Small and Medium Enterprises: Analysis of Ensoft Limited

This report analyzes Ensoft Limited, a small business in the computer and software communications industry. It explores the nature of entrepreneurship, the startup process, and the competitive advantage of the company.

Small and Medium
Enterprises

Table of Contents
INTRODUCTION...........................................................................................................................1
FINDINGS.......................................................................................................................................1
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Small and medium enterprises (SMEs) are one of the most important factors of a developed and
developing economy. The SME sector represents more than 90 percent of businesses in many
developing countries and contributes 40-60% for total production of a country. The UK based
Company can becomes an SME by following certain procedure. This includes a business profit
of less than £25m, total assets of less than £ 12.5m, and employs less than 250
employees.Selected SME for analysis in this report is Ensoft Limited. This business is an equal
opportunity employer and operates in the field of computer and software communications. As
Ensoft is a small business, it employs 71 software and communications engineers. These
engineers have been tasked with advancing Ensoft's agenda to allow it to achieve its goals (De
and et. al., 2020). Significantly, of the 71 engineers, 62 are male and only 9 engineers are female.
According to Ensoft Ltd Company Profile the average age of Ensoft employees is 33 years, and
more than 50 percent of these employees have worked for Ensoft for more than five years.
Therefore, following assignment demonstrates the nature of the entrepreneur and the startup
process along with identifying the business concept and the competitive advantage of the
company.
FINDINGS
Ensoft Limited is a small business or computer network business and software industry. In
conclusion, Ensoft Limited offers advanced communication software solutions and computer
programs. This SME works in partnership with retailers based in the USA based on industry-
leading forums for edge or primary purposes. Ensoft Ltd is headquartered in Harpenden and was
established in April 1997 as a private enterprise. Ensoft limited is a software company with about
70 male and female engineers focused on providing and developing all aspects of computer
communication software. Therefore, Ensoft Limited aims to keep the world connected by having
software on the edge and working within the Internet (Richardson, 2020). The unique technology
and knowledge of its dream team, the team’s commitment to personal development and training,
and the high level of graduate students each year.
Nature of Entrepreneur
An entrepreneur is actually a business innovator who is trying to create new technologies,
products, markets, etc. Composing can involve creating new things or creating existing ones
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differently. An entrepreneur uses his creative skills to create and seize market
opportunities .Ensoft Ltd is also outcomes of the information communication technology uses in
which Johnathan Turnbull laid the idea of starting a software technology company along with
their friends and now the business start-up has gained consistently for the third time the best
small business company in the UK. Therefore based on these factor following are the few nature
of Johnathan Turnbull as a successful entrepreneur-
 Vision- A entrepreneur is a person who is able to visualise their idea and thoughts in the
reality, this visualise is regards to the idea of the market.
 Desire to success- Johnathan Turnbull has long term desire to be success in its start-up
process and this never give up trait helped him to laid the great foundation of this
fabulous business process.
 Initiative-A entrepreneur takes the initiative of the every things that is essential for the
business from stating a stirrup process to arranging the finance for the projects. An
entrepreneur is a person who runs a business by investing in the capital.Johnathan
Turnbull introduced this feature for the first time in which he combines the resources
needed to run a business (Igwe, Nwajiuba, A. and Igwe, 2021).. Thus, entrepreneurs
develop different types of businesses in the community. The entrepreneur as a man who
made a small pool of successful, innovative and innovative efforts.
 Value creator- An entrepreneur is a person who starts and runs a business for profit and
growth only. Johnathan Turnbull status company turnout to be the best small size
company in the UK based on the profit because this man know very well how to create a
value addition service for their clients.
 Innovator-Most of the entrepreneur come out with the innovative approach and
Johnathan Turnbull success in their business just because of their innovative idea and the
innovative software technology that transform the business in a new way.
 Risk taker-A true entrepreneur is a risk taker because if there is no risk there is no gain at
all, Johnathan Turnbull does not hesitate to take any kind of risk for the success of their
business idea (Kaźmierczak, 2020).
