A STRATEGIC INSIGHTS INTO EXTERNAL ENVIRONMENT FOR SMALL AND MEDIUM ENTERPRISES

Authors

  • Dharmishta Mistri Research Scholar, Department of Commerce, M. K. Bhavnagar University, Gujarat, India
  • Prof. (Dr.) Suresh Savani Former Head & Dean, Department of Commerce, M. K. Bhavnagar University, Gujarat, India

Keywords:

Small and Medium Enterprises (SMEs), External environment, Degree of Turbulence, Self-assessment tool

Abstract

This paper introduces a tool called “Degree of Turbulence”, designed to help identify which external environments are most impacted and require immediate change. Small and Medium Enterprises (SMEs) encounter many challenges related to their external Business environment. In fostering growth of SMEs, it’s compulsory to adopt various external environment like political change, market change, change customer expectation, technology and more on. Businesses must adept changes for generate investments sources and job opportunities. Effectively responding to change in technology, change customer demands, supplier expectations, regulatory environment, and increased competition demands adept organizational change management to their success. The Degree of Turbulence model serves as a valuable self-assessment tool for SMEs, aiding in environmental scanning and facilitating assessment of future impacts. This enables SMEs to dynamic adjust to coming external changes, ensuring sustained viability. In this study, collected the data of 30 SMEs from Bhavnagar district, Gujarat, India to find their impact of external environment change and find how Degree of Turbulence helping to take any further Business decisions. This study to understand the importance of future environmental scanning for SMEs. The Degree of Turbulence model not only aids in identifying the significance of external changes but also supports SMEs in formulating strategies that organize with emerging trends and regulatory change.

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Published

2025-02-28

Issue

Vol. 56 No. 02 (2024): Indian Journal of Accounting

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Articles

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