Managing Small and Medium Sizes Enterprises

Managing Small and
Medium Sizes
Enterprises

Table of Contents
Introduction......................................................................................................................................3
Findings...........................................................................................................................................3
Nature of entrepreneur.................................................................................................................3
SME- Start up process.................................................................................................................5
Business Concept & Source of competitive advantage...............................................................6
Current level of demand & competitive environment.................................................................7
Growth & development of business till date...............................................................................8
Challenges of managing & running business..............................................................................9
Current growth & development strategy of SME........................................................................9
Government Support to help business in order to overcome with challenges...........................10
Recommendations......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

Introduction
Small & medium size businesses are those units which are started with lower amount of
investments, equipments & resources. These entities play a crucial role in escalating economic
growth & development. Small & medium size companies offer range of products & services to
customers and also generate huge employment opportunities. In UK, 99.9 % private sector
entities fall under the category of SME. These entities work with limited number of employees.
Generally, there is employees base of less than 250 people. From the employment prospective,
SME employed nearly 16.8 million individuals within UK & maintained a contribution of
£2.3 trillion in overall economy of country (Gaudenzi and Siciliano, 2018). In present report,
Marshfield bakery is taken into consideration which is a well known SME based on England &
was founded in 1984. It offers snack bars, biscuits, seasonable food, fruit cake & other such
products. It is engaging in remarkable practices related to private label as well as self branding
still falls under the category of small business unit. The present study covers nature of
entrepreneur of venture, start up process of SME, sources of competitive advantage. After this
discussion, current level of demand along with an analysis of competitive environment is also
going to discuss in the following report. Further, it includes growth & development of business
entity along with challenges in running a business. Current growth and development strategy of
SME and the support of government in terms of subsidies, grants has also discussed in the
present report.
Findings
Nature of entrepreneur
Entrepreneur is a person who has a business idea & has the courage, enthusiasm, zeal and
passion to convert the idea into reality. Entrepreneur takes risk to introduce a new product and
services in market place. It is the aim of entrepreneur to do something creative & introduce
unique products to society (Pousa, Mathieu and Trépanier, 2017). Entrepreneurs initiate a
business venture to commercialize their idea & earn substantial amount of profit margin. In
current scenario, Marshfield bakery is a small company which was started as a family business to

earn significant amount of profit margin. It was established by Paul white & his wife lenny.
Here, nature of entrepreneur in context of bakery is given as under:
Risk taker: It is analyzed that an entrepreneur is a risk taker. Starting & running a
business based on new & unique idea is not an easy task. It includes huge risk in terms of lower
earning, profit margin, acceptance in market & more. However, a new business is started with an
aim to earn substantial profitability but, there is no certainty of profit & loss. In current scenario,
Paul took risk to start a new venture in spite of extensive competition in present in market place.
He took the risk & resulted enjoying great success of venture in current time.
Profit maker: Major purpose of starting each & every business is earning profit. An
entrepreneur also starts new entity for making profit. Without profit, it is not possible to operate
business for longer time. Profit drives growth for future betterment & strengthens the market
position of organization (Clinton and Whisnant, 2019). In current scenario, the primary reason of
Paul & his wife behind starting a new venture was profit making. For this purpose, they keep
expanded business over the period of time.
Innovator: It is the most crucial characteristic of entrepreneurs which allows them to
invent something unique for meeting with requirements of customers. If, there is no unique
points include in venture then people are not likely to get attracted towards its product &
services. Here, Paul’s wide lenny is a good cooker & has the experience in same filed. With this,
lenney is able to provide delicious cookies, puddings, cakes to customers which is a
differentiating point for organization. Further, they appoint qualifies, competent as well as
proficient people to make quality food for matching with pre defined standards set by respective
entrepreneurs.
Challenge taker: During entrepreneurial journey, there are ample of challenges faced by
entrepreneurs. It is not easy to commercialize the business idea. Challenges such lack of
resources, funds, fewer profit margin, lack of competent staff, lack of government support &
more are faced by entrepreneurs while embarking on entrepreneurial journey (Melendez, Dávila
and Pessoa, 2016). For Paul & Lenny, it was not easy to start as well as run the venture
successfully as they faced several hurdles during the journey. With constant efforts, dedication,
assertive attitude they could successfully established the positive image of organization.