Challenges and Strategies for Small Medium Enterprises

This report discusses the challenges faced by small medium enterprises (SMEs) and the strategies they can adopt to overcome them. It explores the growth and development of SMEs, including the stages of their growth and the factors that contribute to their success. The report also highlights the government support available to SMEs and how it can help them overcome challenges. Overall, it provides valuable insights for SMEs looking to enhance their productivity and competitiveness.

Small Medium Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Porters Five Forces Model...........................................................................................................4
The growth and development of the business..............................................................................5
Government policies which support the organization to grow and develop...............................6
Challenges of managing the business..........................................................................................6
CONCLUSION................................................................................................................................7
RECOOMNADATION...................................................................................................................7
REFLECTION.................................................................................................................................7

INTRODUCTION
Small business organization is confidently on the organizations which have only few
employees and flow revenue at the company as compared to the regular side business. This
report is going to study on connect catering organization which is located in Lupton Road,
Wallingford OX10 9BT, United Kingdom. The connecting organization has employee over 250
who are much skilled and motivated in order to provide amended services towards the consumer.
There are several barriers and issues which are faced by the company which are associated to
their strategies leadership culture motivating workers retaining of consumers in employees
(Hajoary, 2016). So in order to overcome the challenges this report going to analyze several
strategic challenges which are associated to the small medium enterprises in also going to
evaluate the several Business Development strategies in context of small medium Enterprise.
MAIN BODY
Small medium organization is the enterprise who have low revenue and they are owner of
their company. This report going to considered connect catering organization as a small medium
company which is founded in 1989. There are several characteristics of the Businessman or
industrialist and that are mentioned below:
The nature of entrepreneur:
The entrepreneur in the company e is very amended and powerful as because they have
some aims and objective in order to accomplish their goals and objectives. They are much
confident in order to satisfy the needs of the consumers and provide amended quality of the
product. One of the effective features of the entrepreneur is they are capable to save their product
and build the relationship and network in the industries (Kaganski, Eerme and Tungel, 2019).
They are much innovative and they know that how to manage the challenges with are facing by
them and sustain in the market for long time period.
The SME startup process
Effective small size company always start the business with amended thought in order to
become effective and the transform their Idea into action. So there are few steps of small
medium enterprises startup process that are below mentioned:
Develop business plan:
In order to make the organization much successful in the starting says it is very important
for the organization to keep their price or cost of the product and provide amended quality
products to their consumer. That is why it is very required for the organization to set their
mission vision and objectives which helped them to develop their business plan accordingly.

Decide a budget:
After developing business plan it is very required for the organization to decide a budget
for the company because budget will going to support the organization to survive in the market
place and maintain their financial stability.
Decide on a legal entity:
It is very required for the organization to do paperwork for the money in order to identify
about the regulation policies and Taxes which are formulated by the government (Okello, 2018).
The organization has a legal rights and obligations which act as a legal entities of the company.
The affairs of connect catering company is regulated by the corporation act.
Set up an office:
If the organization idea is perfect on the basis of the thought and requirement of the
market then it is required for the individual to develop designated workplace in order to setup in
office.
The Main Competitive advantage of the business
When the company has very amended quality of the product as compared to another
company then it is very main competitive advantages of the organization. There are few sources
that describe about the competitive advantages in order to get more success and growth in the
Marketplace.
 Product attributes differentiation
 Price discrimination
 Human capital
 Workers engagement
These are the sources which help the company to get more competitive advantages in order to
become more successful and effective.
The main competition of connect catering company is sogeres, they are focusing on their
competitors so that they can increase their efficiency and profitability. It is very essential for the
organization to analyze the strategy of their competitors so that they can get more opportunity
which is associated to the competitive advantages (Okwu, 2018). Catering facilities which are
provided by the company is fruits, herbs, snacks and other items more.
Porters Five Forces Model
This is the first model of the porter's five model in which it analyze about the numbers of
the competitors in the Marketplace who have ability to give competition to the organization. If
the competition is a strong than the suppliers of the organization seek out the company’s

