Managing Small and Medium Size Enterprises

This report discusses the challenges of managing and running small and medium size enterprises (SMEs). It explores the growth and development strategies of SMEs, the current competitive environment, and the nature of entrepreneurship. The report also includes a case study on Captify, a profitable start-up company.

MANAGING
SMALL AND
MEDIUM SIZE
ENTERPRISES

EXECUTIVE SUMMARY
In this present report, an interview of entrepreneur has been undertaken in which
background, information, research process, objective of report, nature of entrepreneur, reason
& process of business start-up, any sources of competitive advantage, and current level of
demand have been discussed briefly. The main reason for conducting the report is to provide
knowledge of business and how to manage them effectively. So, challenging of managing
and running business, SMEs current growth & development strategy and government support
measures in the whole process. Through going through the report, investigator acquires depth
knowledge and information of about entrepreneurship & entrepreneur.

Contents
EXECUTIVE SUMMARY...................................................................................................................2
MAIN BODY........................................................................................................................................4
FINDINGS............................................................................................................................................4
RECOMMENDATIONS.....................................................................................................................11
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13
Books & Journal:.............................................................................................................................13

INTRODUCTION
Technology has been changing world drastically and widely by introducing new
innovations and inventions to the people and market. There are many entrepreneurs who are
changing the business sector with their creative ideas and thoughts. Captify, is one of
profitable start-up company and business headquartered in UK. Dominic Joseph and Adam
Ludwin are the founders of Captify & launched their business in 2011 with motive of
changing the search intelligence & to help people around the world. The main challenges
faced by business was fundraising and getting hiring of suitable interns across the region.
This report includes brief findings about business and entrepreneur and their personal
background as sell as experience in life. Also, research has been conducted by collection of
primary data appropriately. Small-medium business enterprise provides a huge contribution
to economy of UK as they are dispersed at various locations with long networks. There are
more than 72% of small-medium businesses in UK which are currently operating and
generating profit to the country.
MAIN BODY
FINDINGS
Nature of entrepreneur-
Adam Ludwin and Dominic Joseph started their business at early age. Adam went to
the university but only for four months and left the studies for making money and name. He
did plenty of jobs like he enter into recruitment and did job for 2 years, he was also a broker
for estate agency for period of time. . Reason for starting business was to make money online
and helps big MNC’s in their advertising. This was the first business which was introduced
by both entrepreneurs. Adam age was 21 year old when he started capityfy with Dominic
(Krishnan, 2017)
CAPTIFY- AD TECH COMPANY
FOUNDED & FOUNDERS 2011, Adam Ludwin & Dominic Joseph
(Jansson, 2017).

PURPOSE
Main purpose is to handcuff the power of
search and present them in form of other
media.
REVENUE
This start-up has generates around $34.5M in
revenue and the amount is increasing with
rapid scale.
The above table depicts the nature of business and by considering this it has been
analysed it is one of the most successful start-up business with positive outcomes. Managing
small & medium small businesses is not an easy task & requires proper planning as well as
effective idea. Decision making also play vital role in business as it helps in taking effective
measures for running activities smoothly. Both entrepreneurs are school drop outs & with
their creative mind & new thinking they have become successful in business sector.
The start-up process-
Captify was established in 2011 with aiming of changing the world and reduces the
time of power of search by users and present that in other form of Medias. Adam Ludwin
started this business at his 20’s when once he was searching over internet why Google is
successful and how to make business online then he get idea of started his own company.
Funding was raised via personal savings and 1.2 from Panoramic Growth Equity. At the time
of start-ups there were 15 interns and 4 employees who were involved in business and 37
employees worked in Captify. Size of business has increased from 2015 to 2018 by 49%.
Main challenges during the start-up were that it was difficult to find suitable clients for their
business & huge capital was required for proper infrastructure. Adam and Dominic also
invested their own money to run business properly. Also, they did plenty of jobs prior to
business recruitment, broker etc. Moreover, it not easy to gather up all the interns & take
ideas from them as well as present their ideas too. By doing this, they were making their
start-up into real course of action. By using innovative idea they started their firm and which
is running successfully (Brustbauer, 2016).
The business concept & any sources of competitive advantage
Main idea of starting the business was to combine both media and media selling
together and provide power of search to people as well as other companies. It took efforts to
start the new start-up and not everyone is brave to leave study and do the business. But both
entrepreneurs face the challenges appropriately and it was started with 15 page of document.
These documents were then told to interns briefly & through which new ideas & objections
about the industry were identified. Main reason for business stand out was that they created a
unique idea & implemented it with planning. Also, they have many competitors in market
such as Criteo, Adroll, Tapad etc. They are better than competitors as they provide services to
clients at affordable prices. Also, as being a start-up company they focus on their clients with
more effectively & provide those expected services (Cantonnet, 2019).

