Sources of finance for small and medium enterprises

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1st Jan 1970 Business Reference this

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Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 2

ABSTRACT

This study examined the factors or determinants of successful small and medium

entrepreneurs in the United Kingdom and the sources of financing for them. As such, the

following research questions will be answered:

  1. What are the determinants to become small and medium successful entrepreneurs in

    the United Kingdom?

  2. What are the characteristics of independent small business owners and medium scale

    entrepreneurs in the United Kingdom?, and

  3. What are the sources of financing for them in the United Kingdom?

The study found that sample United Kingdom small scale and medium scale entrepreneurs

revealed that the motivations for small scale entrepreneurs are more on the pull factors or

intrinsic factors or rewards while the medium scale entrepreneurs are more on the extrinsic

factors or rewards. The small scale entrepreneurs displayed a low entrepreneurial orientation

while the medium scale entrepreneurs showed high entrepreneurial orientation.

Moreover, the prior industry experience and previous business connections of small scale

entrepreneurs are limited while the medium scale entrepreneurs are more extensive. Also, the

medium scale entrepreneurs have extensive external support networks while their small scale

counterparts are limited.

Finally, the sources of funds for small and medium enterprises in the United Kingdom

are mainly from bank financing and self-finance from savings especially during the first two

years. However, after two to five years they borrowed from banks

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 3

Chapter 1

INTRODUCTION

BACKGROUND

Small businesses are now well recognized and acknowledged as important and pivotal

contributors to economic development, job creation, both nationally and internationally. Many

countries have now understood the significance of the small business and are now giving

emphasis to it for creation of jobs, innovation and the long term development of economy.

In fact, bulk of enterprises in all economies across the world is constituted by the small firms

and companies. Such, small companies also majorly contributes to private sector output and

employment, one which appears to be increasing over time.

An entrepreneur is no doubt a pure risk taker who creates value by offering products and

services. They provide momentum for the change, innovation and progress in the economy.

Entrepreneur is the one who has the knack of introducing new ideas in the market and they are

often keen to change the traditional strategies and approach, if necessary. An entrepreneur is

someone who can imagine the financial risk in starting up a new business and has the ability to

capitalize the opportunity of benefit to an enterprise. An entrepreneur is very creative, skilful,

innovative and always keen to explore new ideas and strategies.

The traits suggested by previous empirical research which describe entrepreneurs are: (1)

high need for achievement (Decarlo & Lyons, 1979; Hornaday & Aboud, 1971; among many

others); (2) internal locus of control (Hornaday & Aboud, 1971; Miller, 1983); (3) high need for

independence and effective leadership (DeCarlo & Lyons, 1979; Hornaday & Aboud, 1971); (4)

high need for autonomy (DeCarlo & Lyons, 1979; Sexton & Bowman, 1983, 1984); (5)

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 5

information processing capability (McGaffey & Christy, 1975); (6) preference for moderate level

of risks (McBer & Co., 1986); (7) low conformity (DeCarlo & Lyons, 1979; Sexton & Bowman,

1983, 1984); (8) aggression, support, and benevolence (DeCarlo & Lyons, 1979); (9) energy

level, risk-taking, and change (Sexton & Bowman, 1983, 1984); (10) dominance, endurance,

innovation, self-esteem, low anxiety level, and cognitive structure (Sexton & Bowman 1983);

and (11) low interpersonal effect, social adroitness, low harm avoidance, and low succorance

(Sexton and Bowman, 1984).

Thus, this research concentrates upon the reasons influencing individuals to become

entrepreneurs and the sources of financing available for them in United Kingdom.

PROBLEM STATEMENT

This study will examine the factors or determinants of successful small and medium

entrepreneurs in the United Kingdom and the available sources of financing for them. As such,

the following research questions will be answered:

  1. What are the determinants to become small and medium successful entrepreneurs in

    the United Kingdom?

  2. What are the characteristics of independent small business owners and medium scale

    entrepreneurs in the United Kingdom?, and

  3. What are the sources of financing for them in the United Kingdom?

THE OUTLINE AND CONTRIBUTIONS OF THE RESEARCH STUDY

This study is organized into five chapters. Chapter one discussed the introduction and

background of the study, it also presents the statement of the problem, research purpose, research

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 6

objective, the outline and contributions of the research study, definition of terms, and the

methodology of the study.

Chapter two reviews the literature and Chapter three explains the methodology of the study.

Chapter four presents the analysis of the study, and finally Chapter five summarizes and

concludes the study.

