Question

Create Five Annotated Bibliographies of operational challenges of Small and Medium Companies

Answer 1

Challenges are the part of every thing, challenges provide many learning and sources of new ideas and creativity. Small and medium companies have many operational challenges.

Some of the operational challenges of small and medium companies are as follows -

1. Client dependence - if the income of companies is dependent upon its client then it is one of the biggest challenges for the companies. Company have to diversify its clients in order to grow its business. It is also important that the client should pay the company on time. Product and services of the company should be good so that it's client retain with the company. So maintaining the client base for such companies is one of the biggest operational challenges.
2. Management of money - Managing money for small and medium Companies are also a big challenge, money is everything for any business. Having enough amount of cash in order to cover all the bills of the business and provide on time payment to each and every employee is very much important. In order to avoid the problem like capital drain, money management should be very clear and proper. Running out of cash makes growing of any business impossible. If the cash flow is in between the business and the owner then it is very important to manage money accurately.
3. Fatigue - The working hours, quantity of works and constant pressure create fatigue on the the employees, which may create an adverse effect on the employees and their work, sometime owner of businesses may get stuck working much longer hours in comparison to their employees. Sometimes fatigue leads to many rash decisions about business which may further lead to many new obstacles for the companies, so it is also among the biggest operational challenges for small and medium companies which should be avoided. A healthy and friendly working environment should be maintained within the company so that boss as well as employees of the company work with proper concentration without facing any fatigue situation or conditions.
4. Dependence of Founder - dependence of Founder is also among the biggest challenges for small and medium companies. If any business can't operates without its founder then it's working and overall decisions get dependent on one person and if that person become unavailable for any time of moment and the working of business get delayed which will further effect the revenue of the company. So this is also a big operational challenges for the small and medium businesses.
5. Balancing quality and growth at same time - last but not the least, maintaining and balancing quality and growth for small and medium businesses are very much challenging tasks. For this challenge, high attention for each tasks and works of the company need to be clearly done so that quality and growth both get attained and helout in the further enhancement of the business of the company.