Small Business Management Analysis Report

RUNNING HEAD: SMALL BUSINESS MANAGEMENT
MANAGEMENT

SMALL BUSINESS MANAGEMENT 1
Ella’s Kitchen is a medium sized company based in United Kingdom. It offers healthy eating
products to the babies and children with an aim of solving the concern of the parents of
young children. It offers multiple benefits to its human resource like offering gym service and
maternal leaves. The entrepreneur named Paul Lindley was of highly ambitious nature. The
entrepreneur relied on two year market research to come up with an enterprise. At present,
Ella’s Kitchen experiences fine demand for its products in UK and global market.
The SME acknowledges multiple challenges of raising fund, attracting new customers,
increasing revenue, competitive edge, and ineffective use of technology, global expansion
and rising cost. The application of PESTLE framework states that the SME experiences fine
business environment in UK.
The UK government has undertaken multiple measures to support the SME and it includes
GOV.UK website, National Business Support Helpline, Financial support, Growth hub, and
Intellectual Property Office.
It is recommended that organization should offer non-financial benefit and opt for social
media marketing, sustainable approaches, market entry via digital platform, and economical
training programs to fulfill the challenges.

SMALL BUSINESS MANAGEMENT 2
Contents
Introduction................................................................................................................................3
Findings......................................................................................................................................3
Company overview....................................................................................................................3
Nature of the entrepreneur......................................................................................................3
Start-up process......................................................................................................................4
Challenges..............................................................................................................................4
External environment analysis...............................................................................................5
PESTLE Analysis...................................................................................................................5
Government support measures...............................................................................................7
Conclusion..................................................................................................................................8
Recommendations......................................................................................................................9
Bibliography.............................................................................................................................13
Appendix..................................................................................................................................15

SMALL BUSINESS MANAGEMENT 3
Introduction
The report focuses on the concept of ‘Managing Small and Medium Business Enterprise. A
SME is a company with limited number of employees (Bridge & Neill, 2012). According to
UK’s company’s Act 2006, a medium business is referred as company with a turnover of 50
million and employees of around 50-249 (employees). Business management refers to
provide insight considering business functioning. It involves developing the usage of
managerial skills to accomplish the goals (Vitez, 2020). There is a continuous rise in the
small business operations. The increasing number of SME is also raising the economy of the
country (Storey, 2016).
Focusing on report structure, the initial section includes the key challenges faced by SME
business enterprises. The next section comprise of external environment analysis with the
application of PESTLE model. It also emphasizes on multiple initiatives and measures
adopted by the legal bodies in support of SME. The succeeding part also comprises the
practical recommendations for improvement in SME. The key purpose of the report is to
analyse the SME operating in United Kingdom.
Findings
Company overview
Ella’s Kitchen is a UK based medium business enterprise offering organic and healthy food
to babies and kids. It was founded in the year 2004 and aims to grow children by providing
tasty, healthy lacking sugar, salt, additives and concentrates. It was founded by Paul Lindley
and it is one of the best small companies of United Kingdom. Its employee strength counts to
80 and it earns revenue of around £80 million (Holtaway, 2018). It offers high number of
benefits but still faces the problem of staff turnover (24%). It offers free gym and sport
facilities to all its employees. It offers health insurance, maternity leaves, and profit related
payment to its human resource (Best companies, 2019).
Nature of the entrepreneur
Paul Lindley was a highly ambitious individual and attains a clear goal and purpose in mind.
He is a multitasker as he is also writer of ‘The huge power of thinking like a toddler’. He
attains multiple qualities of an entrepreneur as he