Factors Affecting Business Success of Small & Medium Enterprises (SMEs)

The provided document is an academic report on a Small Business Enterprise (SBE) called Baby Bear, which offers day care services for kids. The report highlights the importance of focusing on non-financial information in SME risk management, valuing entrepreneurial enterprises, and understanding enterprise entrepreneurship and small business start-up, growth, and maturity. It also covers factors affecting business success in SMEs in Thailand, small-business owner-managers' perceptions of business ethics and CSR-related concepts, resilience and competitiveness of SMEs, and social entrepreneurship start-up intentions. The report emphasizes the need for SMEs to consider environmental and climate change issues and engage with sustainability practices.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1Profile of small-scale with its weaknesses and strengths ......................................................1
1.2 Analysis of business using comparative measures of performance......................................3
TASK 2............................................................................................................................................4
2.1 Action plan to overcome weaknesses of Baby Bear ............................................................4
2.2 Ways to maintain present performance and strengthen .......................................................5
2.3 Areas where Baby Bear could be expanded..........................................................................6
TASK 3............................................................................................................................................7
3.1 Existing business plan and objectives...................................................................................7
3.2 Revise business plan to make modification..........................................................................8
3.3 Action plan to implement changes........................................................................................9
TASK 4............................................................................................................................................9
4.1 Impact of changes on company and its personnel ................................................................9
4.2 Management of changes in company..................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A small business are privately owned organisations, sole proprietorships or partnership
that have less annual revenue or fewer employees than a regular-sized corporation. An
independently operated firms, whose owner exercises close monitor over decision and
operations. In this way equity is not public traded and financing of business is personally
guaranteed by the company owner. A small scale workers fewer than 100 employs and has
revenues of less than $25 million. According to the Federal securities law says small scale as a
company in the Canada and United States that has minimum profits and who’s outstanding publicly-
traded inventory less than their revenue. It is very essentials for industry to follow norms of legal
authority to obtain the small business status (Altman, Sabato and Wilson, 2010). This is a best
advantageous for many enterprises to attain such status because there are several legislations as well
as conditions that do not apply on such organisations. This report is based on Baby Bear; it is the
nursery home for the little child's in United Kingdom. This is small business enterprise that gives
their services in link to day care facilities as well as care take for lids from birth onwards. This firms
offers professional services related to childcare which is beneficial for kid’s improvement.
TASK 1
1.1Profile of small-scale with its weaknesses and strengths
Small-business enterprise offers various types of health services to its buyers such as
children and charge very low amount of price from the user. This is necessary and essentials
elements for such organisation to use effective tools and quality measures so that they can give
best services to another. Baby Bear is small entity; it is based on United Kingdom that gives best
services to kids care from birth onward. Different services are mainly taken by working parents.
Cited enterprise opens between 8.30 AM to 7.00 PM in Monday to Friday. This company is
closed only on national as well as bank holiday along with five days at Christmas. They have
various professional staff members who are skilfulness in this field (Bridge and O'Neill, 2012).

All the necessary facilities and amenities are existing here like if kids suffer from any health
related problems then there is treatment facilities. The have various qualities to give good
environment for the healthy child's growth.
SWOT Analysis
It is one of the best approach to determine the Strength, weaknesses, threats and
opportunities of the Baby Bear which assist in effective planning. This is necessary as well as
essentials for the enterprise to plan their policy and strategy regarding to SWOT so that it cannot
impact them in destructive way.
STRENGTH WEAKNESSES
 Staff members are experienced as
well as trained in child care.
 Effective management or
experienced in company.
 Provide better practices through
various centres.
 They have latest and unique baby
care methodology.
 Speedily response on problems
within giving time.
 Small overheads.
 Adaptability to select new changes.
 They are totally new in market.
 Poor awareness between the large
population.
 Funds are uncertain during new business
operations.
 Poor compliances with state, federal
legislation and local.
 Business running cost is very high
including food and utilities.
 Lack of communication and lack of
quality services and food.
 Poor maintenance of centre because they
have expensive expenses.
OPPORTUNITIES THREATS
 Their residential area is rich with
high population of double income
facilities.
 They can give their home delivery
services to customers.
 Facility of child care of age below 5
provides help to employees as this
 New generation of aggressive business in
similar are.
 Shortage of skilled as well as qualified
member which output in failure of their
industry plan.
 Insufficient supportive employees and
staff members.

