Managing Small Business: Challenges, Strategies, and Growth

This report explores the challenges, strategies, and growth opportunities in managing a small business, specifically focusing on the catering industry. It discusses the nature of entrepreneurship, SME start-up processes, and the growth and development of the business. The report also examines the competitive advantage and growth opportunities using Porter's Five Forces Model.

Managing small
business

Table of Contents
INTRODUCTION...........................................................................................................................3
Porters Five Forces Model...........................................................................................................6
The growth and development of the business..............................................................................7
CONCLUSION................................................................................................................................9
Recommendation.............................................................................................................................9
REFLECTIVE JOURNAL.........................................................................................................9
REFRENCES.................................................................................................................................13
Books and Journal......................................................................................................................13

INTRODUCTION
Small business companies are privately owned companies, or sole proprietorship which
have few workers and less revenue as compared to regular sized business. This report is going to
considered Connect catering company situated in, Lupton Road, Wallingford OX10 9BT, United
Kingdom. The connect catering company employ over 250 who much inspired and trained in
order to provide amended services to their customers. The connect catering company is believe
in making or cooking each and everything from the fresh ingredients. They create consumers
favourite dish or food in order to make them smile and satisfy them. Connect catering annual
turnover is £15.5 million (Nazir, and Afza, Susanto, 2016). There are several challenges faced
by the connect catering company which are connected to their culture, leadership, strategies, and
motivating workers, finding and retaining consumers. Catering is the business of supplying food
to gatherings. Typically, the catering firm prepares the food on site and then supplies it to the
event as requested. Drinks, crockery, cutlery, glassware, gifts, and service personnel can also be
included. Businesses in the catering sector offer meals, drink, and other services to a wide range
of customers, primarily for special occasions. The aim of this report is Explore the strategic
challenges and issues which are connected to SME management. Also, to identify and evaluate
various business development methods in SMEs.
MAIN BODY
` Small and medium size business are the enterprise whose individual or private number
fall below at definite limits. The small and medium size business has fewer than 250 workers. As
this report considered Connect catering company which is Wallingford based organisation and
founded in 1989. There are several features and characteristics of the entrepreneur and which are
mentioned below:
The nature of the entrepreneur
The entrepreneur if the connect catering is very passionate in context of what they are
doing and what they want to achieve. They much confident about their services and product
which are provided by them in order to satisfy the consumers. One the the key characteristics or
features of the entrepreneur is ability to trade the products and build the networks in the
industries. They know about how to manage the money means being capable to manage the
money is very important and essential for an entrepreneur. They are much capable to deal with

any kinds of issues and problems in a very effective and potential manner )(Foong, and Chelliah,
2020). They never give up on because they are much passionate and confident to tackle and
handle any situations which are running in the company. The entrepreneur of the company are
much creative and innovative in order to attract the more consumers towards the company. The
entrepreneur of the connect catering company give their longer time to the company so that they
can earn and make more profit for the company and increase the efficiency of the work and the
company.
The SME start-up processes
A effective and great small medium sized business always start with an effective idea,
but its become mandatory for the organisation to transform that idea into actions. There are
many individuals who think several things about to start a new business but there only few ones
who implement the idea and accomplish their targets and goals. There are several steps of SME
start-up process and which are mentioned below:
Write a one page business plan:
The major key of making the small business successful, specially in initial phase,
it is very required for the company to keep the price low and caters effective and unique services
to their consumers. Firstly its is very required and needed for the individual to set or define the
strategies, objectives , mission, vision of the company and the develop a simple actions plans.
The vision of the company help them to identify about the end outcomes of the business. Mission
of the company define reason why the company exist in the market (Kaushik, 2018
Hodges, 2016). Objectives will going to include, what are the strategies the company or the
entrepreneur will going to conduct, what are the goals of the company that will help the company
to achieve their mission, vision of the company.
Decide a Budget:
It is very mandatory step or point for the company because budget is very important for
any kind of business(Cawley, 2017).Decided budget will going to help the company in future
survive in the market if things and situation go learner than expected. Decided budget will help
the company to make the strategies according to the planning and generate the things
accordingly. It Wil also help the company to maintain the financial stability of the company so
that they can survive in the market for the longer time period.
Decide on a legal entity