Moreover, with merging up with different retailers and publishers, their
business idea stands out successfully. This is because they were looking for search data of
various industries such as airlines, travel and tourism etc. to target customers for their
business. Their main focus was to combine traditional and search data together to get the user
data on site and insight of web. Also, they compete with competitors and are better from them
because of they provide search data of different places & clients like to work with them
because of their flexibility structure. Thus, using data at huge amount gives benefit to survive
in market properly as well as effectively. Hence, they consider as biggest competitive
advantage to their business.
After a brief analysis of above matter it is specified that it is essential for every
company to know about their rivals & competitors so that activities, functions & operations
are carried out accordingly. Further, main reason for successful company is analysed properly
so that same is to be used in future aspect.
The current level of demand & competitive environment
Porter 5 forces- It is tool used by many organisations to analyse & examine the
environment as well as competition in market to run the business appropriately. Through this
model, entity is able to implement strategies & tactics to deal with uncertain situation and
environment. In this, it includes several elements which are mentioned below-
Threat of new entrants- This is stage in which firm is affected by entry of
new businesses in market. Competition is rising at rapid level and new entrepreneurs are
coming with same business but by using different plans. Chances of new entrants are higher
where low amount of capital is required, government regulations are less, and customer
loyalty is also low (Westman, 2019).
Bargaining power of suppliers- In this, vendors are the source through which
organisation are able to deliver their final product to their customers and get resources for
their business. So, as there are many publishers in market which provide data to companies so
when selecting the supplier they need to be chosen by considering all the related aspects.
Bargaining power of buyers- It is often happens that byers want to purchase
raw materials for product at low prices or at affordable prices. So, in relation with Captify
there bargaining power is high as because they focus on price of data which they are getting
from publishers (Niewöhner, 2019).
Threats of substitutes- There are many substitutes available for the same product.
So, threat of substitute slower the growth and overall development of enterprise. So, to deal
with such situation firms adopts tactics in business.

Competition rivalry- In this sector, competition has reached to peak point. In IT
sector, it is difficult to survive for start-up based companies like Captify which has many
competitors like Criteo which is the largest online intent company and has more market share
growth with 3.92%. To deal with competition and rivals, chosen firm provide affordable
services to their clients.
Discuss current sales level and competitors
Sales level of Captify has reached to good number and they are looking more suitable
candidates who are able to manage their products & acquire more ad agencies. It is important
to examine the sales with each and every aspect. Current sales of Captify has reached up to
70% of ration as comparing it to previous years and also now corporation is moving to
consumer space at wider level. It has been also seen that sale of firm is rising in North
America and Joseph is converting more consumer data into web (Grover, 2019).
Main competitors of selected entity are Criteo & Adroll which are rising and
acquiring the market share growth at faster rate of scale. To deal with their competitors, they
are using more new marketing strategies into acquire ad agency across the globe.
After a brief analysis of above matter, is stated that all to analyse the competition and
its impact on functions & operation of business. So, Porter five forces have been discussed
which specifies the appropriate impact of different elements in growth of business. Further,
current sales & competitors are being analysed properly (Nicula, 2019).
The growth and development of business (market share)
It is crucial for every organisation to acquire and to focus on their market share
growth so that decision making is done accordingly in management. Through this, they are
able to deal with their rivals as well as implement strategies effectively. In relevance with
selected enterprise, there market share growth has been drastically changing periodically.

Picture showing the market data and development of CAPTIFY across the globe
From the above displayed picture, it is seen that market share of corporation is mostly
in U.S and Italy. If comparing it to its competitor like Criteo there market share data and
value is around 0.13% whereas rivals has 3.32% share of market (Putra, 2019).
History of growth or growth trend of business since the beginning
When company was started in 2011, growth of business was slow but within 1 year it
made a profit around $1 million. In 2016, company made a huge move because they acquire
publishers with large quantity so that more and more data is being collected as well as
gathered. Further, development of Captify took a diverse range of mode by focusing on
customers at wider scale & taking more ad agencies for the business. Currently the firm is
operating around the globe with countries and various like U.S-NYC, London, Paris,
Hamburg, & Kiev and on good to roll in market. Moreover, global team they have 160+ are
operating and generating revenue for entity for rapid development of enterprise. Also, with
this faster growth of firm they have been also backed or easily attract investors in their
business for example- currently they have 5 investors in company with including unpin by
Panoramic Growth Equity, Smedvig Capital. This assists them to generate more and more
profit which directly results in rapid development & growth of business in market. Since the
beginning, growth of enterprise is dynamic & significantly has done up and down. To make
their development at stable scale, they are using more new tools, technology and software
through which customer’s data is being carried out properly (Cox, 2019).

