A critical analysis of small and medium size firms in Tobago

Running head: DISSERTATION
A critical analysis of small and medium size firms in Tobago
Name of the Student
Name of the University
Author’s Note

1DISSERTATION
Abstract
This research project is performed on the small and medium size organizations located in
Tobago. The major purpose of the research is to derive a useful insight about how the small
and medium size firms perform in a recently growing market environment. The introductory
chapter of the research provides the idea that small and medium size firms in Tobago have
recently observed a rapid growth due to arrival of foreign investors, economy and
government initiatives toward the development of SMEs (Small and Medium Enterprise) in
Tobago. The review of existing papers help to observe that even though the small and
medium size firms in Tobago are on the edge of development, the employers are not much
concerned about the incorporation of corporate culture and growth due to limited workforce.
This means that labour crisis in the regional environment is creating a strong influence on the
small and medium size organizations. In addition, the existing literature also provides the fact
that SMEs in Tobago usually have a family based culture, where each member is treated like
a family person who take an equal amount of responsibilities and have equal contribution to
task accomplishment. Both primary and secondary analysis have been performed in the
research. Primary data have been collected from books, and journal articles while the
secondary data have been collected by performing an interview among the employees and
managers of small and medium size firms in Tobago. Non-probability sampling method has
been applied to choose the respondents and sample size for the interview is 5 managers and
50 employees of small and medium size organisations in Tobago. The findings indicate that
even though SMEs in Tobago receive a sudden growth but the internal structure of small
businesses are not in place. Employees in such small businesses lack motivation due to lack
of monetary and non-monetary benefits. Due to ineffective leadership style, employee growth
is limited. The findings indicate employees demand an organizational culture where they can
openly discuss their workplace and personal issues with supervisors and managers.

2DISSERTATION
Table of Content
CHAPTER 1: INTRODUCTION..............................................................................................7
1.1 Introduction..........................................................................................................................7
1.1.1 SMEs contribution........................................................................................................7
1.1.2 Governmental back up to SMEs in Tobago..................................................................8
1.2 Research Rationale...............................................................................................................8
1.3 Research Aim and Objectives..............................................................................................9
1.4 Research Questions..............................................................................................................9
1.5 Research Scope....................................................................................................................9
1.6 Outlines of the following chapter.......................................................................................10
1.6.1 Chapter 2: Literature Review......................................................................................10
1.6.2 Chapter 3: Research Methodology..............................................................................10
1.6.3 Chapter 4: Findings and Analysis...............................................................................10
1.6.4: Conclusion and Recommendation.............................................................................10
2.0 Introduction........................................................................................................................11
2.1 Organizational culture of SMEs in Tobago.......................................................................11
2.2 Government’s initiatives in backing the SMEs in Tobago................................................12
2.3 Larger access to Finance....................................................................................................13
2.4 Impact of small business enterprises on the economy.......................................................14
2.5 GDP/Revenue/Value Added..............................................................................................15
2.6 Nation’s strategies to enhance the business environment..................................................17
2.7 Impact of the internal forces on business performance of SME........................................18

3DISSERTATION
2.8 Gap Analysis......................................................................................................................22
CHAPTER 3: RESEARCH METHODOLOGY.....................................................................23
3.1. Research Philosophy.........................................................................................................23
3.2. Research Onion.................................................................................................................23
3.3. Research Methodology......................................................................................................24
3.4. Research Approach...........................................................................................................24
3.5. Positivism..........................................................................................................................25
3.6. Realism..............................................................................................................................25
3.7. Interpretive........................................................................................................................26
3.8. Pragmatism........................................................................................................................26
3.9. Data Collection Methods...................................................................................................27
3.10. Research Strategy............................................................................................................27
3.11. Research Choices............................................................................................................28
3.12. Questionnaire Development Process...........................................................................28
3.13. Sampling Theory.........................................................................................................29
3.14. Interviews....................................................................................................................29
3.15. Questionnaires.............................................................................................................29
CHAPTER 4: FINDINGS AND ANALYSIS.........................................................................31
4.1 Introduction........................................................................................................................31
4.2 Data findings and analysis.................................................................................................31
1.3 Questionnaire for Employees........................................................................................37

4DISSERTATION
CHAPTER 5: CONCLUSION AND RECOMMENDATION................................................44
5.0 Conclusion..........................................................................................................................44
5.1 Linking objectives with the literature and primary data....................................................44
5.2 Recommendations..............................................................................................................47
5.3 Limitation...........................................................................................................................48
5.4 Future scope of the study...................................................................................................48
References................................................................................................................................49
Appendices...............................................................................................................................55
Interview Questions for the Managers.................................................................................55
Questionnaire for Employees...............................................................................................55
Quantitative Data (Transcript).............................................................................................59
Transcript (Qualitative Data)...............................................................................................66

5DISSERTATION
List of Table
Table 1: Leadership initiatives in the cottage industry............................................................19
Table 2: Organizational culture contributing to performance improvement...........................21
Table 3: Leaders’ initiatives motivating in employees............................................................23
Table 4: Motivational factors...................................................................................................25

6DISSERTATION
List of Graphs
Graph 1: Influence of functional elements on business...........................................................40
Graph 2: Leadership initiatives in the cottage industry...........................................................41
Graph 3: Organizational culture contributing to performance improvement...........................42
Graph 4: Leaders’ initiatives motivating in employees...........................................................44
Graph 5: Motivational factors..................................................................................................46

7DISSERTATION
Topic- A critical analysis of small and medium size firms in Tobago
CHAPTER 1: INTRODUCTION
1.1 Introduction
This research project provides a detailed analysis of small and medium size firms in Tobago
by justifying author’s interest in whether small and medium size firms contribute to trading
and business in Tobago. The chapter defines aims and objectives are clearly stated in the
chapter to give an idea about how the research is conducted and which areas are particularly
analysed.
Small and medium size enterprises fall under the category of rapidly growing businesses
providing maximum work opportunity to nation’s citizens (Duval and Utoktham 2014). Large
MNCs are usually not high in number due to unstable and slow economy but small and
medium size firms under a limited financial capital find it convenient to operate business in
Tobago (Bahaw 2017). Thus, it is highly necessary to perform a research on how SMEs have
become a backbone of Tobago’s GDP and trading.
1.1.1 SMEs contribution
Trinidad and Tobago introduces initiatives to secure funding for small and medium
size enterprises by contributing a significant percentage to GDP as well as providing work for
a large part of the workforce. As per the T&T Chamber of Industry and Commerce (TTCIC),
there were above 20,000 SMEs running operation in the nation as of 2012. Ramkissoon-
Babwah (2012) mentioned that a small business in Tobago and Trinidad is defined as having
a staff 6 and 25 employees and sales up to TT$5m to TT$ ($770,000), but a medium size
enterprise in Tobago has 26-50 employees and sales up to TT$10m ($1.5m) (Lewis, Pun and
Lalla, 2005). On the basis of such criteria, the Central Statistics Office anticipates that above
80% of all registered business in the nation are SMEs. However, it is also identified that even