A review of academic research undertaken in relation to Small and Essay

A review of academic research undertaken in relation to Small and Medium Sized Enterprises - Essay Example In the study, United Kingdom’s SMEs have been observed. It has been identified that SMEs also have a role to play in the economy of the UK. However, there are underlying challenges and problems that the country’s SMEs face which need to be addressed by the government and other stakeholders involved. The paper intends to identify the current academic research into small and medium sized enterprises and the major issues faced by these firms. It also tries to present the role of SMEs in the UK. The paper will try to provide a brief summary of the overall scenario at the end and will provide recommendation based on the challenges that the SMEs in the UK face so that significant improvements in the SMEs can be introduced and better opportunities created. Table of Contents 1 Executive Summary 2 Introduction 4 Critical Review into Current Academic Research 5 Challenges of SMEs 7 Role played by SMEs in the United Kingdom 8 Conclusion and Recommendation 12 References 14 Introduc tion Small and medium-sized enterprises (SMEs) are those firms that do not have any subsidiary and are independent in nature thus employing a certain number of employees. The number of employees may be different in different countries. In European Union, the limit set for employing the employees has been set to 250 for SMEs. However, certain countries lay down the limit of employing 200 employees. The use of the financial assets is also evident in order to define SMEs. A new European definition of SMEs came into existence in the year 2005. The new definition offers increase in the financial upper limits and therefore it states that the turnover of medium-sized enterprises must not be more than EUR 50 millions. Similarly, the turnover of small enterprises must not be more than EUR 10 millions and for the micro firms the turnover must not go above EUR 2 million. Consequently, the balance sheet of the medium enterprises must not surpass EUR 43 millions. The balance sheet of small and m icro enterprises must not go above EUR 10 million and EUR 2 million respectively (OECD, 2005). The SME sector comprises a wide range of firms such as recognized conventional family businesses that utilize nearly hundreds of workers. The SME sector also makes use of â€Å"survivalist† self-employed workers functioning in unorganised micro enterprises (International Institute for Sustainable Development, 2004). The main aim of the paper is to identify the role of the SME in the economy of the United Kingdom. The study will try to focus upon the current academic research on SMEs. Theories on SMEs will be identified and the role of SMEs in an international context as a mechanism for job creation, innovation and long term growth will be studied in detail in the sections below. Critical Review into Current Academic Research Small and medium-sized enterprises can avail innumerable behavioural benefits in comparison to their larger counterparts in the process of innovation. However, it has been identified that they also face certain material disadvantages. The problem they face has been evident in the process of developing suitable network of contacts with outside sources of both mechanical and technological expertise as well as advice (Rothwell & Dodgson, 1991). It is quite difficult to measure the importance of SMEs. However, it is a well known fact that small and medium enterprises are considered as the basis of most of the economies, generally in relation to influences on employment as well as

Henry Fayols Legacy And Contribution To The Management Science Assignment

Henry Fayols Legacy And Contribution To The Management Science - Assignment Example He therefore developed management ideas through personal experience as Chief Executive, and wrote ‘elements’ of administration in â€Å"Administration Industriele et Generale†, which was published in 1961 (Wren & Bedeian 2009). Abilities that he felt were essential in a manager include physical, mental and moral qualities, general education, and specialized knowledge and experience (Wren & Bedeian, ). The absence of management training in schools made Fayol see the need for management theory and identified fourteen principles of management (Fayol). He was a French management theorist. He was one of the most influential contributors to modern concepts of management, having formulated five primary functions of management- planning, organizing, commanding, coordinating and controlling ( Fayol). Henri Fayol is generally referred to as the Father of Modern Management theory (George, 146),in view of his extraordinary and revolutionary input to administrative management. Indeed, he is to administrative management while what Taylor is to scientific management. He later died in 1925 in Paris France. History of management science The management historians trace back the early origin of management and their pioneer ideas, which is the foundation of our modern formative thinking, its founders as well as well their contributions in the field d of management. As noted by early scholars such as McMahon and Carr (28), there is an increasing distance between the student and scholars of today and early scholars such as Henry Fayol among others. Through a critical examination of early biographies and early accounts, the relationship between the early and today’s management thought is established. In this case, we may gain a more complete understanding of own intellectual, reflections, and study of those of who have gone before and continue to study from the past as it forms the present (Bedeian) One such scholar is a Henry Fayol, who is thought as being the father of modern management science. As noted in Charles de Freminville, a synopsis of Fayol’s and Taylor’s thinking is explored. In this paper the modern management science is examined and its contribution to the modern field of management. It studies some of his theories, procedures, tools and techniques and it affect the modern management thought amongst scholars and student of management. His legacy and thoughts are unearthed to bring to light the dynamics of management and how the present scholars have been refined or been altered it. There is need to distinguish between management science and arts and note the difference and this influences the managers’ roles. As noted, the management as art is older as compared to the management as a science. Henry Fayol’s contribution to the body of management thought will be explored. Literature review: what other have said about Fayol Many models have explained the Henry Fayol and his contributions to the field of management. One such theory is the influence of Fayol’s work on other scholars in the fields of management. Gullick ( 13; 457) have a great impact on public administration. Gullick also found the acronym POSDCORB best to describe the executive’s job. Urwick utilized Fayol’s writings to promote a functional approach to management in developing his theory of administration and organization. The writings of Fayol have reached the international arena and pointed