The contribution of this study to theory is that there is yet no research regarding determinants

for successful small and medium and the available sources for them in the United Kingdom. As

such, this study will be a big contribution since it fills this gap.

DEFINITION OF TERMS

Extrinsic Factors. Motivation of entrepreneurs usually due to external factors such as earning an

income and be recognized as successful by other people.

Intrinsic Factors. The motivation of entrepreneurs and franchisors to go into business due to

internal determinants such as achievement, power, and competence.

Achievement Motivation. This is the motivation drive which is due to the need of people to

achieve something significant in his life.

Power Motivation. This is the need of an individual to acquire influence and control over other

people.

Competence Motivation. This is the need of an individual to be efficient and competitive in his

business and work.

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 7

METHODOLOGY

Research Strategy

The researcher will conduct interviews with the respondents in the areas listed in the table

below:

The areas of interviews will be conducted by the researcher on motivations which will

identify the kind of motivation that predominate small and medium business entrepreneurs. Their

entrepreneurial orientation will also be assessed and also their work/life balance.

The education level and age will also be identified for the respondents so as to determine

whether these factors are significant. Their prior industry experience will also be assessed as well

as their prior access to business networks and external support networks.

Table 1

Characteristics Small scale entrepreneurs Medium scale entrepreneurs

Motivations

Entrepreneurial Orientation

Work/family balance

Education level

Age

Prior industry experience

Previous connections to business networks

External support networks

Sources of Financing

Secondary Research

The sources of available financing for small and medium scale enterprises in the United

Kingdom will also be identified and analyzed.

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 8

Primary Research

An interview questionnaire was designed and sent to forty (40) sample entrepreneurs wherein

twenty are small scale entrepreneurs and another twenty of them are medium-scale entrepreneurs

in the United Kingdom. Time is at a premium and a questionnaire could be fitted in around other

activities. This approach was not a preferred option – it was more a pragmatic solution to getting

the information and involvement of key entrepreneurs.

The interview covered the same themes of the questionnaire. The aim being to give me the

freedom to explore areas more deeply as appropriate. People do tend to give you more

information and expand in a discussion rather than the limited responses gained from

questionnaires.

Other methods considered were:

Multi Disciplinary Focus groups

This was discounted as it would have been difficult to organise logistically.

Telephone interviews

This was discounted as it was felt that a telephone interview to start with would be a bit

impersonal, there is the potential to use them for a follow up to the questionnaire. This was not

used as the return of the questionnaires was sufficient to provide helpful information at this

stage.

Questionnaires to the whole organisation

This was discounted as there is a certain amount of question fatigue. The relevance of

consulting all staff would not be relevant as the key person to interview is the owner himself..

Data Collection

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 9

The collection of data will be done through interviews from the respondents.

Data Analysis

The data will be analyzed by reviewing the voice recording in the interviews and through the

notes of the researcher which will be written according to the guidelines in Table 1.

These interview questions were answered and this was all saved in a recorder. The researcher

evaluated all these answers in the recorder and replayed it repeatedly in order to analyze their

insights and views. This evaluation and analysis were then written by the researcher in the

analysis and findings as well as quoted the interviews of the owners as evidences of the findings.

Interview Form

Dear Respondent,

The researcher is conducting a study on small and medium scale enterprises in the United

Kingdom as a requirement for his academic degree in the university. It would be appreciated if

you can answer the following interview questions:

  1. What are your motivations when you started as an entrepreneur? What are your

    motivations today as an entrepreneur?

  2. What are your entrepreneurial orientations?
  3. How is your work/family balance?
  4. What is your education level?
  5. How old are you?
  6. What are your prior industry experiences before going into entrepreneurship?
  7. What were your previous connnections to business networks?
  8. Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 10

  9. What are your external support networks? and
  10. What are the sources of financing?

Summary

Thus, this study will be conducted by utilizing literature review as a research tool and

complimented by exploratory research through survey/interview the respondents.

Chapter 2

REVIEW OF LITERATURE

Introduction

Small businesses are now well recognized and acknowledged as important and pivotal

contributors to economic development, job creation, both nationally and internationally. Many

countries have now understood the significance of the small business and are now emphasizing it

for creation of jobs, innovation and the long term development of economy.

In fact, bulk of enterprises in all economies across the world is constituted by the small firms

and companies. Such, small companies also majorly contributes to private sector output and

employment, one which appears to be increasing over time.

Entrepreneur

Entrepreneur is no doubt a pure risk taker who creates value by offering products and

services. They provide momentum for the change, innovation and progress in the economy.