After examining brief overview of above paragraph, it is analysed that market
data and growth is crucial so that activities are carried out appropriately. With help of market
share, management get information about the how many people are using the product and
visiting websites of firm. It assists in determining financial position and progress level of
entity. Hence, chosen enterprise has been developing their functions with good numbers.
The challenges of managing & running the business
When new start-ups businesses are being started, many issues as well as challenges
are faced by them. So, to deal with such external environment elements PEST Analysis is
being used so that problems are faced in effective manner. It is a tool used by corporation to
determine & analyse various factors which deeply affect the working environment of
business and which are mentioned below-
PEST Analysis
Political- This is a factor in which environmental law, labour law, tax policy etc. is
included. In relation with Captify, they are also affected by political factors such as changing
rules & regulations of government made it difficult for them to operate smoothly worldwide.
It is important to deal with these elements so that business is carried out and run properly in
market without facing any problem under consideration of government (Napitupulu, 2019).
Economic factor- Further comes the economic elements in which wages, inflation,
deflation rate etc. are involved. In this, Brexit and EU region have affected the organisational
development & growth at broader level. Because both has different types of polices and
forces business sector to adopt them in their management.
Social Factor- In this, standard of living, disposable income, religion etc. are
involved. These are essential because through such elements, it become easy for
organisations to evaluate customer’s behaviour for their products. So, when doing new
business in market make ensure that all these above mentioned factors are adopted carefully.
Technological- One of the most crucial factor which has deep impact on Captify.
Because firms itself deals in online internet products and software so changing mode of
technology & with new innovation company also has to follow the trends. This is necessary
so that competitive advantage is taken in appropriate manner (Burns, 2016).
The SME’s current growth & development strategy
SME’s, growth as well as development strategy require cross-functional strategy so
that chosen entity is able to develop their business at every phase such as capabilities of
shareholders to develop business micro environments, accessible finance, proper
infrastructure etc. Also, to adopt development strategy SME’s needed to be active and
efficient towards the international market. To deal with market trends & uncertain situation

every SME’s had to take competitive advantage so that they maintain as well as manage their
activities effectively. In context to Captify, their current growth & development is rising with
higher demand and supply of product & services.
Discuss SME’s internal strategy on growth & development
To analyse the internal strategy on growth as well as development selected entity uses
McKinsey Model in the management and which has been explained below-
McKinsey- It is framework adopted by businesses to manage and develop their
internal strategy by solving as well as analysing of any problem occurs in the process. This
involves 6 types of s which are elaborated below-
Strategy- This depicts the tactics used by firm in business throughout the process. In
relation with chosen entity, they adopt and change their strategies in business according to
their competitors changing behaviour & also by properly analysing end users switching
behaviour (Jones, 2018).
Structure- It shows the how departments and units are divided as well as organised
within the management. Captify has also stable and well organised structure.
System- These are those in which states that how procedures, activities and other
things are being carried out in corporation. Thus, manager of chosen organisation adopts
participative style & accordingly decisions are made.
Skills- In this, each & every skill of personnel or individual is examined so that they
are then used in further processes. Selected entity has skilled staff which provide growth,
revenue and sales to company.
Staff- It comprises of how many personnel will be required & needed by company at
the time of recruiting, training etc. Thus, scope of Captify is rising with talented employees
across worldwide (Albrecht, 2019).
Shared Values- This states that ethics & morale, principles, guidelines under which
firm operates their all operations & is followed by everyone. Through this, chosen company
is able to maintain positive business environment.
Government support measures to help the business overcome the challenges faced
As business faces many challenges while carrying out their activities, it is
responsibility of government to provide some aid to firm because they are the sources
through which government made taxes & economy of country is improved and developed.
So, there are several measures which can be provided by them & are discussed below-
As, impact of Brexit & EU region is affecting industrial sector at depth, government
can provide leverage to such businesses so that they operate in proper way.

