Challenges faced by SMEs
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This research study aims to examine the challenges encountered by small and medium enterprises (SMEs) while operating in different market segments. It will explore the impact of these challenges on profitability and market share, and suggest recommended activities to improve SMEs' performance.
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Running head: RESEARCH ENQUIRY
RESEARCH ENQUIRY
Name of the student
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Author note
RESEARCH ENQUIRY
Name of the student
Name of the university
Author note
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1RESEARCH ENQUIRY
Table of Contents
1.Introduction...................................................................................................................................2
1.1Background of the research....................................................................................................2
2.Problem statement........................................................................................................................3
3.Aim and objectives.......................................................................................................................3
4.Research questions........................................................................................................................4
5.Justification of the potential output of the research......................................................................4
6.Conceptual framework and hypothesis development...................................................................5
6.1Lack of sufficient financial funding.......................................................................................5
6.2Insufficient planning and management...................................................................................5
6.3Lack of technological development........................................................................................6
6.4Monitoring and controlling activities.....................................................................................7
6.5Attrition in the workforce.......................................................................................................8
6.6Hypothesis Development........................................................................................................9
7.Methodology.................................................................................................................................9
7.1Research philosophy...............................................................................................................9
7.2Research approach................................................................................................................10
7.3Research design....................................................................................................................10
7.4Data collection process.........................................................................................................11
7.5Sampling strategy and sample size.......................................................................................12
References......................................................................................................................................13
Table of Contents
1.Introduction...................................................................................................................................2
1.1Background of the research....................................................................................................2
2.Problem statement........................................................................................................................3
3.Aim and objectives.......................................................................................................................3
4.Research questions........................................................................................................................4
5.Justification of the potential output of the research......................................................................4
6.Conceptual framework and hypothesis development...................................................................5
6.1Lack of sufficient financial funding.......................................................................................5
6.2Insufficient planning and management...................................................................................5
6.3Lack of technological development........................................................................................6
6.4Monitoring and controlling activities.....................................................................................7
6.5Attrition in the workforce.......................................................................................................8
6.6Hypothesis Development........................................................................................................9
7.Methodology.................................................................................................................................9
7.1Research philosophy...............................................................................................................9
7.2Research approach................................................................................................................10
7.3Research design....................................................................................................................10
7.4Data collection process.........................................................................................................11
7.5Sampling strategy and sample size.......................................................................................12
References......................................................................................................................................13
2RESEARCH ENQUIRY
Topic: Challenges encountered by medium and small scale enterprises: a research study
1.Introduction
1.1Background of the research
The different operations that are commenced by the ventures are reliant on the
management approaches and the competition that is encountered by the same. The medium and
small scale enterprises face a variety of challenges that affected the potentials of the venture in
continuing with the effectiveness of the operations. Agostini, Nosella and Soranzo (2015) stated
that the different modifications that are commenced by the ventures are reliant on the better
understating of the issues that are encountered by the ventures. Lack of suitable leadership
structure and financial funding affect the capabilities of the small and the medium size
enterprises in improving the efficiency of the propositions in adherence to the demand of the
customers. The different initiatives that are commenced by the organization are related to the
comprehensive strategy creation and the corporate culture that is being followed by the same.
However, Karadag (2015) opined that the lack of suitable planning and development of the
organization affect the potentials of the same in improving the effectiveness of the operations
while adhering to the sustenance related needs of the same.
On the other hand, insufficient financial resources of an SME affects the capabilities of
the same in supporting the dynamic R&D operations while improving the innovativeness of the
operations. Mohammed and Obeleagu-Nzelibe (2014) noted that the lack of proficient human
resources in the organizational outset assist a venture in influencing the potentials of the same
while operating in the diverse objectives of the same. In this relation, the lack of proficient and
skilled employees in the organizational processes incapacitate the SMEs in influencing their
potentials in encouraging the uninterrupted functioning of the systems. Therefore, the research
Topic: Challenges encountered by medium and small scale enterprises: a research study
1.Introduction
1.1Background of the research
The different operations that are commenced by the ventures are reliant on the
management approaches and the competition that is encountered by the same. The medium and
small scale enterprises face a variety of challenges that affected the potentials of the venture in
continuing with the effectiveness of the operations. Agostini, Nosella and Soranzo (2015) stated
that the different modifications that are commenced by the ventures are reliant on the better
understating of the issues that are encountered by the ventures. Lack of suitable leadership
structure and financial funding affect the capabilities of the small and the medium size
enterprises in improving the efficiency of the propositions in adherence to the demand of the
customers. The different initiatives that are commenced by the organization are related to the
comprehensive strategy creation and the corporate culture that is being followed by the same.