Entrepreneur is the one who has the knack of introducing new ideas in the market and they are

often keen to change the traditional strategies and approach, if necessary. Entrepreneur is

someone who can imagine the financial risk in starting up a new business and has the ability to

capitalise the opportunity of benefit to an enterprise. An entrepreneur is very creative, skilful,

innovative and always keen to explore new ideas and strategies (Adler, 2002; Aldrich, 1989;

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 11

Alstete, 2003; Anderson et al, 1992; Anna et al, (1999). For more of entrepreneurship please see

Belcourt et al. (1991); Bennett & Dann (2000); Bird (1989); Birley & Westhead (1994).

Research on Entrepreneurial Traits

The traits suggested by previous empirical research which describe entrepreneurs are: (1) high

need for achievement (Decarlo & Lyons, 1979; Hornaday & Aboud, 1971; among many others);

(2) internal locus of control (Hornaday & Aboud, 1971; Miller, 1983); (3) high need for

independence and effective leadership (DeCarlo & Lyons, 1979; Hornaday & Aboud, 1971); (4)

high need for autonomy (DeCarlo & Lyons, 1979; Sexton & Bowman, 1983, 1984); (5)

information processing capability (McGaffey & Christy, 1975); (6) preference for moderate level

of risks (McBer & Co., 1986); (7) low conformity (DeCarlo & Lyons, 1979; Sexton & Bowman,

1983, 1984); (8) aggression, support, and benevolence (DeCarlo & Lyons, 1979); (9) energy

level, risk-taking, and change (Sexton & Bowman, 1983, 1984); (10) dominance, endurance,

innovation, self-esteem, low anxiety level, and cognitive structure (Sexton & Bowman 1983);

and (11) low interpersonal effect, social adroitness, low harm avoidance, and low succorance

(Sexton and Bowman, 1984).

Yonekura (1984) proposed that the following characteristics: “assertiveness, insistence,

forward-looking, critical thinking, creativity, innovation, continuity, preparedness, responsibility,

open-mindedness, etc. Burch (1986) mentioned nine salient traits, which dictated a high

propensity for one to behave entrepreneurially. They are: a desire to achieve, hard work,

nurturing quality, able to accept responsibilities, reward oriented, optimistic, excellence-oriented,

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 12

an organizer, and money oriented. (http://www.airiatech.com/personal-traits/computertechnology/

yonekura.html).” As such, entrepreneurs possessed those traits mentioned in order to

be successful in business.

The reasons for people to go into entrepreneurship is an area which is widely researched in

the area of management (Walker, 2004). Majority of these studies suggests that people are

motivated by personal and financial reasons like achievement need, independence, and the

creation of wealth (Bird, 1989; Birley and Westhead, 1994; Burns, 1996; Hisrich, 1986; Kuratko

et al., 1997). Generally, most of the studies suggest that personal internal reasons are more

important motivations as compared to financial reasons in going into entrepreneurship. (Gray,

1993).

Apart from the impact of personal and financial goals on organizational choice, an individual’s

perception of his or her present job situation may influence small business adoption. Difficulties

experienced within the organization such as their thinking that it lacked opportunities and that

their pay were low and not commensurate to their performance pushed them to start their own

businesses (Moore and Buttner, 1997). Furthermore, those who have no work also forced them to

become entrepreneurs (Still and Guerin, 1991), even though the clarity of the entry of business

and its form are not that clear to them at the start (Praag, 2003; Vodopivec, 1998; Walker, 2004;

Walker and Brown, 2004; Burke et al., 2002; Burns, 1996; Buttner & Moore, 1997;

Process of Starting Up the Business

The entire work culture and scenario of the small and medium business has improved a lot in

the last few years. Success or failure of any business depends on its start up. This is the first and

most vital step which decides the future of enterprise. All other steps are secondary, but

establishment of the firm should be done carefully, so that it can grow and develop to its full

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 13

potential (Carter et. al., 1996; Carter & Anderson, 2001; Carter & Cannon, 1988; Chaganti &

Parasuraman, 1996; Cliff, 1998).

The steps involved in the business start up can be classified as:

Business Start Up

In this section, we will consider both theoretical and practical aspects. Variation between

theories of starting up a business and practical situation faced by the owner will be highlighted

here (Coleman, 1988).

It is quite likely to have difference in the theories and practical aspects, which are as follows:

Formation of idea

Theory- An entrepreneur has the idea of business before starting up any activity. This step is

very important because each and every aspect of business is considered in it. This step is also

very important because every pros and cons of the particular business is decided at this stage

(De-Bruin & Lewis, 2004; Deakins & Whittam, 2000).

