Small Business Success Factors Analysis

The assignment delves into the crucial elements that contribute to the success of small businesses. It examines various aspects, including the role of entrepreneurship education, the importance of strategic business planning, and the influence of social factors on small business development. The analysis draws upon academic research and practical insights to provide a comprehensive understanding of the challenges and opportunities faced by small businesses in today's dynamic environment.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Produce a profile of a selected small business identifying its strengths and weaknesses.....1
1.2 Carry out an analysis of the business using comparative measures of performance ...........3
TASK 2............................................................................................................................................4
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses
.....................................................................................................................................................4
2.2 Analyse ways in which existing performance could be maintained and strengthened.........5
2.3 Recommend with justification, new areas in which the business could be expanded..........6
TASK 3............................................................................................................................................7
3.1 Produce an assessment of existing business objectives and plans........................................7
3.2 Revise business plans to incorporate appropriate changes...................................................9
3.3 Prepare an action plan to implement the changes...............................................................10
TASK 4..........................................................................................................................................11
4.1 Impact of the proposed changes on the business and its personnel....................................11
4.2 Plan how the changes will be managed in the business......................................................12
4.3 Monitor improvements in the performance of the business over a given timescale...........13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
In today's scenario there are number of small business emerges with different motive and
plays a very eminent role in a development of economy by introducing new ideas. Basically
companies which are small in size are having employees less then 50 whose main motive is to
generate more and more revenue to raise their their standard of living. Zizzi is a very small
restaurant by having very less workers but still popular in local areas of UK for their tasty and
delicious food. This assignment is going to segmented into four different parts for explaining the
importance of small business enterprise with the use of various financial and non financial
comparative measures (Bridge and O'Neill, 2012). In additional it also highlight methods for
overcoming issues and problems faced by organization by identifying several of hidden barriers.
Apart from this, it also throw some lights on tools which are implemented by a referred company
for enhancing the performance of employees as well as employer. Instead of this, report is going
to show an impressive business plan for attaining their set target and objectives in a given time
frame by resolving issues faced by restaurant. At the end, assignment conduct monitoring
programme for analysis the stated administration plan as well as to minimize the barriers which
comes in success path of an enterprise (Schaper and et. al., 2014).
TASK 1
1.1 Produce a profile of a selected small business identifying its strengths and weaknesses
Small-business firms assist to provide several opportunities to society such as
employment. So they will easy to enhance their skills and capabilities as well as learn something
new and innovative things. In addition to this, it helps to improve economy of the country.
Economic status and position of the nation directly impacts on SBEs either positive and negative.
Apart from this, it is important to determine actual and current status of the company. So,
SWOT analysis method can be used for identifying strengths, weaknesses, opportunities and
threats (Storey, 2016). As per this, employers of the enterprise will take appropriate decisions
and effectively resolve problems and issues of the business (SWOT Analysis, 2017). Mainly,
this method includes fur elements such as following:
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Illustration 1: SWOT Analysis, 2017
(Source- SWOT Analysis, 2017)
Strength Weakness
 One of a major strength of zizi
restaurant is their qualitative products.
 Another one is their impressive
promotional plans and strategies.
 Attractive interiors with splendid
themes which seek the attention of
millions of consumers.
 Presence of catchy and knowledgable
employees whose main aim is to satisfy
the needs of clients in a minimum
duration.
 Fast and on time services.
 Healthy communication between
employees and employers create a
mutual understanding between higher
and lower authority. It means it helps
organization for achieving their set
objectives in a given time period.
 One of a major drawback of a zizi
company is inconvenient location
which create problem for whole
organization.
 Lack of skilled and experienced
employees which influence success of a
n enterprise.
 Availability of number of competitors
and their products for example
“Alexander the great” which affect
profit of an organization.
 Due to small business they have
minimum capital which may hamper
their overall task.
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Threats Opportunities
 Major threat of a zizi is availability of
competitors and close substitutes with
more impressive interiors.
 Emergence of heavy and expensive
machines affects organizational work.
 Creation of digital payments.
 Emergence of recent trends enforce
customers to change their taste and
preferences which motivate company to
generate something new and
innovative.
 Due to advancement of world there are
numerous of talented employees are
appointed for creating something
different.