However, Karadag (2015) opined that the lack of suitable planning and development of the
organization affect the potentials of the same in improving the effectiveness of the operations
while adhering to the sustenance related needs of the same.
On the other hand, insufficient financial resources of an SME affects the capabilities of
the same in supporting the dynamic R&D operations while improving the innovativeness of the
operations. Mohammed and Obeleagu-Nzelibe (2014) noted that the lack of proficient human
resources in the organizational outset assist a venture in influencing the potentials of the same
while operating in the diverse objectives of the same. In this relation, the lack of proficient and
skilled employees in the organizational processes incapacitate the SMEs in influencing their
potentials in encouraging the uninterrupted functioning of the systems. Therefore, the research
3RESEARCH ENQUIRY
will aim at influencing a coherent understating of the different issues that might be encountered
by the SME businesses while operating in diverse environmental contexts.
2.Problem statement
The different challenges that are being encountered by the SMEs while operating as per
the objectives of growth and expansion in the different markets. The limiting factors has affected
the potentials of the SMEs in influencing a competitive edge which could have assist the same in
improving the market position and profitability of the ventures (Taneja & Toombs, 2014). The
study will examine the different challenges related to financial funding, planning, technological
developments, lack of monitoring and controlling activities and attrition in the workforce that
might be encountered by the SMEs while operating in different market situations. The
enumeration of the research problem would assist in continuing with the efficiency of the
operations in adherence to the diverse modifications in the market segments.
3.Aim and objectives
The aim of undertaking the research is to examine the different challenges that are encountered
by the SMEs while operating in the different competitive market segments.
The objectives for undertaking the research will be:
1. To identify the challenges that are being encountered by the SMEs
2. To examine the impact of the challenges on the profitability and market share of the
SMEs
3. To identify the correlation between the challenges encountered by the SMEs and the
profitability of the same
will aim at influencing a coherent understating of the different issues that might be encountered
by the SME businesses while operating in diverse environmental contexts.
2.Problem statement
The different challenges that are being encountered by the SMEs while operating as per
the objectives of growth and expansion in the different markets. The limiting factors has affected
the potentials of the SMEs in influencing a competitive edge which could have assist the same in
improving the market position and profitability of the ventures (Taneja & Toombs, 2014). The
study will examine the different challenges related to financial funding, planning, technological
developments, lack of monitoring and controlling activities and attrition in the workforce that
might be encountered by the SMEs while operating in different market situations. The
enumeration of the research problem would assist in continuing with the efficiency of the
operations in adherence to the diverse modifications in the market segments.
3.Aim and objectives
The aim of undertaking the research is to examine the different challenges that are encountered
by the SMEs while operating in the different competitive market segments.
The objectives for undertaking the research will be:
1. To identify the challenges that are being encountered by the SMEs
2. To examine the impact of the challenges on the profitability and market share of the
SMEs
3. To identify the correlation between the challenges encountered by the SMEs and the
profitability of the same
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4RESEARCH ENQUIRY
4. To suggest recommended activities to the SMEs with the aim of improving the
profitability of the same in the different markets
4.Research questions
The questions for undertaking the research will be:
1. What are the challenges that are being encountered by the SMEs?
2. What is the impact of the challenges on the profitability and market share of the SMEs?
3. How are the challenges encountered by the SMEs related to the profitability of the same?
4. What are the recommended activities that might be considered by SMEs while improving
the profitability of the same in the different markets?
5.Justification of the potential output of the research
The research will assist in delineating the different issues that are being encountered by
the SMEs. The delineation of the issues would assist in influencing future research based on the
understanding of the different modifications that might be undertaken by the same in the specific
fields (Eniola & Entebang, 2015). The current research will aim at providing a guidance to the
future studies to explore the changes that might be initiated by the SMEs while operating in the
different business environments.
On the other hand, the current research will provide an extensive view of the different
issues that are being encountered by the SMEs and the manner in which the same might be
mitigated. The recommended actions that might be commenced by the SMEs will develop the
potentials of the same in continuing with the efficiency if the operations in adherence to the
common objectives of organizational sustenance.
4. To suggest recommended activities to the SMEs with the aim of improving the
profitability of the same in the different markets
4.Research questions
The questions for undertaking the research will be:
1. What are the challenges that are being encountered by the SMEs?
2. What is the impact of the challenges on the profitability and market share of the SMEs?
3. How are the challenges encountered by the SMEs related to the profitability of the same?
4. What are the recommended activities that might be considered by SMEs while improving
the profitability of the same in the different markets?
5.Justification of the potential output of the research
The research will assist in delineating the different issues that are being encountered by
the SMEs. The delineation of the issues would assist in influencing future research based on the
understanding of the different modifications that might be undertaken by the same in the specific
fields (Eniola & Entebang, 2015). The current research will aim at providing a guidance to the
future studies to explore the changes that might be initiated by the SMEs while operating in the
different business environments.
