Importance of SMEs in the Economy and the Growth of Southern Communication Ltd.

This report discusses the importance of small and medium enterprises (SMEs) in the economy and focuses on the growth and development of Southern Communication Ltd. It covers topics such as the nature of the entrepreneur, SME start-up processes, sources of competitive advantage, current demand, and the challenges faced by the business. The report also explores the growth and development strategies implemented by Southern Communication Ltd.

Researching a small or
medium sized business

Executive summary
Small and business enterprise (SMEs) is one of most important and convenient term used
for segmenting businesses and other kind of firms in order to produce products and services as
per the consumer choice and preferences in order to gain desirable outcomes. it is the major need
of today’s economy to provide employment opportunities to people to enhance living standard
of people. In that regards, it is very potential to put one of their best efforts in developing
opportunities to reap important outcomes.

Table of Contents
Executive summary.....................................................................................................................................2
INTRODUCTION.......................................................................................................................................5
FINDINGS..................................................................................................................................................5
The nature of the entrepreneur behind the venture...................................................................................5
The SME start-up processes....................................................................................................................6
The business concept and any sources of competitive advantage, environmental oriented activity and
many more...............................................................................................................................................7
The current level of demand and the competitive environment...............................................................8
The growth and development of the business to date...............................................................................8
The challenges of managing and running the business............................................................................9
The SMEs current growth and development strategy............................................................................10
Any government support measures that may be available to help the business overcome the challenges
faced......................................................................................................................................................11
CONCLUSION.........................................................................................................................................12
RECOMMENDATION.............................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Small and medium enterprises are the businesses that contributes a lot in development of
economy by providing employment opportunities to individuals in potential manner. In the EU,
the headcount of less than the 250 is classified as medium sized organization and business with
fewer than 50 come under small and fewer than 10 is consider as micro business (Hillary, 2017).
It is very potential for SMEs to find out opportunities available in market and accordingly put
one of best efforts to align business goals to achieve the same. Respective report is based on the
southern communication Ltd. Established in the 1965 is a suppliers of business to business
communications products and services such as voice calls and lines, telephone systems, data
connections and hosted services. By employing over 140 staff members across the UK for
supplying and supporting their business communication. The main objective of respective report
is to evaluate the significance of SME and contribution of respective organization by depicting
nature of entrepreneur, SME start up process with sources of competitive advantage. Further it
includes the current state of demand and competitive environment. Finally it includes growth and
development of business and challenges to manage the business activities by choosing
appropriate business strategy.
FINDINGS
The nature of the entrepreneur behind the venture.
Entrepreneurship is the act of creating business or business activities while building for
generating profitability. It is related with transforming world by solving big problems such as
social change, building innovative products or presenting the life changing solutions to remain
competitive in marketplace (Edvardsson and Durst, 2013). In the today’s competitive world
entrepreneurship plays very much important role by possessing differ kind of skills and
capabilities. Entrepreneur possess distinctive kind of nature such as risk takers, innovative in
nature, in context of southern communications Ltd. Operate their business activity at small level.
By using research and development they emerge capabilities in their business such as with
development, innovation, new technology and expertise build oneself as strong, reliable and
great choice for bringing business communication.

The another important kind of entrepreneur nature is ability to innovate by which bring new
ideas to implement successfully. Entrepreneur by providing proper focus to new opportunities,
technologies, commodities and raw material and new trade practices that helps to build products
as per the consumer choice and preferences in order to remain competitive in the marketplace.
With this entrepreneurship they can be able to give creative innovative response to environment
in order to provide best facilities to environment (Sundiman and et.al., 2019). In context of
southern communications Ltd. by analyzing the demand of environment that people become very
much techno oriented to satisfy their demand start their business in potential manner. In that
regards it has been evaluated that there are number of differ kinds of characteristics and abilities
in entrepreneur that obliged them to bring new idea into practice for gaining profitability and
rising standard of living in potential manner.
The SME start-up processes.
It is very much important for an organization to pace in systematic manner for starting
the new business venture in order to obtain the desirable goals and objectives. Here are the steps
that helps to depict the way to start up the business:
Write down the full business plan: To start a new business required to conduct research and
development for gaining the potential outcomes (Donckels and Miettinen, 2019). in respective
plan required to acknowledge about consumers, competitors and their products, strategies to beat
competitors and niche market for organization. In context of southern communications Ltd. By
defining their consumers, market and their choices they build their products as per their
willingness in order to remain competitive in business environment.
Finalize budget and secure finance: In the next step of business plan includes all kinds of
information related to finance and way to acquire it in best manner. there are no. of sources by
which organization can accumulate or secure finance such as banks, financial institutions, crowd
funding and angel investors. Before choosing one of best source of raising finance it is potential
to evaluate pros and cons of each factor in order to remain competitive in marketplace. In context
of Southern communications Ltd. To invest in projects that is very important for them collect
money from various sources in order to remain competitive in marketplace.

