Analysis of Small and Medium-Sized Enterprises (SMEs) Literature

This assignment involves analyzing a comprehensive list of research papers and studies related to small and medium-sized enterprises (SMEs). The provided list includes articles from various journals, such as the Journal of Business Ethics, International Journal of Production Research, and European Journal of Economics, Finance and Administrative Sciences. The researchers investigated topics like R&D cooperation in SMEs, innovation capacity, resilience and competitiveness, entrepreneurial orientation, marketing practices, business success factors, and open innovation. The assignment requires a detailed analysis of the provided literature, which may involve identifying patterns, themes, or key findings related to SMEs.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profits of small business with identifying its strengths and weaknesses..........................1
1.2 Analysis of business using comparative measures of performance.................................2
TASK 2............................................................................................................................................4
2.1 Recommending with justification appropriate actions to overcome identified weaknesses.4
2.2 Ways in which existing performance could be maintained and strengthened..................5
2.3 Recommend with justification, new areas in which business could be expanded...........5
TASK 3............................................................................................................................................6
3.1 Assessment of existing business objectives and plans.....................................................6
3.2 Revising business plan to incorporate appropriate changes.............................................8
3.3 Prepare an action plan to implement changes..................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of proposed changes on business and its personnel...........................................10
4.2 Ways changes will be managed in business...................................................................11
4.3 Monitor improvements in performance of business over a given time scale.................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
As per recent time, small business association is growing very quickly and getting
attention of numerous people. This type of business caters lots of opportunities to an individual;
therefore, they can improve their abilities and knowledge. With assistance of small organisation
nation's economy will enhance. As a result, buying power, share of market and condition will
become more stronger (Schaper and et. al., 2014). From the series of Dragon Den an enterprise is
selected i.e. Reviveaphone. They repair damaged cell phones within a day. Fundamental aim of
this assignment is to describe strength as well as weakness of company. It is essential for firm to
acquire opportunities; so that, they can cope up from their shortcomings. An assessment plan will
be formulated by manager to achieve coveted targets and goals within limited period of time.
Along with this, it is required for an association to manage change adequately as this will help to
improve work performance of staff members.
TASK 1
1.1 Profits of small business with identifying its strengths and weaknesses
Samll enterprises are run by individuals according to their own regulations as well as
rules because they have all privileges to take judgement for their business. Instead of this, each
firm has their own weaknesses and strengths which will help them to determine their real
position in the marketplace. By maintaining their strengths at market, company will improve
their goodwill effectively (Eid and El-Gohary, 2013). Reviveaphone is a small business
enterprise which is situated in the UK and they are doing their business in phone repairing.
Almost 10 individuals are working with them. Enterprise is situated on a prime place so that they
can easily attract numerous people towards them. Additionally, they are giving quality services
to people which will aid them maintain their customer base. Therefore, for this purpose employer
of Reviveaphone will conduct SWOT analysis.
Strengths:
 Fundamental strength of firm is that they have variety of business in different sectors.
 They are continuously growing in the market.
 Framework of working is much efficient and therefore, employees will do their work in
proficient manner.
Weaknesses:
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 Working pattern is not understandable by workers which will restrain their growth and
success.
 People are not much able to comprehend work of each other.
 If workforce is not very much talented or skilled then, they will not be able to
accomplish their tasks in an effective and efficient manner.
Opportunities:
 To improve the working skills and abilities of staff members, manager will provide
training to them and as a result, they will do their work in a proper manner. This will
assist them to improve their profits (Bridge and O'Neill, 2012).
 They can enlarge their business as this will help them to improve their sales as well as
productivity.
Threats:
 Main threat for firm is that there is a lot of competition in the business of electronics.
Along with this, they all want to acquire growth so that, firm will provide the best
services to their buyers. This will aid them in their development.
 Each employee is not giving their best which will provide impact to their services which
is providing by company to their clients.