Further, they can also give free advice to Captify to make them aware about
protecting intellectual property.
Next measure is to allow marketers to access market information easily for example
U.S Census Bureau are resources for them so that data is collected properly through available
research. Thus, this helps Captify to track end users for their activities properly.
Moreover, another measure is that committees and summits are to be conducted by
government in the field of industrial and business sector so that new & small businesses are
able to grab new opportunities easily (Tunberg, 2020).
RECOMMENDATIONS
After a brief overview of above report, certain recommendations are to be given
which explained below-
 To develop their future growth Captify need to be update themselves about their
vision and mission, at what criteria they have been achieved. If they are not, then
should opt for implementing new tactics for their overall development.
 Also it is recommended that, to target more clients & Customers Company should
focus on their data base so that tracking as well as monitoring of information is done
appropriately (Krishnan, 2017).
 Then, to take competitive advantage and deal with their rivals they have to use
suitable methods and beware of external environment factors which slow down their
growth.
 Moreover, for internal strategy on G& D Company should adopt suitable frameworks
which helps them to deal with problem and improve their effectiveness (Jansson,
2017).
 To achieve goals & objectives at globally it is important for Captify to adopt the
decision making tool effectively.
 Further, complex work system is to be avoided and more retention strategies are to be
developed with in the firm.
 Next is that chosen firm should be able to maintain long network chain so that when
problems arise they have a back support as safety.
 It is also recommended that they should engage themselves more at global level.
 To attract more clients to their business they should be more approachable as well as
innovative than their competitors.
 Also, they should hire more people so that profit generation and sales revenue
increases at rapid scale.
 Another recommendation is that they need to be more aware about their rival each and
every step so that preventive measures are pre-pared.
 Furthermore, they are required to adopt advertising & promotion tactics for customer
or client attraction.

CONCLUSION
After a brief analysis of above report, it is concluded that managing small and
medium size enterprises require practical knowledge & high level of expertise. In the present
report, business overview at depth has been discussed including PEST, market data,
government measures, nature of business have been briefly discussed. Contribution of small
and medium business is giving a boost to country’s economy. Also, suitable tools have been
used such as McKinsey for internal strategy on growth and development. Thus, main issues
faced by business are that it is difficult for them to acquire market growth & clients for
business. For this, available measures of government are accessing of market credentials for
their research. Hence, organisation has to be aware about trends as well as changes in market.

REFERENCES
Books & Journal:
Krishnan, 2017. Talent management and dynamic view of talent in small and medium
enterprises. Human Resource Management Review,27(3), pp.431-441.
Jansson, 2017. Commitment to sustainability in small and medium‐sized enterprises: The
influence of strategic orientations and management values.Business Strategy and the
Environment, 26(1), pp.69-83.
Brustbauer, 2016. Enterprise risk management in SMEs: Towards a structural
model.International Small Business Journal, 34(1), pp.70-85.
Cantonnet, 2019. New and emerging risks management in small and medium-sized Spanish
enterprises. Safety science,113, pp.257-263.
Westman, 2019. Conceptualizing businesses as social actors: A framework for understanding
sustainability actions in small‐and medium‐sized enterprises.Business Strategy and the
Environment, 28(2), pp.388-402.
Niewöhner, 2019. Design fields of agile innovation management in small and medium sized
enterprises.Procedia CIRP,84, pp.826-831.
Nicula, 2019. Pest Analysis Applied In Tourism Evaluation In Braila County.Revista
Economică,71(3).
Grover, 2019. A PEST Analysis on the Impact of Make in India Program on Manufacturing
Sector’s Productivity.Available at SSRN 3463342.
Cox, 2019. Extending McKinsey’s 7S model to understand strategic alignment in academic
libraries. Library Management.
Putra, 2019. Human Resources Implementation Using the McKinsey 7S Method for Business
Startup: Duck Nugget Frozen Food. Journal of Multidisciplinary Academic, 3(3),
pp.11-14.

Napitupulu, 2019. Proposed ELR Model for E-Learning Readiness Evaluation Based on
McKensey 7S Framework.
Burns, 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Jones, 2018. Understanding the market for us equity market data. NYSE, Intercontinental
Exchange, Aug.
Albrecht, 2019. Business Analytics on Knowledge Graphs for Market Trend Analysis.
Tunberg, 2020. Growing a small firm; experiences and managing difficult
processes.International Entrepreneurship and Management Journal, pp.1-19.