Managing Small and Medium Enterprises

This report discusses contemporary issues, government support, development routes, growth methods, finance sources, growth policies, and change management in small and medium enterprises. It provides insights into the role of government in overcoming funding and legal formalities, alternative methods of growth, different sources of finance, and strategies for managing change. Recommendations include developing communication skills, deploying democratic leadership, and utilizing information and technology.

Managing
small and
medium
enterprises

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
Contemporary issues relating to small medium enterprises and the support provided by
government to help the business in overcoming these issues......................................................3
LO2..................................................................................................................................................4
Identification and evaluate development of routes for small medium enterprises......................4
LO3..................................................................................................................................................4
Alternative methods of growth in small medium enterprise at the marketplace.........................4
LO4..................................................................................................................................................5
Investigation and evaluation of different sources of finance for small medium enterprises.......5
LO5..................................................................................................................................................6
Growth policy for small medium enterprises..............................................................................6
LO6..................................................................................................................................................7
Ways and methods of managing change issued in an small medium enterprise.........................7
RECOMMEDATIONS....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In the business world there is an effective role played by different small enterprises which
are present in the economy (Brunoe, 2017). These enterprises support and facilitate different
business organisations at the marketplace by development. Enterprises in the economy also help
in generation of employment for different sections of the society. In this report different
contemporary issues related to entrepreneurship are explained in a precise manner. This report
also includes different dimensions of entrepreneurship in order to deal with change management.
This report also contains assessment of different finance related opportunities available at the
marketplace which are chosen by different business organisations. This report includes
alternative methods chosen by a business in small enterprises for business growth.
MAIN BODY
LO1
Contemporary issues relating to small medium enterprises and the support provided by
government to help the business in overcoming these issues
In today’s world many companies deal with different contemporary issues in order to achieve
efficiency in different operations (Condratov, 2021). The government which is present in the
country is effectively involved in development of different aspects of business related to small
and medium enterprises. Various issues which and role of government for the business is
mentioned below:
 Lack of funding- Many enterprises that are part of small and medium enterprises face
funding problems at the marketplace. It is compulsory for a company to deal with
funding problems in order to develop investment in the business. Government brings
funding for different businesses at marketplace by introduction of different schemes.
 Legal formalities- In order to enter the business market different entrepreneurs have to
perform different legal formalities. It is compulsory for the government to develop
flexible entry related rules and regulations for promoting interest of individuals in the

business. With the presence of less entry related formalities a business organisation must
gets facilitated and different companies will get motivate to enter new market.
 Supervision and monitoring- There is lack of proper supervision and monitoring in
different business organisations which are counted in the category of SME. Government
of the country is introducing several information and technology related policies for
achievement of different business goals. Information and technology promotes usage of
computer systems and software for development of business operations.
 Business control- It is considered as one of the major issues which are helpful in
development of business entity. Business control is an essential element in development
of small medium enterprises (Kijkasiwat, 2021). Government tries to bring different
social policies for increasing business control of owner.
LO2
Identification and evaluate development of routes for small medium enterprises
Different companies at marketplace are involved in increasing social policies in order to
perform social welfare. It is recommended for an entrepreneur to select best suitable strategy for
business development. Motivation in employees is also developed by different leadership related
operations which are performed in an organisation. In the era of stiff competition between
different companies it is compulsory for an enterprise to develop strategy. The perfect route for
development in small medium enterprises is achieved with the help of professional tools and
techniques of a business. Many business organisations takes support of different plans
formulated for a specific time period for the achievement of business goals. Many different
companies also take support of government policies and rules for achieving business
development in a precise manner.
LO3
Alternative methods of growth in small medium enterprise at the marketplace
The small medium enterprises are having several growth related options at the marketplace
which are helpful in business development. Many companies at the marketplace choose best
options for growth in order to gain competency edge. Various options and methods that are
available to small medium enterprises are mentioned below:

