Small Business

Topics: Finance, Small business, Capital structure Pages: 7 (2019 words) Published: March 10, 2013

By the science and technology environment changing, nowadays, international competitions become more and more impetuosity. Many companies remain the main part of the market among them. However, the small and medium-sized enterprises (SMEs) still play an important role in the secondary and tertiary market. After global finance crisis, SMEs has become the main part to promote the economic. Compare to the large companies, the SMEs face a high competitive market. It is said that the small and medium-sized enterprises are continuous injecting innovation and competition for the market economy. If the small and medium-sized enterprises want to be succeed and thrive, as well as talent showing itself from their formidable competitors, each one needs to find its own competitive advantages which are the most basic and critical elements (Anne StClair, 2009). According to Forkids Team, (2010), there are many advantages offered by small and medium-sized enterprises to big companies, such as best customer service, increased ability of innovation, better access to market information, etc. Moreover, what Dolly Bhasin (2009) said is that SMEs have the great ability to adopt the digital marketing quickly due to their tremendous advantages offered to them. Digital marketing provides SMEs an unmatched advantage, coming to the rescue for their target customers to reach a part of the traditional marketing costs globally. While, such small and medium-sized enterprises also have some disadvantages, including difficulties in accessing to financing, less technology in contrast to big companies, or poor bargaining power with suppliers (Forkids Team, 2010). Once a small business is enable to have these advantages and has the ability to avoid those disadvantages, it can be success in the end.

This report is aimed to analyze the relationship between the practice of a specific small company and the theory of SMEs. Initially, the definition of SMEs and background of the specific small company will be given. Then, the report analyzes two aspects of issues that the small company faced and how the company deals with and evaluates these measures that whether to apply the theories of SMEs. Next, the competitors of the small company will be compared with it. Finally, it displays the conclusion and recommendation.

Definition of SMEs
There are several regulars to distinguish the large company and small company, which also depend on the states. The first typical one is the Bolton Report definition, which said that the small firm is the independent part from a large company and it occupies a small market share in its industry and the owner of small company can manage it freely. More specifically, in the manufacturing industry, the employees of the small enterprise are below 200. In the retail industry, the income of the small company is less than 50,000 pounds. The second typical one is defined by the European Commission, which based on the number of the employees to differentiate the micro firms, small firms and medium firms. A micro firm has less than 9 employees and a small firm has more than 10 but less than 49 staff and a medium firm has 100 to 249 workers (Stokes, 1998). Basic information of the chosen small company

The small company named Lewanjia supermarket which is a family business operated by a Chinese family. This supermarket located in Tianjin China and it established in 2000. There are 15 employees work in the supermarket. It sales the fresh food and commodities and also people can pay the energy bill in the supermarket. It is very convince for daily life.

Analysis of the small company
This supermarket has operated for 12 years and it faced two main problems currently, which are financial problem and marketing problem.

The financial part

The financial part is one of the most vital and biggest parts in the business whatever how big the company is. It is irreplaceable, which can impact on the economic...
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