Set up a website: The another important factor that contributes to start up the new business in
that regards to set up website that helps to give knowledge about organisational products and
services. In context of southern communication Ltd. By building their own website to provide all
relevant information regarding their working to achieve potential response.
Obtain licenses and accounting system: In respective step a new venture obtain license and
accounting system to proceed the business operations (Abdullah, 2019). It is very effective to
obtain license for gaining effective kind of outcomes.
Secure team: In respective stage organization select one of best members that proficient in their
work and can give one of their best efforts in order to remain competitive in marketplace. In
context of southern communication Ltd. By selecting most potential candidates they become one
of leading organization. It is essential to select one of best candidates after accessing their skill
set and then allocate roles in order to gain desirable outcomes from them.
Promote business: It is important to utilize various kinds of tools such as advertisements, sales
promotion and many other to reach at large no. of consumers (Dias and et.al., 2019). It is
essential to before promoting products into wider marketplace to acknowledge regarding
consumer base and medium of their communication. It has been found that integrated marketing
communication proved beneficial to acknowledge differ kinds of tools to promote organization
products in wider marketplace.
The business concept and any sources of competitive advantage, environmental oriented activity
and many more.
For an organization it is very much potential to build their concept of business and find
out best source of gaining competitive advantage. In context of southern communication Ltd.
Their major products are cloud computing, network, voice and mobile networking with safety
and security measures. Their major target audience are industrialist that by using their products
comply with raising standard of people in order to remain competitive advantage. By providing
products in most reliable form and accurate in nature build a distinctive image in the market
place. Competitors of respective organization in market are XL telecom, odyssey, intercity and
many more. In their environmental oriented activity consist of investing huge for development of
society and welfare of individuals. Recently due to evolving Corona virus that reassure about

safety and welfare of their staff members and consumers by considering own prime
responsibility. By framing aim to provide highest level of services at all time and majorly during
time of uncertainty helps to reach at large no. of consumers in potential manner (Verreynne and
et.al., 2019). with the help flexible working environment organization can be able to gain the
desirable outcomes from their consumers as it is potential to gain sustainability in today’s fierce
competitive world.
The current level of demand and the competitive environment
For an organization it is very important to provide adequate products and services to the
end users that not only provide profitability but also sustainability in business environment. In
context of southern communication Ltd. Products of organization is very much in demand in
market. Due to popularity and accessibility organization gain various awards for their
performance (Alexander, Antony and Rodgers, 2019). Over last 50 years experienced
communication is created for ensuring all systems coverage in potential manner. by using
integrated voice and data in their own cloud to provide one of best products to the end users. by
accessing needs and identification of respective needs helps to gain the competitive advantage of
respective organization. With help of communication packages that surround around each and
every one of their team members helps to contact with them for achieving desirable outcomes.
to access the competitive edge respective organization conduct constant research and
development for building strategies and tactics. With help of PESTEL analysis accumulate
necessary data and information regarding political, social, economic, legal and environmental.
Due to leading organization in UK market able to secure oneself with the adverse impacts of
respective factors in potential manner.
The growth and development of the business to date.
Southern communication is providing its products and services from year 1965. This
organisation is provide high quality services to its customers in order to become the number one
chose of customer regarding telecom services (Ratten, 2014). Respective organisation has grown
and develop its business in different areas as well as focus in meeting with customers needs. This
company has faced various issues and challenges in order to grow and develop its business and
activities. Southern communication has started its business in 1965 and in early 1980’s
telephone system or other telecoms equipments are obtain by General Post office. Till 1977

respective company has provided its services to dictation system or GPO. This organisation has
grown its business activities as well as develop its performance which lead becoming the market
leader by providing best solutions to corporate organisation such as BP and Shell in UK market
area. With the privatisation of telecoms market in UK sector, Southern communication
organisation has grabbed this opportunity in order to enhance business. This is very crucial
opportunity that for respective company in which it has used its expertise in phone system and
this lead to increase in sales or maintenance services of phone system of business. In early 90’s
in digital revolution or ISDN, respective company has enhance its performance in order to take
advantage of becoming ‘Key system’ more affordable in UK market area. Southern
communication company has considered it as a opportunity for growth and development of
business. This time respective organisation has suppliers key system to businesses which help
other company to perform its business activities in better manner (Lavia López and Hiebl, 2015).
Southern communication organisation has provided it high quality of products and services
which is as per the needs and requirement of customers. This organisation has competed the
portfolio of business telecom products till date. Since 1965 respective organisation has grown its
business activities and provided expert services to customers. Southern communication company
has enhanced its business from its services in GPO to broadband and Data circuits till data.
Respective organisation has developed its business structure as well as enhanced it network in
different market areas.
The challenges of managing and running the business.
There are various issues and challenges that is faced by company while providing its
products and services in market area. It is essential for Southern communication organisation to
identify and analyse different issues or changes which have impact on managing or running of
business (Laufs and Schwens, 2014). There are several issues which will affect the overall
performance and growth of Southern communication company and this will have impact on sales
or profitability of organisation. Different challenges that affect successful management and
running of respective business is mention below in detail.
Financial resources – This is one of the major issues or challenge that is faced by company and
it will lead to have direct impact on overall performance of organisation. Lack of financial