On the other hand, the current research will provide an extensive view of the different
issues that are being encountered by the SMEs and the manner in which the same might be
mitigated. The recommended actions that might be commenced by the SMEs will develop the
potentials of the same in continuing with the efficiency if the operations in adherence to the
common objectives of organizational sustenance.
5RESEARCH ENQUIRY
6.Conceptual framework and hypothesis development
6.1Lack of sufficient financial funding
Lack of proper financial funding can hinder the growth of the small to medium
enterprises. According to Husin and Ibrahim (2014), SME need adequate financial funding in
order to grow their business to cover the expenditure of raw materials, new staffs, supplies and
other growing necessities. Musa and Chinniah (2016) stated that insufficient funding does not
only have an impact on the business but also highly impact the employees and their performance.
Lack of sufficient financial funding makes it difficult for small to medium enterprises to attract
lenders and investors as financial funding determine the ability of the company and investors
find companies with insufficient funding as a risk. This affects the ability of a company to
purchase essential and necessary resources.
Paul, Parthasarathy and Gupta (2017) states lack of sufficient funding in the long run
can jeopardize the abilities of the SME to finance daily operations in the long run that include
inventory purchases, equipment needs and salaries of the employees. However, Osakwe,
Chovancova and Ogbonna (2016) stated that SME’s businesses may be successful in the
beginning however continuing with the success is uncertain because of various factors like
downturn in the economy, existence of the large markets, growing competition and shifts in the
consumer demands. Uncertainty in a business is inevitable and during the time of crisis SME’S
may anticipate debt.
6.2Insufficient planning and management
Insufficient planning and management impede the growth of a business and may result in
business failure. According to McCann and Ortega-Argilés (2016), planning and management is
one of the most important aspect for the growth of a business. Aziz and Samad (2016) states
6.Conceptual framework and hypothesis development
6.1Lack of sufficient financial funding
Lack of proper financial funding can hinder the growth of the small to medium
enterprises. According to Husin and Ibrahim (2014), SME need adequate financial funding in
order to grow their business to cover the expenditure of raw materials, new staffs, supplies and
other growing necessities. Musa and Chinniah (2016) stated that insufficient funding does not
only have an impact on the business but also highly impact the employees and their performance.
Lack of sufficient financial funding makes it difficult for small to medium enterprises to attract
lenders and investors as financial funding determine the ability of the company and investors
find companies with insufficient funding as a risk. This affects the ability of a company to
purchase essential and necessary resources.
Paul, Parthasarathy and Gupta (2017) states lack of sufficient funding in the long run
can jeopardize the abilities of the SME to finance daily operations in the long run that include
inventory purchases, equipment needs and salaries of the employees. However, Osakwe,
Chovancova and Ogbonna (2016) stated that SME’s businesses may be successful in the
beginning however continuing with the success is uncertain because of various factors like
downturn in the economy, existence of the large markets, growing competition and shifts in the
consumer demands. Uncertainty in a business is inevitable and during the time of crisis SME’S
may anticipate debt.
6.2Insufficient planning and management
Insufficient planning and management impede the growth of a business and may result in
business failure. According to McCann and Ortega-Argilés (2016), planning and management is
one of the most important aspect for the growth of a business. Aziz and Samad (2016) states
6RESEARCH ENQUIRY
insufficient planning and management of a business results in the incapability of establishing
organizational goals. According to Kumar and Rao (2015), lack of proper planning and
management in a business paves for incompetent teams in the workforce. Kossaï and Piget
(2014) states insufficient planning and management is one of the main causes of organizational
failure because of the lack of vision and incapability to anticipate the probable risks.
According to Long, Ajagbe and Kowang (2014), insufficient planning and management
companies are unable to assess the strengths and weakness of their company thus making them
insufficient in gaining a competitive advantage in the market. Love and Roper (2015) states
insufficient planning and management paves way for ineffective decision making and inefficient
use of the resources. Boiral, Baron and Gunnlaugson (2014) states proper planning and
management in a business helps to overcome and efficiently manage unavoidable circumstances.
However contradicting to this Mazzarol (2014) has stated that fact that there are many situations
that are unavoidable and inevitable which affects companies despite of having proper planning
and management.
6.3Lack of technological development
With technological advancement the use of technology is growing in the workforce and is
an important aspect that contributes to the growth of the business. According to Rahman,
Yaacob and Radzi (2016), lack of technological development in the business comes in the way
of communication between the suppliers, employees and customers. McCann and Ortega-Argilés
(2016) states in the world of digitalization it is important for businesses to adopt new technology
in order to maintain positive customer relationships. Aziz and Samad (2016) opines lack of
technological development leads to difficulty in managing necessary and important data.
insufficient planning and management of a business results in the incapability of establishing
organizational goals. According to Kumar and Rao (2015), lack of proper planning and
management in a business paves for incompetent teams in the workforce. Kossaï and Piget
(2014) states insufficient planning and management is one of the main causes of organizational
failure because of the lack of vision and incapability to anticipate the probable risks.