1.2 Carry out an analysis of the business using comparative measures of performance
P&L(Profit and Loss) Account for the year ended 30 April 2016 and 30 April 2017
2016
£
2017
£
Sales 200 400
Cost of Sales 120 150
Gross Profit 80 250
Overheads 40 50
Net. Profit 40 200
Balance Sheet as on 30 April 2016 and 30 April 2017
£ 2016 £ 2017
Fixed assets 40 80
Stock 20 40
Debtors 30 70
Bank 5 0
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Total 45 90
Current liabilities
Creditors 10 50
Bank overdraft 0 40
Total 10 30
Current ratio = current asset / current liability
2016 2017
20000 / 10000= 2 times 54000 / 30000= 1.8times
Interpretation: The above mentioned profit and loss account and balance sheet of Zizi
Ltd shows actual status of the company as well as profit and loss in 2016 to 2017. in the context
of profit and loss account, sales of this company in 2016 is 200 and in 2017 it become £ 400.
According to the sales value of enterprise, consequently increased profit level. It is very
important for every organisation to maintain records for every year because with the help of this,
an organisation can easily analyse and evaluate current status and position while comparing with
past records.
Comparison of ZIZZI is being done with CHEZ BRUCE, in mannerism of rating scale
and such thing provide an clear understanding of analysis in between the two small business
enterprises. As such is:
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ZIZZI is having a very good rating scale by its customers and thus they make their client
satisfied with their product and services which make them different and unique from others as
well. Although the comparison of ZIZZI is done with PERI'OS takeaway restaurant, and rating
scale of PERI”OS is as:
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Therefore in every manner the ZIZZI restaurant is better then PERI'OS take away. 3.5
rating is there out of 5 which is very good enough rating for small business restaurants.
TASK 2
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses
Employers of the firm plays important role in every organisation, because it concentrate
on reducing weaknesses of the organisation while using smart methods and techniques (Burns,
2010). In the external market place, regularly increased competition level between all over
restaurants, due to this it is important for every organisation to properly analyse and evaluate
strengths, weaknesses. Because it helps to take corrective and appropriate actions. Sometimes,
weaknesses may create some threats and issues for enterprise. Apart from this, organisation
adopts ways and sources fir reducing weaknesses from business such as follows:
 Employers can modify and update existing methods and strategies of the firm. So
employees will significantly perform their task as well as systematically serve better
services to customers as per their requirements (Blackburn, Hart and Wainwright, 2013).
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 At this time period, most of customers are easy to attract towards themes, interior of
restaurants etc., due to is important for ZIZI Ltd, to modify and re-innovate their firm
with the help of something attractive theme.
 Must provide proper training to all employees or workers regarding their works, so they
can learn how should perform the work, serving system, communication or interaction
way etc. Therefore, employees communication process, service system and so more plays
vital role. Due to, it is very essential for every restaurants to properly clarify rules,
working style, polices. So they will perform their tasks accordingly.
 In the external market place, increased competition which directly impacts on
organisation and their working system. Further, it is important to properly analyse and
evaluate the current status and market trend as well as strategies and methods used by
their competitors. As per these things, must select and use suitable methods and system in
the working environment (Malhotra and Temponi, 2010).
 In the addition of this, must try to develop healthy working environment in the
organisation, so employees can perform their task with proper confidence and with unity.
Working surrounding directly impacts on employees as well as their performance, due to
this, it is necessary to maintain inside environment.
2.2 Analyse ways in which existing performance could be maintained and strengthened
Every business wants to get success as well as wants to achieve organisational goals and
objectives in minimum time period. It is very essential for every business firm to provide proper
training to employees so they will easy to enhance their working performance as well as learn
how to complete the tasks within appropriate quality (Olson and Staley, 2012). In the context of
restaurants, in this sector necessary to have effective communication skills so, workers can
significantly interact with customers as well as make mutual understanding among them.
Employers of the firm must regularly monitor working performance and involvement of
employees, then as per their quality and working style should be conduct training and
development programmes for them.
In the context of Zizi Ltd, it is focuses on working performance and serving system of
employees. Because both these elements are directly impacts on organisation whether positive
and negative in nature. Every enterprises wants to attract high number of customers towards their
services, due to cited firm, modify and update their themes and working system as per the time
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and market trends (Gronum, Verreynne and Kastelle, 2012). Apart from this, it is required for
every firm to properly analyse and evaluate the current status and position of the firm. Because it
helps to take appropriate decision in critical situation also assist to resolve issues in the
appropriate manner.
