Challenges Facing Small and Medium Enterprises: A Study on Eggfree Cakebox

This report discusses the challenges faced by small and medium enterprises (SMEs), using Eggfree Cakebox as a case study. It highlights the importance of SMEs in the economy, identifies common challenges such as access to finance and technology, and provides recommendations for overcoming these challenges. The report also emphasizes the unique nature of Eggfree Cakebox as a lacto-vegetarian bakery and its success in the market. Overall, it offers valuable insights for SMEs looking to navigate the competitive business landscape.

Managing Small and
Medium Enterprises

Contents
INTRODUCTION.....................................................................................................................................3
Aim..........................................................................................................................................................3
Objectives................................................................................................................................................3
Challenges facing SMES...........................................................................................................................4
CONCLUSIONS........................................................................................................................................8
Recommendations.....................................................................................................................................8
Reflection...................................................................................................................................................8
REFERENCES..........................................................................................................................................9

INTRODUCTION
A small and medium sized enterprise can be defined as an independent firm that employs
few employees. SMEs can contribute to the overall growth of the economy of a country to a
significant level. This is because they create many new job opportunities for the people and also
promote innovation. Besides this, SMEs also increase the competition within the market and
promote growth in the market (Wiesner, Chadee and Best, 2018). There can be different
challenges that SMEs can face during their business development. For example, of the
challenges facing the SMEs is an adequate access as well as marketing platform, a lack of access
to latest technology, a lack of required credit etc. These challenges can affect them business
operations of SMEs to a great extent and therefore, it is important to adopt effective strategies for
overcoming the same. The respective report is based on the organization Eggfree Cakebox, a
SME that started its business in the year 2008 with a small store. The mission of the enterprise is
to offer the customers within the UK market with fresh cream celebration cakes that are based on
a new concept without using eggs as well as an on-demand service. While doing so, the business
does not compromise on the taste as well as texture of its cakes. The different cakes that are
offered by the enterprise, are made to a high end as well as are light and fluffy. The size of the
business is medium and it has been trading in the United Kingdom since the year 2008. Also, it is
a family-business wherein the family members of the founder follow a strict lacto-vegetarian
diet. The report explains different challenges that are faced by SMEs as well as the nature of the
entrepreneur behind the respective enterprise. The research process opted for this research is
mainly focused on secondary data collection. Therefore, various books, journals as well as
reports were referred to in order to collect accurate data for the report.
Aim
“To identify the different challenges facing Small and Medium Enterprises. A study on
Eggfree Cakebox.”
Objectives
 To identify the different challenges facing Small and Medium Enterprises or SMEs.
 To determine the different measures that can be adopted in order to overcome the
challenges faced by SMEs.

Challenges facing SMES
The UK’s smaller businesses appear to budget for brand new era as a set value; however
they may be more and more comfortable with technology and know what they want (Kot, 2018).
There are number of challenges faced by small and medium size of companies like Eggfree
Cakebox. The description of some of them is defined as:
Embracing generation, while maximum businesses have welcomed technological advancements
of the past few a few years, there are others who have buried their heads inside the sand.
Technology plays a key feature in business and there within the in the meantime are software
program and apps to be had to make subjects a good deal much less hard and much less difficult
for enterprise company owners and to alleviate some of the traumatic situations they will often
face. Some of these encompass accounting software application applications, advertising gear to
help distribute monthly newsletters and project manages gadget.
Securing finance, despite the fact that industrial corporation lending is now a ways greater
available than in preceding years, getting access to finance continues to be a problem. Many
SMEs are grew to come to be away via their excessive avenue bank, but it’s important to
remember that this isn’t the simplest desire. Alternative creditors are there to assist and come
without the normal “tick field” mentality, due to this they could offer flexible and custom
designed funding answers. Whether a industrial business enterprise is looking for a short-term
company mortgage or extra bendy credit rating rating with a long time, there’s a massive variety
of investment options available.
Attracting new clients, that is a hassle that such a lot of companies battle with, and this includes
the large game enthusiasts too. However, massive groups with ancient success in the again of
them commonly find out it much much less complex to draw new clients as they have got a
sturdy logo helping them. Smart branding in all fairness important and with it comes extra
popularity, extended commercial business enterprise rate and the capability to generate new
clients at a quicker pace (Lachiewicz and et. Al., 2018). Attracting new customers whilst keeping
an high-quality provider with cutting-edge customers may be intricate, but it’s important if they
need to acquire a competitive market. Pro-activity is also critical for any small business business
enterprise. This technique making cellular-telephone calls, attending applicable networking

