Managing SMEs: Growth Strategies and Government Support - UK Context

This report examines the management of small and medium-sized enterprises (SMEs), focusing on the nature of entrepreneurship, the startup process, and the business concept. It highlights the growth and development of Wiser Company, an SME in the UK, and explores the challenges it faces, such ...Read More

MANAGING SMALL AND
MEDIUM SIZED ENTERPRISES

TABLE OF CONTENTS
• Introduction
• Nature of the entrepreneur and entrepreneurship
• Start up process
• Business concept
• Sources of competitive edge
• Growth as well as development of the business to date
• Challenges faced by SME
• Strategies adopted for the growth and development of SMEs
• Support measures by the government to overcome the
challenges
• Data analysis
• Conclusion
•References

INTRODUCTION
• SMEs are the small and medium sized
enterprises in which business is operated on a
small scale.
• There are different types of enterprises and
ventures in the economy.
• Wiser Company is one of the SMEs located in
UK.
• Research is conducted to know the growth of
SMEs in the country.

NATURE OF THE ENTREPRENEUR AND
ENTREPRENEURSHIP
Entrepreneurship is the process of setting and
establishing the business and takes risks for
earning profitability.
• Innovative ideas and creative thoughts.
• Risk bearers.
• Required skills to make the business profitable.
• products are developed after appropriate
market research.

START UP PROCESS
• Market research
• Develops an idea
• Analysis the effectiveness of the idea
• Analysis the resources
• Designs a blueprint

BUSINESS CONCEPT
• It is essential to keep the concept of
the business very clear.
• Wiser Company works with the
concept of providing right opportunity
to the right people.
• Concept provides direction for
achievement of the goals.

SOURCES OF COMPETITIVE EDGE
There are certain resources which are the
valuable assets for the growth of the
business and provides the company a
competitive edge in the market. They are
as follows:
• Human resources
• Technology
• Strategies

GROWTH AS WELL AS DEVELOPMENT
OF THE BUSINESS TO DATE
• SMEs grow and develop in the business
environment at a slower pace.
• Wiser company has experienced growth
from the year it has established its
business.
• It has provided valuable services to the
customers and has gained a competitive
edge in the market.

CHALLENGES FACED BY SME
• Lack in the availability of resources i.e.
technology, market access, skilled labour,
finance, market information etc.
•They lack in gaining economies of scale and
have less scope to grow in the market in
comparison to larger organisations.
•SMEs are not able to build much connections
and networks which results in the insufficient
information, and experience of the market
nationally and internationally.

STRATEGIES ADOPTED FOR THE
GROWTH AND DEVELOPMENT OF SMES
• Product development strategy
• Market penetration strategy
• Market development strategy
• Marketing strategy
• Quality service to the customers
• Pricing strategy
• Human resource strategy

SUPPORT MEASURES BY THE
GOVERNMENT TO OVERCOME THE
CHALLENGES
• SMEs are the major part of the
economy.
• Government is taking vital steps for
supporting the SMEs and helping them in
overcoming the challenges.
• Effective provisions are taken and
financial assistance are provided by the
government.

Data Analysis
Q: Does SMEs contribute towards the
economy of the country?
Options Response
s
Yes 9
No 1
Yes No
9
1
Responses
Responses

CONCLUSION
• SMEs establish the business with a new
business concept.
• They get a competitive edge in the
market with the help of their innovative
ideas.
• Challenges faced by SMEs are handled
with the effective measures of the
government.

RECOMMENDATIONS
•SMEs are required to adopt the latest technology for
competing in the highly competitive market.
•SMEs should involve in the cross border trade.
•The firms should include digitalisation for gaining a
competitive edge in the market.
•It is highly recommended to effectively and efficiently utilise
the financial assistance provided by the government.
•Provide quality services and products to the customers for
gaining their attention and trust.
•The companies are required to formulate effective strategies
after considering the various factors and aspects prevailing in
the business environment.

REFERENCES
•Department for international development, 2015. 2010 to
2015 government policy: economic growth in developing
countries. [Online] GOV. UK. Available at:
https://www.gov.uk/government/publications/2010-to-2015-
government-policy-economic-growth-in-developing-countries/
2010-to-2015-government-policy-economic-growth-in-
developing-countries. [Accessed on: 10 March 2018]
•Ramukumba, T., 2014. Overcoming SMEs Challenges through
Critical Success Factors: A Case of SMEs in the Western Cape
Province, South Africa. Economic and business review. Vol. 16,
No. 1. pp. 19-38.
•Yogo, N. A., 2013. Growth strategies adopted by small and
medium business enterprises in oyugis town, homa bay
county, Kenya. School of business. pp. 1-51.