For getting success as well as enhancing profitability in the appropriate manner, must be
provide several attractive offers to customers so they will easy to attract towards firm as well as
offers. This is one of best method of increasing sales also for build an brand image in the
external market place. In this light, management system in all enterprise plays vital role because
it aids to manage and control all major activities and operations of the firm in an effective
manner. Further, it is essential to implement an effective management system inside of the
organisation for controlling and maintaining all activities. With the help of this, employees will
systematically understand customer's needs and their requirements then as per them provide
better quality of services restaurant facilities to them (Ebert and et. al., 2014).
2.3 Recommend with justification, new areas in which the business could be expanded
Every business firms wants to expand their business in several areas, this is the best
method to earn high number of profit as well as increase production level. One of the important
recommendation is to modify and update existing methods and techniques of the enterprise with
the help of smart strategies. It helps to complete organisation works within proper manner as
well as within effective quality ( Herbane, 2010). This is very essential for every business firm to
conduct survey in the external market place. With the help of this, easy to identify actual and
current market trends also customer's requirements. As per this, must be update and innovate
existing techniques and themes of the restaurant as well as serving system of the firm.
In the context of Zizi Ltd, this restaurant have an opportunity to expand their business
firm in different areas such as it can be open hotel, bars, night clubs and so more. While
expanding business firm in several sectors, this is best method to earn high number of profit from
external market place. Another one recommendation is to provides several offers and attractive
packages to customers, so they easy to attract towards restaurant for visiting it. At this time
period, most of the consumers wants something new and attractive things, innovative interior,
better serving system, effective communication or way of talking and so more (Goss, 2015). All
these contents are impacts on organisation as well as their working system. Due to, it must be
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maintained in the appropriate manner. Inside of the organisation must be implement some
effective polices and rules for employees, which have to be followed by everyone. Better rules
and regulation s are aids to maintain and control all business activities and operations as well as
increase moral of workers towards their works. With the help of them, everyone will
significantly perform their task and achieve their decided long and short term goals in the
minimum time period (Altman, Sabato and Wilson, 2010).
TASK 3
3.1 Produce an assessment of existing business objectives and plans
Before starting any kind of business firm in competitive market place, must be set
mission and vision of the firm. It is very essential to concentrate on to achieve them in future in
the appropriate manner (Fassin,Van Rossem and Buelens, 2011). Apart from this, organisational
mission and vision must be clarify to everyone, because as per these things they will perform
their tasks as well as they will effectively decide their own long and short term goals. Every
business firms focuses on to adopt smart and innovative methods in the organisation for
completing works within effective outcomes. By organisation must be conduct survey in the
market, for identifying and analysing current market trends and customer's requirements. Then,
as per these elements company will take corrective action to provide services and facilities to
consumers. Survey is one of the best method of identify the actual market situation also it is very
much beneficial for firms. Because they will significantly perform their works in appropriate
manner. In the addition of this, mission, vision, objectives and goals of the company are defining
under follows:
Vision for staff
 To provide proper safety and security to employees, so while performing their tasks they
can feel safe and secure in the organisation.
 Effectively conduct training and development programmes for employees, so they will
learn how should perform their task as well as how to enhance working performance and
skills (Gill and Biger, 2012). Provide different opportunities to all employees, so they can improve their knowledge,
working skills and capabilities in a effective way.
Client vision
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 Enhance mutual understanding between employees of the firm, due to they will complete
their tasks in unity. Better understanding helps to develop healthy environment in the
organisation. To full fill customer's requirements and their needs, so increased their motivation and
confidence level in the appropriate manner (Battisti and Perry, 2011).
Shareholder's objectives
 Maintain relationship with suppliers, customers, investors and so more because all these
are plays important role in every business firm.
 Keeping over all financial records of the company, due to employers of the firm easy to
analyse and evaluate current status and position of the firm as well as effectively compare
with past data.
Business Plan
Illustration 2: Business plan, 2017
(Source- Business planning, 2017)
It refers to, is a written and formal document of the firm. It includes objectives, goals,
mission, vision, strategies, rules, regulations, polices, financial position and so more. Business
plan assist to represent current status of the firm as well as business where wants to be go in
future. Business plan plays significant role in every organisation because it helps to develop
organisation as well as it assist to achieve organisational goals and objectives in the appropriate
manner. For getting success it must be effective and efficient in the nature. Apart from this, it
includes some stages in which aids to manage and control all business activities and operations
due to, employees of the firm will significantly perform their task (Islam and et. al., 2011).
