An SME perspective of the major challenges within the political environment.
(2014) An SME perspective of the major challenges within the political environment., no. 112.
Abstract The political environment can be dynamic and unpredictable, resulting in negative consequences on business activity. This is especially true for small and medium sized enterprises (SMEs), as they are more vulnerable to changes in the environment due to lack of resources, finance and power within the market. The aim of this research is to identify and provide insight into the major challenges within the political environment as perceived by SMEs in Scotland, in order to highlight and raise the issues that may challenge their success. This information may be useful for governments or providers of business support schemes to recognise which issues are challenging SMEs and which consequently could impact on the state of the economy. The study is significant as SMEs are important to local economies and contribute to economic growth. A qualitative approach was used in the study to achieve the objectives through conducting 11 semi-structured interviews with small business owners- managers to gain insights to the issues that challenge them. Interviews were deemed the most appropriate choice to obtain in-depth responses and meet the aims and objectives of the study. Data was transcribed, and analysed using tables, it was then compared and challenged to themes within the literature to draw conclusions. The results of the study indicated general negative attitudes towards government and politics from SMEs. The results suggested that out of all the pre-determined themes found in the literature, the issues that were deemed as major challenges within the political environment were burdens of VAT and employment legislation. However, while the study revealed the major challenges faced by these particular SMEs, this is based on a small sample within the retail industry and may not therefore be generalisable across all SMEs.