 Act as business change agent in the society- An entrepreneur is considered an economic
agent who combines goods to produce goods at a price that guarantees profit and profit.
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He is also understood as a transformation agent in the formation and formation of an
organization, market and market for goods and services.
Start-up process in SME
Self- assessment-
In self-assessment, the business idea is generated and the steps were taken out
theentrepreneur or person need to take a self-assessment in which they outline their initiative
regarding the idea risk in the reality and make their initiative and optimism for achieving these
goals. It is a two way process in which either a person move further with their thought or side
step their idea because of the uncertainty of the success.
Write a business plan
There are three reasons which are considered as important in writing a business plan.
First, it serves as an active road map; second, it sets out the principles to be followed; and third,
it is the need for lenders if Ensoft have to go to them to get a first loan.
Choose legal structure
The next thing is to select the suitable business entity. A business entity shows the
business operations and the economies of scale goal which they want to achieve. There are
various types of the business entity available which determine the firm capability for paying the
tax and to acquire the expected revenue over time. Some other types of the organisational
structure are as follows-
 Sole proprietorship
 Partnership
 Limited liability company
 Public limited company
 Cooperative society
Ensoft ltd is a type of partnership software company as this business legal structure
fascinate the owner to share the risk and the profits and the liabilities are shared among the
partners.
Do market research
The first thing that John Turnbull should do before starting a software development
company is to conduct market research. This will include target groups, business competitors,
and the needs and requirements of our customers. Analysis of the category that provides an
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introduction to a period, or period. In the introduction stage, it does not have any software
available on the market. As a result, the product may not be available if they don't know what
customers and their needs are. This example shows that the first problems appear not because of
a failed product, but because of a crowded market. If users are satisfied with the proposed
solutions, they may be less likely to look for alternatives. A similar situation occurred at Rioio if
they had a paid version of their product, while Ensoft started offering free services for the
advertising version of the product. This is how to choose the right category and enter the market,
which is crucial for a successful product development in the niche market.
Choose how to market software
Another important factor is deciding how to market those software and technology in the
targeted market. If there is a similar offer in the market, learn how competitors work. Basically,
Ensoft can sell software directly to their targeted audience which are their end users or they can
allow users to download the following software from their official website. Notably, key
products offered by Ensoft Limited include software such as Ethernet carrier, broadband, mobile
and video, as well as an edge line. Key services include providing consulting services to provide
their clients with consulting services for better software solutions and other IT services or major
Ps, a marketing strategy for all businesses incorporates the way a business uses to provide its
products and services to its customers.
Obtain finance for the business.
Most of the small businesses require huge amount to start their business. They can use a
loan structure for funding more finance in the business. Finance is the lifeblood cell every
organisation and there is need of finance to carry out the project they can gain and obtain the
loan from the financial institutions and bank and from the SBA backed loans. Moreover, Ensoft
can get the government support as there are many government scheme which are meant for the
upliftment of the financial institutions (Raphiri, Musonda, and Okoro, 2020). Companies like
Ensoft with the potential for speedy development be eligible for angelic investment or business
finance from the various angels funding and eligible to get loan for short term from the banks.
Protecting the intellectual property of the business
Once the idea get appreciation by the investing party there need to get the necessary
patents and register trademark for the software and technology with aim to safeguard these from
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being copied by the other small businesses. Make a collaborative sign and non-disclosure
agreement during the software development to protect the information related to business.
Business process and competitive advantage
The business process of Ensoft limited depends upon the one and only the innovation
process because they are dealing the technology segment which is highly changing and every
business need to keep themselves abreast with the changing market trend.
Innovation means using new ideas for developing new and attractive product. Being an It firm,
Ensoft could try developing new applications or services that can make a variance in the
technology of community, which will improve the rate of the firm and support it increase
competition profit, which further assist the firm to grow high in future by competing their
competitors while launching innovative applications and services.
Figure 1business process profile of Ensoft
(Source: By Author)
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Competitive advantage strategies for Ensoft
Product Development:
Development of product means starting new products or services which is unique and
different. This strategy is known asproduct modification too. As Ensodt is a small size business
organisation which delivered software solutions and developing many new apps or other
technical service can opt a way to start working on their software development for Ensoft Ltd to
gain more interest of their customers in their company’s products.