way they can work with more
attention at work place.
 Corporate houses are giving special
place to keep kids.
 Workers offer in different house care
centre.
 New generation of licensing needed with
extra guidelines as well as conditions to
give healthy services to child.
1.2 Analysis of business using comparative measures of performance
Business analysis is necessary to doings time to time so that additional sources that are
needed for strengthen its productivity and performance can be selected. Performance can be
evaluating through non-financial and financial data. It is very essential elements that can be used
to determine the area where it is necessary for firm to devote much effort to strengthen its
situation such as position. This is very essentials tool to make comparison among past and
present financial data. It assists to specific its resent position and it to implementation and
formulation of future plan (Burns, P., 2010). Baby bear can be used different kinds of methods to
measure its performance as forced ranking or graphic rating scales etc. There is good trade line
of financial data in exist and it’s also maximising on advanced rate as shown in Graphic rating
scale. As per the research it is determined that Baby Bear has top rating between its market
challenges. They are more impactive in giving quality product and services to its buyers such as
children.
Profit & loss account of year ended 30th April 2015 and 30th April 2016
Particular 2015 (value in £) 2016 (value in £)
Sales 200 250
Cost of sales 90 100
Gross profit 110 150
Less: Selling and
Manufacturing overheads
40 50
Net profit 60 50

Balance sheet for the year ended on 30th April 2016 and 30th April 2017
Particular 2015 (value in £) 2016 (value in £)
Fixed Assets 50 40
Current Assets:
B/P 10 20
Inventory 20 30
Cash and bank 3 2
Total 83 92
Ratio for the year ended on 30th April 2016 and 30th April of Baby Bear shows followings
figures:
Ratio 2015 (value in £) 2016 (value in £)
Current ratio= Current assets /
Current liability
30000/ 10000
= 3.00 times
80000/ 20000
= 4.00 times
Quick Ratio= Current assets-
inventory/ current liabilities
20000- 7000/ 5000
= 2.6
60000- 20000/ 15000
2.67
Gross profit ratio = Cross
profit / Sales * 100
50/150*100
33.33
60/160*100
37.5
Net profit ratio= Net profit /
Sales *100
60/150*100
40
70/150*100
46.67
Interpretation: In the year 2015, Baby Bear current assets in more than around 3 times more
than its liabilities which is best condition but in 2016, it current assets more than 4 times of its
liabilities. Current ratio is 2. among the quick ratio in year 2015, mentioned business provide its
liabilities. The quick ratio is 1. gross profit ration is 33.33 which is less than in year 2016 and net
profit ratio define the company current revenue so in year 2015 is 40 and 2016 is 46.67.

TASK 2
2.1 Action plan to overcome weaknesses of Baby Bear
Weaknesses impacted on business operation in a negative way. There are several factors
that reduce barrios in its success as well as growth. This is very essential for company to use
effective tool to overcome it powerlessness. It also provides improvement and success
opportunities to the enterprise. There are several issues that are faced by Baby Bear in link to
poor awareness, lack of maintenance, new in local market, quality mechanism and maximising in
aggressive economy in similar marketplace (Chittithaworn and et. al., 2011). They faced different
problems because they are generally innovative in its area so it is necessary for them to use
impassive techniques of marketing so that they can increase their popularity. They can be
coming directly to company’s families and they can provide important information about their
facilities and services. It will support to approach the issue related to lack of awareness.
This is required as well as essentials for Baby Bear to adopt mechanism so that they can
quickly comply with the legalisation and norms. It is needed because when it is not determined
then it has negative such as adverse effect over the Baby Bear image. There is poor and lack of
quality goods and services so it is necessary for cited company to use best product material for
that they can relation to other company’s unit which give healthy and better item to them. It will
also determine as well as identified that there is poor maintenance. In this way it is essential for
them to expand large amount of money on repair, maintain, painting, furniture replacement and
other givers so that they can focus on more guidelines toward cited company centre.
Brand name of such business is well known in area so it is very challenging for this
enterprise to come in new market. For that they can select such as adopt different effective
strategy of marketing and may focus on service quality. They are needed to employ professional
in their business who have best experience and skill in this field. So in this way they cannot
approached these problems in a better manner (Fassin, Van Rossem and Buelens, 2011). It is a key
element of such company to use recommendation in their enterprise so that they can approach
their several issues in an effective way. It is very necessary because it will not have clarified
them it may reason of negative effect over the Baby Bear performance.