Filling or doing paperwork in order to start a organisation or business cost money. When
an individual started a business its become necessary for them to identify about the taxes,
regulations and issues.
Take care of the money
When any individual started a business, its become much required for them to keep the
money separate or apart from the personal accounts )(Kinyua and Ali, 2016). As it is very
simple or easy to set the business and checking the accounts with banks or local credit union.
Set up an Office
If the business idea is well and perfect according to the thoughts and market
requirements, then its become much required or important for the individual to create designated
workplace. To implement the plan to get profit an workplace or office is much required for the
individual so that they an run their business in a proper and appropriate manner.
This is start-up process of Small medium enterprise which will going to support the
entrepreneur to run or direct their business in a very appropriate and effective manner.
Growth and development of the business
There are few status which are considered in the development and growth of the business which
are mentioned below:
Existence stage: Moving from an idea to a company requires clients, resources, and stamina
during the start-up process.
Survival Stage: If the company survives the start-up phase and has shown that it has a product
that customers can and will purchase, sustainability becomes the primary concern. They must be
able to generate enough revenue to offset their expenses. And they must be willing to fund
expansion.
Success Stage: A business will remain in this stage forever whether it is economically stable and
producing decent or better results to ensure success. More than seat-of-the-pants leadership is
needed for financial management, organisational growth, and delegation to a growing
management team.
Takeoff stage: Delegation and funding would become major issues if the organisation decides to
expand. To deal with expansion, a dynamic market, and an ever-changing business world, they'll
need capable management.

Maturity Stage: If they manage to build a mature business, one of the most difficult tasks would
be controlling significant financial capital.
The main competitive advantage of the business
Business competition advantage is when the organisation has something much amended
or does something new or unique as compared to another company(Díaz-Correa and López-
Navarro, 2018). If the organisation has a competitive advantage, then the company is capable to
charge good cost and enjoy the superior sales. There are few sources of competitive advantages
in order to get more success and growth in the market.
Product attribute differentiation
It is a very effective way or mode to gain the competitive advantages by
distinguishing the good and services. There are several attributes which will going to help and
support the company to distinguish their goods and services. The attributes are sources of
products, location, More variety of the goods, good quality of the goods, better services to their
consumers and many more. These attributes help the company to do products differentiations.
Price Discrimination
With an analysation of the consumers willingness to buy the goods, The
organisation get a opportunity to analysis and find about several kind of consumers who are
much capable to pay purchase the goods at different amounts of the goods. Prices discrimination
is one of the most common and basic and strong strategies for the organisation.
Human Capital
A organisation is as powerful as their employees. Hiring, recruiting and giving
training and make them more effective towards the organisation create opportunities for the
company to get effective competitive advantages and benefits.
Workers engagement
Workers engagement is much important and plays an effective role towards the
company in order to get several competitive advantages (Gewer, 2016). Workers engagement get
positive outcomes for the company and raise the efficiency and effectiveness of the company.
The connect catering company got several competitive advantages by following effective
strategies in order to increase the productivity and efficiency of the company. Connect catering
company got these advantages by focusing on consumers needs and taste so that they can build

strong relationship with the consumers )(HRISTOVA, and STEVCESKA-SRBINOVSKA,
2019)..
Porters Five Forces Model
Porter's five forces model is used to determine and examine five competitive forces that help
the company to shave their industries and also support the company to identify their
weakness and strength. This model can be used to any segment of the economy in order to
identify and understand the competition level in the Marketplace and to develop a company's
long-term profile. This model is widely applied or used to examine the structure of the
company and their corporate strategy. The five forces are generally used to measure and
evaluate the competition intensity, profile and profitability of a company. There are porter's
five forces which are mentioned below:
Competition in the industry:
This is the first five forces model which it work to the number of the competitors
and rivalry and also their ability to undercut organisation. (Williamson, 2018. The purchaser
and the suppliers seek out organisations competition if they are capable to provide a
amended offers in a very e effective price. Conversely, when the competitive rivalry is
lesser, then it will create the chances and , the organisation has much stronger power to offer
and set high prices in order to gain high profit and high sales.
Potential of new entrants into an industry:
Organisation has power and the power of the organisation is also affected by the
new entrants into the market place. This takes less time and worth for a rivalry to come into
to market place and to become much effective competitor. In organisation with powerful
barriers to come is ideal for existing organisation within that Marketplace since the
organisation is capable to set much cost or price and negotiate amended terms.
Power of suppliers:
This model address about how easily M supplier can increase the the cost of of
materials and input. This factor is affected by the amount of suppliers of key inputs of a
products and services means how much the products or material is unique and how much it
would be cost for a Organisation in order to switch with another supplier. If the organisation
have to supplier as small medium industries has to supplier because of their financial
stability then they are more dependent on the suppliers. Is investigation the suppliers of the

