Managing Small and Medium Sized Enterprises Essay Example

barriers to their growth and most of all there is very less support from the government side.

In this essay the case of a local Entrepreneur will also be analysed who has an idea of expanding his business (irepair) but does not get the required finance. Issues facedThe first and foremost problem which is faced by almost all the small is the access to finance. Finance plays an important role in the expansion and growth of a business where the business required finance. The irepair business has a very high potential but does not get enough finance.

Banks have made their lending criteria strict and most of the small businesses find difficulties in raising money for expansion. Moreover another factor is the competition from the big players in the market who have taken up a large share and are using the cost leadership strategies to beat the small businesses.An example is of large superstores like Tesco which has badly damaged the business of corner shops which were a part of UK’s household for ages. Not only corner shops but because of online stores so many high stores have closed down which has resulted in the jobs being lost. Small and medium sized businesses apart from funding face problems in coping up with the regulations because the red tape regulations are sometimes so hard to meet that many ideas are lost in the initial phases because they cannot be taken forward.

There are reported number of cases where entrepreneurs have been racially discriminated because they belong to ethnic minority groups. Some of the barriers to growth are as follows:According to the business survey The Economy has

been the main obstacle to the business growth. The UK has been hit by recession by two times and still faces the danger of triple dip recession which has unfortunately resulted in many businesses being closed down. Because of turbulent times people do not have money to spend and look for cheaper prices which only big organisations are able to provide. For 11% SME’s cash flow accounted as the main obstacle.