2.2 Ways to maintain present performance and strengthen
This task is very important for the Baby Bear Nursery Home because, it to keep their
present performance and try to capability it. This will also give different opportunities related to
business success as well as growth, so it can run smoothly and effectively in aggressive area. It is
necessary for such kind of company to make improvement in their start-ups. So in this way they
can attract high number of an individual and assist to take stand in another market. Baby Bear
adopted different types of effective marketing techniques and tools so that they can secure their
effective position in new market.
Baby Bear adopt different ways to keep and strengthen their performance are as below:
Always try to give large number of the satisfaction to consumer: It is very essential for Baby
Bear to use mechanism related to food material quality and service so that they cannot give high
number of the satisfaction to its consumer (Gunasekaran, Rai and Griffin, 2011). Profession and
experience workers can be working by them which assist to provide impressive services which is
show large number satisfaction.
Be adaptable to change: This is needed for cited firm to adopt other modification that are
present in marketplace so that they can bonded aggressive benefits. In this way there are several
modifications such as additional activity & tasks and technological up-gradation for kids, that
support in the success of children, it can be selected by them. This sources are important so it is
needed to select by the Baby Bear because it aids to take base in area.
Assess competitor’s strategies: It is very important as well as needed to for mentioned business
to take a look of challenger’s policies or plan so that they can plan their tasks and activities in
related to with other. It will also give assist to keep their present position or strengthen in their
market for future.
Manage interruption: There are different sources that reduce hurdle in the company success and
growth so it is very important for enterprise to monitor such interruption so that their percent
performance may not be impacted in a negative way (Hilmersson, M., 2014). These factors are
not determined in a correct manner then it effects performance in unfavourable way.
Organise and prioritize: These factors are followed by Baby Bear and to manage their business
operations in a way of growth oriented. It is required and necessary for mentioned firm to
prioritize and coordinate various activity, so that it cannot be sphere to others. This tools and
technique's one of the best way to fulfil the work and give best service quality to its buyers.

2.3 Areas where Baby Bear could be expanded
This is an essential segment for company to expand their another location in the way of
new level. It supports the Baby Bear Nursery Home to increase their market share and
profitability. Children care company giving their services in nursery. It is very essential for such
kind of firm to expand their location into new part so that they can offer effective services to
their buyers such as kids. There is various area where company expand their another business are
as follows:
24 Hours day care: Baby Bear give their services between 8.00 AM to 7 PM. It is necessary for
the then to give their services to 7 days and 24 hours. Sometime, professionals working are
needed to go outside for several days for company tour. It is a best opportunity for such type of
firm to give their services in specific day as well as time.
To open pre-school: In this way different person are contracted with this enterprise because they
give best services which is very important to provide satisfaction to parents. There is only for
one location example Pre-school (Nga and Shamuganathan, G., 2010). It is much beneficial for
parents and organisation. They can also open their pre-school where they can give best facilities
regarding to children education. It will also assist to expand their another business into new
location.
Health care centre: They are liable to open health care centre in their market where they give
best treatment to child's. It is an indispensable for them to utilize those individuals who have
experience ans skill in this field to give effective treatment with planning tasks. It is necessary to
provide development opportunities and growth to business.
Sport activities: They are liable to develop their market share to innovative elements by
expanding their business activities such as sport. In the current position where parents are focus
on this activity because it is necessary for the kid’s success (Stokes, Wilson and Wilson, 2010). In
this way there are several opportunities that are present in the sector of sport so it is essential for
such kind of firms to consider these tasks.
Employ other curriculum activities: There are different location where they can grow their
company. It is needed for such type of industry to consider another activity like dancing,
drawing, singing and painting etc. so in this way high number of the person can be attracted
regarding their services. Parents are pleased towards the such area where they offer unique

