Background of the Study
Small and medium enterprise is a very sensitive and vulnerable sector affected by change in economic climate. Most small and medium enterprises are affected by financial crisis by reducing their development rate. Currently, most SMEs are bracing themselves for changes in their socio-economic landscape and operating environment in order to survive.
With these changes in the socio-economic landscape and operating environment, most entrepreneurs in the small and medium enterprises have to come up with strategies to turn all these threats into opportunities for the survival of their businesses. This is because most SMEs have greater flexibility in their operation than big companies.
Problem Statement
Most entrepreneurs/managers in the service industry in Singapore, particularly in consultancy/accounting firms are faced with socio-economic and environmental challenges in their business operations. SMEs are more vulnerable to any economic change because of them been small-scale ventures.
These challenges are brought about by changes in the markets environment, competition, and technological advancement. It is now imperative that SMEs should come up with strategic management tools that can help them overcome the competitive issues they are facing for their survival in the market. This project seeks to investigate the strategic management tools used by SMEs to survive in a competitive and changing environment.
Purpose of Study
The purpose of this study is to identify and analyse the strategic management tools in terms of business operation and technology applied by SMEs to survive in this competitive and changing business environment that hinders their growth. Lastly, to find out if scenarios and roadmap can help SMEs achieve their goal.
Objective of the Study
The specific objectives of the study include; strategies used by SMEs to ensure their growth, long-term sustainability and profitability, strategies used by SMEs to cope with changes in their external environment and lastly, how can SMEs benefit from them been more flexible and easy of transforming their operation.
Scope of Study
This study will be limited to consultancy/accounting firm in Singapore where I have experience. Descriptively, the study will cover common issues and competition faced in this industry and survival strategies to apply in such scenarios.
Research Questions
The following will constitute the research questions of the study; what are the indicators/factors influencing small and medium enterprises performance in Singapore, what are the problems/challenges affecting the growth of small and medium enterprises in Singapore, what strategies can small and medium enterprises in Singapore use for their growth, long-term sustainability and profitability.
Data Needs and Data Sources
The main source of data for this study will be mainly from primary source. The primary data source will be from interview to entrepreneurs in the same industry in Singapore and my own personal experience in the industry.
Significance of the Study
The study is very significant and comes in handy when the performances of many small and medium enterprises in Singapore are deteriorating due to lack of the strategies to survive in changing socio-economic and environmental climate. The study will help most entrepreneurs in Singapore with the much needed strategic management knowledge to help them steer their organization to growth.
Lastly, the project will be informative to the whole population as well as advice on measure to be undertaken to improve the performance of SMEs in Singapore. In conclusion, the project will help entrepreneurs consider multiple strategic perspectives to grow their business to the next level and help ensure long-term sustainability in the sector.