competition if the competitors are much able to cater a amended quality of the product in a very
amended price. Conversely it can be analyzed that when the competition in the market is less
than it will develop the possibility to become stronger in set the prices according to to their
capability and this strategy help them to gain high profit and high sales.
Potential of new entrants into Marketplace:
The power of the company gets affected by the new competitor into market place or in
the industry. This process takes little time for a competition to come into the industry and
become more powerful as compared to the organization. This creates huge impact on the
company and on their performance (Omelogo, 2019). So it is very required for the organization
to become powerful in order to overcome the barriers and become capable to set price and
negotiate effective aspects.
Power of suppliers:
This model describes that how easily and organization and their supplier can raise the
cost of the product. This factor creates impact on the amount of supplier and on the product and
services which are created by them. In other terms how much the product and services is rare and
with amended quality. As, the small medium industries are more dependent towards the power of
supplier.
Power of customer:
This is the model which describe about the ability that the customer have to raise the
price of the product in their power is the major part of this factor. This also create impact and
affected by various purchaser which organization have and the skill going to support them to
analyze about that how much their consumer is important and required for the organization.
Threat of substitute:
This model is focusing on the substitute. Substitute of goods and services that are used by
the organization to forcade a threat.
The company is focusing on the competition level in the industry so that they can identify
their competitive and focus on them in order to get competitive advantages and become a
successful. Also the organization is concentrating on analyzing the direction so that they can
identify the part in order to gain the productivity and competitive advantages.
The growth and development of the business
Business Development entail the process in the concept so that they can develop the
opportunities for the organization. Business development is very required for the organization in
order to develop a long-term value of the company from the customer and from the market.
There are several stages of a small organization growth which categorized the problems and

patterns of development of the company in a very appropriate and effective manner which is
very important for the entrepreneur (Sato, Matsumoto and Takeyama, 2018). Small medium
organization varies high size and capacity for the growth and development of the organization.
They are classified by the structure of the organization actions of the organization and their
management styles. The stages of the growth and development of the business is when the boss
of the company nothing strategies in order to identify the requirement of the customer and trying
to fulfill them. This will support them to increase their productivity and profitability in the
company. In order to manage the growth and success of the company it is very required for the
organization to focus on the objectives and aims of the company so that they can overcome the
uncertainty factors and challenges which are facing by the company. They are also needed to
maintain their capital in order to maintain their financial stability of the organization and become
capable to meet their financial responsibility and requirement. It is also very important for the
organization to develop realistic and accurate forecasting that will support them to accomplish
their goals and objectives. A mature business has more power and consciousness about their
consumer in order to develop their strong presence in the market and become effective.
Challenges of managing the business
There are various kinds of challenges which are facing by small medium Enterprise in
context of covid-19 pandemic which create huge impact on the performance of the company and
also create impact on the financial stability.
 The small medium organization going through with several problems due to economic
problem which is developed or created by the covid-19 pandemic.
 It is very required for the organization to have amended leader in order to overcome the
challenges and accomplish the task in a very appropriate manner.
 Lack of leadership in management and in appropriate style is also creating impact on the
performance of the company which leads to decrement in sales (Yağcı, 2019).
 In appropriate business strategy and tools are also create impact on the performance of
the company so it become much difficult for them to deal with the challenges which is
related to the covid-19 pandemic or Brexit.
 It is very required for the organization to stand out their organization as because they
have deficiency in leadership skills and strategies so because of this reason they have to
face several dishes which is related to the performance of the company and customer
base. So these are the challenges which are facing by the small medium enterprises.
The SMEs current growth and development strategy
Market penetration: The goal of market penetration is to increase market share for an existing
product or to promote a new product successfully. Advertising, combining items into attractive,
saleable bundles, providing discounts on bigger purchases, and decreasing prices to undercut
competitors are all effective methods.

Partnership: Partnership is the amended which can be adopted by the company for growing
their small business in the market place. It support the organization to adopt expansion strategies
in order to enhance their business market share in order to get more competitive advantages.
Product expansion: This is the opportunity which help the company to get several benefits from
extension of product and adding new features in order to expand product line of the organization.
These are the strategies which are adopted and also required by the company in order to
get more advantages and expand their business.
Government support to help the business overcome the challenges faced
 There are several ways through which the government is promoting small medium
enterprises by giving special loans generating and supplying for lateral and by awarding
brands in order to meet with certain criteria like increasing manufacturing and production
or recruiting more people. This policy support the company in order to grow and develop
and enhance their productivity and revenue.
 The government policy is always support to small medium enterprises when it comes to
the taxation aspect. Best small medium organization their loans are arranged from the
SBA which is small business administration.
 Small business administration help them and provide guidance regarding loans that will
support them to increase their financial stability full stop the commerce department also
help them to expand their product and sales in order to become effective (Trianni, Cagno
and Farné, 2016).
 As there are several policies which help them to become more sure about their safety
while working in organization .as there are several policies like employees right labor
policy safety and security act and many more.
CONCLUSION
The above report it has been concluded that small medium company have less than 250
employees in their organization. They are much passionate in order to increase their
effectiveness and overcome the problems which are facing by them. This report explain about
several strategies which help the organization to increase their profitability and get competitive
advantages like porter's five model. Moreover this report also describes about the implications
and the bay area's which is associated to the efficiency of the company.