facilities for the kid’s development and growth. So it is essential for Baby Bear to consider
another activity which assist to expand their company location.
TASK 3
3.1 Existing business plan and objectives
This is very essential for such kind of business to establish their objectives and goals. It is
needed to make their regular appraisal so that it can be determined that such targets can be
achieve as well as not. This support in implementation of strategy and plan to achieve such
objectives.
The one of the main objectives of cited company is to give better services to their
customers as well as parents. They always seek to make various changes through that they are
liable to make child's development and growth. Baby Bear always try to select another tool that
are necessary for betterment of the kids. It has responsible to employ professionals and skilled
person in their company who are expertise in this field (Storey, 2016). The main objectives of
this industry should be SMART so that they can attain their goals and target within time period.
It is the best objectives of such kind of enterprise to adopt material quality to feed kids. They
ever try to give healthy and better environment to child so that their physical growth can be
develop.
This industry not only focus on kid’s success but also on different source as to give education
and to teach manners that they can us. Objectives assessment is one of the important activity that
give fair plan regarding the Baby Bear and it support to determine that its goals can be achieve.
Through this, it is needed for the cited company to forms several improvements in their unique
services so that they can target much person and attain their objectives.
The above mentioned objectives can be achieving by Baby Bear when they focus on their
potentials plan and strategy. It is very necessary to select different service quality. It will also
focus on healthy success and growth of kids (Teece, 2010). This can be realizable when they are
confident to give better surrounding to child.
3.2 Revise business plan to make modification
It is important for such kind of company to revise their firm time to time according to the
recent trends of market. It will also give aggressive benefits to Baby Bear and through this, these
can also achieve their objectives and goals in an essential way. There are several modifications

that boost in surrounding and when economic select such changes that is best advantages to
achieve their goals.
In current time, person choice is changing day to day. In this way parents are choosing to
focus on education but now they need to admit their kids in the organisation where they are
totally focus on additional curriculum activity and education. It is required as well as needed for
mentioned business to employ different changes in their company so that they can highly attract
their customers. This helps to run their firm in much effective way and to bonded aggressive
benefits in market. Previously such kind of company have limited person who were working
with them to gives unique services but now the area of firm is increasing, so it is needed to make
several alterations in its plan.
It is necessary for this Baby Bear to keep society reputation and give quality care so that
they can achieve large help from community. Flexibility hours as well as aggressive pricing
strategy, both are can be selected by company to compete with innovative changes. In this day,
there are more challengers in marketplace and their services are similar (Williams and Schaefer,
2013). So it is necessary for cited company to adopt environment changes so that they can give
best services to its challengers.
3.3 Action plan to implement changes
Modification are necessary to select by Baby Bear for the improvement of their
enterprise. There are different changes that needs to approach by cited company. It will be the
main reason for maintain in marketplace and can be the ground to rush out from market.
It is very important for such kind of business to implement action plan so in this way they
can approach other market changes in an effective way. There is various development of
technological, people social standard that has increase high level of performance (Audretsch and
Link, 2012). There are several factors of action plan are as follows:
 To inquire market research soil that improvement area can be determined by Baby Bear.
 To recognize the sources that can be mentioned.
 Out several factors, it is necessary to select those source which are on priority.
 To determine the advantageous that can be attained through other change as higher
buyer’s satisfaction.
 All the factors are important as well as needed in formulation of plan.

