SME and Entrepreneurial Theory: Best Practices for Marketing in the Hospitality Industry

SME and
entrepreneurial
theory

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Table of Content
• Introduction
• Explanation of SME
• Characteristics of SME
• Importance of SME
• Advantage of SME
• Disadvantage of SME
• Best practice methods and techniques of entrepreneurial
marketing in chosen organisations
• Word of mouth to mouth marketing

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Introduction
• Small and medium sized
enterprises are those
businesses which operate
with few number of
employees cover less
geographical area
(Cusmano, 2018).
• They are the one who
provide local products to
their local customers and
they contribute an economy
to grow well.

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Explanation of SME
• In context of UK, SME are those organisations which are
having employees below than 250 and they have less
than £25 million turnover. It also includes having gross
asset less than £12.5 million (What is a small business or
SME, 2020).
• According to a research, it is recorded that there are
almost 5.94 SMEs business across the UK at the start of
• SME are those organisations which maintain
employees, revenues and asset below a certain limit.
Every country is having their own definition of SME
and has fixed a certain limit for them which are
different from another country (Gebauer, 2018).

Limited investment- The capital which is required by the entrepreneurs to start their
SME is less due to their small scale operations (Liñán, Paul and Fayolle, 2020).
Labour intensive- SME’s did not require high quality of machinery and tools, they
only require good quality of management and skilled labours to work for the company.
Less number of employees- Due to their small scale of operations, SME requires less
number of employees. Hence, they high fewer employees as compared to large
companies.
Management- Most of the SMEs is managed by a single or few group of individuals.
In context of family business, the head of the family take all managerial decisions for
the business.
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Characteristics of SME

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Importance of SME
• Employment generation- SME help
an economy to grow by generating
various kinds of jobs and opportunities
for those individuals who seek
employment for their survival.
• Promote local products- SME focus
to offer local products to their
customers which is essential to
maintain the culture of an economy.