Managing Small and Medium Enterprises

This research examines the relevance of SMEs in the UK industry and provides insights on government support, development routes, growth methods, sources of finance, growth policy, and change management in SMEs.

Managing small and
medium enterprises

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
LO1 Ability to debate contemporary issues relating to SMEs and government support
available to help businesses address these issues........................................................................1
LO2 Ability to identify and evaluate development routes for an SME.......................................3
LO3 Evidences of appraising alternative methods of growth in SMEs.......................................4
LO4 Evidences of investigation and evaluation of sources of finance in SMEs.........................4
LO5 Show proof of designing a growth policy for an SME........................................................5
LO6 Proof of understanding about how to manage change issues in an SME context...............6
RECOMMENDATION...................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Small and medium firms possess a lot of importance for each and every country since it helps in
the growth and development of the economy of a nation and that too in an impactful manner
(Bada and Nurse, 2019). There are a number of different small and medium natured firms that
are operating in the UK and thus contributes in the major part of the economy and thus Brain
Labs Digital LTD. has taken for the purpose of analysis and evaluation in a very precise manner
so that it can add value in the long run. This research is divided into six sections; each of them
examines the relevance of SMEs in the UK business. The very first aspect would then look at
relevant problems and govt assistance for SMEs, the aspect two would then look at evaluating
advancement routes for SMEs, the third section would then look at various ways of expansion in
SMEs, the section 4 would then look at funding sources for SMEs, the section five would then
look at job creation strategic planning for SMEs, and the last aspect would then look at the future
of SMEs.
MAIN BODY
LO1 Ability to debate contemporary issues relating to SMEs and government support available
to help businesses address these issues
GOVERNMENT SUPPORT AND CONTEMPORARY ISSUES TO SMEs- As per
McKinsey, micro and moderate firms contribute 50% of the UK market's income and create and
over 40% of the country's workforce. As a result, the UK authorities must ensure that such
enterprises continue to operate in the nation as they have an influence on the nation's
infrastructure. Numerous strategies and regulations are being introduced by authorities in favour
of small and medium-sized firms, as per a McKinsey poll, smaller and moderate enterprises are
experiencing immobility, and Brain Labs Digital LTD. will confront additional outbreaks in
2020 owing to COVID 19, now in its second stage (Choi, Kim and Yang, 2018).

The epidemic of COVID 19 has had a massive effect on modest and moderate
organizations. A small and medium-sized enterprise saw a 70% drop in sales in the second half
of the epidemic in 2020, affecting the entire operation of the firms and Brain Labs Digital LTD.
finds it hard for them to remain steady in the marketplace and maintain personnel, clients, and
visitors.
GOVERNMENT SUPPORT- The UK administration has recommended small and
medium-sized firms to take participation in the furlough program, which will provide grants
from the state as well as a variety of options from the administration. The administration's
assistance also included financial assistance, tax assistance, and assistance with daily operations.
Brain Labs Digital LTD. was severely impacted after COVID 19 went into effect, as well as
the regulation makes the organisations by granting cash to assist companies survive and recover
from the costs suffered by Brexit. This has been established that small and medium-sized firms
can receive a subsidy of up to £ 3000 from the authorities, which would assist the organisations
in maintaining their functioning and activities (Dankiewicz, Ostrowska-Dankiewicz and Bulut,
2020).

LO2 Ability to identify and evaluate development routes for an SME
DEVELOPMENT ROUTES FOR SMEs EVALUATION- Smaller and standard size
firms are constantly eager to embark on new difficulties and upheavals, because they are highly
passionate about working out of its specific segmenting the industry. Brain Labs Digital LTD.
must develop methods and regulations that will enable organisations to remain constant in the
face of economic adjustments. The following are six approaches that the organisation could
employ to boost productivity: Organisation could gain revenue and prosperity through
employing market share, product innovation, alternate platforms, business expansion, product
differentiation, and collaborations.
Market Penetration- This is indeed a process in that a firm uses a variety of advertising
projects to increase one‘s goods / services recognised and entice more client from all around the
world. Such marketing strategies involve things like advertisements, appears to offer, and
discounted rates, and by doing so, Brain Labs Digital LTD. product lines and service providers
achieve a competitive edge (Kagika, 2016).
Alternative Channels- Brain Labs Digital LTD. could use a variety of channels to market
their items and solutions so that users are aware of them, and nowadays, digital sites like as
Instagram, Google, Linkedin, Tumblr, and mail are the most effective.
Market Development- It is a technique wherein Brain Labs Digital LTD. advertises the
firm's organizational commodities and activities to consumers from various regional locations
thereby gaining more customers. Such methodology has been used by a number of well-known
corporations, like Nike, Puma, and others. As a result, the organisations have gained access to a
wider audience, while smaller companies are able to grow existing operations into new locations.
Partnerships- Brain Labs Digital LTD. could go along and collaborate with many other
organisations to assist drive the economy forward in the present epidemic crisis that has had a