Opportunity Recognition

The entrepreneur must be able to recognize opportunities for business and this is not an

easy task. Opportunity might result from certain trends in the market such as the need for a new

product or service (Kotler, 1972; Deshpande, 1983).

Market Research and Business Plan

It is quite likely to have difference in the theories and practical aspects, which are as follows:

he should carry out the SWOT Analysis to analyse the strength, weakness, opportunity and threat

in his business (Kotler, 1990; Dyer, 1994).

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 14

Arrangement for Finance

There are various sources of finance available for the entrepreneur and the small and medium

sized firm. However, in the simplest way, it can be classified as the internal and external source.

Internal sources of finance include the personal equity of the entrepreneur, usually in the form of

savings, remortgages or perhaps money raised from family and friends (Feldman & Bolino,

2000; Fielden et al., 2003; Fitzgerald and Muske, 2002; Leazar, 2002).

Usually, in the small and medium firms, there is highest possibility that the major fraction of

the total finance is contributed by the internal sources like family and friends (Lee & Mathews,

1999; Hisrich, 1986).

On the other hand, banks, equity from venture capitalists and informal investors and short

term trade credit are the external sources of finance. Other external sources are leasing, hirepurchase

and factoring (Anderson, 1997).

Optimum Use of Resources

To make any business successful and for its best possible growth and development, optimum

and proper use of the resources is very important. In small towns, where business activity is less

as compared to cities, the small business owner’s ability to mobilize and gather the required

resources from their environment becomes vital (Gimeno, 1997; Gray, 1993; Gatewood et al.,

1995; Gundry & Welsch, 2001) Moreover, such areas are viewed as being lean in terms of those

resources associated with the business start up. They are portrayed as being distanced from main

markets and main centres of business activity, have lower and more dispersed population, a

weaker infrastructure, local markets are limited due to lower population.

“Despite the apparent difficulties in starting up and running a business to towns, the number of

businesses has grown”. (Anderson, 1997)

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 15

Problems in Starting Up a Business

When starting up a business, the owner is bound to face some problems. There are basic

steps and procedures that should be followed by the entrepreneur, while starting a business. But

the problem arises when the successful implementation of these steps becomes difficult, due to

the problems in the market. Sometimes things do no happen in reality as they were expected and

also it may take longer time than expected (Martins et al., 2002; Marschack, 1994; Morrison,

2000; Olson, 1992; Praag, 2003; Rainbird, 1991).

Major problems in starting up a business can be classified as:

  • Goodwill- When a business is new, it lacks good reputation in the market, which is called

    Goodwill. In business, it is very important to have goodwill. It means that the business has

    trustworthy image in the market. Sometimes, just because of lack of goodwill, customers don’t

    trust the company (Reynolds, 2000; Robichaud et al., 2001).

  • Market Prediction- It is essential for the entrepreneur to have the market predictions. The

    market trends keep on fluctuating. Thus the entrepreneur has to mould himself according to the

    market situations. If he does not maintain pace with the market trends it becomes very difficult to

    be in the race. This is not a very easy job (Robinson, 1994; Shane, 1995; Smith, 2000).

  • Financial Gap- The existence of a financial gap arises because demand from small firms is

    greater than the willingness of financial institutions to supply the finance at current market

    conditions. For finance such as bank loans, these gaps may be termed as credit rationing

    (Stanworth & Stanworth, 1997).

  • Getting the premises in prime location- Getting a good location to set up the business is a very

    big issue. The entrepreneur should keep in mind to get the best location. If the location is good

    and is very close to all the available resources then he can grab the opportunities of using these

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 16

    resources (Taylor, 1980).

  • Judging the customer expectations- It is very hard to match the ever changing expectation and

    demands of the customers. It is very difficult to have an exact idea about the choice of the

    customers. In this case it becomes very difficult for the new firms to have an idea about the

    customer expectations (Timmons et al., 1985).

Growth of the Firm

Greiner’s Growth Phases Model describes the Framework which helps in understanding why

certain Management styles, Organizational structures and Coordination mechanisms work in

some phases and why these don’t work at certain phases in the development of an Organization.

In 1972, Larry E. Greiner originally proposed this model with five phases of growth and more

recently he added a sixth phase to his model (Harvard Business Review, May 1998). Each phase

has a particular management style, faces specific problems, and each phase has been dominated

by particular management style to achieve growth. This model suggests the organizations to go

through the 6 stages of growth and need appropriate strategies and structures to cope up

(http://www.mindtools.com/pages/article/newLDR_87.htm).

