The value and importance of the small firm to the world economy - Essay Example

Marketing for Small Business Table of Contents Introduction 3 Critical Analysis of the Article 3 Rationale behind the Selection of the Article 5 Contribution of the Article 5 Conclusion 6 References 7 Introduction In the recent times, the role of small firms has been recognised to be extremely important for socio-economic development. Gërgjaliu-Thaçi (n.d.) stated that small firms in the current world economy are closely associated with employment and poverty eradication. It is claimed that small firms decentralise economic control and offer individuals a stake in the future. However, there has been constant debate being made over the importance of small firms. Amid these constant debates, the proponents of small firms have stated that successful small firms are crucial for the global economic development. It has been claimed that small firms are the major source of innovation and development of entrepreneurships (Barreto, 2006). This study will present critical analysis of the article “The value and importance of the small firm to the world economy”. Additionally, contribution that it has made for both me as well as the world economy will also be discussed in this article. Critical Analysis of the Article In this section critical analysis of the article, first I want to demonstrate the statistics presented in the article. Correspondingly, Day (2000) argued that most firms across the world are small firms based on the number of employees employed. Taking the example of the United Kingdom’s (UK’s) business environment, the author has stated that 95 per cent of firms in the UK employ less than 10 employees which imply that small firms are the predominant aspect of socio-economic growth of the UK. Cromie (1991) firmly asserted that marketing in small firms is equally important as in the case of large firms. It is crucial that activities pertaining to marketing in small firms are relevant as well as appropriate considering the problems that it intends to resolve and the life cycle position of the firms. McCartan-Quinn & Carson (2003) propagated that small firms are generally the outcome of motivated and ambitious individuals. In order to increase the chances of small firms’ success, it is crucial to integrate the vision of individuals with the marketing orientations. It has been further argued that the success of small firms does not rely only on the products offered or the presence of market but the successful marketing of these products in the market serves as a strong determinant for the success and failure of the small firms. Abdulai Mahmoud (2011) argued that a lack of adequate marketing knowledge amid the owners/managers in the small firms accounts for the large scale failure of the small firms. Responsively, Gilmore & et. al. (2001) stated that owners/managers in the small firms rely on industry norms as well as on their experience and common sense for marketing irrespective of prevailing circumstances and the firms’ life cycle position. Stokes (2000) stated that appropriate marketing in small firms recognises the various components of entrepreneurships that can be integrated with the various marketing principles and contributes towards entrepreneurial strengths. Hills & Hultman (2006) stated that entrepreneurial marketing and small firms marketing share common features among them. However, certain predominant distinction has also been articulated wherein the authors postulated that entrepreneurial marketing is largely associated with entrepreneurial behaviour and growth on the other hand small firms marketing is associated with marketing behaviours in SMEs irrespective of their entrepreneurial status. Fillis (2002) stated that traditional forms of marketing are inappropriate for small firms in the current context. Accordingly, it has been stated that marketing and entrepreneurial interface offer more appropriate ways for understanding the behaviour of small firms particularly related with the aspect of marketing. Moreover, it has been argued that creativity and innovation are required to be encouraged in order to ensure appropriate marketing in small firms. Rationale behind the Selection of the Article This article was chosen for the purpose of acquiring knowledge and understanding about marketing in small business. Moreover, the article also incorporated various aspects related to small business marketing and entrepreneurial marketing necessary for acquiring considerable understanding regarding the marking for small business. The article highlighted the need for marketing and entrepreneurship interface in the current business environment of small firms which has served as a tempting factor for choosing this article. The article also incorporates various evidences from different regions of the world including the UK and the USA among others reflecting its importance in the economy which further motivated me to select this article. Contribution of the Article The critical analysis of this article postulated numerous and interesting facts regarding the marketing for small firms. In this section, I am going to reflect upon the contribution of the article to myself as well as in the domain of small firms marketing. The article revealed statistics regarding the small firms reflecting its importance for economy. This facilitated me to acquire clear distinction between the roles of small firms in the socio-economic growth of the world economy. The article highlighted the reasons that led towards the success and failure of small firms which I believe to help me in the practical business life in the near future. I learnt that availability of resources and market opportunity is not only sufficient for achieving small firms’ success but marketing also acts as a major determinant. The article enhanced my knowledge base regarding the entrepreneurial marketing as well as small business marketing. I learnt that it is crucial to develop entrepreneurship in the paradigm of marketing in the domain of entrepreneurship. Besides, I learnt that innovation and creativity are the two major components that need to encourage seeking enduring and sustainable growth and development from the operation of small firms. Finally, it can be asserted that all these knowledge and understanding acquired through the analysis of the article promoted towards the development of entrepreneur’s direction. Conclusion To recapitulate, the contribution of small firms in the socio-economic development is imperative. However, it was found that a lack of adequate marketing knowledge amidst owners/managers of the small firms has resulted in their large scale failure. In order to ensure prosperity and success, small firms are recommended to incorporate interface or entrepreneurial marketing while paving the platform for innovation and creativity. References Abdulai Mahmoud, M., 2011. Market Orientation and Business Performance among SMEs in Ghana. International Business Research Vol. 4, No. 1, pp. 241-251. Barreto, H. V., 2006. Entrepreneurship and Small Business. Economic Perspectives, pp. 1-25. Cromie, S., 1991. The Problems Experienced by Young Firms. International Small Business Journal, Vol. 9, No. 3, pp. 43-61. Day, J., 2000. The Value and Importance of the Small Firm to the World Economy. European Journal of Marketing, Vol. 34 No. 9/10, 2000, pp. 1033-1037. Fillis, I., 2002. The Entrepreneurial Artist as Marketer. The New Wave: Entrepreneurship & the Arts, pp.1-13. Gërgjaliu-Thaçi, No Date. The Role of Small and Medium Enterprises in Economic Development. Academicus - International Scientific Journal, pp. 60-69. Gilmore, A. & et. al., 2001. SME Marketing In Practice. Marketing Intelligence & Planning, No. 19, No. 1, pp. 6-11. Hills, G. E. & Hultman, C. M., 2006. 11 Entrepreneurial Marketing. The authors and Studentlitteratur, pp. 219-234. McCartan-Quinn, D. &Carson, D., 2003. Issues which Impact upon Marketing in the Small Firm. Small Business Economics, Vol. 21, pp. 201–213. Stokes, D., 2000. Putting Entrepreneurship into Marketing: The Processes of Entrepreneurial Marketing. Journal of Research in Marketing & Entrepreneurship: Vol. 2 No. 1, pp. 1-16. Read More