Challenges faced by SMEs

Running head: RESEARCH ENQUIRY
RESEARCH ENQUIRY
Name of the student
Name of the university
Author note

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

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

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