Contemporary Issue and the Management of Change
Contemporary Issue and the Management of Change Assessment 1
- Question and Issue 2: -
”Discuss the significance of hospitality SME owner/managers being in business and evaluate how these reasons impact on strategic planning practice amongst such firms.”
Word Count: 1775
According to the European Commission (2003; 5) “The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 millions euro, and / or an annual balance sheet not exceeding 43 millions euro.”
This definition highlights the different characteristics of an SME. SMEs are small in terms of size, number of employees and revenue but take a large part in the current economy and always have been a certain number of them and according to OECD (2000) 95% of firms are SMEs and provided between 60% and 70% of employment. SMEs have a true importance in the economic system but they have more and more difficulties living in the current financial situation. There are many reasons why SMEs are most of the time in a bad financial situation or have to close down. It could be because of the external environment (economic situation, government and different policies) but it is also a problem that comes from the owners or mangers and reasons why they are creating SMEs and more particularly about strategic planning and the lack of skills concerning the managers.
SMEs have a major role in the current economic situation; those organisations employed over two million people (people 1st (2010)), there are also a large number of them in the United Kingdom (UK) according to the European Commission (2003). The government believes that SMEs will be the main actors of financial growth of the UK as stated by Burke (2011), as a consequence, the 2011 autumn budget plan to “invest up to £1 bn through managed funds that lend directly to mid-sized businesses and/or SMEs in the UK.” HM Treasury (2011; 2).
- Question and Issue 2: -
”Discuss the significance of hospitality SME owner/managers being in business and evaluate how these reasons impact on strategic planning practice amongst such firms.”
Word Count: 1775
According to the European Commission (2003; 5) “The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 millions euro, and / or an annual balance sheet not exceeding 43 millions euro.”
This definition highlights the different characteristics of an SME. SMEs are small in terms of size, number of employees and revenue but take a large part in the current economy and always have been a certain number of them and according to OECD (2000) 95% of firms are SMEs and provided between 60% and 70% of employment. SMEs have a true importance in the economic system but they have more and more difficulties living in the current financial situation. There are many reasons why SMEs are most of the time in a bad financial situation or have to close down. It could be because of the external environment (economic situation, government and different policies) but it is also a problem that comes from the owners or mangers and reasons why they are creating SMEs and more particularly about strategic planning and the lack of skills concerning the managers.
SMEs have a major role in the current economic situation; those organisations employed over two million people (people 1st (2010)), there are also a large number of them in the United Kingdom (UK) according to the European Commission (2003). The government believes that SMEs will be the main actors of financial growth of the UK as stated by Burke (2011), as a consequence, the 2011 autumn budget plan to “invest up to £1 bn through managed funds that lend directly to mid-sized businesses and/or SMEs in the UK.” HM Treasury (2011; 2).
Citations: Guide. | ✓ | | The strengths of this essay are: Interesting in terms of economic context, general culture and economic culture. | I had most difficulty with: Find reliable research on SMEs context. | I would most like feedback on:Quality of writing / analysing / reliability of my research / |