RECOOMNADATION
From the above mentioned report there is a recommendation for the company so that they
can enhance their productivity and help them to get more opportunities.
 The organization are advised to follow several Strategies and models which help them to
get more competitive advantages and increase their revenue.
 It is also recommended to the connect catering organization to focus on their
development of market area and on their product quality so that they can satisfy the
requirements of the consumer
REFLECTION
Weeks What I learned
Week 1 In this week I learnt about the interest in your ship and the value of the
process which help the organization to increase their efficiency.
Week 2 In this week I learnt about the process of innovation that help the
organization to adopt new technology and improve their efficiency.
Week 3 In this week I got the information about the features and nature of the small
business Enterprises which helped them to overcome the problems of covid-
19 pandemic.
Week 4 I got the information about the features and nature of the small business
Enterprises which help them to overcome the problems of covid-19
pandemic.
Week 5 This week I analyze about the challenges that are facing by the organization
while operating their business in the Marketplace and what are the strategies
which are adopted by the company in order to overcome this challenges.
Week 6
In this week I identify that there are several factors which help the company
to grow and develop themselves in the Marketplace by adopting several
Technologies and strategies.
Week 7 I got the information about the several challenges and views on small
medium enterprises in order to satisfy the requirements of the consumers.
Week 8 I get the information about the small medium enterprises which exist to the
finance sources like Government Loan and many more so that they can
maintain their financial stability.

Week 9 I learn about the several policies and laws which are adopted by the company
in order to follow the rules and regulation which are formulated by the
government of the United Kingdom.
Week 10 & 11 I analyze about the overall assessment and several things which support the
organization to become independent and formulate their strategies
accordingly.
Week 12 to 14 In this week I get the information about problems and growth and
development procedure which are required for the organization to focus on
them in order to overcome the issues. Also , I attend several seminars and
workshops in order to analyze about the innovation and Entrepreneurship
and their characteristics in order to learn the things in a practical manner.

REFRENCES
Books and Journal
Hajoary, D., 2016. SWOT ANALYSIS OF SMALL BUSINESS ENTERPRISE WITH
SPECIAL REFERENCE TO KOKRAJHAR DISTRICT.
Kaganski, S., Eerme, M. and Tungel, E., 2019. Optimization of enterprise analysis model for
KPI selection. Proceedings of the Estonian Academy of Sciences, 68(4), pp.371-375.
Okello, S., 2018. Factors influencing listing of Small and Medium Enterprises to Growth
Enterprise Market Segment in Kenya (Doctoral dissertation, Strathmore University).
Okwu, O., 2018. Development of a Light Weight Briquetting Machine for Small and Medium
Scale Enterprise. FUPRE Journal of Scientific and Industrial Research (FJSIR), 2(1),
pp.71-87.
Omelogo, U.F., 2019. STRATEGIC MANAGEMENT AND ENTERPRISE PERFORMANCE
IN SMALL AND MEDIUM ENTERPRISES: A STUDY OF SELECTED SMES IN
NIGERIA. INTERDISCIPLINARY JOURNAL OF AFRICAN & ASIAN STUDIES
(IJAAS), 5(2).
Sato, K., Matsumoto, K. and Takeyama, Y., 2018. Recent Topics of Small and Medium
Enterprise and Information Technology Industry Promotion Committee (SME ・ IT
Committee). Nihon Hoshasen Gijutsu Gakkai zasshi, 74(1), pp.107-110.
Trianni, A., Cagno, E. and Farné, S., 2016. Barriers, drivers and decision-making process for
industrial energy efficiency: A broad study among manufacturing small and medium-
sized enterprises. Applied Energy, 162, pp.1537-1551.
Yağcı, M., 2019. Credit 15 guarantee scheme and small and medium-sized enterprise
finance. Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes,
p.337.