According to Long, Ajagbe and Kowang (2014), insufficient planning and management
companies are unable to assess the strengths and weakness of their company thus making them
insufficient in gaining a competitive advantage in the market. Love and Roper (2015) states
insufficient planning and management paves way for ineffective decision making and inefficient
use of the resources. Boiral, Baron and Gunnlaugson (2014) states proper planning and
management in a business helps to overcome and efficiently manage unavoidable circumstances.
However contradicting to this Mazzarol (2014) has stated that fact that there are many situations
that are unavoidable and inevitable which affects companies despite of having proper planning
and management.
6.3Lack of technological development
With technological advancement the use of technology is growing in the workforce and is
an important aspect that contributes to the growth of the business. According to Rahman,
Yaacob and Radzi (2016), lack of technological development in the business comes in the way
of communication between the suppliers, employees and customers. McCann and Ortega-Argilés
(2016) states in the world of digitalization it is important for businesses to adopt new technology
in order to maintain positive customer relationships. Aziz and Samad (2016) opines lack of
technological development leads to difficulty in managing necessary and important data.
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7RESEARCH ENQUIRY
Restricting to progress in the field of technology in an organization may likely fade away a
business into obscurity.
Kumar and Rao (2015) stated that lack of technological development makes an
organization disorganized and inefficient. According to Taneja and Toombs (2014), lack of
technological development in the SME may limit the research capacity that will restrict from the
business to grow. Lack of technological development makes a business subjected to security
threats. Husin Ibrahim (2014) states that lack of technological development hampers in keeping
up with the society and changes that may result in organizational failure. However according to
Musa and Chinniah (2016), technological development in a business has resulted in employees
becoming dependent on technology. Technological development in a business may often make
errors often negatively affects the ventures.
6.4Monitoring and controlling activities
Monitoring and controlling activities is important for businesses especially SME in order
to maximize the efficiency and productivity of the small and medium enterprises. Mohammed
and Obeleagu-Nzelibe (2014) states lack of monitoring and controlling activities results in
incapability of regulating the financial procedures of an organization and provides financial
stability. Monitoring and controlling is necessary for effective decision making for the benefits
of an organization. According to Osakwe, Chovancova and Ogbonna (2016) monitoring
activities help in maximizing the sales to the target customers. Lack of controlling activities
decreases the efficiency in the workforce and deteriorate performance of the employees.
According to McCann and Ortega-Argilés (2016), monitoring activities prevents
ventures to violate the important laws. Monitoring the performance of the employees to assess
the level of productivity for the benefits of the company or the organization. However, Aziz and
Restricting to progress in the field of technology in an organization may likely fade away a
business into obscurity.
Kumar and Rao (2015) stated that lack of technological development makes an
organization disorganized and inefficient. According to Taneja and Toombs (2014), lack of
technological development in the SME may limit the research capacity that will restrict from the
business to grow. Lack of technological development makes a business subjected to security
threats. Husin Ibrahim (2014) states that lack of technological development hampers in keeping
up with the society and changes that may result in organizational failure. However according to
Musa and Chinniah (2016), technological development in a business has resulted in employees
becoming dependent on technology. Technological development in a business may often make
errors often negatively affects the ventures.
6.4Monitoring and controlling activities
Monitoring and controlling activities is important for businesses especially SME in order
to maximize the efficiency and productivity of the small and medium enterprises. Mohammed
and Obeleagu-Nzelibe (2014) states lack of monitoring and controlling activities results in
incapability of regulating the financial procedures of an organization and provides financial
stability. Monitoring and controlling is necessary for effective decision making for the benefits
of an organization. According to Osakwe, Chovancova and Ogbonna (2016) monitoring
activities help in maximizing the sales to the target customers. Lack of controlling activities
decreases the efficiency in the workforce and deteriorate performance of the employees.
According to McCann and Ortega-Argilés (2016), monitoring activities prevents
ventures to violate the important laws. Monitoring the performance of the employees to assess
the level of productivity for the benefits of the company or the organization. However, Aziz and
8RESEARCH ENQUIRY
Samad (2016) states monitoring and controlling activities require apparatus that are expensive
for SME and increase the budget of the organization. Moreover according to Karadag (2015),
monitoring employees make employees insecure and nervous because of the constant
monitoring. Monitoring reduces trust level between the organization and the employees that
often affect the organization negatively.