 Expansion of business- The expansion of operations by a business organisation is one of
the major ways of performing effective research. Change in whole business process is
occurred when a business practices expansion related queries and operations. Many
companies in global world define various targets and achieve them with the help of
expansion (Mobarakabadi, 2019). It is compulsory for a business organisation to develop
and formulate a precise business strategy in order to achieve expansion related goals. It is
also important for an organisation to hire skilled and trained employees for change
related functions and activities. Different companies at the marketplace take assistance of
various plans and policies developed by government.
 Collaboration- A business organisation which is working in small medium enterprises
performs collaboration with other company. The practice of collaboration is developed
with the help of business operations in a precise manner in order to develop new
operations. Many companies at the marketplace are involved in performing collaboration
in order to develop large control and strength in business organisations.
 Take over other business entities- The business organisations at the marketplace takes
over many companies which are performing well in the market. Companies perform
major operations at the marketplace with the help of taking over other companies. A huge
investment is incurred by a business organisation in order to develop different
organisational functions and activities.
 Enter a new market- Many companies which are part of small medium enterprises in
market also enter new market. In order to enter new market it is compulsory for a
business organisation to formulate different plans and policies in a precise manner. New
market entry of a business requires different development related aspects to be achieved
in a precise manner in a short span of time.
LO4
Investigation and evaluation of different sources of finance for small medium enterprises
Most of the companies in field of small medium enterprises take support of crucial sources
which are helpful in funding for the business (Samsir, 2018). It is compulsory for a business
organisation to take into consideration different factors related to finance for performing

investment in the business. The different sources of finance for finance available for small
medium enterprises are mentioned below:
 Banks- In raising funds for a particular business it is compulsory for a business to
support of different banks. Banks provide loan services to different companies at
effective finance rate for a long period of time. Small medium enterprises take assistance
from banks by taking definite amount of funds for the business. Banks also provide cheap
solutions to different activities of business related to finance.
 Creditors- Business organisations at the marketplace can also take support from different
creditors. Creditors provide loan to different businesses which are present in the economy
or provide products and services on temporary business. The creditors are essential part
of business growth and expansion as they provide various opportunities at the
marketplace to a business.
 Angel investors- The investment in a business organisation is facilitated with the
assistance of several angel investors who are present at the marketplace. A company
which is present in small and medium enterprise achieves regularity in operations due to
investment performed by different angel investors (Shrafat, 2018). These investors are
considered as important part of a business development which is essential in providing
competency edge to a business.
LO5
Growth policy for small medium enterprises
The growth policy plays an important role in development of small medium enterprise and also
helpful in increasing business efficiency. The different ways and methods that can be adopted by
a business organisation at the marketplace are mentioned below:
 Strategic management- The strategic management is considered as backbone of an
organisation which is helpful in planning for business development. Risk
minimisation is also performed by strategic management which is present in a
company. The strategic management is an integrated part of organisational body
which is also helpful in achievement of business goals. In functions of a business
major operations of high risk are handled with the help of professional strategic
management.

 Leadership- In functioning of an organisation leadership is considered as one of the
most crucial activity that is effective in employee management. Various companies
in small medium enterprise use democratic leadership style for different operations
to deal with organisational development. In functioning of different organisations at
the marketplace leadership is considered as one of the major activity which is helpful
in culture management (Wiesner, 2018). The behaviour of different employees in
day to day operations of the organisation is influenced by several internal and
external factors
 Funding and financial management- Business growth of an organisation also
depends on different funding sources available to a business. The financial
management which is present in the organisation is also dedicated to provide a
business effective performance. Major companies in global market take funding
assistance from famous banks in order to achieve different objectives.
LO6
Ways and methods of managing change issued in an small medium enterprise
Change is essential part of business development in dynamic business environment to develop
different operations of a business. Whenever a change occurs in an organisation it is compulsory
for a business organisation to take help of professional and skilled management. Many successful
small medium enterprises take support of the following factors in order to develop change
management:
 Effective leadership approach- Most of the global companies effectively chose
professional leadership approach which is effective in managing different teams
Employee management is also performed by different leadership related functions in
order to gain productivity in operations (Woodard, 2021). Leadership approaches are
also effective in development of different employee management techniques.
 Performance management- The performance of different employees at the marketplace
is developed with the help of motivation and different techniques. Human resource
management which is present in an organisation is involved in bringing different aspects
of business development for management of employees. The appraisal of performance of

