SME, Entrepreneurship and Innovation Flashcards
SME
- Owner manager style
- limited skills and resources
- limited financial flexibility
- Supply chain power
- Quality and niche offering
- Strong customer relationships
- Quick market response.
Environmental Analysis
- use networks of personal contacts
- pursue various options at a time
- Attempt to adopt flexible approach to opportunities
- Acknowledge a degree of acceptable risk
- Develop creative and innovative ways to acquire resources
owners
need to pursue, evaluate and resource new opportunities
should be multi-skilled in fundamental areas of marketing
MArkets ( negartives)
- little control as an SME
- little ability to compete on economies of scale
- impact on overall market demand is limited
Markets ( Positive)
- focus on niche markets, providing dedicated services ( niche markets can be unstable)
- dedicated supplier in supply chain
important to maintain and secure new orders.
Strategy formulation
- very flexible
- centralized decision making
- respond rapidly
- creative skills to acquire resources
- dominated by owners vision
Entrepreneurial Culture
support creativity and innovation
address various opportunities simultaneously
individual initiatives encouraged
sequential, structured nature of management is not always adopted.
Entrepreneurial Marketing
different marketing process
marketing as guided orientation eve without a dedicated department
often informal than formal
Traditional marketing approach
identify customer need
market conditions continous
marketing plan applied
analysis of marketing activities
consistent marketing environment
customer needs identified
Entrepreneurial Approach
no clearly identified customer need
discountinous market conditions
pioneering marketing plan
no proevious market analysis
uncertain environment
0
Entrepreneurial competancies
Carson’s 4 key compentencies
Experience of industry and job
knowledge of product and market
communication skills in management
sound judgement in identifying market opportunities
Entrepreneur?
innovator / developer
recognizes and seizes opportunity ( can also create )
converts this into workable.marketable idead , adds value through time , effort, money or skills
assumes the risk of competitive marketplace to implement these ideas and realises the reward from these efforts
give example of kiran shaw.jeff bezos , bill gates etc.
Brew DOg
2 shareholders
crowd funding - 1329 shareholders then 70,000 share holders
Challenges?
investment staff quality control numder of shareholders diverisification of bars internationalisation skull set requirment
Still Entrepreneurial?
Debatebale ?
Yes, Still innovating, creatimg, identifying opportunities, expanding etc.
Impact on Education?>
Students should be able to : Manage change identify opportunities develop their innovative skills think laterally
Impact on Policy makers?
Develop skills of owners or managers
Owner / manager learning ????
impact on entrepreneurial prespective at stages of growth
Reltionships
- managing customer relationships - vital
- reltionships build loyalty and trust
- identify profitbale relationship or ideal customer -imp
- understand networks and operate in them successfully
Networks?
Personal
Business - competitors, previous employes etc
formal - bank, accountant
informal - golf club, health club
-family and friends - will overlap
support networks ( formal and informal ) eg. Scottish enterprise , trade association
Importance of networks/
- depends on type
- low cost resources
- tristed information and advice
- offer an element of control over the micro environment
How are SME networks developed?
- personal contacts
- brokers
- business advisors
- proactive and managed or “by chance”
how should be involved?
made up of relationships
relationship is comprised of contents - information, advice, friendship
involve actors who provide resources directly or indirectly
Network audit is useful 0 assess range and content
can be a issue of trust?
Determining quality/ value of network
contents, introductions, referrals, impact , time invested : Outcomes
Networks’ impact on growth
- widen client base
- widen resource base
( at reduced and low costs)
-Provide trusted information and advise
- enhance reputation by word of mouth
- provide emotional support at critical times.
Impact of owner managers
- regard ALL networks as important resources
- engage in network managment
- use networking to develop, maintain and strengtgen valuable relationships
- employee staff with valuable networks
- encourage staff to network
Network Audit
- undertake network audit
- will establish where the strong contacts are withing the industry
- will identify gaps - lack of information
- will identify areas of devlopment
- will detail reachability and accessibility of some contacts
