Managing Small Medium Size Enterprises

This report explores the characteristics, challenges, and growth strategies of small and medium enterprises (SMEs). It discusses the role of the entrepreneur, competitive advantages, and government support measures. Recommendations are provided for SMEs to overcome challenges and sustain growth.

Managing Small
Medium Size
Enterprises

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The nature of the entrepreneur behind the venture. ...................................................................3
The SME start-up processes........................................................................................................4
The business concept and any sources of competitive advantage ..............................................4
The current level of demand and the competitive environment..................................................4
The growth and development of the business to date.................................................................5
The challenges of managing and running the business...............................................................5
The SMEs current growth and development strategy.................................................................6
Any government support measures that may be available to help the business overcome the
challenges faced .........................................................................................................................6
CONCLUSION ..............................................................................................................................7
Recommendations............................................................................................................................7
Reflection.........................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Small and medium enterprise are the businesses whose personnel numbers fall below
certain limits and are non subsidiaries that are working with 250 employees and attaining the
business. It covers all the small sectors that are performing their business with less capital.
Gokyuze Limited which is incorporated in 24 May 2012 and it is a small business that is
operating their business between 10 to 50 employees and generate the revenue between $2 to $10
million. It is founded by Hassan Yavuz, a farmer from the Maras in central Turkey.
The main challenges which is faced by the company as due to rise in the global pandemic
and several effects and being SME Gokyuze Limited, they are facing issues in gaining the
employees trust and not attaining the customer expectations with proper execution. This report
will cover the characteristics of small medium enterprises. And also examine the competitive
advantages and the challenges faced by the company and the various strategies used by the
company in order to get higher success and growth.
MAIN BODY
The nature of the entrepreneur behind the venture.
As the Gokyuze Limited is being made by the Hassan Yavuz, they have implied certain
characteristics while making their business successful that are as follows:
 Motivator- The entrepreneur have to be goal oriented that take the best practices in
order to motivate their employees where as the Gokyuze Limited is framing the strategies
in order to motivate their employees so that they can work in an appropriate manner.
 Proper planning- It is the process of thinking beforehand and Graham is planing the
various strategies in order to get the best results in their business so that they can attain
the higher profitability. It can be done by evaluating the future oriented task within the
organisation so that they can measure the future challenges.
 Passionate- Hassan Yavuz is completely the dedicated and passionate person that is
executing their task in such a manner so that they can handle all the challenges with the
best alternative.
The SME start-up processes
There are various steps which are taken by the Hassan Yavuz in order to build the
Gokyuze Limited and to start the SME. They have taken the step by doing the market research so

that they can work on their project in an appropriate manner. While doing the market research,
they have to make the marketing plan so that they ca executive all the task accordingly. The
entrepreneur later make the financial plan so that they can procure ad allocate the financial
resources rightly in order to utilized them for the restaurant. While the financial resources is
being chosen then the main consideration is to choose the structure of the business that how the
company will run the various operations of their business so that they can make the best use of
each resources in a effective manner. This helps in performing the every task in an appropriate
manner with the consideration of attaining the organisational goal.
The business concept and any sources of competitive advantage
The consideration of Gokyuze Limited is to offer the excellent services with
mouthwatering dishes made by using fresh ingredients by taking the traditional recipes in the
North London They are concern with the perfect environment so that they can attract the large
group of customer to their restaurant. They are implying the methods and areas through which
they can create a better and sustainable environment within the restaurant. When the individual is
thinking for SME being well known the most important aspect in to keep the necessary records
to innovation and advancement within the business. With the help of new idea, an organisation
can attract the large group of customers and Gokyuze Limited is offering the dishes made from
natural ingredients in order to attract the families and large group of customer towards
sustainability in their business. Small business do provide the facilities of low amount and rich
facility(Paula and Da Silva, 2019).
The current level of demand and the competitive environment
In order to analyse the competitive environment Porter's five forces is being used that
give the better results for the organisation.
 Competitive rivalry- As the rising competition in the market, Gokyuze Limited have to
face huge competition in the market. As they pertains all the competition in market by
offering the quality dishes.
 Threat of substitute products- The main attribute of the company as they are offering
the Sustainable environment conditions that is merely used by the other firms as many
firms are using the essence food.

 Bargaining power of buyers- The bargaining power of the consumer is moderate in it as
they tends to lower the prices of the services so that they can available the best services at
lower prices.
 Threat of new entrant- There are many new firms which are coming up with the new
ideas in order to attract the large group of customers and Gokyuze Limited is maintaining
the high level of services so that they can retain in the market for a longer period of time.
 Bargaining power of suppliers- These attributes seems to be moderate as the changing
demand with the higher level of competition in the large market.
The growth and development of the business to date
As the current time, there are approximately 70 employees who are working in Gokyuze
Limited and when they stated their business were just only 20 employees who stated working
with it then they have expanded their business to the international market. The company is at
their high profitability as they are generating the revenue of $6 million and keep expanding their
market in new geographical locations(López‐Fernández And et. al., 2021). They are using the
emerging market strategies in order to attract the large group of customers.
The challenges of managing and running the business
There is a huge impact of COVID-19 on tourism industry ad the sale of the company
dropped at its low and company facing huge loose in their revenue. The business is badly
affected and they have attained the large units through all the means and the strategies. As the
people do not tends to go out and having dinning there. They are preferring the food in their
homes only as this imply in the methods through which this is being framed are considered.
Thus, all the SMEs have affected their business due to decrease in the demand and supply in the
large market. Gokyuze Limited is affected as the less demand in the market from their
prospective customers.
The SMEs current growth and development strategy
For analysing the current market growth of the the company, they are using the external
market condition analysis in order to understand the market condition of Gokyuze Limited that is
explained as follows:

