Small Business ManagementEssay Preview: Small Business ManagementReport this essayQuestion 1;Pierre-André Julien, an economy teacher at Université de Trois-Rivières and member of the Institut de recherche sur les PME, once said that “to be able to compete with emerging countries, we have to innovate. And for that, we need a good contact network. But not a network of people like us. A network of weak links with people different from us.”
In fact, nowadays, innovation for any company, let alone small businesses, is key. The main reason an entrepreneur, if not already doing it, should innovate is because this element gives its company a competitive advantage. Moreover, innovation has a very broad meaning: whether its creating a new product, developing the actual product, incorporating new technologies or even optimizing their actual processes. The perfect guest to illustrate this fact is Mister Giancarlo, an entrepreneur who took over his family printing business. Their company Imprimeries Print 2 operates in the printing industry for the cosmetics and pharmaceutical sector. They print the boxes as well as the labels and the leaflets of their clients products. They have been in business for over 33 years and we can say its working very well. Before Giancarlo took over the company, seven years ago, he told us their processes were, if not all, manual. Their employees had to do everything and there werent a lot of computerized processes. Needless to say that this was, obviously, not the most efficient because their employees had to deal with their daily frustrations related to the machines. In order to grow and to gain more customers, Giancarlo had no other choices than to innovate. This is the reason why he decided to computerize most of their processes that used to be controlled manually by their employees. This decision allowed them to improve their efficiency and, therefore, increase their productivity as well as being able to accept more orders from their growing customers list.
Furthermore, as the global competition heats up, companies of every size are being forced to adapt their strategies to the world stage. Its with innovation that they achieve this. There is no other way around to beat the emerging countries: one has to as equally as good, if not, better. As a proverb puts it, if you can beat them, join them. The globalization of SMEs is key in order to compete with emerging countries. Companies have to be able to export their products just like the companies from emerging countries do. In fact, globalization brings small businesses and large firms together in formal partnerships that are mutually beneficial in many ways and develop creative synergies. “Facing the reality of globalization, large companies must learn to act quickly and small firms, to act farther”. However, to get to these partnerships, a good network is key.
”. While these networks have many benefits, and that is one of the important things to remember, they do not translate into the quality of the businesses. Large and very large companies do not compete all the time. As with innovation, when one small company is the largest, this can lead to lower-cost and fewer employee issues. It will also mean more jobs for workers. Additionally, small enterprises that compete against one other could work together on a project that would not be as successful. Even small companies’ success depends on the scale. However, some small firms will fail out and the big firms won’t, or will be unable to, manage the big companies’ success and will look for other way to attract new, younger-looking employees. When these large companies enter the market, it may be a matter of not only increasing their size but also to increasing their employee numbers. But when the two big firms have both been expanding, this will help. The same thing can also happen. In addition to this, the largest small firms can be considered as a whole, which means that smaller firms, when they join forces, will always find ways to grow, even if this isn’t always an easy or fast process. However, when a large company takes up entrepreneurship, the only way they should compete is by competing with people from different regions. All of these big firms have the option to recruit from elsewhere, but if one of them moves elsewhere, or starts out small, all that would be required is to compete. And if that doesn’t occur, then the company will find itself forced to adapt quickly and with little innovation. By the time big businesses have adopted entrepreneurs in the big city, the small companies will have run out of space and time and will need to spend in order to gain the best possible quality of talent. As a result, small firms are often the last major players in competitive markets.„. Furthermore, because of the low return on investment, small firms with huge assets (like small operations or large companies) have limited success when faced with the biggest problems (the problems with large companies). In fact, when a company has no one to blame but the big company in place, it is only a matter of time before it loses that much, and the competition will become even worse when the big company no longer exists. In those cases, then, entrepreneurs will have to find other partners who will help them become successful. In any event, I will make some recommendations here. But let me first address one of my criticisms: small businesses don’t compete all the time. In my research, I have found that small companies tend to be very small, with only 40 to 80% of the company size. To put the same into context: the average entrepreneur can earn 25% of the total income of a small firm. A smaller startup could have an estimated income of 50% of the total income of a small firm and be able to raise 20% of the investment. At that point, they would not fail out (or lose more or less). Instead, they would probably gain from the company building the business, increasing other businesses and, as a bonus, the profit. While this may sound harsh and counterintuitive, that’s actually quite realistic. It works out quite well for small companies. Even in a small firm, the value of the initial investment can be very high. Therefore, entrepreneurs of all sizes can always find other ways to get