sports and gaining knowledge of the diverse advertising channels that their business agency has a
presence on.
First of all, the industry is (nonetheless) confronted with the negative picture of bread. However,
the industry has instead changed the paradigm to communicate there are benefits in bread intake.
For this, its miles by using turning to the snacking category or to cake alternatives to bread, apart
from solely promoting the benefits of baked merchandise. For now, this could appear to be an
excellent circulates, as snacking products and pastry have a higher introduced cost, however at
the long time, this awful picture that breads have (especially coming from low-carb diets) need to
be addressed. The alternatives of baked items that are already gift on the market want to be
promoted for his or her health blessings now!
Secondly, the workforce remains a major problem for most nations, because the younger era isn't
always enticed sufficient to grow to be skilled bakers, cake chefs or confectioners. The industry
is likewise running on selling the advantages and the opportunities those occupations carry, to
draw passionate experts for the following day.
Thirdly, hygiene and new food protection requirements are an increasing number of warm
subjects within the agenda for any bakery occasion. This is a zone where cake makers still have
work to do, as the food borne ailment outbreaks come returned often and the meals recalls are
announced nearly every day. The technology and regulation are available, but they should be
implemented.
Rather than panic-buying for you to keep up with trends, Britain’s corporations are
assessing their desires and making an investment cautiously, consistent with respondents.
Customer provider and flexibility stay crucial to SMEs without the time or cash to waste on
extensive-brush economic answers (Papadopoulos, Baltas and Balta, 2020). Overall, UK SMEs
are dependable to their banking carriers, with simply 11pc saying that they're looking to move
their business banking to another company in 2019. Doing just that has come to be extensively
easier in current years and current account switches are highly trustworthy, despite the fact that
depending on factors including enterprise size, loans and arrears.
A stretched IT crew affects many SMEs, some don't have any IT team at all, that could
have negative ramifications for any enterprise. Not being capable of keep systems up to date,

network downtime and server disasters to call a few can gain havoc on a business; while
systems are down you're dropping ability commercial enterprise. A simple and cost-effective
way to this will be outsourcing your IT so it can be controlled 24/7 via a team of specialists.
Solutions which include moving servers into the cloud in preference to on-website will solve
area, resource and most of all, let you positioned your ft up and relax as your IT could be taken
care of.A commonplace delusion is that making improvements on your systems will fee lots of
money; this is not the case. The price of purchasing a server, together with the rate of its
upgrades, protection, and statistics lower back-up is negated whilst moving to the cloud. You
definitely pay a month-to-month charge depending on the quantity of garage wanted with the
ability to flex up whilst your enterprise needs it (Abdulaali, Alnoor and Eneizan, 2019). Consider
your telephony structures; traditional ISDN structures can value a fortune in renovation and line
apartment. By moving to a VoIP system, you'll be saving as a minimum 30% on call expenses
and gaining a miles more efficient and characteristic-rich gadget.
Many of the customers have skilled ready hours in a customer service call queue for
someone to assist with a telecoms problem, to then be advised to “flip it on and off once more”.
This is a large mission whilst the use of your IT is commercial enterprise important, especially
when you can now not have the proper expertise to rectify the issues. Downtime expenses you
your popularity and your commercial enterprise. Having the right degree of support is important
for an SME, someone to depend on and manual you while seeking to make further
improvements. This is one of the core values that Intercity turned into built. In this fast-paced
global, it's miles vital in an effort to adapt to change. With employees increasingly more running
on the road or at domestic, having the proper infrastructure in place is extra crucial than ever to
accommodate a fluid workforce (Bruhn, Karlan and Schoar, 2018). By having the proper
infrastructure mixed with effective collaboration tools, your employees can get right of entry to
packages and files securely out of the workplace. This additionally lets in the personnel to
paintings securely, successfully, and flexibly from everywhere at any time.
It is essential to pick out those challenges so that they may be addressed correctly by way
of increase appropriate techniques. The UK has now left the EU with a deal. Understandably
many groups are involved over what that is going to intend going ahead. It continues to be to be
showed what a future immigration device will look like and, with free movement of oldsters to
give up, some businesses may also additionally discover extended problem in sourcing labour.