Phase 1: Growth through Creativity

This phase comes at the start-up stage of a company. In this phase, entrepreneurs of the firm

will be busy in production and opening up markets. As there will be less staff, very hard work is

required and the informal communication will work. This phase ends with a Leadership Crisis.

New professional management people will be brought in (Walker & Brown, 2004).

Phase 2: Growth through Direction

In this phase, growth continues in an environment of more formal and functional Organization

structure, Accounting, Capital management, budgets and focus on separate Standardized

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 17

processes like marketing and production. Incentive schemes will be introduced as a financial

reward. This phase ends with an Autonomy Crisis: New structures based on delegation are called

for (http://www.mindtools.com/pages/article/newLDR_87.htm; Walker, 2004).

Phase 3: Growth through Delegation

The Organization continues to grow with a decentralized organizational structure. The top

management just monitors and deals with the big issues, where the mid-level managers freed up

to react fast to opportunities for new products. In this phase the operational and market level

responsibility increases and formal communication will be maintained. This phase ends with a

Control Crisis: More sophisticated functioning from the head office is required and business

need to work together ( http://www.mindtools.com/pages/article/newLDR_87.htm).

Phase 4: Growth through Coordination and Monitoring

Growth continues with the formation of product groups, thorough review of formal

planning, centralization of support functions. Corporate staff will be hired for the oversees

coordination. Investment finance is allocated centrally and managed according to Return on

Investment (ROI). Incentives are shared through the lower level of company in order to motivate.

This phase ends on a Red-Tape Crisis: A new culture and structure must be introduced (Birley &

Westhead, 1994).

Phase 5: Growth through Collaboration

In this phase, new evolutionary paths are introduced. The previous formal controls are

replaced by decentralized support staff to deliver projects in a matrix structure supported by

sophisticated information systems and team-based financial rewards. This phase ends with a

crisis of Internal Growth: Partnerships with complementary organizations is required (Greiner;

Birley & Westhead, 1994; Burns, 1996).

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 18

Phase 6: Growth through Extra-Organizational Solutions

Greiner’s recently added sixth phase to his model suggesting the organizations that growth

may continue through merger, outsourcing, networks of organizations and by involving other

companies (http://www.mindtools.com/pages/article/newLDR_87.htm); Carter et al., 1996).

A Case Study of a Successful Entrepreneur

Dr. Naveen Parihar was born in 1963 in his home town Nagod, situated in Madhya

Pradesh, a State in India. He is a dental surgeon by profession. After his schooling, Dr. Parihar

took admission in BDS (Bachelor of Dental Surgeons), in 1982. After completing BDS from

Rukhmani Devi Dental College Lucknow, Uttar Pradesh, he worked with a private dental clinic

as a junior dental specialist, to gain some experience.

Later, Dr Parihar got the opportunity to join the renowned Birla Hospital, as a dental

specialist. He grabbed this offer because of the reputation of the Hospital and also because the

hospital was in district headquarters Satna, 25 Kilometres from his hometown Nagod.

He continued working with the Birla Hospital for 7 years. An entrepreneur to the core, Dr

Parihar was not enjoying the stereotypes life and then he decided to become self employed by

establishing his own business. As he was specialised in dentistry, he decided to stick to his skills

and start a business in this field. Later on, he did thorough market research and considered all the

aspects related to this business. He found out that establishing a dental clinic in the nearby

headquarters (Satna) would not be a fruitful idea because of the cut-throat competition and

saturation in the market. Therefore, he decided to open a clinic in his hometown (Nagod) itself.

The main aim of Dr Parihar, behind opening this clinic was to provide dedicated and quality

services to the local and nearby residents of the town. He always believed that the profit can only

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 19

be achieved by providing good services to the customers (Patients).

Curewell Dental clinic was established in 8th, August, 2001. The clinic was set up in only

three rented rooms in a building, in which one room was waiting room for patients, the second

room was the meeting room and the other room was for the check up. The check up room was

equipped with essential surgical equipments like dental chair.

The owner was bound to face some problems by starting up a clinic in a small town. The first

problem faced by the owner was the lack of skilled helping hands in the town. Dr Parihar also

realised that hiring skilful assistants from the city would not be a very good decision, as it would

increase the start up cost of the clinic.

Also, he did not want to comprise with the quality and skills. Hence, Clinic was started with

limited helping hands and in its early stage there were only three skilled assistants in the clinic.