6.5Attrition in the workforce
Small and medium businesses often face attrition in the workforce. According to McCann
and Ortega-Argilés (2016) attrition in the workforce highly depends on the performance of the
organization. Employee dissatisfaction leads to employee attrition and making the same to
switching to other ventures. Kossaï and Piget (2014) states employee attrition is evident when
there is lack of recognition for the employees. The lack of growth of the company or the
organization results in employee attrition because of the lack of career development of the
employees.
According to Kumar and Rao (2015) micromanaging employees pave way for attrition in
the workforce as it shows lack of trust in the employees and stamps out the opportunities for
innovation in the workforce. Providing low wages to employees result in employee attrition in an
organization that becomes detrimental for the survival of the SME in the market. Mazzarol
(2014) states SME business tend to pressurize employees with work overload because of lack of
employees which causes employee attrition. However, Eniola and Entebang (2015) states
employee attrition in a workforce opens gates for new employees to join an organization and
contributes new ideas in the organization. Therefore, the enhanced rate of employee attrition
affects the capabilities of the SMEs in influencing the potentials of the same in continuing with
the efficiency of the operations.
Samad (2016) states monitoring and controlling activities require apparatus that are expensive
for SME and increase the budget of the organization. Moreover according to Karadag (2015),
monitoring employees make employees insecure and nervous because of the constant
monitoring. Monitoring reduces trust level between the organization and the employees that
often affect the organization negatively.
6.5Attrition in the workforce
Small and medium businesses often face attrition in the workforce. According to McCann
and Ortega-Argilés (2016) attrition in the workforce highly depends on the performance of the
organization. Employee dissatisfaction leads to employee attrition and making the same to
switching to other ventures. Kossaï and Piget (2014) states employee attrition is evident when
there is lack of recognition for the employees. The lack of growth of the company or the
organization results in employee attrition because of the lack of career development of the
employees.
According to Kumar and Rao (2015) micromanaging employees pave way for attrition in
the workforce as it shows lack of trust in the employees and stamps out the opportunities for
innovation in the workforce. Providing low wages to employees result in employee attrition in an
organization that becomes detrimental for the survival of the SME in the market. Mazzarol
(2014) states SME business tend to pressurize employees with work overload because of lack of
employees which causes employee attrition. However, Eniola and Entebang (2015) states
employee attrition in a workforce opens gates for new employees to join an organization and
contributes new ideas in the organization. Therefore, the enhanced rate of employee attrition
affects the capabilities of the SMEs in influencing the potentials of the same in continuing with
the efficiency of the operations.
9RESEARCH ENQUIRY
6.6Hypothesis Development
H0 – The challenges that are being encountered by the SMEs (relating to financial resources,
human resources, planning, technological infusions, monitoring and controlling) does not affect
the profitability and market share
H1 - The challenges that are being encountered by the SMEs (relating to financial resources,
human resources, planning, technological infusions, monitoring and controlling) affects the
profitability and market share
7.Methodology
7.1Research philosophy
The research will be commenced through the application of positivism philosophy which
will assist in influencing cognition through review of different scientific and psychological
elements that restricts the potentials of growth of the SMEs while operating in different markets.
Choy (2014) stated that the positivism philosophy observes different factual knowledge based
on observations, data collection and analysis. The positivism philosophy depends on the
quantifiable amount of information for improving the understanding the different research
variables. In this relation, the application of the positivism philosophy would assist in enriching
the study through the enumeration of the challenges that are being encountered by the SMEs
through quantifiable measures. The development of the different mechanisms would assist in
influencing a coherent study while understanding the different issues that are encountered by the
SMEs while operating in different business environments. On the other hand, the application of
positivism philosophy would assist in improving the research findings through the delineation of
different challenges that might be encountered by the SMEs through the enumeration of different
quantitative considerations.
6.6Hypothesis Development
H0 – The challenges that are being encountered by the SMEs (relating to financial resources,
human resources, planning, technological infusions, monitoring and controlling) does not affect
the profitability and market share
H1 - The challenges that are being encountered by the SMEs (relating to financial resources,
human resources, planning, technological infusions, monitoring and controlling) affects the
profitability and market share
7.Methodology
7.1Research philosophy
The research will be commenced through the application of positivism philosophy which
will assist in influencing cognition through review of different scientific and psychological
elements that restricts the potentials of growth of the SMEs while operating in different markets.
Choy (2014) stated that the positivism philosophy observes different factual knowledge based
on observations, data collection and analysis. The positivism philosophy depends on the
quantifiable amount of information for improving the understanding the different research
variables. In this relation, the application of the positivism philosophy would assist in enriching
the study through the enumeration of the challenges that are being encountered by the SMEs
through quantifiable measures. The development of the different mechanisms would assist in
influencing a coherent study while understanding the different issues that are encountered by the
SMEs while operating in different business environments. On the other hand, the application of
positivism philosophy would assist in improving the research findings through the delineation of
different challenges that might be encountered by the SMEs through the enumeration of different
quantitative considerations.