1.2 Analysis of business using comparative measures of performance
With assistance of financial accounts, organisation will know their actual position at
marketplace (Chittithaworn and et. al., 2011). This will aid them to maintain their reputation and
compete their competitors at competitive world. Henceforth, profit and loss account as well as
balance sheet of Vibraphone which is related to 2016 and 2017 is stated as beneath:
Profit and Loss Account
For the year ended 30th April 2016 and 30th April 2017
2016
£
2017
£
Sales 200 310
Cost of Sales 50 60
Gross Profit 150 250
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Overheads 100 100
Net. Profit 50 150
Balance Sheet 30 April 2016 and 30 April 2017
£ 2016 £ 2017
Fixed assets 45 70
Stock 35 40
Debtors 34 35
Bank 5 3
Total 119 148
Liabilities
Creditors 14 26
Bank overdraft 1 4
Capital 104 118
Total 119 148
Current ratio = current asset / current liability
2016 2017
50000/ 15000= 3.3times 60000 / 30000= 2 times
From above described accounts of Reviveaphone i.e. profit and loss and balance sheet,
organisation will easily find out their existing status and market position. By getting adequate
information through the help of this, manager of firm will formulate some strategies and policies
to improve their sales because this will assist them to increase profits. As indicated by P&L
account of enterprise, their sales was £200 in the year 2016 and it is £310 in 2017. Along with
this, their net revenue for the year 2016 is £ and in year 2017, it is almost £150. Therefore, it has
been comprehended that their sales and profits are increasing on regular basis.
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Instead of this, with the help of balance sheet, manager will know about their assets as
well as liabilities in numerical aspects (Oyedijo, Idris and Aliu, 2012). Additionally, they can
find out shares and debts which is associated with their enterprise. Fixed assets of organisation is
£45 in 2016 but it is £70 in the next year. Rather than this, their current liabilities are £15 and
£30 in 2016 and 2017 respectively. Henceforth, with an aid of current assets and liabilities,
employer will determine the current ratio. Through calculation, it has been determined that in
2016, it was 3.3 times but in next year, it is 2 times.
Therefore, it has been understood that position of organisation in 2017 is much better in
comparison to 2016 which will help them to improve their reputation at marketplace. Along with
this, it will aid them to take benefits from their rivals in the competitive world.
TASK 2
2.1 Recommending with justification appropriate actions to overcome identified weaknesses
Organisation needs to enlarge their business in more areas; therefore, they can easily
improve their sales as well as profits in an effective manner. Manager has to utilize an adequate
techniques and methodologies; thus, staff members will execute their working activities
adequately (Curran and Storey, 2016). As a result, they will provide best service quality to their
users. It is must for firm to provide appropriate satisfaction of clients by accomplishing their
requirement. This will assist organisation to maintain their brand image and customer base.
Rather than this, it has been noticed that competition in the sector of electronic is
enhancing on regular basis. Henceforth, it is essential for organisation to utilize latest tools and
methods so that they will improve their working quality. Furthermore, if they are going to
introduce any unique and new device for people then, primarily is is necessary for them to
examine needs of people and recent trend of market. As a result, they will obtain proper
judgement for company and in addition will sort out all issues which are restraining their success
and growth. By doing this, firm is much able to maintain their reputation at marketplace. By
getting opportunities from market, Reviveaphone can easily enlarge their business. There are
some fundamental recommendations which will be provide to company to overcome from them.
 Before introduction of any new item for persons, it is essential for analyse needs of them.
Along with this, they need to examine their contenders and strategies which are using by
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them because this will assist employer to compete them at marketplace (Jasra and et. al.,
2012).
 It is must for manager of human resource to appoint skilled and talented staff members in
company; therefore, they can fulfil requirements of their users in an effective and
efficient way.