Belief of the Owner in Entrepreneurial Theory

As written in most of the theories, he has always kept the things simple and stuck to the

basics without forcing the things to get happen. Dr Naveen Parihar has the experience of almost

20 years, in this field. He set a goal to achieve profits and he was aware of the limitations of its

clinic in its early stage.

He has always been confident enough to take risk, creating and adopting new ideas in the

business, if necessary. If we talk about his qualities then he is highly specialised in his field and

has the ability to identify market trends. On the other hand, he is hard working, intelligent,

courageous and knowledgeable.

Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 20

Problems Faced By Curewell Dental Clinic

  • Costly Dental equipments- It was one of the main issues in starting up a clinic as the dental

    equipments are very costly. For Dr Parihar, cost of the equipments including dental chair was

    half of the total start up cost. He also wanted to install latest and efficient equipments. Thus, for

    him it was tough task to manage this.

  • Registration of the clinic- To start any business in health and safety sector, it has to be

    registered with the government section called ‘Health and Safety Society’. Before getting

    registered with this section, one needs to fulfil certain criteria. This can take few weeks or

    months and can certainly delay the whole project.

    It also requires lot of documentation before applying if the registration. Dr Parihar also suffered

    the same problem and got the registration after two months.

  • Marketing- It was the matter of concern for the owner as he was setting up his business in a

    town. Thus, there were very limited chances of advertisement in th

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 2

    ABSTRACT

    This study examined the factors or determinants of successful small and medium

    entrepreneurs in the United Kingdom and the sources of financing for them. As such, the

    following research questions will be answered:

    1. What are the determinants to become small and medium successful entrepreneurs in

      the United Kingdom?

    2. What are the characteristics of independent small business owners and medium scale

      entrepreneurs in the United Kingdom?, and

    3. What are the sources of financing for them in the United Kingdom?

    The study found that sample United Kingdom small scale and medium scale entrepreneurs

    revealed that the motivations for small scale entrepreneurs are more on the pull factors or

    intrinsic factors or rewards while the medium scale entrepreneurs are more on the extrinsic

    factors or rewards. The small scale entrepreneurs displayed a low entrepreneurial orientation

    while the medium scale entrepreneurs showed high entrepreneurial orientation.

    Moreover, the prior industry experience and previous business connections of small scale

    entrepreneurs are limited while the medium scale entrepreneurs are more extensive. Also, the

    medium scale entrepreneurs have extensive external support networks while their small scale

    counterparts are limited.

    Finally, the sources of funds for small and medium enterprises in the United Kingdom

    are mainly from bank financing and self-finance from savings especially during the first two

    years. However, after two to five years they borrowed from banks

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 3

    Chapter 1

    INTRODUCTION

    BACKGROUND

    Small businesses are now well recognized and acknowledged as important and pivotal

    contributors to economic development, job creation, both nationally and internationally. Many

    countries have now understood the significance of the small business and are now giving

    emphasis to it for creation of jobs, innovation and the long term development of economy.

    In fact, bulk of enterprises in all economies across the world is constituted by the small firms

    and companies. Such, small companies also majorly contributes to private sector output and

    employment, one which appears to be increasing over time.

    An entrepreneur is no doubt a pure risk taker who creates value by offering products and

    services. They provide momentum for the change, innovation and progress in the economy.

    Entrepreneur is the one who has the knack of introducing new ideas in the market and they are

    often keen to change the traditional strategies and approach, if necessary. An entrepreneur is

    someone who can imagine the financial risk in starting up a new business and has the ability to

    capitalize the opportunity of benefit to an enterprise. An entrepreneur is very creative, skilful,

    innovative and always keen to explore new ideas and strategies.

    The traits suggested by previous empirical research which describe entrepreneurs are: (1)

    high need for achievement (Decarlo & Lyons, 1979; Hornaday & Aboud, 1971; among many

    others); (2) internal locus of control (Hornaday & Aboud, 1971; Miller, 1983); (3) high need for

    independence and effective leadership (DeCarlo & Lyons, 1979; Hornaday & Aboud, 1971); (4)

    high need for autonomy (DeCarlo & Lyons, 1979; Sexton & Bowman, 1983, 1984); (5)

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 5

    information processing capability (McGaffey & Christy, 1975); (6) preference for moderate level

    of risks (McBer & Co., 1986); (7) low conformity (DeCarlo & Lyons, 1979; Sexton & Bowman,

    1983, 1984); (8) aggression, support, and benevolence (DeCarlo & Lyons, 1979); (9) energy

    level, risk-taking, and change (Sexton & Bowman, 1983, 1984); (10) dominance, endurance,

    innovation, self-esteem, low anxiety level, and cognitive structure (Sexton & Bowman 1983);

    and (11) low interpersonal effect, social adroitness, low harm avoidance, and low succorance

    (Sexton and Bowman, 1984).