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10RESEARCH ENQUIRY
7.2Research approach
The research will be commenced through the utilization of deductive approach, which
will assist in retrieving data from different sources. The information from the different sources
will assist in improving the quality of the research through the improvements of specific research
paradigm. McCusker, and Gunaydin (2015) stated that the application of deductive approach
assists a researcher in influencing the hypothesis (or hypotheses) relying on existing theory.
Therefore, the development of the hypothesis in this research will assist in planning a suitable
and systematic list of activities which will be undertaken during the research in alignment with
the objectives of the same.
The development of deductive approach will assist in influencing a suitable knowledge
on the different risks and barriers that are being encountered by the SMEs while operating in the
international markets. The delineation of the issues that are encountered by the SMEs would
assist in continuing with the efficiency of the operations while adhering to the different aspects
of change in the business environments. The quality of a research is reliant on the effectiveness
of the quantitative data collection procedure. Therefore, the application of the deductive
approach in the research study would assist in influencing insights on the different modifications
that might be considered by the SMEs with the aim of improving their market position and
profitability.
7.3Research design
The research will be initiated through the utilization of the explanatory research design,
which will assist in delineating the cause and effect relation between the challenges that are
being encountered by the SMEs while operating in different markets and the profitability of the
same. The explanatory research aims at influencing a cognition towards the relation that is
7.2Research approach
The research will be commenced through the utilization of deductive approach, which
will assist in retrieving data from different sources. The information from the different sources
will assist in improving the quality of the research through the improvements of specific research
paradigm. McCusker, and Gunaydin (2015) stated that the application of deductive approach
assists a researcher in influencing the hypothesis (or hypotheses) relying on existing theory.
Therefore, the development of the hypothesis in this research will assist in planning a suitable
and systematic list of activities which will be undertaken during the research in alignment with
the objectives of the same.
The development of deductive approach will assist in influencing a suitable knowledge
on the different risks and barriers that are being encountered by the SMEs while operating in the
international markets. The delineation of the issues that are encountered by the SMEs would
assist in continuing with the efficiency of the operations while adhering to the different aspects
of change in the business environments. The quality of a research is reliant on the effectiveness
of the quantitative data collection procedure. Therefore, the application of the deductive
approach in the research study would assist in influencing insights on the different modifications
that might be considered by the SMEs with the aim of improving their market position and
profitability.
7.3Research design
The research will be initiated through the utilization of the explanatory research design,
which will assist in delineating the cause and effect relation between the challenges that are
being encountered by the SMEs while operating in different markets and the profitability of the
same. The explanatory research aims at influencing a cognition towards the relation that is
11RESEARCH ENQUIRY
shared between the variables. The exploration of the variables and the relation shared by the
same assists in enriching the research study through the enumeration of different theories and
paradigms in support of the variables while aligning the concepts with the objectives to guide the
research towards an unbiased outcome (Wiek & Lang, 2016). In this relation, the utilization of
the explanatory research design would assist in influencing a coherent understanding of the
variables and the manner in which the same are interlinked. On the other hand, the application of
the explanatory design in the research framework would assist the researcher in examining the
cause of the challenges through retrieving data from response collection from different
entrepreneurs (Anney, 2014). Therefore, the application of the explanatory design in the study
would assist in improving the quality of the study through the enumeration of quantitative and
qualitative data collection and analysis.
7.4Data collection process
The research will be commenced through the utilization of mixed data collection
methodology, which consists of Primary quantitative analysis and Secondary Qualitative data
collection. The primary quantitative analysis would be initiated through the development of a
survey questionnaire which will comprise of 20 close ended questions. The questions in the
survey questionnaire will be based on the approach of exploring the issues that are being
encountered by the SMEs while operating in the international markets. The questionnaire will be
circulated among 100 managers from a list of SMEs that are present in Australia. The collection
of the responses from the different respondents would assist in improving the quality of the
research study through the assessment of authentic information.
On the other hand, the Secondary Qualitative data collection method will assist in
influencing a coherent argumentative study on the different challenges that are being
shared between the variables. The exploration of the variables and the relation shared by the
same assists in enriching the research study through the enumeration of different theories and
paradigms in support of the variables while aligning the concepts with the objectives to guide the
research towards an unbiased outcome (Wiek & Lang, 2016). In this relation, the utilization of
the explanatory research design would assist in influencing a coherent understanding of the
variables and the manner in which the same are interlinked. On the other hand, the application of
the explanatory design in the research framework would assist the researcher in examining the
cause of the challenges through retrieving data from response collection from different
entrepreneurs (Anney, 2014). Therefore, the application of the explanatory design in the study
would assist in improving the quality of the study through the enumeration of quantitative and
qualitative data collection and analysis.
