 (pp. 32-38).
Mahapatra, K., Mainali, B. and Pardalis, G., 2019. Homeowners’ attitude towards one-stop-shop
business concept for energy renovation of detached houses in Kronoberg, Sweden.
Energy Procedia. 158. pp.3702-3708.
Nosratabadi, S and et.al., 2019. Sustainable business models: A review. Sustainability. 11(6).
p.1663.
Obiekwe, O., 2018. Organizational family culture: theoretical concept definition, dimensions and
implication to business organizations. IIARD International Journal of Economics and
Business Management. 4(1). pp.11-21.
Shaari, N., 2019. Organization Culture as the source of competitive advantage. Asian Journal of
Research in Education and Social Sciences. 1(1). pp.26-38.
Youssef, H. S. and Elias, S. S., 2020. The Financing Process for Pioneering Small and Medium
Enterprises in Iraq Case Study of the Iraqi Company for Banking Guarantees 2009-2018.
Tikrit Journal of Administration and Economics Sciences. 16(52 part 3).
Online
15 Steps to Start Your Own Small Business; A Complete Guide. 2022. [Online]. Available
Through: <https://www.deskera.com/blog/start-your-small-business/>
Entrepreneurs and Entrepreneurship Defined. 2021. [Online]. Available Through: <
https://www.investopedia.com/articles/investing/092514/entrepreneur-vs-small-business-
owner-defined.asp>
OAK CASH & CARRY LIMITED. 2022. [Online]. Available Through:
<https://uk.globaldatabase.com/company/oak-cash-carry-limited>
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