Market Development:
Market development strategies are considered as effective and efficient way of
developing internationally for business. The market development strategy must definitely aim to
grow the worldfull growth and maturity. Being an IT company, it is very easy for EnsoftLtd to
spread their business functioning at worldwide area, as it does not require much money in
building the infrastructure to do that.
The current level of demand the competitive environment
Ensoft., Ltd. is ranked in the top 100 small businesses operating in 2018. The company has
delivered software solutions for routers to work both on the Internet and in corporate networks.
This is very good and effective precisely as a small business owner, but it has something to do
with their most dangerous threat-the ever-increasing competition in the market (Hirsch and
Nachtwei, 2020). Therefore, it can also be seen as a chance for the company to grow its business.
With the development of information technology (IT), there are more and more players in the
market, which means that after the COVID-19 outbreak, the IT industry that produces a lot of
work, and the demand for software, as if they were on fire.
England has an ironic history and culture, new technologies and technological know-how, and
this is evident in the rapid development of software engineering. It is estimated that the UK
software market had total revenues of $ 23.7 billion in 2019, representing an annual growth rate
(CAGR) of 12.7% between 2015 and 2019, and people rely on electronic devices in all aspects of
their daily lives.
Challenges faced by the SME like Ensoft limited
Many small and medium-sized enterprises are included in the IT team, and some do not
even have an IT team, which can have negative consequences for the company. A simple and
cost-effective way to get your work done 24/7 by a team of experts in the field. Solutions, for
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example, in the process of migrating servers in the cloud, instead of going to a website,
instagram space, resources, and, above all, gives you the opportunity to take a step forward and
relax, as you will be taken care of.
Challenge 2 - Lack of Budget Development:
The cost of purchasing the server, as well as the cost of its development, storage, and backup of
data are not allowed when it comes to cloud access. Ensoft simply pays a monthly fee based on
the amount of storage required for flexibility when business requires that (Salehzadeh and
Tabaeeian, 2021). Think about phone plans; traditional ISDN systems can be very expensive for
cable care and hire. Also, a small-sized business is often short of funds due to the small size of
the business and the profitability.
Challenge 3 - No Support When Something Go Wrong:
Most of people have been waiting for hours for someone to call us to help us on the phone, only
to be told that he was "probably not coming back". This is a major challenge where the use of IT
is important in business, especially if they do not have the necessary problem-solving expertise.
Leisure time loses confidence in their business venture. Therefore, the appropriate level of
funding is important for the SME,
Challenge 4 - Fluid Workforce (Partnership):
Since employees are still working, whether on the road or at home, with the appropriate
infrastructure, this is crucial. Many small companies find it difficult to find and attract qualified
employees, but due to weak budget development, they may not see the employment of highly
qualified employees (Wahyuni, Fuadah and Kadir, 2020). Having the necessary infrastructure
and effective tools that allow employees to access applications and documents that are located
outside the office. It also allows employees to work safely, efficiently, and easily switch from
anywhere, anytime.
Challenge 5 - Compliance (GDPR):
The General Data Protection Regulation entered into force in May 2018. Companies must
demonstrate that they are working to obtain all of the client's personal data. Failure to comply
with this requirement can lead to large fines, and compliance with the GDPR requirements by
small and medium-sized enterprises can be difficult.
Current growth and development strategy for Ensoft limited
Market penetration strategy
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In this strategy, Ensoft will raise its prices and achieve the world goal, even after
reaching the expected company profit, and then lower the price. If Ensoft Ltd has so many
competitors in the market, it doesn't make sense to have a high price. This will help you in
business, but it can also be a guarantee that the company is less valuable in cases where
customers need it.