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3.2 Revise business plans to incorporate appropriate changes
Business plan plays important role for every kind of organisation. Because it assists to
manage and control all over business activities and operations in appropriate manner. It covers
all major information and detail regarding company such as their financial condition, mission,
vision, strategies, rules, polices and so more (Business Planning, 2017). Apart from this, it is
important for every firm , it should be appropriate and smart in the nature. So al employees of the
firm can easy know how should complete the work as well as how must be follow the
organisational goals and objectives in the appropriate manner (Rae, 2010).
Before preparing an business firm, must be conduct an effective survey in the external
market place. Because it is one of the best method for analysing and identify the current market
trend, customer's requirements, competitors, government rules and regulation and so more. It is
very necessary for company to identify and determine all these things. Because its directly
impacts on organisation as well as their working performance. Due to, all these things must be
systematically carried out then must be produced an appropriate business plan (Forsman and
Temel, 2011)
In the context of Zizi Ltd., this is an small level restaurant of UK. It want to expand their
business firm in several sectors for increasing profitability as well as building an brand image in
the external market place. In this current scenario, most of customers wants something new and
attractive things for getting fully satisfaction. Due to, it is important to understand their needs as
well as recent market trend. As per this, should be innovative and modify existing working
system, way of communication, severing style, interior, theme and so more. Because all these
terms are assist to attract high number of customers towards restaurant. In the addition of this,
business plan should be developed in the appropriate manner after analysing all necessary
concepts (Chittithaworn and et. al., 2011).
3.3 Prepare an action plan to implement the changes
Action plan also know as detailed plan, in which identify and determine the which
actions needed to reach the goals and objectives in minimum time period. Therefore, in this plan
all major activities are set in an effective sequence which will be performed well by employees
of the firm. This plan assists to get success in minimum time as well as helps to achieve
organisational goals and objectives (Chittithaworn and et. al., 2011). Further, it is not only
beneficial for an individual as well as it is profitable for organisation. With the help of this,
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employees of the firm systematically perform their tasks step by step also significantly handle
the company. In this plan includes some stages such as follows:
TASKS EXPLAINATION TIME SCEDULE
Express major goals and
objectives
In this stage, identify and
determine the major objective
and target of this action plan.
Because it is very important to
clarify this.
5 – 10 days
Generate a list of actions for
each goal
In which preparing an
effective list. It covers, how
will be attain the decided goals
and objectives.
2 days
Prepare a time line After generating the list, must
be prepare an appropriate and
systematic time frame. In
which should be clarify and
mention which one activity
should be completed in which
time with effective result.
10-15 days
Allocate resources After that, should allocate
necessary resources in an
effective and efficient manner.
5 days
Identify and determine
possible problems and issues
In this step, analysing and
identifying the major problems
and issues in appropriate
manner, who directly impacts
on action plan.
20-25 days
Develop strategies for
monitoring progress
After considering issues and
causes, must be significantly
2-6 days
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develop appropriate strategies,
with the help of them, easy to
monitor progress of action
plan.
Assign tasks To all employees and
participates of action plan,
should significantly assign
major tasks and works to them.
6-7 days
Estimate costs For completing the works
within effective result, must be
systematically estimate
required cost.
2-3 days
Implement plan in action After all these stages, should
impressively implement the
plan in action.
2 days
Evaluation In the last stage of action plan,
should effectively analyse and
evaluate the actual result and
outcomes of this action plan.
15-20 days
TASK 4
4.1 Impact of the proposed changes on the business and its personnel
Business firms are affected by several factors, but one of the major cause is regularly
changes in the external market trends. Due to, consequently changed customer's requirements
and their demand. Sometimes its directly impacts on organisation whether positive and negative
in nature (Jones and Iredale, 2010). Due to, it is important for every business firms, must
effective analyse and evaluate them in the appropriate manner with the help of smart methods
and techniques. In the addition of this, there are also includes another factors such as legal,
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political, technological, economical and so more. All these causes are influence on business as
well as its personnel.
 Social factor: This factor includes, rules, regulation, ethics, norms, culture, life style,
occupation and so more. Sometimes, all these elements are impacts on business firm as
well as their working style. Due to, it is necessary for enterprise must be effectively
understand and analyse them with the help of smart methods and techniques.
 Legal factors: It covers, legislations, government rules, regulation, polices and so more.
All these terms must be effectively consider by every business firms for systematically
operate their organisation in the competitive market place. Government rules and
regulations are played important role, because it assist to manage and control all illegal
activities from country (Southern, 2011).
