MSME: Challenges, Growth Strategies and Government Support Measures

MSME

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Findings............................................................................................................................................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.............................................5
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................................................................................................................................6
Reflective journal.............................................................................................................................7
Week 1....................................................................................................................................7
Week 2....................................................................................................................................7
Week 3....................................................................................................................................8
Week 4....................................................................................................................................8
Week 5....................................................................................................................................9
Week 6 ...................................................................................................................................9
Week 7..................................................................................................................................10
Week 8..................................................................................................................................10
Week 9..................................................................................................................................11
Week 10................................................................................................................................11
REFERNCES:................................................................................................................................12
Books and Journals:..............................................................................................................12

Introduction
Small and medium size businesses are those businesses which are having less number of
employees and whose total revenue earning amount is less than large companies. The main aim
of such companies is to earn their livelihood and and serve to local customers. There are lack of
innovation strategies in SMEs (Raza, and Khuwaja, 2018). Their growth rate is slow as
compared other large companies. Marshfield bakery is a small scale family business in UK
which is founded in 1984 and it has 84 employees. The following file covers the nature of
entrepreneur behind the venture, SMEs start up process, business concept and sources of
competitive advantage, current level of demand and competitive environment, growth and
development of business, challenges or running the business and in the end this file covers SMEs
current growth and development strategies, government support system for companies to tackle
problems. It also include recommendations.
Main Body
Findings
The nature of the entrepreneur behind the venture
Few of the nature and features of entrepreneur of Marshfield bakery are explained below-
1. Risk bearing spirit- It is the main nature of SMEs that they should have risk bearing
nature because most of the small enterprises invest their own money which is called
equity shares in the business. In case these businesses go for loans then also they have
unlimited liabilities which means in case or repaying the loans they even have to use their
personal property. Marshfield bakery is a family owned business which is established
with equity share which means tits owner took a high risk in the business.
2. Ability to innovate- Small businesses are innovative, they find new and innovative ways
to reach their targeted customers. This business are mainly focusing on gaining more
customers with their effective services. They can only innovate new ideas in products and
services because innovation in technological factor require high investment which is
tough for SMEs. In context of Marshfield Bakery, they innovate new tastes of their rusks
and baked products (Hasanah, 2021).
3. Good decision making ability- SMEs are considered as good decision makers because
they know well that the success of their business is fully dependent upon their good

decisions. Hence, they analyse the conditions and situations well and then take some
good decisions for their business.
The SME start-up processes
1. Create a business plan- It is the framework of whole business that how they are going to
conduct in future. It is first stage of starting a business to develop a business plan after
analysing all opportunities and threats in the market place. It also consist of analysing
financial sources.
2. Determine the legal structure and register the business- It is essential for the business
to determine legal structure so that in registering the business their registration will not
get cancelled by the government. Registration is important for SMEs so that they will get
legal certificate of their actual existence.
3. Get a tax identification number from IRS- Taxation policy is also essential for the
business. Hence, it is essential for new start ups to go for tax identification.
4. Finding a location for business- It is essential to find a suitable location like building for
conducting business activities.
5. Finding employees- After fulfilling all legal formalities it is essential to find some more
people for company so that they will help them in their operational activities.
6. Engage in operational activities and achieve success- after hiring employees the owner
of business explain them hoe they can work for their success and they engage in
achieving organisational profit (Mathibe, 2019).
The business concept and any sources of competitive advantage
SMEs is a type of business which is operated on small basis by hiring small number of
employees and earning less incomes as compared to normal sized companies. They are good to
serve their local products to their local customers. This business consist to produce local
products like popular food items and cultural cloths of country. The prices of their products are
low because they target low income customers. Marshfield Bakery can gain competitive
advantage by producing different flavours of Rusks and biscuits because nowadays most of the
customers need vast variety of their eatable products. This will help them to compete well in
their industry. Secondly, they are also gaining good competitive advantage by their innovative
and new products. They are introducing a vast variety of new products every year which help