    Thus, this research concentrates upon the reasons influencing individuals to become

    entrepreneurs and the sources of financing available for them in United Kingdom.

    PROBLEM STATEMENT

    This study will examine the factors or determinants of successful small and medium

    entrepreneurs in the United Kingdom and the available sources of financing for them. As such,

    the following research questions will be answered:

    1. What are the determinants to become small and medium successful entrepreneurs in

      the United Kingdom?

    2. What are the characteristics of independent small business owners and medium scale

      entrepreneurs in the United Kingdom?, and

    3. What are the sources of financing for them in the United Kingdom?

    THE OUTLINE AND CONTRIBUTIONS OF THE RESEARCH STUDY

    This study is organized into five chapters. Chapter one discussed the introduction and

    background of the study, it also presents the statement of the problem, research purpose, research

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 6

    objective, the outline and contributions of the research study, definition of terms, and the

    methodology of the study.

    Chapter two reviews the literature and Chapter three explains the methodology of the study.

    Chapter four presents the analysis of the study, and finally Chapter five summarizes and

    concludes the study.

    The contribution of this study to theory is that there is yet no research regarding determinants

    for successful small and medium and the available sources for them in the United Kingdom. As

    such, this study will be a big contribution since it fills this gap.

    DEFINITION OF TERMS

    Extrinsic Factors. Motivation of entrepreneurs usually due to external factors such as earning an

    income and be recognized as successful by other people.

    Intrinsic Factors. The motivation of entrepreneurs and franchisors to go into business due to

    internal determinants such as achievement, power, and competence.

    Achievement Motivation. This is the motivation drive which is due to the need of people to

    achieve something significant in his life.

    Power Motivation. This is the need of an individual to acquire influence and control over other

    people.

    Competence Motivation. This is the need of an individual to be efficient and competitive in his

    business and work.

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 7

    METHODOLOGY

    Research Strategy

    The researcher will conduct interviews with the respondents in the areas listed in the table

    below:

    The areas of interviews will be conducted by the researcher on motivations which will

    identify the kind of motivation that predominate small and medium business entrepreneurs. Their

    entrepreneurial orientation will also be assessed and also their work/life balance.

    The education level and age will also be identified for the respondents so as to determine

    whether these factors are significant. Their prior industry experience will also be assessed as well

    as their prior access to business networks and external support networks.

    Table 1

    Characteristics Small scale entrepreneurs Medium scale entrepreneurs

    Motivations

    Entrepreneurial Orientation

    Work/family balance

    Education level

    Age

    Prior industry experience

    Previous connections to business networks

    External support networks

    Sources of Financing

    Secondary Research

    The sources of available financing for small and medium scale enterprises in the United

    Kingdom will also be identified and analyzed.

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 8

    Primary Research

    An interview questionnaire was designed and sent to forty (40) sample entrepreneurs wherein

    twenty are small scale entrepreneurs and another twenty of them are medium-scale entrepreneurs

    in the United Kingdom. Time is at a premium and a questionnaire could be fitted in around other

    activities. This approach was not a preferred option – it was more a pragmatic solution to getting

    the information and involvement of key entrepreneurs.

    The interview covered the same themes of the questionnaire. The aim being to give me the

    freedom to explore areas more deeply as appropriate. People do tend to give you more

    information and expand in a discussion rather than the limited responses gained from

    questionnaires.

    Other methods considered were:

    Multi Disciplinary Focus groups

    This was discounted as it would have been difficult to organise logistically.

    Telephone interviews

    This was discounted as it was felt that a telephone interview to start with would be a bit

    impersonal, there is the potential to use them for a follow up to the questionnaire. This was not

    used as the return of the questionnaires was sufficient to provide helpful information at this

    stage.

    Questionnaires to the whole organisation

    This was discounted as there is a certain amount of question fatigue. The relevance of

    consulting all staff would not be relevant as the key person to interview is the owner himself..

    Data Collection

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 9

    The collection of data will be done through interviews from the respondents.

    Data Analysis

    The data will be analyzed by reviewing the voice recording in the interviews and through the

    notes of the researcher which will be written according to the guidelines in Table 1.

    These interview questions were answered and this was all saved in a recorder. The researcher

    evaluated all these answers in the recorder and replayed it repeatedly in order to analyze their

    insights and views. This evaluation and analysis were then written by the researcher in the

    analysis and findings as well as quoted the interviews of the owners as evidences of the findings.