significant impact on the global marketplace and disrupted corporate operations. The advantage
is that while there is assistance in the case of a disaster, and the major need for collaboration is
that both parties have same set of talents and have adequate resources.
Market Segmentation- Brain Labs Digital LTD. try to differentiate the industry into different
segments due to shoppers, one‘s civilization, one‘s maturity level, ones needs and wants, and so
on, and so this aids organisations in achieving their objectives and doing so efficiently because
those who gain a better understanding of the industry and therefore could just collaborate and
produce merchandise and payment systems appropriately (Kassem and Trenz, 2020).
LO3 Evidences of appraising alternative methods of growth in SMEs
VARIOUS ALTERNATIVE METHODS FOR GROWTH- There are indeed a variety of alternative ways for micro and
moderate businesses to develop, including the following-
START UP HUBS GOVERNMENT VENTURE
CAPITAL FUNDS
DIGITAL ADOPTION OF
AI
It is a location that gives Brain
Labs Digital LTD. a chance and
space to debut their items/
solutions, as well as knowledge
and help through that they can
generate funds for new projects,
with govt assistance.
It is a mechanism that was
originally implemented in
European nations and it is a
taxpayers subsidize called GVC
that assists excellent
entrepreneurs in entering the
private industry to operate, as
well as the GVCF can be utilised
to meet policy goals for Brain
Labs Digital LTD.
Brain Labs Digital LTD. could
use machine learning in their
operations because it allows for
the incorporation of new
technologies that is useful to the
company and aids in the
attainment of objectives in a
more timely and efficient
manner, as well as job creation
(Mashavira, 2021).
LO4 Evidences of investigation and evaluation of sources of finance in SMEs
SOURCES OF FUND-
GOVERNMENT
GRANT
VENTURE
CAPITAL
CROWD FUNDING PEER TO PEER
LENDING

The UK state gives
subsidies to Brain Labs
Digital LTD., and it is a
very rigorous procedure,
and getting into the state
funding classification is
not simple.
Aside from that, the
state gives geographical
assistance.
This is really a resource
whereby the inventor
raises funds from
numerous capitalists
during the start-up phase
for a specific amount of
duration and with some
ownership in it, and it is
known as business
consultant for Brain
Labs Digital LTD.
(Paula and Da Silva,
2019).
This is indeed a way in
which Brain Labs
Digital LTD. raises
funds from the wider
populace with guarantee
of repaying it plus
interests. However,
there is indeed a risk
that perhaps the
audience will withdraw
the funds if people do
not see any activity,
leaving the firm with no
funds. This material is
appropriate for a
company's long-term
strategy.
Such method is similar
to crowdsourcing,
however Brain Labs
Digital LTD. is really
only accessible to those
that are related to lean
seekers, as well as the
funds are generally
generated from
neighbours, colleagues,
and relations.
LO5 Show proof of designing a growth policy for an SME
POLICY FOR GROWTH DESIGNED BY THE SMEs- Brain Labs Digital LTD. is
critical for the nation's socioeconomic development. It is critical to maintain SMEs functioning
and operating in a responsible way, and the UK administration must take steps to ensure that this
happens. SMEs operate with the goal of expanding the nation's infrastructure and society, but it's
also critical that such nations develop good production to ensure that perhaps the region's
conditions were met, and that quantities of information are transported to the organisations,
which aids in expanding the institution's efficiency and performance in the consumer market.
The administration must enact policies and standards that enable organisations to operate
efficiently and on schedule. The foundations must be determined by the administration in the
nation, and they must be consistent and not change frequently such that organisations in the
marketplace may be secure, and they must have explicit guidance and consequences for those
who do not obey them. These businesses must ensure companies adhere to regulatory

requirements and standards, as well as act in the objective of meeting customer demands,
responding to new, and working efficiently.
LO6 Proof of understanding about how to manage change issues in an SME context
CHANGE MANAGEMENT IN SMEs- It has constantly been proven, which implies that
different modifications in the economy occur for specific causes. For example, the introduction
of COVID 19 influenced the entire marketplace, resulting in several modifications in the industry
and organisational strategy. Technological changes, needs and wants of clients in the business,
and so on, necessitate changing the way staff operates including in their architecture. To keep
pace with the changing, multiple sources must be upgraded in Brain Labs Digital LTD.
Leadership alignment It is critical for Brain Labs Digital LTD. to provide a strong
management style since it aids in encouraging the firm and its
people to perform successfully and achieve objectives while
maintaining changes in sight.
Communication Communications is a vital component of maintaining people
in the organization engaged and exchanging data to them. It
ought to be honest and accountable which aids in the
establishment of empathy.

Training Education aids in the acquisition of the information and
abilities required to navigate transformational culture and
complete tasks successfully and economically.
Stakeholders’ engagement It is essential to maintain users informed about the Brain Labs
Digital LTD. operations, since this aids in the development of
relationships and the expansion of the branding.
Change impact and
readiness
It is necessary to maintain track of the progress and give
relevant action as soon as possible.
Organization design To stay pace with the developments, Brain Labs Digital LTD.
must be successful in the long run and also have a long-term
organisational structure (Sohilauw, Nohong and Sylvana,
2020).
RECOMMENDATION
 Interaction is a vital aspect of maintaining people in Brain Labs Digital LTD. engaged
and exchanging data to them. Dialogue must be straightforward and accountable which
assists in understanding and satisfying.
 Brain Labs Digital LTD. must be interested in strategy implementation and R&D for
improved results, as well as assisting staff with training.
 To stay pace with the developments, Brain Labs Digital LTD. must be beneficial in the
long run and also have a long-term organisational structure.
CONCLUSION
This research is divided into six sections, which together examines the relevance of SMEs in the
UK industry. The first aspect looks at relevant problems and public funding for Brain Labs
Digital LTD., the part 2 looks at evaluating innovation routes for the company, the third section
looks at various ways of economic expansion in the firm, the section 4 looks at funding sources
for SMEs, the fifth part sounds at economic expansion program implementation for SMEs, and
the last piece looks at the churn rate for SMEs.

REFERENCES
Books and journals
Bada, M. and Nurse, J.R., 2019. Developing cybersecurity education and awareness programmes
for small-and medium-sized enterprises (SMEs). Information & Computer Security.
Choi, J.H., Kim, S. and Yang, D.H., 2018. Small and medium enterprises and the relation
between social performance and financial performance: Empirical evidence from Korea.
Sustainability, 10(6), p.1816.
Dankiewicz, R., Ostrowska-Dankiewicz, A. and Bulut, C., 2020. The attitudes of entrepreneurs
of the small and medium-sized enterprises sector in Poland to key business risks.
Equilibrium. Quarterly Journal of Economics and Economic Policy, 15(3), pp.511-536.
Kagika, A.M., 2016. Management practices of small and medium enterprises and the challenges
in socio-economic sphere: a case study of SMEs in Nairobi city (Doctoral dissertation,
University of Nairobi).
Kassem, E. and Trenz, O., 2020. Automated sustainability assessment system for small and
medium enterprises reporting. Sustainability, 12(14), p.5687.
Mashavira, N., 2021. The perceived impact of agency control on the performance of
Zimbabwean small-to-medium enterprises. The Southern African Journal of
Entrepreneurship and Small Business Management, 13(1), p.12.
Paula, F.D.O. and Da Silva, J.F., 2019. The role of the appropriability mechanisms for the
innovative success of Portuguese small and medium enterprises. International Journal
of Innovation Management, 23(04), p.1950032.
Sohilauw, M.I., Nohong, M. and Sylvana, A., 2020. The relationship between financial literacy,
rational financing decision, and financial performance: An empirical study of small and
medium enterprises in Makassar. Jurnal Pengurusan (UKM Journal of Management),
59.