resources or ineffective management of assets will have impact on productivity or profitability of
Southern communication business.
Increase in competition – There are many companies which are performing its business
function and activities in same market area. Increase in competition is crucial factor that will
have significant impact on growth and development of Southern communication organisation.
Strategies and plan of rival companies will affect the sales of respective company.
Uncertainty – There are different factors of elements which are consider as the challenge for
Southern communication organisation. Changes in market treads or customers requirement will
lead to have direct impact on sale of respective company. Organisation can suffer loss in
business due to changes in economic climate of market sector.
Technology – This is one of the essential element that will support in performing business
activities in better and effective manner (Ren, Eisingerich and Tsai, 2015). It is crucial for
Southern communication organisation to consider new and advance technology for performing
its business activities. Innovative technology is very costly for SME organisation and lead to
affect profits of business.
Rules and regulation – There are many rules and compliances developed b government that will
have direct impact in sales and performance of Southern communication organisation. Changes
in regulation and policies of organisation will lead to have significant impact in productivity and
implementation of business activities.
The SMEs current growth and development strategy.
It is very important for organisation to develop and enhance its business performance in
order to growth and develop its business. It is crucial for Southern communication organisation
to create effective and strong business strategies that will support in attaining desired goals.
Respective organisation needs to conduct market research in order to identify the needs and
requirements of customers. This will support in creating better and effective strategies that will
support organisation. Different current growth or development strategies of SME company is
describe below in detail.

Research and development strategy – This is an effective strategy that is develop by Southern
communication organisation as this will support in identifying and analysing the needs and
requirement of customers (Hillary, 2017). research and development strategy will lead to
evaluate new market trends or customers demand. So that respective company provide its
products and services according to market and customer requirements.
Training and development strategy – It is essential for organisation to training and develop its
employees. This is strategy of Southern communication organisation will lead to increase in
skills and capability of employee. Training and development strategy is very supportive in
enhancing the performance of organisation as well as attaining desired goals.
Creative and innovative approach – This strategy refers to utilization of creative and
innovative approaches for conducting business activities and task. It is essential for organisation
to use innovative approaches as this will lead to enhance the overall performance or productivity
of business.
Collaboration and partnership – This strategy of SME organisation can be describe as the
building partnership with other companies in order to boost the performance of business as well
as enhance sales. Southern communication organisation can collaborate with other company as it
will lead to increase productivity.
Any government support measures that may be available to help the business overcome the
challenges faced.
Government of UK is providing support to SME sector that helps in enhancing
performance and productivity of organisation. Supportive measured provided by company will
lead to assist Southern communication in conducting business activities in effective and efficient
manner. Different ways though which government of UK country is providing support to SME
sector are mentioned below.
Developing rules and regulations – UK government is creating different rules and policies
which is in favour of SME sector (Edvardsson, and Durst, 2013). This is great opportunity of
Southern communication organisation as policies and regulation developed by company will lead
to provide support to company in dealing with different issues and challenges.

Free advice and consultancy services – There are different consultancy firms that have
appropriate knowledge and understanding to enhance performance of business. UK government
is providing support to SME sector by offering free advice and consultancy services to SME
organisation. This will assist Southern communication company to enhance the performance of
organisation and resolve challenges.
CONCLUSION
From the above report it can be concluded that SME and enterprise organisation needs to
perform its business activities in effective and efficient manner as this will lead to enhance the
performance of organisation. It is essential to understand the nature of entrepreneur as well as
start up processes as this will support in providing proper direction to company. By analyse
business concept and sources of competitive advantage, organisation can gain competitive edge
over other rival companies. There are various issues and challenges faced by company that affect
management and running of business. It has been determined that by developed effective and
strong growth strategies SME company can gain competitive advantage over other rival
companies.
RECOMMENDATION
As per the above analyse of report, there are different recommendation provided to
Southern communication manager in order to enhance its business activities or accomplishing
desired goals. These recommendations will assist company to take better decision that will lead
to growth and development of business. It is essential for respective company to follow all rules
and regulation as this will support in smooth follow of business activities. There are different
rules and polices developed by UK government which are in favour of SME sector. So it is
recommended to Southern communication organisation to consider policies and other measure of
government in order to enhance performance of organisation. New and innovative tools and
technology is crucial for respective company as this will help in enhance the performance and
productivity of business. Advance and updated technology or technique will support Southern
communication organisation to gain comparative advantage over other rival company. This
company should provide effective and efficient training to its employees as this will assist in
improve the quality of work conducted by business as well as attaining desired goals and

objective of business. Southern communication organisation should collaborate with other
company in order to boost sales and performance of business.
REFERENCES
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