company has more power to increase the input cost and gain more advantages in the sales.
On the other side when there are several supplier for the company or slow switching prices
among competitive suppliers so this is strategy for this thing can be beneficial for the
organisation in order to keep their input cost lower and increase their profits.
Power of customers:
This is the another model of the five forces this model explain about the capability that
consumers have in order to increase the prices lower and their levels of power is one of the
part of this force. This is also affected by several buyers or customers which company has
and this also help to identify how much a customer is important for the company and how
much it will be cost for a company to analyse and determine new consumers or market for
their outputs. I smaller and stronger customer base has more power to negotiate the prices
for better deals. It is easy for small medium size company because they have independent
consumers.
Threat of substitute
This model is last of the five forces model which focuses on substitute. Substitute
products and services which are applied by the company in order to pose a threat. When in
the market the closed won substitute are available then the customers will give the options to
forgo the purchasing and buying a organisations product and a organisation power can be
weakened.
They mainly focusing on competition in the industry in order to gain competitive
advantages and become much successful. The organisation is focusing on analysing the path
or direction in order increase and gets more competitive advantages so that they can increase
their productivity and increase their revenues. They are generally focusing on competition in
the industry so that they can analyse the power of the competitor and potential of new
entrannts in the industry
The competitors of the company
Catering by design and sogeres are the biggest competitors for the company and they are
much focusing on their competitors in order to increase their profitability and increase the
efficiency. It’s very important for the company to analyse the strategy of their competitors in
order to get more competitive advantages. Catering facilities are provided by Sogeres. Fruits,

herbs, snacks, drinks, and other items are available. Institutions, nursing homes, hospitals,
corporate markets, and others are served by the organisation.
The growth and development of the business
Business Development entails that procedure in project in order to develop and implement
the opportunities within the organisation. Business development is the development and
creation of long-term value for the company from the consumers and Markets. There are few
stages of small business growth that categorise the issues and development patterns of small
medium business in a proper and appropriate manner which is appropriate and useful to
entrepreneur. Small medium or organisation varies huge in size and capacity for
development. They are categorised by the feeling company structure and actions of
Management styles. Stages of business growth when the owner of the small business plan is
paying off then the customer know about the goods and services .for this will help them to
increase their revenue. To managing the growth and success of the business it is very
important for the owner and the workers of the company to stay focused on the business
goals and objectives in order to face the challenges and overcome the issues which are faced
by the company. The small medium business are required to set the goals that let them know
about the purpose and help them to grow with their aims and goals which are used by them
in a very effective and appropriate manner)(Wang, J., 2018). They are also required to
maintain their capital because without cannot maintain their financial stability and won't be
able to meet with their financial responsibilities. It is also required for them to develop and
create realistic and accurate forecast that will support them to drive their goals and
objectives and stay on track. Business maturity when the company reach with this stage then
feels more secure and sure about their growth and success. Mature organisation has more
brand consciousness with their customers and strong presence in their Marketplace and
target industry. With strong cash flow and the capability to overcome challenges that are
faced by the company makes the maturity stage more challenging.
Government policies that support the company to grow and develop
Governments may help in a variety of ways, including supplying collateral, generating
and promoting special loans for SMEs, and awarding grants to others that meet certain
criteria, such as increasing production or recruiting more people. They might even favour
them when it comes to taxation.Small business loans are arranged through the Small

