Challenges and Growth of SMEs in UK

Small & Medium Enterprises

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
FINDINGS.......................................................................................................................................2
Nature of an entrepreneur behind venture...................................................................................2
SME start-up process...................................................................................................................2
Business concept and competitive advantage..............................................................................3
Current demand and competitive market.....................................................................................4
Growth and development of a business.......................................................................................5
Challenges of managing and running of business.......................................................................5
SMEs current growth and development strategy.........................................................................6
Government support to measure that help business to overcome challenges..............................7
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In UK, small and medium business contributes to the major proportion to the growth of
economy. Presently, it is one of the best sources for increasing employment within UK and it has
been created around 2 million jobs in last 5 years. Similarly, the present study is based upon the
Objectivity Ltd which is deal in software industry and also provides custom software systems to
their customer at reasonable price. The company has over 600 employees and they serve in
multiple industries which include financial service, real estate industry etc. The company faces
issue due to unstable political and economic situation directly affects the overall performance of
a company in adverse manner. Further, pandemic also increase the demand of software
especially in corporate sectors. The present study will help to understand the challenges faced by
the business and through external analysis, it assists to analyze the overall situation of a
company. Moreover, recommend the strategies and describe the government support measures
available for the business to overcome challenge.
FINDINGS
Nature of an entrepreneur behind venture
By identify the market, entrepreneur of Objectivity Ltd, design the software that helps to
provide augmented service for a retail solutions company. The nature of entrepreneur behind
establishing the venture is to develop team who meet the defined aim and provide best service to
their client regarding development, business analysis and test functions. Through such, company
is able to work more efficiently and also interact with software in order to improve the business
operations.
Therefore, by establishing a venture will support the company to manage their client’s
system by offering best cloud solutions and improve software as well. This in turn reflect that
company determine the market need and then introduce a venture that helps to maximize the
satisfaction level of customers and minimize the need.
SME start-up process
To introduce a venture, below mentioned steps should be followed:

 Market research: In order to introduce a small business in UK, it is necessary for the
owner or entrepreneur to conduct market research that helps to determine the need of a
customer (Noor and et.al., 2018). This helps to find the competitive advantage of a
business which includes demand, market size, economic indicators etc.
 Business plan: It is a foundation of a business and a roadmap which describes business
structure and targets the people as well. This includes complete detail about a business
which will going to start. In this, different key element included such that external and
internal environment, key competitors, target market etc.
 Fund: Company should plan to figure out the money which is needed to a business and
may use bank loan, personal saving, angel investor as a source of funding.
 Location: Another important decision on which the entire business is depend. For
Objectivity Ltd, UK is the best option because of growing corporates, financial services
etc.
 Business structure: Business should also choose the legal structure because it may
directly impact upon the business registration requirement. Along with this, company
should also include the organization structure which needs to be followed in order to
meet the defined aim and objectives.
 Registration: Once the above steps completed, company must register itself and make it
legal by choosing a best name for a business.
Business concept and competitive advantage
Business concept:
 Service and product offering: Objectivity Ltd offer the best IT services to their clients
which includes IT consulting, cloud service solution, Data & Artificial Intelligence, low
code service and designing & development. Target people: The target people of the quoted firm are real estate industries, financial
services, business service people (Objectivity Ltd, 2020). USP: Objectivity Ltd offer custom software and web development solution that helps to
design the product on the basis of the customer demand which make them differ from
competition.
Competitive advantages: