An insight into small business success: the UK

Transcript:An insight into small business success: the UK:
An insight into small business success: the UK chemical distribution industry Dr Evri Lampadarios Business Manager WSB PT Lecturer LBU A bit about myself… The research problem The chosen industry My research Supplier management Challenges Contents No universally accepted definition for SMEs with significant variations in different countries (Smallbone et al., 2010; Unger et al., 2011) No single agreed-upon definition of success (Rogoff et al., 2004) No universally accepted model to incorporate all aspects of small business success (Chawla et al., 2010; Lampadarios et al., n.d.) Knowledge more fragmented than cumulative (Dobbs and Hamilton, 2007) High failure rates and poor performance levels (Gray, et al., 2012; Ropega, 2011) CSFs vary with the business environment (industry and country) (Krasniqi et al., 2008; Simpson et al., 2012). …creates need for more empirical studies to investigate the critical success factors in each individual industry and in a specific country setting. The ‘research problem’ £4.42bn turnover 10% of the total European market 6,800 employees Forecasted for growth Strong consolidation trends Regulatory requirements High fragmentation Strong presence of SMEs To make it worse…. No research on success/ failure and modus operandi No universally agreed definition of a chemical distributor (Chemagility, 2008). No official statistical and/or financial data Confusion with other types of trading in the industry Wide variety of functions UK chemical distribution industry Chemical distribution originates in the gap between producers who wish to sell large lots without regulatory or logistical complications and customers demanding small volumes and who have very specific needs on technical, regulatory and logistical level (Mortelmans and Reniers, 2012) Chemical distributors allow their principals to profitably reach smaller customers in many industries and countries (Chemagility, 2008) However… genuine chemical distributors add value through an extensive range of services to both customers and suppliers (Hornke, 2013) Chemical distribution Rationale No universally agreed definition….wide variety of functions and confusion with other types of trading in the industry Not logistics Not traders Not agents ‘A company that takes title to bulk and/or non-bulk chemicals from a chemical manufacturer or supplier and re-sells the chemicals to an end-user’ (NACD, 2005) Definitions By products Commodities Specialities Full range By geography / market coverage Regional / national multinational Classification Customers: broad product portfolio with complementary products access to reputable suppliers competitive (and stable) pricing stock management and Just In Time (JIT) deliveries competent and knowledgeable sales team technical support and problem solving skills product expertise for