Small Business Management PDF

Running head: SMALL BUSINESS MANAGEMENT
Small Business Management
Name of the Student:
Name of the University:

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SMALL BUSINESS MANAGEMENT
Author Note:

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Executive Summary:
This discussion aims at providing an insight into small business management. It focuses
on small and medium sized businesses (SMEs). It discusses the introduction to the
SME and goes on to discuss the challenges encountered in starting and developing an
SME. The discussion also evaluates critically the business decisions of the SMEs and
discusses the advantages and disadvantages of small businesses compared to the
larger companies.

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SMALL BUSINESS MANAGEMENT
Introduction:
This discussion aims at providing an insight into small business management
and discusses small and medium sized businesses (SMEs). These businesses maintain
assets, revenues and restricted number of employees often below certain threshold.
The definition of small and medium sized business varies across industries. In the
United Kingdom, small enterprises are identified as having lower than 50 employees
while medium enterprises represent the ones with about 250 employees (Storey 2016).
SMEs are quite strong in the aspect of innovation and they encourage competition.
SMEs are economically and socially important and represent close to 99 percent of the
estimated twenty-three million enterprises in European Union (office of national statistic
2017). They provide around 75 million jobs thereby representing close to two thirds of
the total employment. SMEs contribute to about 80 percent of the employment in
industrial sectors including construction, textile and furniture (office of national statistic
2017).
The challenge of the SME lies in attracting capital for funding their endeavors.
Various business education programs advocated by the national governments increase
the access of the SMEs towards the government loans and incentives. The focus now
lies in the challenges faced in developing the business venture.
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