7.4Data collection process
The research will be commenced through the utilization of mixed data collection
methodology, which consists of Primary quantitative analysis and Secondary Qualitative data
collection. The primary quantitative analysis would be initiated through the development of a
survey questionnaire which will comprise of 20 close ended questions. The questions in the
survey questionnaire will be based on the approach of exploring the issues that are being
encountered by the SMEs while operating in the international markets. The questionnaire will be
circulated among 100 managers from a list of SMEs that are present in Australia. The collection
of the responses from the different respondents would assist in improving the quality of the
research study through the assessment of authentic information.
On the other hand, the Secondary Qualitative data collection method will assist in
influencing a coherent argumentative study on the different challenges that are being
12RESEARCH ENQUIRY
encountered by the SMEs while operating in different international markets. The Secondary data
collecting would be undertaken through the review and evaluation of different available peer
reviewed journals, articles, blogs, newsletters and company reports. The development of the
secondary research would assist in improving the effectiveness of the operations while
influencing the potentials of the venture. Therefore, the assessment of different available
literatures would assist in delineating the major issues that are being encountered by the SMEs
and thereby suggest recommended activities for improving the market position and the
profitability.
7.5Sampling strategy and sample size
The sampling strategy that will be utilized during the research study will be simple
random sampling, which is a sampling technique where a group of subjects from a larger group
or population is chosen on a random basis. The utilization of the simple random sampling would
assist in continuing with the efficiency of the research study through the large sample size. The
large sample size would assist in facilitating unbiased outcomes. On the other hand, the simple
random sampling provides equal opportunities for the respondents to be selected from a given
population, which will assist in avoiding the personal idiosyncrasies of the researcher. The
sample size for the research would be 100 managers from a list of SMEs that are present in
Australia. It will assist in enriching the research study through authentic and complete
information on the challenges that are being encountered by the ventures.
encountered by the SMEs while operating in different international markets. The Secondary data
collecting would be undertaken through the review and evaluation of different available peer
reviewed journals, articles, blogs, newsletters and company reports. The development of the
secondary research would assist in improving the effectiveness of the operations while
influencing the potentials of the venture. Therefore, the assessment of different available
literatures would assist in delineating the major issues that are being encountered by the SMEs
and thereby suggest recommended activities for improving the market position and the
profitability.
7.5Sampling strategy and sample size
The sampling strategy that will be utilized during the research study will be simple
random sampling, which is a sampling technique where a group of subjects from a larger group
or population is chosen on a random basis. The utilization of the simple random sampling would
assist in continuing with the efficiency of the research study through the large sample size. The
large sample size would assist in facilitating unbiased outcomes. On the other hand, the simple
random sampling provides equal opportunities for the respondents to be selected from a given
population, which will assist in avoiding the personal idiosyncrasies of the researcher. The
sample size for the research would be 100 managers from a list of SMEs that are present in
Australia. It will assist in enriching the research study through authentic and complete
information on the challenges that are being encountered by the ventures.
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13RESEARCH ENQUIRY
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trustworthiness criteria. Journal of Emerging Trends in Educational Research and Policy
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development: A case study among Canadian SMEs. Journal of business ethics, 123(3),
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Choy, L. T. (2014). The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of
Humanities and Social Science, 19(4), 99-104.
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Husin, M. A., & Ibrahim, M. D. (2014). The role of accounting services and impact on small
medium enterprises (SMEs) performance in manufacturing sector from East Coast
References
Agostini, L., Nosella, A., & Soranzo, B. (2015). The impact of formal and informal
appropriability regimes on SME profitability in medium high-tech industries. Technology
Analysis & Strategic Management, 27(4), 405-419.
Anney, V. N. (2014). Ensuring the quality of the findings of qualitative research: Looking at
trustworthiness criteria. Journal of Emerging Trends in Educational Research and Policy
Studies (JETERAPS), 5(2), 272-281.
Aziz, N. N. A., & Samad, S. (2016). Innovation and competitive advantage: Moderating effects
of firm age in foods manufacturing SMEs in Malaysia. Procedia Economics and
Finance, 35, 256-266.
Boiral, O., Baron, C., & Gunnlaugson, O. (2014). Environmental leadership and consciousness
development: A case study among Canadian SMEs. Journal of business ethics, 123(3),
363-383.
Choy, L. T. (2014). The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of
Humanities and Social Science, 19(4), 99-104.
Eniola, A. A., & Entebang, H. (2015). SME firm performance-financial innovation and
challenges. Procedia-Social and Behavioral Sciences, 195, 334-342.