Business Administration (SBA). Grants, guidance, preparation, and management
counselling are also available. The Commerce Department assists small and medium-sized
businesses in expanding their product sales internationally.
The challenges of managing and running the business
There are several challenges facing by small and medium sized businesses in context of
covid-19 create impact on their financial stability. Leadership there is no amended and
academic qualification to be a leader on small medium Enterprise. The small medium
business faces several problem which is related to covid-19 because during the economic
problem which is created by covid-19 it’s become much necessary for the company to
having the right leadership style in order to overcome the challenges. Strategy consequences
of deficiency of leadership in management are a deficiency of organisation planning in most
of small business entrepreneur. Business planning equipments and tools that support the
business to focus on what matters and because of lack of the Strategies and development it’s
become much difficult for the small medium Enterprise to deal with the covid-19
challenges. Making the business stand out after lockdown It's become much challenging for
the small medium Enterprise to stand out their business because of they have lake of
leadership and amended strategies so their faces several issues which is related to the quality
customer surveys difficulties to buy it somewhere else price related issues and many more.
CONCLUSION
From the above mentioned report it has been analysed that, Small and medium enterprise
business include less than 250 employees in their firm. As they are so passionate and much
stronger to deal with several problems. This report conducts several strategies and process that
will help the company to start their business and get opportunities. Also, there is explanation on
porters five model in order to gain more opportunities for the company and increase the
profitability in the market. This report also explained about the implications and problems which
is connected to the efficiency and growth of the company.

Recommendation
From the above mentioned report there is few recommendation to the company in order to
follow and increase the productivity of the company. This advised help the company to get
more opportunity and increase their efficiency.
 The company are to advised to follow effective Strategies and technologies in order to get
several opportunities and overcome the challenges of covid-19 pandemic.
 The connect catering company and also advise to focus on their development off market
and product quality in order to satisfy the needs and demands of the customers.
 They are also recommended to follow strategies and models in order to get competitive
advantages.
 They are also advised to hire more talented people so that they can get more opportunity
and build effective and loyal relation with them.
 They should focusing on SBA because it helps them to provide advice, loans, training
and many more.
REFLECTIVE JOURNAL
In week first I analysed and learnt about, Entrepreneurship is the extraction of the value and this
is the process which Edward to the creating a new company and wearing any race and making
the prophet. The individual who developed a new company and embraces each and every
challenging for the development in operation is known as entrepreneur. From the above
assessment I learnt several things about the entrepreneurship I learn about that they are so
passionate to become more successful in the market as they are so confident and money
managers. After covid-19 pandemic then never give up on their strategies and to stand up their
business again. Is there are so hardworking in order to get success in the market because as small
business organisation faces several problems related to the covid-19 pandemic.
In week 2 I analysed and learnt about, Innovation innovation is something which help the
company to adopt new technologies and implement their ideas in order to introduce new
products and services and improve their goods and services. After covid-19 pandemic expecting
much challenging for new strategies in Technologies so that they can develop and enhance their

business and come with new and innovative ideas so that they can change their season in the
market and become much successful in order to get several opportunities and overcome the
barriers which are facing by the small medium enterprises during covid-19 pandemic. connect
catering company offers good quality foot but because of covid-19 pandemic the customers are
being aware about the product and quality which are provided by the company as they are
providing safe and unhygienic good so it's become quite difficult for the company to maintain
these problems and become much innovative and creative in the market so that they can grab
more customer towards the company.
In Week 3, I learn about the characteristics of the small business that what are their features in
order overcome the challenges and impact of covid-19 pandemic. Learnt, that they have
Independence in their business because they are the owner of their business and do not have to
rely on everyone. They are so passionate in profit motive Businessman or entrepreneur in order
to get several opportunities and become but successful in the market. They are always ready to
face every risk and uncertainty is factors because of dynamic environment and changes in their
market trends and customers taste. In context of connect catering company analyse that they are
so creative and innovative in order to satisfy the customer uh about their safety and health.
In week 4 and learn about the challenging of conventional views on small medium enterprises
and entrepreneurship so I analyse that the company connect catering adopted modern views in
order to satisfy the customer needs and Desire. As traditional views are also very good but to
become effective in the market and game competitive edge, traditional views so that they can
grab more customer base and face every challenges and risk factors and try to minimise them.
Traditional views of the organisation represent the structure of the organisation in a business and
the power flow of the business but as modern views of the organisation refers to the boundary
less company which are networking together and collaborating more and much in order to get
several opportunities.
In 5th week, I learn about what are the challenges which are faced by the entrepreneur while
running and directing their small medium enterprises. as because of covid-19 pandemic their
faces several problems and issues which are connected to growth and success. Catering company
provide food so it's become quite difficult for them to make the customers feel so save about
there quality of the product means how the product and services it safe and better for the
consumers in order to avoid covid-19 symptoms. Difference several issues which is related to