different employees is achieved with the help of professional performance management
which is working in small and medium enterprises.
 Culture management- Culture of an organisation is also considered as a major factor
which is essential in determination of internal business environment. Many different
business organisations deal with several consequences of culture management to deal
with different situations. Most of the successful companies allow management to
perform quick operations in a short span of time to deal with culture in a precise manner.
There is an important role played by human resource management in development of
culture in the organisation.
 Information and technology- In the era of information and technology many companies
use software and computer systems to develop their business. Most of the successful
companies at marketplace take help of professional IT experts for performing different
objectives at the marketplace. Small and medium enterprises also take help of
technology to perform accurate operations and deal with respective change.
RECOMMEDATIONS
In the era of stiff competition between different companies it is essential for a business
which is present in the economy of UK to achieve competency. It is mainly recommended for
different entrepreneurs to develop communication skills for performing different operations and
activities. The coordination between different companies is also increased with the support of
different communication techniques (Zavyalov, 2017). Entrepreneur must deploy democratic
leadership style which is helpful in facilitating decision making of the organisation. Many
different organisations which are present in economy of United Kingdom take support of
information and technology. It is recommended for a business to take assistance of professional
and skilled management for performing different activities and tasks. The major companies at the
marketplace are also involved in performing different strategies for increasing revenue and
efficiency. It is recommended for an entrepreneur to mainly take support of top level
management for gaining competitive advantage.

CONCLUSION
From the above stated report it can be concluded that it is essential for government to
promote different entrepreneurial activities in order to gain development of economy. The
business organisations at the marketplace are involved in development of different enterprises for
achievement of different goals. It is essential for a business organisation to include different
aspects of entrepreneurship for business development in a short span of time frame.

REFERENCES
Books and Journals
Brunoe, T.D., Andersen, A.L. and Nielsen, K., 2017. Reconfigurable manufacturing systems in
small and medium enterprises. In Managing Complexity (pp. 205-213). Springer, Cham.
Condratov, I.A., 2021. Human Resources Training Needs in the Small and Medium Enterprises
from Cross-Border Area Romania-Ukraine-Republic of Moldova.
Kijkasiwat, P., Wellalage, N.H. and Locke, S., 2021. The impact of symbiotic relations on the
performance of micro, small and medium enterprises in a small-town context: The perspective of
risk and return. Research in International Business and Finance, 56, p.101388.
Mobarakabadi, H., Nasehifar, V. and Amiri, M., 2019. A Human Resources Development Model
for Small and Medium Enterprises (SMEs) via the Three-Branch Management Model
Approach. The Journal of Productivity Management, 13(50), pp.51-88.
Samsir, S., 2018. The effect of leadership orientation on innovation and its relationship with
competitive advantages of small and medium enterprises in Indonesia. International Journal of
Law and Management.
Shrafat, F.D., 2018. Examining the factors influencing knowledge management system (KMS)
adoption in small and medium enterprises SMEs. Business Process Management Journal.
Wiesner, R., Chadee, D. and Best, P., 2018. Managing change toward environmental
sustainability: A conceptual model in small and medium enterprises. Organization &
Environment, 31(2), pp.152-177.
Woodard, R., 2021. Waste Management in Small and Medium Enterprises (SMEs): compliance
with duty of care and implications for the circular economy. Journal of Cleaner Production, 278,
p.123770.
Zavyalov, D.V., Saginova, O.V. and Zavyalova, N.B., 2017. The concept of managing the agro-
industrial cluster development. Journal of Environmental Management & Tourism, 8(7 (23)),
pp.1427-1441.