Essay Questions Small firms Prosper rather than large firms over the last 50 years in Western Countries

Essay Questions #1

  1. Small firms Prosper rather than large firms over the last 50 years in Western Countries

Over the years, the small firms in Western countries have defied all odds and remained prosperous against the expectations of many. It would be basically expected that the large firms leverage from a competitive advantage and market dominance in their areas of operations. This is supported by Del Vecchio et al. (2018) which note that large firms have a high potential of leveraging from their high capital of operations and available revenues which they can use. However, despite of small firms being disadvantaged, they have maintained their success. Some of the reasons include;

The small firms ensure that they engage their customers one on one rather than using departments or representatives. In this regard, the small firms are in a position of attaining a personalised relationship hence improving their overall customers relationship management.

Also, due to the small nature of their operations decision making tend to be made appropriately. This means that there is no enormous bureaucracy to be followed in ensuring that decisions are made and eventually implemented. This is while ensuring that the recruited employees are able to execute their roles effectively. Similarly, by readily being in a position of embracing to change, they are in a position of mitigating risks holistically.

  • Saudi Arabia Large Firms become Entrepreneurial

As evidenced in Block et al. (2018), by large firms becoming entrepreneurial, they are successful in their operations. This is by mitigating the issues which are possible to impact digital competition for digitisation. Also, such organisations are able to identify the best practice for their organisations by assisting the organisation to mitigate the organisation challenges. For the Saudi Arabia large firms, this is potentially attained by investing in their employees continuous capacity development opportunities. This is while initiating entrepreneurs in residence for their success in their operations. This can also entail to thrive and survive in the business sector where an organisation has based on their operations. Owing to the nature of the business environment in Saudi Arabia (KSA), by becoming entrepreneurial, they would achieve competitiveness from the multinationals which are significantly venturing into Saudi Arabia through Direct Investments arrangement. Further, as evidenced in Crudu (2019), this can include increasing the investment in a large talent pool and integrating innovativeness as part of their business practice today and in the future.

References

Block, J.H., Fisch, C.O. and Van Praag, M., 2018. Quantity and quality of jobs by entrepreneurial firms. Oxford Review of Economic Policy, 34(4), pp.565-583.

Crudu, R., 2019. The role of innovative entrepreneurship in the economic development of EU member countries. Journal of Entrepreneurship, Management and Innovation, 15(1), pp.35-60.

Del Vecchio, P., Di Minin, A., Petruzzelli, A.M., Panniello, U. and Pirri, S., 2018. Big data for open innovation in SMEs and large corporations: Trends, opportunities, and challenges. Creativity and Innovation Management, 27(1), pp.6-22.