SMEs in a contemporary context Dr. Evri Lampadarios Business Manager WSB Visiting Lecturer LTU leedstrinity.ac.uk

Why are SMEs so important? Integral to contemporary economic and social regeneration Solid industrial base Key driver to innovation Above all… Employment generation leedstrinity.ac.uk

The background… Definition (significant variations) Business success (increase in sales turnover and/or profitability) and/or failure (bankruptcy) Theoretical framework Success factors relative to business environment (country, industry) Knowledge remains more fragmented than cumulative High failure rates and poor performance levels (5 years mark) leedstrinity.ac.uk

Contemporary setting… Strong de-globalisation trends: Brexit, US election/policy changes Economies in recession: rejuvenation required ‘Introvert’ Economies Increased uncertainty /destabilisation Technological advances leedstrinity.ac.uk

Brexit needs to be investigated as a phenomenon and not as a singular event Despite continuous speculations on the effect so far very few aspects have become visible to the public and industry alike. Uncertainty is the only remaining constant as the UK moves into uncharted territory. Speculations and scenarios causing destabilisation of supply affecting routes to market leedstrinity.ac.uk

Brexit Increased uncertainty, volatility and risk Change in trade agreements Change in rules of conducting business Reducing ‘incoming’ investment Increasing cost of resources leedstrinity.ac.uk

Where do SMEs fit? Market conditions require: Flexibility Adaptability Quick reaction times Agile management structure Informal strategy Closeness to customers All the above inherent characteristics of SMEs Brexit will favour ‘domestic’ SMEs / unclear on exporting leedstrinity.ac.uk

Supply Chain perspective Integral part of the supply chain Low bargaining power / low degree of purchasing leverage Strain to resources / limited resources Difficulties in knowledge sharing and integration Relationship and expectations management But under Brexit Excellent way to mitigate risk and responsibility Local presence Reduce operating and human resource investment / costs Add flexibility Cope with high fragmentation leedstrinity.ac.uk

Challenges…with a Brexit twist Success: multidimensional phenomenon (both firm-internal and firm-external factors need to be optimal simultaneously) Regulatory compliance (new regulations?) Access to finance (who will finance?) Human capital (labour movement) Skills development Supplier management (new trade agreements?) Strategic planning (government support?) leedstrinity.ac.uk

Finally… Applaud initiatives that strengthen SMEs by addressing key challenges and fusing academic and practical knowledge such as: University platforms Associations / Professional bodies Government bodies …the WBL programme leedstrinity.ac.uk

Thank you! leedstrinity.ac.uk