In the current case, mentioned business required to select different changes as planning to give
educational and other activities such as painting, drawing, sports and dancing etc. to formulate
this idea in action so it is necessary to adopt action plan:
 Evaluate marker research and it is determined that there are several competitors in
marketplace who are giving best services at low price.
 It is specified that they have focus on current improvement, changes of an environment
etc. in this way parents have focus to refer their kids in an economy (Burns, 2010).
 When these needs are complete, it is determined that such kind of business has attained
several buyer’s satisfactions.
TASK 4
4.1 Impact of changes on company and its personnel
There are several modifications that are incorporated in enterprise, that has positive as
well as negative effect over Baby Bear and its individuals.
Impact on business
 Different opportunities came in unit when various changes boost in company. This is an
essential element for firm to select other sources because it expands in new market of
business in large area.
 Efficiency will be increase so it is another source that boost in industry. Regarding to the
other modification then cited company can target several buyers and give best service
quality that output in maximise in its profitability. When in this way innovative source are arise in industry, it is very important as well as
necessary to select it which has effected its performance (Fassin, Van Rossem and
Buelens, 2011). When enterprise fulfils the client needed then its image in marketplace.
Impact over personal
 The case of mental stress something to its workers because it is necessary for them to
select other changes. Available person is want to follow different practices that they are
determine from past duration and when they select other changes.
 Loyalty loss is another main factor that is faced by an individual. When in this way other
changes are selected by Baby Bear then it has focus to decrease the worker’s salary. For
the reason, several workers left their job.

4.2 Management of changes in company
It is very important for cited company to believes modification in an effective way. There
is different alteration that are faced by such type of enterprise by the specific time and it is
needed to monitor such sources.
Baby Bear can be considering such as Kotler’s factor are follow as:
Create sense of urgency: In this way workers are aware regarding the changes need. It needed
honest as well as conceive communication to handle solution to issue.
Crate guiding coalition: Group of the project is needed to launch which can co-related with
other changes.
Create vision for change: It will support to identified what is the need behind the modification.
It gives assist for implementation of successful (Hilmersson, 2014).
Communication vision: It is important as well as required to evaluate the modification by whole
workers and, it is assert-able by communication so that fair plan can be transferred.
Remove Conflicts: To reduce obstacles that is essential to consider before changes of
implementing. In this way communication support to tell modification importance to resisting
person.
4.3 Monitor improvement in performance of the business
It is essential for a business organization is to evaluate and review the overall
performance of their business on regular basis. There are various tools and techniques which can
be used by the company in order to meet its short and long term goals and target in an effective
manner. These tools can:
Evaluate the core activities: This is one of the major area where a business organization can
analyses and evaluate their performance. According to the give company, the core operation of
business is related with the child care and protection (Nga and Shamuganathan, 2010).
Therefore, this is the responsibility of higher authorities is to provide high quality services to
them. for this, they need to conduct feedback survey of its clients and review their all activates
and make their decisions accordingly.
Review financial position: This is another significant area for any business which provide an
actual position of the business. therefore, this is the responsibility of higher authorities that they
monitor these statement on regular basis. These are:

Ratio analyses: there are various ratio which needs to be focused by the stakeholder and make
their decision accordingly. these ration involves (Stokes, Wilson and Wilson, 2010).
Quick ratio: this is one of the most significant ratio where a business analyses the cash position
in the company. For example, if these ratios are more than 1 it means cited firm is able to paid
their liabilities without selling its fixed assets. In the given context, the queick ratio are
satisfactory level which is good sign for the organization.
Return on asset: This is related with the firm’s ability to gain return from its asset. If such ration
is good show that company’s position is good as compare to previous year.
CONCLUSION
As per the above mention report, it can be concluded that small business enterprises is
very important part of an environment. This is essentials to gives success as well as growth to
market. In this report Baby Bear is a SBE that gives day to day care services for kids. They select
different mechanism so that they can give healthy services to its customers such as children.
There are several modifications came in force so it needed for such kind of company to make
focus on that as well as consider it for required development. They can expand their business in
new are by giving twenty-four hours’ day services, to open pre-school and other curriculum
activities.

REFERENCES
Books and Journals
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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.
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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Gunasekaran, A., Rai, B.K. and Griffin, M., 2011. Resilience and competitiveness of small and
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Hilmersson, M., 2014. Small and medium-sized enterprise internationalisation strategy and
performance in times of market turbulence. International Small Business Journal. 32(4).
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Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
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pp.259-282.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
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Williams, S. and Schaefer, A., 2013. Small and medium‐sized enterprises and sustainability:
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Online
4 Simple Strategies to Improve Your Business Success Rate. 2017. [Online]. Available through:
<https://www.entrepreneur.com/article/239706>. [Accessed on 10th August 2017]