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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Thank you!
leedstrinity.ac.uk