 Market penetration- It implies the use of existing product in the existing market so that
they can increase the sale of the company in the large market. This show that all the
existing product is being made in it(Alam and Adeyinka, 2020).
 Product development- In this aspect, the company develop the new product by doing
effective market research and produce the new products in the market area that remain to
tends the same for their promotion ad sale. Gokyuze Limited is ensuring the effective
market research so that they can offer the effective product in the large market.
 Market development- In this aspect, the company tends to open their areas for operating
their business but the product line tends to same there is no change in the products.
 Diversification- It cover the important areas in which the company is plaining to
innovate the new products in the new market in order to offer the quality product to their
potential customer. It is associated with the highest level of risk as there is huge chance
of product failure or may be tends to get the good sale in the large market.
It is analysed from the above discussion that Gokyuze Limited is covering all the areas
and using the market penetration which help in making the best use of their products so that they
can make the effective sale in the large market.
Any government support measures that may be available to help the business overcome the
challenges faced
The government of the UK provide the various method in order to motivate the
employees so that they can work in an most effective manner. They are providing training to
their employees so that they can do their best in order to meet the current situation of COVID-19
by implying with the innovation and the implementation of the various process in their
operational business. Gokyuze Limited is proven to the best SME by pertains the best practices
and methods so that they can comply with the current situation. They are helping the company is
proving the funds and also loans so that they can run their business in an appropriate manner.
Thus, tax relief and the various funding helps in getting the higher productivity from the
businesses.

FINDINGS
The current business is facing the huge challenges due to the huge impact of COVID-19by
which they are slow downing their business operations in the large market so that they can
make the best use of their employees and give the various training sessions so that they can
rightly use the various measures which help them to over come the situation of covid-19. As
the employees are giving their best and also complying with the various strategy of the
government so that they can have the better working within the premises.
CONCLUSION
It is conclude from the above report that small medium enterprises implies to the small
running business that comprises of all the non-subsidiaries market that is covering the all the
necessary aspect which leads to get the higher growth within the organisation. Capital is being
raised by attracting the large group of customers. Gokyuze Limiteds is offering various discount
and offers so that they can make the best use of several resources so that they can attain the
higher level of growth. Moreover, the porter's five force model an the Ansoff matrix is framed
which impact the growth of the company and SME should sue the market development. The
government of the UK is providing funds and loans so that they can effectively run their
business.
Recommendations
It is recommended from the above report that SME play an vital role in the progress of
the economy and in context of generating high revenue a profitability. They are suggested to
cover the large market. As the increasing size of the company, they can innovate their products
and services by using the advance techniques in their production and the innovative ideas so that
they can cover the large market and attract the large group of customer ad attains the higher
profitability within the business. All the expansion and the innovation help them to generate the
higher profitability and good brand image in the market by which they can generate the higher
profitability and growth in the market. They can make the best use of the government measures
so that they can reduce the impact of COVID-19 on their business and can sustain in the market
for the longer period of time.

Reflection
From the above report I have learned about the small medium size organisation, how they
function in the large market and sustains in the competitive world. The methods which are
involved in the process of innovation and the various techniques which are use by the
entrepreneur in their business progress that helps in me in my learning. I also learned the various
technique in overcoming form the various challenges which are being faced in the business
environment. I also evaluate the impact of various strategies that re being sued in order to
maintain the growth of the company. This all aspect help me in enhancing my knowledge about
the various roles and responsibilities of the entrepreneur.

REFERENCES
Books and Journals
Alam, K. and Adeyinka, A.A., 2020. Does innovation stimulate performance? The case of small
and medium enterprises in regional Australia. Australian Economic Papers.
Fauziati, P. and Kassim, A.A.M., 2020. The Effect of Risk Management and E-Filing Usage on
Tax Compliance Costs: A Study on Small and Medium-Sized Enterprises in Padang,
Indonesia. International Journal of Psychosocial Rehabilitation, 24(1).
Ferro-Cortés, L.M., Skander, D. and Préfontaine, L., 2017. The role of trust in the
internationalisation of knowledge-intensive small and medium enterprises. International
journal of business and globalisation, 18(3), pp.291-317.
Israel, A.N., 2018. Chief executive officer leadership role and small and medium enterprises
performance in Southwest Nigeria. International Journal of Advances in Agriculture
Sciences.
López‐Fernández, J.M. And et. al., 2021. The effect of micro‐territorial networks on industrial
small and medium enterprises' innovation: A case study in the Spanish region of
Cantabria. Papers in Regional Science, 100(1), pp.51-77.
Mulyati, Y., Mariana, C. and Subing, H.J.T., 2020. TAX MORAL OBLIGATIONS AND
COMPLIANCE COSTS ON SMES TAX COMPLIANCE (Study at Department of
Cooperatives and Small-Medium Enterprises of Bandung).
Nguyen, H.T. and Le, V., 2019. Network ties and export propensity of Vietnamese small and
medium enterprises. Asia Pacific Business Review, 25(1), pp.100-122.
Paula, F.D.O. and Da Silva, J.F., 2019. The role of the appropriability mechanisms for the
innovative success of Portuguese small and medium enterprises. International Journal
of Innovation Management, 23(04), p.1950032.
Yadav, S.K., Tripathi, V. and Goel, G., 2019. Modelling strategic orientation dimensions and
performance of small and medium enterprises: An application of interpretative
structural modelling. Journal of Modelling in Management.