Husin, M. A., & Ibrahim, M. D. (2014). The role of accounting services and impact on small
medium enterprises (SMEs) performance in manufacturing sector from East Coast
14RESEARCH ENQUIRY
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54-67.
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Technology Management Research, 25(1), 9-20.
Kumar, S., & Rao, P. (2015). A conceptual framework for delineating financing preferences of
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Long, C. S., Ajagbe, M. A., & Kowang, T. O. (2014). Addressing the issues on employees’
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Behavioral Sciences, 129, 99-104.
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54-67.
Karadag, H. (2015). Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal, 5(1), 26-40.
Kossaï, M., & Piget, P. (2014). Adoption of information and communication technology and
firm profitability: Empirical evidence from Tunisian SMEs. The Journal of High
Technology Management Research, 25(1), 9-20.
Kumar, S., & Rao, P. (2015). A conceptual framework for delineating financing preferences of
SMEs. Small Enterprise Research, 22(1), 99-112.
Long, C. S., Ajagbe, M. A., & Kowang, T. O. (2014). Addressing the issues on employees’
turnover intention in the perspective of HRM practices in SME. Procedia-Social and
Behavioral Sciences, 129, 99-104.
Love, J. H., & Roper, S. (2015). SME innovation, exporting and growth: A review of existing
evidence. International small business journal, 33(1), 28-48.
Mazzarol, T. (2014). Research review: A review of the latest research in the field of small
business and entrepreneurship: Financial management in SMEs. Small enterprise
research, 21(1), 2-13.
McCann, P., & Ortega-Argilés, R. (2016). Smart specialisation, entrepreneurship and SMEs:
issues and challenges for a results-oriented EU regional policy. Small Business
Economics, 46(4), 537-552.
15RESEARCH ENQUIRY
McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion, 30(7), 537-542.
Mohammed, U. D., & Obeleagu-Nzelibe, C. G. (2014, January). Entrepreneurial skills and
profitability of Small and Medium Enterprises (SMEs): Resource acquisition strategies
for new ventures in Nigeria. In Proceedings of 25th International Business Research
Conference (Vol. 64, No. 16, pp. 1-21).
Musa, H., & Chinniah, M. (2016). Malaysian SMEs development: future and challenges on
going green. Procedia-Social and Behavioral Sciences, 224, 254-262.
Osakwe, C. N., Chovancova, M., & Ogbonna, B. U. (2016). Linking SMEs profitability to brand
orientation and market-sensing capability: A service sector evidence. Periodica
Polytechnica Social and Management Sciences, 24(1), 34-40.
Paul, J., Parthasarathy, S., & Gupta, P. (2017). Exporting challenges of SMEs: A review and
future research agenda. Journal of world business, 52(3), 327-342.
Rahman, N. A., Yaacob, Z., & Radzi, R. M. (2016). The challenges among Malaysian SME: A
theoretical perspective. World, 6(3), 124-132.
Taneja, S., & Toombs, L. (2014). Putting a face on small businesses: Visibility, viability, and
sustainability the impact of social media on small business marketing. Academy of
marketing studies journal, 18(1), 249.
Wiek, A., & Lang, D. J. (2016). Transformational sustainability research methodology.
In Sustainability science (pp. 31-41). Springer, Dordrecht.
McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion, 30(7), 537-542.
Mohammed, U. D., & Obeleagu-Nzelibe, C. G. (2014, January). Entrepreneurial skills and
profitability of Small and Medium Enterprises (SMEs): Resource acquisition strategies
for new ventures in Nigeria. In Proceedings of 25th International Business Research
Conference (Vol. 64, No. 16, pp. 1-21).
Musa, H., & Chinniah, M. (2016). Malaysian SMEs development: future and challenges on
going green. Procedia-Social and Behavioral Sciences, 224, 254-262.
Osakwe, C. N., Chovancova, M., & Ogbonna, B. U. (2016). Linking SMEs profitability to brand
orientation and market-sensing capability: A service sector evidence. Periodica
Polytechnica Social and Management Sciences, 24(1), 34-40.
Paul, J., Parthasarathy, S., & Gupta, P. (2017). Exporting challenges of SMEs: A review and
future research agenda. Journal of world business, 52(3), 327-342.
Rahman, N. A., Yaacob, Z., & Radzi, R. M. (2016). The challenges among Malaysian SME: A
theoretical perspective. World, 6(3), 124-132.
Taneja, S., & Toombs, L. (2014). Putting a face on small businesses: Visibility, viability, and
sustainability the impact of social media on small business marketing. Academy of
marketing studies journal, 18(1), 249.
Wiek, A., & Lang, D. J. (2016). Transformational sustainability research methodology.
In Sustainability science (pp. 31-41). Springer, Dordrecht.
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