2.2 Ways in which existing performance could be maintained and strengthened
Each and every kind of organisation has to evaluate as well as measure current condition
of market. Hence, they can easily comprehend their needs and wants adequately. This facet can
directly provide impact to the surrounding of working and their sales positively or negatively. On
the contrary, company needs to utilize adequate techniques and tools ; so that, they can produce
goods and services for users in an effective and efficient way. This will help to fulfil
requirements as well as expectation of them adequately (Fassin, Van Rossem and Buelens,
2011). To boost morale and confidence of workers, manager will conduce some program related
to this. As a result, they will perform their work in an proficient way. Additionally, they will
complete their work within limited period of time and attain coveted targets. To increase
production and profits of an enterprise, capabilities and knowledge of labours play an eminent
role.
There are different ways which can be utilized by an employee; so that, worker's work
will managed and in addition their working performance will get improved. Therefore, it is must
for superior to apply best and effective administrative system in firm; as a result, entire business
exercises will organised adequately and labours will complete their task within limited period of
time. Along with this, training will be provide by superior to their employee, it works as a
motivation for them. Additionally, this will enhance their work execution and quality. Trained
workers will easily understand entire overall work and accomplish task with maximum
effectiveness and appropriateness. It is required for an association to adopt effective strategy for
business as this will help them in their success and improvement and in addition they will attain
coveted targets within specific time duration.
2.3 Recommend with justification, new areas in which business could be expanded
To increase sales as well as profits, each and every kind of enterprise wants to enlarge
their business in various sectors. Therefore, it is fundamental for them to evaluate condition of
market, needs of customers, culture, value and beliefs of distinctive people and nations. If
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manager establish their business in other country without investigating each facet they will face
high losses. Along with this, it will bring lots of issues into their business (Aremu and Adeyemi,
2011). Instead of all of this, Reviveaphone is an organisation which is doing their business in
small scale. There main work is to repair damaged cell phone effectively and then deliver it to
customer within a single day. This will help them to maintain their customer base and in addition
reputation at marketplace. Therefore, if they expand their firm into other areas then, this will be
easy for them to keep up their revenues and production. To improve their brand image at global
level, they export their items or devices some other states. Henceforth, it has been understood
that expansion is considered as an adequate step which can be taken by an enterprise as this helps
to enhance their brand awareness across the world. In addition, they can capture attention of
numerous people.
On the contrary, company can also take entry into variant market area and will open new
outlets over there. Along with this, manager of Reviveaphone will cater online services,
electronic products as well as internet facility to people. This will assist them to accomplish
needs and wants of buyers in a proficient manner (Broekemier, Chau and Seshadri, 2015). This
will be difficult for them to control as well as manage their business systematically. Thus, it is
fundamental for them to apply or utilize adequate system of management into their business. As
a result, each task will complete as per the best quality. Additionally, firm will get success and
advancement, which will aid them to improve their market share. By providing training to their
staff members; employer will attain coveted targets within limited period of time in an effective
as well as efficient manner.
TASK 3
3.1 Assessment of existing business objectives and plans
Company can use distinctive sorts of methodologies and tools to examine and analyse
their targets and recent position at market (SWOT Analysis: Theory. 2017). Each and every kind
of firm want to attain their entire goals, i.e. short and long term, which they want to accomplish
within limited time effectively as well as efficiently. As a result, they can easily compete their
competitors at competitive world and in addition will build their image in minds of people.
Reviveaphone is an enterprise which is doing their business on small scale and want to expand
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their business in various areas; thus, they can enhance their revenues and sales in a proficient
way. Furthermore, there vision, mission and in addition objectives are stated as beneath:
Business objectives:
 Company wants to improve their level of production as well as profits. This will assist
them to take entry into new marketplace.
 Their main aim is to capture attention of numerous people. In addition, they want to
improve awareness of their items at international level (Mahmood and Hanafi, 2013). They want to utilize new and unique techniques and methods into their working place; so
that, they can develop quality devices for their clients.
Vision:
 They have to concentrate on quality of their goods and for this purpose, it is necessary for
them to give training to their employees. As a result, this will improve their working
execution, skills as well as capabilities in an effective manner.
 They want to provide adequate protection to their labours at the workplace; thus, they
will accomplish their work properly. It is fundamental for firm to fulfil requirements and needs of customers timely because
this will assist them to build friendly relationship with them.