Market differentiation strategy:
Market segregation is completely different from the previous strategies discussed in this
chapter. This means that the concept is completely rooted in new and different markets, as well
as the introduction of new products and services. If Ensoft has been well positioned in the market
for a long time and is very popular in the market, it can be distinguished from the market, and it
did not have the right background for trust, confidence and experience (Williams, 2020). Success
in the list as one of the top 100 small and medium-sized businesses to operate in 2018 will
increase the company's value and product value. This price is the price of a product that will have
the advantage of Ensoft. Ltd. in the event that they start a new business.
Recommendation
From the above study it has been advised that Implementation of the SME development
strategy with the participation and cooperation of many stakeholders. In most cases, the legal
framework, rules, regulations and administrative documents will have the greatest impact on the
development of the SME sector. However, consultations at this level should not be limited to the
formulation of principles, laws, rules and regulations. No, with the right administrative capacity,
particularly at the local level, where Ensoft owners have contact with a reinforced structure, it
would be difficult to achieve the desired results
CONCLUSION
Therefore, following above conducted report help to get insight about the knowledge of
the Small and medium size enterprise and about the nature of entrepreneur. Also, following
report is used to conduct the business process and the start-up process of a small size business
along with analysing the key challenges which were being faced by a SME in UK along with the
further growth development strategy for the business. Moreover, from the above study it has
been demonstrated that many small and medium-sized enterprises are included in the IT team,
and some do not even have an IT team, which can have negative consequences for the company.
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A simple and cost-effective way to get your work done 24/7 by a team of experts in the field.
Even so, Most of the small businesses require huge amount to start their business. They can use a
loan structure for funding more finance in the business. Finance is the lifeblood cell every
organisation and there is need of finance to carry out the project they can gain and obtain the
loan from the financial institutions and bank and from the SBA backed loans
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REFERENCES
Books and Journals
Chang, C. and Eberhardt, K., 2020. A Regional Approach to Attracting and Retaining
Employees: A Chance for Small and Medium-sized Hotels?. In The Routledge
Companion To International Hospitality Management (pp. 401-422). Routledge.
Cummins, D., 2020. Strategy in small firms. In Handbook of Entrepreneurship and Marketing.
Edward Elgar Publishing.
De, D., and et. al., 2020. Impact of Waste Management Practices of Indian Small and Medium-
Sized Manufacturing Enterprises on Their Financial Performance. In Sustainable Waste
Management: Policies and Case Studies (pp. 53-65). Springer, Singapore.
Hirsch, M. and Nachtwei, J., 2020. Predictors for strategic HR management in German small and
medium-sized enterprises: what it takes to install a strategic HR architecture as a
contributor to success. International Journal of Human Resources Development and
Management, 20(3-4), pp.187-211.
Igwe, J.O., Nwajiuba, A. and Igwe, P.A., 2021. Migrants as Creative Economic Forces and
Contributions to the UK Local Economy. Migration Practice as Creative Practice: An
Interdisciplinary Exploration of Migration, p.119.
Kaźmierczak, M., 2020. Engaging Stakeholders as the Essence of Social Responsibility of Small
and Medium-Sized Enterprises. In CSR in Contemporary Poland (pp. 103-115).
Palgrave Macmillan, Cham.
Raphiri, M.M., Musonda, I. and Okoro, C.S., 2020. Indicators of Management Capability in
Small and Medium-Sized Construction Organisations: A Literature. Supporting
Inclusive Growth and Sustainable Development in Africa-Volume I: Sustainability in
Infrastructure Development, 1, p.311.
Richardson, E., 2020. Learning for life: funding a world-class adult education system.
Salehzadeh, R. and Tabaeeian, R.A., 2021. Antecedents of knowledge sharing in the small and
medium sized enterprises: the impact of international orientation and
responsibility. International Journal of Business Information Systems, 36(1), pp.98-118.
Wahyuni, D., Fuadah, L. and Kadir, S., 2020. Influence of Access to Finance, Human Resource
Competence, Information Systems on the Performance of Small and Medium-Sized
Enterprises with Organizational Culture as Study Moderating Variable. Accounting &
Finance/Oblik i Finansi, (89).
Williams, I.G., 2020. COVID-19, the UK Perspective: Challenging Times for UK
PLC. American Bankruptcy Institute Journal, 39(5), pp.16-56.
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