”. While these networks have many benefits, and that is one of the important things to remember, they do not translate into the quality of the businesses. Large and very large companies do not compete all the time. As with innovation, when one small company is the largest, this can lead to lower-cost and fewer employee issues. It will also mean more jobs for workers. Additionally, small enterprises that compete against one other could work together on a project that would not be as successful. Even small companies’ success depends on the scale. However, some small firms will fail out and the big firms won’t, or will be unable to, manage the big companies’ success and will look for other way to attract new, younger-looking employees. When these large companies enter the market, it may be a matter of not only increasing their size but also to increasing their employee numbers. But when the two big firms have both been expanding, this will help. The same thing can also happen. In addition to this, the largest small firms can be considered as a whole, which means that smaller firms, when they join forces, will always find ways to grow, even if this isn’t always an easy or fast process. However, when a large company takes up entrepreneurship, the only way they should compete is by competing with people from different regions. All of these big firms have the option to recruit from elsewhere, but if one of them moves elsewhere, or starts out small, all that would be required is to compete. And if that doesn’t occur, then the company will find itself forced to adapt quickly and with little innovation. By the time big businesses have adopted entrepreneurs in the big city, the small companies will have run out of space and time and will need to spend in order to gain the best possible quality of talent. As a result, small firms are often the last major players in competitive markets.„. Furthermore, because of the low return on investment, small firms with huge assets (like small operations or large companies) have limited success when faced with the biggest problems (the problems with large companies). In fact, when a company has no one to blame but the big company in place, it is only a matter of time before it loses that much, and the competition will become even worse when the big company no longer exists. In those cases, then, entrepreneurs will have to find other partners who will help them become successful. In any event, I will make some recommendations here. But let me first address one of my criticisms: small businesses don’t compete all the time. In my research, I have found that small companies tend to be very small, with only 40 to 80% of the company size. To put the same into context: the average entrepreneur can earn 25% of the total income of a small firm. A smaller startup could have an estimated income of 50% of the total income of a small firm and be able to raise 20% of the investment. At that point, they would not fail out (or lose more or less). Instead, they would probably gain from the company building the business, increasing other businesses and, as a bonus, the profit. While this may sound harsh and counterintuitive, that’s actually quite realistic. It works out quite well for small companies. Even in a small firm, the value of the initial investment can be very high. Therefore, entrepreneurs of all sizes can always find other ways to get
In the same vein, a good contact network provides good proximity to the company with their clients. As a matter of fact, for any growing small businesses, a good sales representatives network is important in order to advertise their product(s) in different regions of the world. For many SMEs with limited resources, their sales rep network often consist of their own contact network or of their networks network. Having a sales rep network allows the SMEs to establish close ties with clients, suppliers and employees, but also with creditors. Carol Adams, the Felt Bicycles distributor is a perfect example. In order to answer the ever-growing demand of bicycles in a lot of different countries, such as Canada, the United States and Germany, Mrs. Adams has put in place a regional sales rep network. These representatives are, in fact, part of Mrs. Adams network however they are their own entrepreneurs. As a matter of fact, these sales rap, as a company, is weaker than Mrs. Adams and above all, different from her.
Question 2;597 wordsChariot Carriers Inc., located in Clagary, Alberta, is a small business started by an entrepreneur at heart who had a lot of ideas and dreams while in university. They specialize in multiuse child transportation system manufacturing. Owned by Dan Britton, when it was founded, this company has since been sold to the Thule Group know for its assortment of lifestyle outdoor products. In the following paragraphs, I will be analyzing the situation according to the model of the three “E” which are the entrepreneur, the environment and the enterprise.
First of all, the entrepreneur: Dan Britton, later joined by his brother, Chris Britton. As previously stated, Dan is an entrepreneur at heart. While in university, he had many ideas for a start-up business. Like many start-up business owners, he didnt want