Mission: They want to know prerequisites of their buyers; so that, they can fulfil it within requisite
time duration. This will aid them to keep up their customer base and in addition they will
improve their profits.
Business Plan: It is must for Reviveaphone to formulate or create an appropriate plan for their
business ; therefore, they need to follow some steps:
Steps Explanation
Research As per this stage, manager has to examine and analyse
situation of market, requirement of clients and many more.
Determine the purpose of plan Furthermore, it is required for an employer to find out the
purpose which is associated with development of business
plan for an organisation (Forsman, 2011).
Create company profile In this, it is essential to create an adequate profile for
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business and in addition determine its recent or current
status.
Document all aspects Give an appropriate data and info in written format to
investors; therefore, they can determine actual level of
finance.
Selecting marketing strategies As indicated by this step, manager has to select an effective
strategies or polices which is related to marketing.
Implementation Finally, it is must to apply marketing plan in the business.
3.2 Revising business plan to incorporate appropriate changes
Basically, it is essential for each and every kind of organisation to develop an effective
plan for their business. But for this, firstly it is required for them to create targets, mission and
vision for firm. Along with this, they need to analyse their competitors at marketplace. Instead of
all of this, enterprise needs to manager their entire exercise as well as operations systematically.
Therefore, staff members of an association will execute their task adequately and will achieve
coveted targets within specific time span (Wynarczyk, Piperopoulos and McAdam, 2013). If
business plan of firm is much effective then, this will aid company in their growth and success
and in addition they can take benefits from their rivals. To prepare an adequate business plan, it
is needed for manager to examine recent circumstances of business as this will assist in their
judgement making procedure.
Employer of an organisation will conduct a survey because this will aid them to know
about the needs of people, trend of market, contenders and many more. By doing this, superior of
an enterprise will take proficient decision and in addition will sort out issues quickly. If there is
any kind of alterations in working structure of firm then, this will provide impact to company in
an adverse or positive way. Henceforth, it is must for company to utilize appropriate techniques
and thoughts into firm because sometimes modifications in business will lead to heavy losses.
On the contrary, manager of an affiliation needs to formulate their business plan as per
the nature of their firm. Along with this, it is must to mention entire info which is associated with
existing circumstances and in addition future needs of enterprise. Therefore, if overall exercises
are arranged in an adequate way then this will be easy for workers to accomplish their task
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within limited period of time. With assistance of this, superior will easily control and manage
each and every activity proficiently. Furthermore, it is must to examine business plan after
implementation as this helps to measure that actual result is obtained or not. If not, then, requisite
alterations need to made into business plan; so that, essential outcomes will be attain within time
effectively as well as efficiently.
3.3 Prepare an action plan to implement changes
An adequate action plan is formulated by an organisation, this will leads positive changes
over there. If action plan of enterprise is much accurate then, this will help them into their
growth as well as success (Philip, 2011). In addition, coveted targets will be achieve by them
within limited time span. Following are the stages which will cover into this:
Tasks Planned time Explanation
Executive summary 18 days Reviveaphone is doing their business at
small scale in United Kingdom. They repair
damaged cell phones and deliver them within
a day to the customer. Their fundamental aim
is to improve their production as well as
profits.
Description of company 5 days According to this, an adequate description of
firm is determined of chosen firm and then
discuss about recent status of them.
Mentioned association is a cell phone
repairing organisation in United Kingdom.
They accomplish requirements of people by
providing quick services to them.
Market Research 22 days It is fundamental for each and every kind of
association to do research of market; so that,
they will know about the needs and demands
of buyers, along with this, they will know
about market trend. Therefore, they can
easily take an adequate judgement for them
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which is much advantageous for them.
Target market 4 days After completion of research of market it is
required for firm to choose a market which
they want to target and enlarge their
business. As a result, organisation will gain
maximum revenues through sales
enhancement.
