Small Scale enterprises are not much developed since they have limited resources to help them grow like how large scale enterprises like Amazon, Apple Inc., and Walmart. However, in the contemporary world, the government alongside relevant entrepreneurs are working hard to ensure these small enterprises start to grow (Taymaz, 2015). There is numerous literature that has been developed to describe different ways that will help the growth of small enterprises.
Most companies venture to the market without a definite and comprehensive marketing plan which will help them grow in terms of revenues and profits (Jansen, 2013). Most firms realize the importance of having an effective marketing strategy once they start experiencing stiff competition which impacts on their revenue growth resulting from profits. This is one of the areas they are focusing on ensuring they improve their performance in the market; this will help their business not to collapse or plunge into bankruptcy.
The managers in this enterprises should realize o the importance of effective marketing strategies since this is what will bring customer satisfaction and most customers may start using their services or buying their products (Taymaz,2015). This model discourages the notion by which most small firms are focusing on the product they are designing and developing alone, since there will be no point to be producing products with no proper marketing strategies, this will make the company have tied up stock since the movement of capital from the company to the clients will be significantly reduced. The firms are using passive learning perspective to focus on how they strengthen their marketing strategies and match up with the big "guns" in the industry like Coca-Cola, Starbucks which have grown as a result of strong marketing strategies like "gamification" a model of using gaming to market goods like candies.
The other ways these small enterprises use to enhance on improvement in the overall performance and maximize profits in the company include the "human capital model" which explains on how better administrative skills and utilization of resources in small enterprises. "Human Capital" is relevant to the internal factors within the enterprise that helps leadership characteristics and also the availability of financial resources which will help bring improvements within small firms. A lot of small firms close due to poor management of resources and poor leadership and recruiting better-skilled employees and managers with practical leadership skills to ensure they improve on better utilization of the capital and another financial resource which will provide there is profit maximization.
There are several factors they will consider when they are using this concept to improve on their performance and above all mismanagement of resources. The will look for employees who are skilled and can fill the gap within the firm and for leaders they will ensure they look for leaders who have the vision that matches with the goals and objectives of the organization. Their attitude towards performance and personal values which are unique and will influence the growth of the firm will also be looked at the firm. This will help the firm not just to recruit workers who are not competent and responsible with the resources they are given, to ensure they fulfill the objectives of the company. This will be an excellent way of inducing ongoing improvements in small firms since the mismanagement of resources is a factor that brings these firms down.
Jansen, R. J., Curseu, P. L., Vermeulen, P. A., Geurts, J. L., & Gibcus, P. (2013). Information processing and strategic decision-making in small and medium-sized enterprises: The role of human and social capital in attaining decision effectiveness. International small business journal, 31(2), 192-216.
Taymaz, E. (2015). Are small firms less productive?. Small Business Economics, 25(5), 429-445.
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