Article Analysis Essay on Factors Affecting Business Success of Small and Medium Enterprises

Introduction

The author of the article 'Factors Affecting business Success of Small and Medium Enterprises' set out to establish the factors determining business success in Bangladesh. The methodology included data collection by the use of questionnaires and analysis was done using the Statistical package for social sciences. The author concluded that various external, as well as internal and external factors, determine a firms success.

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Key Points

The author affirms that different factors differentiate the successful and unsuccessful enterprises. They include the internal characteristics, the manner of management and know-how, the type of products and services, the style of conducting business, the business strategy, and the external environment. Regarding the internal factors, successful companies offer high quality and innovative products. Importantly, the management of successful firms has a strong zeal to succeed (Phillip, 2010, p.7). Additionally, small and successful firms focus on achieving a particular competitive advantage such as product differentiation and cost leadership.

The author provides solid explanations of each of the critical points. To start with, the author argues that the type of products determines a firm's success. For instance, innovative products are vital in ensuring value for customers, and they provide a balance between the product quality and cost. The management characteristics are essential in determining the success of a business. For instance, hardworking and knowledgeable managers can define the market and pay attention to the key factors that will ensure business success (Phillip,2010, p.11). Additionally, the business strategy including a focus on cost leadership makes firms to ensure tight controls over the operation cost leading to the production and the sale of high-quality products at a low price. Notably, the highly successful firms focus on succeeding in a particular market segment or geographical area.

The firm performance on the critical factors in the environment determines its success. Successful firms manage to solicit government support, they operate legally, and they forge networks with other entrepreneurs. Primarily, cooperation reduces the risks associated with transactions and improve access to capital. Government support ensures access to resources required for the start and growth of small firms. Compliance with legal regulations provides business success since a business avoids the consequences of non-compliance including having to pay bribes from the firm's financial resources.

Findings of Evaluation

The researchers concluded that the significant factors for the small of small firms include the quality of product and services, the know-how on the part of the management and the external environment. The conclusions were derived from the test of the different hypothesis such as the product and services that affirmed that high and innovative products provide a competitive advantage and added value for products. Importantly, the findings of the research revealed that government support and social networks offer a firm's competitive advantage in the external environment.

The text is written concisely and tracing the critical points in the essay is an easy task. Locating the key points is easy since the passage is by divided into sections including the abstract, literature review, introduction, research hypothesis, research approach, survey results, and conclusion. The definition of the key terms used in the research including the meaning of an enterprise, firm performance and success promotes understanding of the article from the author's viewpoint.

The author presentation of arguments is logical. The author highlights different arguments and he provides compelling ideas that backup up each claim (Knopf, 2006, p.130). Also, each of the main points has a connection to the critical debate about the six factors influencing business success including product characteristics, management knowledge, the manner of conducting business, finance, resource, and the external environment. Similarly, each sub-point is meant to support the main point. For example, the author shows evidence of how the product characteristics such as innovative products contribute to substantial success by providing a competitive advantage in two key areas that are cost and adding value to products.

The author present accurate facts that are relatable to the actual business practice. For instance, the author holds that the focus on a cost leadership strategy ensures a firm success by pushing a firm to achieve operational efficiency. Such an argument is accurate since the primary aim of the firm is to make profits and to sell the products at a low price a firm has to ensure that the cost of production is at a minimum.

The author provides sufficient evidence to each of the points that he puts across. For example, the author is of the view that a firm's response to the external environmental factors is key to determining a firm's sustainability in the long run. However, the author does not just stop there he gives examples of how compliance with legalities has profound impacts on a firm's success.

The article has been influential in developing my knowledge about the factors that influence business success. At least, I have realized that management know-how is vital to firm success. A zealous manager ensures that a firm pushes through harsh economic times. Again, knowhow about the desired product in the market and paying attention to the specific characteristics of the wanted products is vital for success.

The author draws specific observations into the factors that make some of the business to succeed while others fail. The author implies that business failure is mainly attributable to a gap in implementation of the best practices for success.The author makes comments that the managers from the successful and the failed company have agreements on the requirements for success.

The article strengths can be traced from the application of appropriate methodology, one including the collection of information from primary sources. Also, throughout the article, the author has remained within the topic that includes the interrogation of the factors that contribute to business success. The main aspects of the author weaknesses include the replication of work that has already been done by others. Importantly, the author has done little in identifying and addressing conflicting notions.Generally, the author has presented convincing arguments. The article strengths outweigh the weaknesses. Markedly, the piece has practical importance, and it is a must-read for anyone who is interested in starting a business and company managers. The article has opened my mind about the factors for business success, and I feel convinced to try the arguments in a real business.

References

Philip, M. 2010. Factors affecting the business success of small & medium enterprises.Amity Global Business Review, vol.1 no.2, pp. 1-12.

Knopf, J.W., 2006. Doing a literature review. PS: Political Science & Politics, 39(1), pp.127-132.