Marketing and sales 8 days It is must for an organisation to select best
and adequate sales as well as marketing
method; as this will assist manager to
promote their business. It will improve their
brand awareness at national and international
level. Additionally, this will aid them to
capture mind of million of people which will
increase sales of their goods at market.
Request for funding 18 days It is consider as a final stage, in which it is
must for them to determine fund sources. On
the contrary, it is required to analyse those
investors who are able to invest their money
in organisation.
TASK 4
4.1 Impact of proposed changes on business and its personnel
Whenever any new or unique business idea is applied on firm then, this will provide
influence to them positively or negatively. There are some components which will affect
company and their members, it is mentioned as beneath: Finance: Each organisation needs fund to enlarge their business in an adequate way. It is
must for them to utilize new methodologies into their firm; therefore, they will improve
their profits and production (Zortea-Johnston, Darroch and Matear, 2012). When superior
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do any modifications into business then, this will provide influence to enterprise
positively or negatively. If financial circumstance of firm is much effective then, this will
work as a strength for them. Before implementation of plan, it is required for superior to
examine need of alteration. Because inadequate changes will lead to heavy loss for
enterprise. Workloads: It is must for an organisation to manage their entire work by setting time
limit for them. Therefore, all activities will accomplish within provided period of time.
When changes if applied at workplace then, this will increase working load on labours; as
a result, they will not able to do their work systematically. Additionally, they can not
achieve coveted targets adequately. Instead of this, excessive workload will reduce
effectiveness of working of people. Morale and confidence level: Lots of modifications at premises will diminish level of
confidence as well as morale of labours. As a result, they will not perform their work
appropriately and within specific time duration (Chun and Mun, 2012). Henceforth, it is
must for manager to apply changes properly; so that, this will not affect their sales and
profits directly or indirectly and workers do their work with motivation.
 Management system: If modifications are ineffective then, this will provide impact to
entire administrative system. Therefore, this will influence working quality of employees
which will influence growth and improvement of company.
4.2 Ways changes will be managed in business
There are various organisations who never want to implement as well as adopt any kind
of changes into their business as they think that this will develop many troubles in firm.
Therefore, they want to complete their task regularly by using those methods which are using by
them always. Rather than this, many enterprises think that adaptation of new methodologies will
enhance their risk which will provide impact to their reputation (Gunasekaran, Rai and Griffin,
2011). Additionally, will hamper their work so that they cannot fulfil requirement of clients
within limited time span.
It is must for company because this will assist to improve production and profits in an
effective manner. In recent time, almost each individual wants to buy innovative products which
will fulfil their needs. Hence, it is must for manager to conduct research time to time to know the
current trend of market. Furthermore, it is must to take adequate judgement with aid of many
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tools and techniques. They will pull many people towards them as continuous improvement in
profits and sales. Instead of this, it is essential for superior to adopt effective methodologies as
this will help to develop better working condition (Barbero, Casillas and Feldman, 2011). As a
result, staff members will maintain their performance and coveted objectives will attained within
time limit.
Before application of changes at workplace, employer has to evaluate current situation of
market. As this will provide influence to an association either in a direct or indirect way.
Henceforth, it is must for company to determine need for changes in firm in an adequate manner.
4.3 Monitor improvements in performance of business over a given time scale
Each organisation never want to apply alterations into their business as this will affect
their firm positively and negatively (Williams and Schaefer, 2013). If an enterprise is not
accomplishing requirement of their clients or not doing their work as per current trend of market
then, they will loose their customer base; as a result, their sales get decreased. Therefore, it is
necessary for firm to adopt new technologies at workplace because this will help in maintaining
quality of devices. To manage all exercise in an adequate manner; superior has to utilize
effective administrative system. Thus, this will not affect firm negatively.
Goals Time period Review
One stop tradition At the finish of 2017 They repair damaged cell phones with
assistance of latest and best tools as well
as methods.
To enlarge their business
organisation at international
level
By 2017 Company wants to enlarge their firm;
therefore, they can enhance their
production, revenues as well as profits.
