Factors and Barriers for Small Businesses

Question: Discuss about the Factors and Barriers for Small Businesses. Answer: Introduction The aim of the paper is to critically analyze an article titled Key success factors and barriers for small business: comparative analysis published by Barkhatov, Pletnev and Campa. The paper analyzes the situations of small businesses in Europe and Russia, their problem and outlook. The case study analyzes the problems of small businesses in Russia and Europe in relation to unemployment, corruption and legislative systems. The case studies analyze the operations of small businesses and its impact on the economy. It is useful to understand the operations of small businesses in order to improve and modify the life of small businesses. Small businesses play an essential role for not only the economy but also have an impact on the social life of individuals (Barkhatov et al., 2016). 1: Challenges and barriers of small business: The small businesses are weak and are greatly affected due to slow economic growth. The issues identified by the author in the field of small businesses in Europe are as follows: The problem of unemployment: The states with higher small business enterprises have high rate of unemployment. Crisis in small business sector leads to higher unemployment rate. This is the main challenge faced by the country. Small business sectors are more fragile than large business sectors (Eid El-Gohary, 2013). Corruption: another challenges or problems with the small businesses identified by the author are that of corruption. Corruption greatly influences the life of small businesses. The problem of corruption directly affects the small businesses as it makes it difficult for them to survive and grow. Corruption only benefits the larger business enterprises. It makes it difficult for the small businesses to access funds for agriculture, subsidies for youth development and business development. It is essential to overcome corruption as it can create a situation of natural monopoly that will make it difficult for the small enterprises to survive. 2: Research problem and problems discussed in article: In order to carry out the research and analyze the problems of small businesses in Europe and Russia it is essential to evaluate the data on various macro indicators. The data is collected using both the primary and secondary research. The primary data is collected by preparing a questionnaire for the entrepreneurs of each country to evaluate the relationship between private and public sector. The secondary data is collected from the government official and statistics websites of each country such as OECD. All the data collected is analyzed in order to find out the problems of the small business enterprises on Europe and Russia (World Bank Group, 2013). The data is collected from Eurostat database that is then converted in terms of percentage. The research problem is to analyze the data of different countries to find out the issues and challenges related to small business enterprises. The only problem identified with the research is that data for the year 2015 and onwards is not avai lable. Hence, the case study is based on the data from last year until the year of publication. Research objectives: The aim of the research is as follows: The first objective is to analyze the current situations of small business enterprises, their problem and outlook in Europe and Russia. Another objective is to evaluate the strategies that will help the small businesses to improve. The objective of the case study is to analyze the problems and barriers related to small business enterprises. The report analyzes factors that is essential to create a change on the economy by changing the functioning of the business enterprise. The research objective is achieved systematically and scientifically. The paper first evaluates the objectives of the research. The author mentions the methods used for the analysis of data d data collection procedure. The article is explained systematically covering all the point of objectives systematically. The problems and challenges of small business enterprises are identified using various macroeconomic indicators of countries (Tricker, 2014). Small businesses are companies with less than nine workers. Small business enterprises are fragile and weak and get easily affected by the global economic crisis or the slow economic growth. The factors that greatly affect small business enterprises according to the author of the article are corruption, unemployment, bureaucratic system and legislative system of the economy. Small businesses not only play an important role in the economy but also affect the social life greatly. Small business is an important part of the economic system as it is used to fulfill the needs and services of rural areas and regions in urban areas. Small businesses help in creating a competitive advantage by producing products at lower prices for the people (Cavusgil et al., 2014). Decentralization of economic power helps the smaller businesses generates a larger portfolio of products. A large variety of products is produced by small enterprises that give consumers a larger opportunity that ultimately helps in improving their satisfaction level (Peng, 2016). Outcomes of indices of Eurostat The case study is based on the data collected from Eurostat. The data is collected on the level of unemployment, personal income tax, corporate tax, corruption and various other indices. Various other sources such as OECD, Transparency international are used o collect the data. The data that is available is before 2015 until the year of publication. These data are then analyzed using various statistical tools. The outcomes of the data collected is that the problems with small businesses is different in Russia and Europe. The problem with business in Russia is internal while in Europe it is external (Business demography Eurostat, 2016). The study has helped the author in analyzing the problems with the small business enterprises and the factors or strategies that can be used to overcome the problems and challenges. The case study helped in knowing the economic conditions of different countries. This will help the author in building his career, as the economic situation of various countries is already known. The case study has helped in understanding the business conditions of different countries. So if the author wants to establish a business in Europe or Russia it will help in knowing which areas it should focus on in achieving growth and targeted profit. The case study is especially useful for the people who are planning to establish a business in Europe or Russia. The case study helps in understanding that the establishment of small and middle business enterprises will help in solving the economic problem. Conclusion Hence, it can be concluded that the main aim of the paper was to analyze the challenges and barriers of small business enterprises in Europe and Russia. The main problems or barriers is that is high unemployment rate, corruption and poor bureaucratic system. Both the secondary and primary data has been used or the analysis. References Barkhatov, V., Pletnev, D., Campa, A. (2016). Key Success Factors and Barriers for Small Businesses: Comparative Analysis.Procedia-Social and Behavioral Sciences,221, 29-38. Business demography - Eurostat. (2016). Ec.europa.eu. Retrieved 15 October 2016, from https://ec.europa.eu/eurostat/web/structural-business-statistics/entrepreneurship/business-demography Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., Rose, E. L. (2014).International business. Pearson Australia. e.V., T. (2016). How corrupt is your country?. Transparency.org. Retrieved 15 October 2016, from https://www.transparency.org/cpi2014 Eid, R., El-Gohary, H. (2013). The impact of E-marketing use on small business enterprises' marketing success.The Service Industries Journal,33(1), 31-50. Peng, M. W. (2016).Global business. Cengage learning. Tricker, R. (2014).ISO 9001: 2008 for Small Businesses. Routledge. World Bank Group (Ed.). (2013).Doing Business 2014: understanding regulations for small and medium-size enterprises(Vol. 11). World Bank Publications.