 Economical: Economy of the country is unstable in the nature, because it totally based
upon market situation and condition. It carried out inflation rate, exchange rate, taxation
system, currency and so more. All these terms are decided by the legal authority of the
nation as well as it depends money and capital market of the country. Sometimes these
terms are also influences working style and system of the firm. Due to, before investing
fund in the several market, must effectively evaluate and analyse the economy as well as
purchasing power of customers. Apart from this, all these are major causes which should
be analysed and evaluated by the every organisation.
4.2 Plan how the changes will be managed in the business
At this time, most of the customers wants something new and innovative things for
getting proper satisfaction towards their needs and requirements. Due to, it is essential for every
organisation, must identify and evaluate the market trends and customer's demand. As per these
things, should produce and modify existing working style (Bellucci, Borisov and Zazzaro, 2010).
It helps to attract high number of customers as well as assist to increase profitability of the firm.
In the context of Zizi Ltd, this is an small restaurant of UK. For effectively manage and control
changes in the business firm, must be implement an effective management plan. With the help of
this, systematically arrange all major activities within proper time frame. Also, must be carried
out some other major elements for managing and controlling changes such as follows:
 Competition level between restaurants (Gorgievski, Ascalon and Stephan, 2011).
 Customer's buying behaviour
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 Consumer's requirements and needs
 Industry outlook
 Economic condition and situation of the country
 Social environment
In the addition of this, for organisation should systematically manage and control all over
business activities in the appropriate manner. Because proper management assist to increase
profitability and production level of the firm as well as it help to build an brand image in external
market place.
4.3 Monitor improvements in the performance of the business over a given timescale
For monitoring actual performance and improvement in the business firm, must be set or
prepare an effective time scale. With the help of this easy to identify and determine actual and
current position of the organisation as well as easy to compare with past condition of the
company. It helps to take corrective action regarding any kind of critical situation as well as
reduce problems and issues from enterprise. It includes some three major contents such as goals
or objectives, time period and review. All these terms are effectively elaborating in the
appropriate manner.
Goals Time period Review
One stop tradition By the end of 2017 Night clubs, bar, hotel
facilities and services etc.
To be number one in local area
of country
By 2017 This restaurant wants to build
an brand image in external
market place as well as wants
to expand their business firm.
Services By 2017 This restaurant focuses on tor
provide better services and
facilities to customers as well
as provide several attractive
offers to them.
Increase the number of clients By 2017 Zizi Ltd, concentrate on to
attract high number of
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customers towards
organisation due to, they
innovative their interior as well
as them.
CONCLUSION
From the above mentioned report, it has been concluded that small-business firms
directly impacted on economy of the country as well as provided employment to persons. It has
been defined major strength of Zizi Ltd, that is quality of services as well as their severing
system to customers. In the addition of this, has been produced an appropriate business plan with
proper clarification as well as time schedule. Also has been identified several factors and issues
such as changes in the market and customer's requirements, legal, economical, social and so
more. All these factors are directly impacted on business firm either positive and negative.
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REFERENCES
Books and Journals
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and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2). p.95.
Battisti, M. and Perry, M., 2011. Walking the talk? Environmental responsibility from the
perspective of small‐business owners. Corporate Social Responsibility and
Environmental Management. 18(3). pp.172-185.
Bellucci, A., Borisov, A. and Zazzaro, A., 2010. Does gender matter in bank–firm relationships?
Evidence from small business lending. Journal of Banking & Finance. 34(12).
pp.2968-2984.
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strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
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business. Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
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Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Ebert, R. J. and et. al., 2014. Business essentials. Pearson Education Canada.
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.
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Gill, A. and Biger, N., 2012. Barriers to small business growth in Canada. Journal of Small
Business and Enterprise Development. 19(4). pp.656-668.
Gorgievski, M. J., Ascalon, M. E. and Stephan, U., 2011. Small business owners' success
criteria, a values approach to personal differences. Journal of Small Business
Management. 49(2). pp.207-232.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and
medium‐sized enterprise innovation and firm performance. Journal of Small Business
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Herbane, B., 2010. Small business research: Time for a crisis-based view. International Small
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Islam, M.A. and et. al., 2011. Effect of entrepreneur and firm characteristics on the business
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Jones, B. and Iredale, N., 2010. Enterprise education as pedagogy. Education+ training. 52(1).
pp.7-19.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1). pp.28-37.
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