Facilities By 2017 Fundamentally, Reviveaphone
concentrates on their services; so that,
they can provide best quality
administrations to their clients within a
day. This will assist them to manage
entire activities in an adequate and
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appropriate way.
Acquire attention by
numerous number of
customers
By 2017 Enterprise wants to capture attention of
various clients. For above stated purpose,
they cater quick services to their users.
This will provide maximum satisfaction
to them and they will improve their
goodwill at marketplace.
CONCLUSION
From above described assignment it has been comprehended that small business
organisation are much helpful in improvement of economy of country. They provide maximum
employment opportunities to their clients which will reduce poverty line of nation. An enterprise
will utilize SWOT investigation for determination of strengths as well as weaknesses of firm. It
is must to acquire those opportunities which are available for them; so that, they ca expand their
business in an effective manner. Training will be provide to staff members because this will
enhance performance of labours. Company will formulate business plan for as this will provide
directions to staff members; as a result, entire task will accomplished within limited period of
time and they attain coveted targets and goals effectively.
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REFERENCES
Books and Journals
Aremu, M.A. and Adeyemi, S.L., 2011. Small and medium scale enterprises as a survival
strategy for employment generation in Nigeria. Journal of sustainable development,
4(1), p.200.
Barbero, J.L., Casillas, J.C. and Feldman, H.D., 2011. Managerial capabilities and paths to
growth as determinants of high-growth small and medium-sized enterprises.
International Small Business Journal, 29(6), pp.671-694.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Broekemier, G., Chau, N.N. and Seshadri, S., 2015. Social media practices among small
business-to-business enterprises. Small Business Institute Journal, 11(1), p.37.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science, 7(5), p.180.
Chun, H. and Mun, S.B., 2012. Determinants of R&D cooperation in small and medium-sized
enterprises. Small Business Economics, 39(2), pp.419-436.
Curran, J. and Storey, D.J. eds., 2016. Small firms in urban and rural locations. Routledge.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal, 33(1), pp.31-50.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions
of business ethics and CSR-related concepts. Journal of Business ethics, 98(3), pp.425-
453.
Forsman, H., 2011. Innovation capacity and innovation development in small enterprises. A
comparison between the manufacturing and service sectors. Research Policy, 40(5),
pp.739-750.
Gunasekaran, A., Rai, B.K. and Griffin, M., 2011. Resilience and competitiveness of small and
medium size enterprises: an empirical research. International journal of production
research, 49(18), pp.5489-5509.
Jasra, J.M. and et. al., 2012. Determinants of business success of small and medium enterprises.
Mahmood, R. and Hanafi, N., 2013. Entrepreneurial orientation and business performance of
women-owned small and medium enterprises in malaysia: competitive advantage as a
mediator. International Journal of Business and Social Science, 4(1).
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Oyedijo, A., Idris, A.A. and Aliu, A.A., 2012. Impact of marketing practices on the performance
of small business enterprises: empirical evidence from Nigeria. European Journal of
Economics, Finance and Administrative Sciences, 46, pp.130-146.
Philip, M., 2011. Factors affecting business success of small & medium enterprises (SMEs).
Amity Global Business Review, 6(1), pp.118-136.
Schaper, M.T. and et. al., 2014. Entrepreneurship and small business.
Williams, S. and Schaefer, A., 2013. Small and medium‐sized enterprises and sustainability:
Managers' values and engagement with environmental and climate change issues.
Business Strategy and the Environment, 22(3), pp.173-186.
Wynarczyk, P., Piperopoulos, P. and McAdam, M., 2013. Open innovation in small and medium-
sized enterprises: An overview. International Small Business Journal, 31(3), pp.240-
255.
Zortea-Johnston, E., Darroch, J. and Matear, S., 2012. Business orientations and innovation in
small and medium sized enterprises. International Entrepreneurship and Management
Journal, 8(2), pp.145-164.
Online:
SWOT Analysis: Theory. 2017. [Online]. Available
through:<https://research-methodology.net/theory/strategy/swot-analysis/>.
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