While we anticipate in addition confirmation, employers need to encourage EU nationals
presently running for them to use for settled fame earlier than the closing date of 30 June 2021.
However, it is vital to keep in mind that employers cannot stress them to apply. As topics stand,
the contemporary-day withdrawal agreement has set up a 'transitional duration' to offer the UK
and the EU more time to exercising an enduring deal on their future dating, in an effort to last
until 31 December 2020. If a separate buying and selling deal cannot be reached in this time, a
no-deal Brexit can be again on a desk. It is therefore additionally crucial that organizations hold
this in mind going forward.
Findings
The respective SME, Eggfree Cake box was founded in the year 2008 by PardipDass as a
small store. The enterprise offers high-end, fluffy as well as light cakes that are completely egg
free. This is because many of the founder’s family members follow a strict lacto-vegetarian diet
and also, the enterprise wanted to provide the UK with delicious fresh cream Celebration Cakes
(Chatterjee and Kar, 2020). The start-up offers a wide range of exceptional celebration cakes that
are made out of fresh cream. The enterprise also offers muffins, milk barfi as well as cheesecakes
that are egg free. The start-up process for the respective enterprise involves review, completing
an advanced application form as well as review, attending cakebox head office presentation
meeting etc. The business concept for the respective organization is that it is focused on offering
the customers high quality celebration cakes in order to provide them with an improved
experience. All of the products that are offered by the enterprise are based on the concept that
they are egg free. And finest quality ingredients are used by the pastry chefs in order to ensure
that there is no compromise in the taste as well as quality. With a new business concept of
introducing egg free celebration cakes to the customers, the respective enterprise has been able to
attract a large number of customers. Not only this, tit has also gained a competitive advantage
against competitors within the industry. Currently, the company operates in a highly competitive
market because the preferences as well as choices of the customers keep changing. And there are
competitors within the market that offer similar products to the customers. The company values
its customers very much and therefore, has come to be one of the favorites of the customers for
all their special occasions. Although the company was founded in the year 2008, it now has 154+
branches across different parts of the nation. There are different schemes that the Government of

the United Kingdom has for small and medium businesses that the respective company can
utilize to enhance its business operations in the market.
As of now, the company has more than 154 branches across the United Kingdom.
Another reason why the company has been able to gain a competitive advantage in the industry
is that the chefs only use high quality ingredients and upmost care is taken in the production of
all of the cakes. The company delivers first-rate customer service and cakes that are not only
delicious, but beautiful as well. All of the products are 100% egg loose. The founders of Eggfree
Cake Box comply with a strict lacto-vegetarian weight-reduction plan, and this is how they got
here up with idea for the organization (Bruhn, Karlan and Schoar, 2018). While all the
employer's cakes are eggfree, the customers genuinely can’t flavor the difference, that means that
it is a secure desire for a party in which they're now not certain if all people have any egg
hypersensitive reactions.
CONCLUSIONS
This has been concluded from the defined information that to operate a business in
particular sector, small scale companies facing several issues which are related to finance,
technology and getting attention of targeted people. In order to deal with these kinds of
problems, they can formulate effective plans and strategies that will support in accomplishing
their set business aim and objectives within a limited time frame.
Recommendations
Form the defined information, it has been determined that there are several issues faced
by SMEs. In context of this, it has been suggested that to deal with issue of technology, they can
use innovative and updated software and other IT tools which support in running their business
in successful manner. In order to attract consumers, they can use social media promotion and
give priority to their needs and perceptions. By using financial tools and making budget, they can
manage and secure their finance as well.
Reflection
During the time of performing this project, I learnt several things as well as gin
knowledge about SMEs such as how they operate, issue they face and the strategies which they
use to deal with them. Along with this, I also make development in my research and management

skill through collecting data within limited time period. I also faced some problems related to
lack of time and improper use of instruments to collect information.

REFERENCES
Books & Journals

New And Old Challenges In Baking Business. 2021. [online]. Available Through: <
https://www.worldbakers.com/new-old-challenges-baking-business/>.