their innovation delivery of the product time management changes in market and because of
lockdown covid-19 pandemic create major impact on the company.
In week 6 I learnt that there are few factors that lead to the growth and development of the small
medium organisation. The first is customer loyalty, customer loyalty matters a lot for the
company because customers are the more important that helps the company to grow in the
market and get several opportunities. The practice is smart adoption of the technology as catering
company adopt several Technologies and innovation in order to to face the challenges of covid-
19 pandemic and get several opportunities and success in the market. The another factor is social
responsibility as the company is taking care of community in UP responsibility community and
social in order to above their services and goods which are provided by them in covid-19
pandemic that they are offering amended and good quality product and to satisfy the customer
needs and Desire.
In 7th week I learnt about the small medium business access to finance from several sources like
Bank Government Loan many more. There are several sources of finance in order to maintain
their financial stability. Sources of funds are applied in use by the organisation in several
situations. They are based on control time period and their sources of generation. I Analyse that
by most common sources of external finance for several small medium enterprises. Medium
enterprises have limited or no access to their debt financing or equity.
In 8 week, I learn about the policies and laws which are developed by the government in order to
boost the sales and growth of the small medium organisation. As United Kingdom is a best place
in the globe to start and grow their business and there are some strategies which are followed by
the government in order to boost the growth of the small medium enterprises and which are
mentioned below:
Building and Organisation culture and motivate or encouraging a more dynamic start-up in the
market. They make several policies which help them to improve their access to finance sources
like bands financial enterprises in many more that develop better Regulation and policies in order
to boost their sales and confident in order to operate their business in the market.
In 9 and 10 week, I learnt about the entire assessment that I learn several things about the small
medium enterprises. Analyse that small medium enterprises have Independence because as they
are Boss of their business and they do not have to rely on everyone. Small medium business has

less than 250 employees in their company and they are so passionate and hard working in order
to get success in the market and several opportunities.
In 11 and 12 week I analyse that you are facing several kinds of problems and issues which is
connected to their growth and success and to become more effective in the market. As COVID
19 pandemic create negative impact on the organisation and their productivity in the market it's
create impact on their growth and development procedures and it's become much challenging for
the company to manage and operate their business in the market. There are several strategies in
model which support the company to get several opportunities and competitive advantages in the
market so that they can overcome and minimise their problems and issues which are faces buy
them. Also, I learn about several things and I was required to submit the draught about the
preparation of the project. How I adopt the things in a appropriate manner. And how it creates
negative impact on the organisation and also on their productivity in the market place.
In 13-14 week i attend several Workshops in seminar in order to identify about the
entrepreneurship innovation the characteristics and a variety of small business and what are the
challenges which are facing by the entrepreneurship and each and everything which I have learnt
about the entrepreneurship. By attending seminars and workshops I learn several thing in a
practical manner that how to adopt the strategies so that the company game much profit and
opportunity in the market place. The seminar and workshop is very effective for me because it
helps me to increase my skills and knowledge in order to adopt more knowledge and
information. Also it helps me to get more opportunity in the future and identify about the several
challenges which can be faced by me while doing any business or adopting any strategies. I have
learnt several things in overall assessment and it creates positive impact on my knowledge and
on my skills. So it is much amended way to increase the knowledge and become more effective
in order to overcome the challenges which can be faced by while doing an Operating any task in
the organisation. It also helps the company to hire much talented people that already knows
about each in everything that is related to the business and how to adopt the strategic. It helps
them to get more opportunities and positive outcomes from the employee’s side. So in the overall
I learnt several things about the small and medium sized businesses in all 14 weeks.

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