    Interview Form

    Dear Respondent,

    The researcher is conducting a study on small and medium scale enterprises in the United

    Kingdom as a requirement for his academic degree in the university. It would be appreciated if

    you can answer the following interview questions:

    1. What are your motivations when you started as an entrepreneur? What are your

      motivations today as an entrepreneur?

    2. What are your entrepreneurial orientations?
    3. How is your work/family balance?
    4. What is your education level?
    5. How old are you?
    6. What are your prior industry experiences before going into entrepreneurship?
    7. What were your previous connnections to business networks?
    8. Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 10

    9. What are your external support networks? and
    10. What are the sources of financing?

    Summary

    Thus, this study will be conducted by utilizing literature review as a research tool and

    complimented by exploratory research through survey/interview the respondents.

    Chapter 2

    REVIEW OF LITERATURE

    Introduction

    Small businesses are now well recognized and acknowledged as important and pivotal

    contributors to economic development, job creation, both nationally and internationally. Many

    countries have now understood the significance of the small business and are now emphasizing it

    for creation of jobs, innovation and the long term development of economy.

    In fact, bulk of enterprises in all economies across the world is constituted by the small firms

    and companies. Such, small companies also majorly contributes to private sector output and

    employment, one which appears to be increasing over time.

    Entrepreneur

    Entrepreneur is no doubt a pure risk taker who creates value by offering products and

    services. They provide momentum for the change, innovation and progress in the economy.

    Entrepreneur is the one who has the knack of introducing new ideas in the market and they are

    often keen to change the traditional strategies and approach, if necessary. Entrepreneur is

    someone who can imagine the financial risk in starting up a new business and has the ability to

    capitalise the opportunity of benefit to an enterprise. An entrepreneur is very creative, skilful,

    innovative and always keen to explore new ideas and strategies (Adler, 2002; Aldrich, 1989;

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 11

    Alstete, 2003; Anderson et al, 1992; Anna et al, (1999). For more of entrepreneurship please see

    Belcourt et al. (1991); Bennett & Dann (2000); Bird (1989); Birley & Westhead (1994).

    Research on Entrepreneurial Traits

    The traits suggested by previous empirical research which describe entrepreneurs are: (1) high

    need for achievement (Decarlo & Lyons, 1979; Hornaday & Aboud, 1971; among many others);

    (2) internal locus of control (Hornaday & Aboud, 1971; Miller, 1983); (3) high need for

    independence and effective leadership (DeCarlo & Lyons, 1979; Hornaday & Aboud, 1971); (4)

    high need for autonomy (DeCarlo & Lyons, 1979; Sexton & Bowman, 1983, 1984); (5)

    information processing capability (McGaffey & Christy, 1975); (6) preference for moderate level

    of risks (McBer & Co., 1986); (7) low conformity (DeCarlo & Lyons, 1979; Sexton & Bowman,

    1983, 1984); (8) aggression, support, and benevolence (DeCarlo & Lyons, 1979); (9) energy

    level, risk-taking, and change (Sexton & Bowman, 1983, 1984); (10) dominance, endurance,

    innovation, self-esteem, low anxiety level, and cognitive structure (Sexton & Bowman 1983);

    and (11) low interpersonal effect, social adroitness, low harm avoidance, and low succorance

    (Sexton and Bowman, 1984).

    Yonekura (1984) proposed that the following characteristics: “assertiveness, insistence,

    forward-looking, critical thinking, creativity, innovation, continuity, preparedness, responsibility,

    open-mindedness, etc. Burch (1986) mentioned nine salient traits, which dictated a high

    propensity for one to behave entrepreneurially. They are: a desire to achieve, hard work,

    nurturing quality, able to accept responsibilities, reward oriented, optimistic, excellence-oriented,

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 12

    an organizer, and money oriented. (http://www.airiatech.com/personal-traits/computertechnology/

    yonekura.html).” As such, entrepreneurs possessed those traits mentioned in order to

    be successful in business.

    The reasons for people to go into entrepreneurship is an area which is widely researched in

    the area of management (Walker, 2004). Majority of these studies suggests that people are

    motivated by personal and financial reasons like achievement need, independence, and the

    creation of wealth (Bird, 1989; Birley and Westhead, 1994; Burns, 1996; Hisrich, 1986; Kuratko

    et al., 1997). Generally, most of the studies suggest that personal internal reasons are more

    important motivations as compared to financial reasons in going into entrepreneurship. (Gray,

    1993).

    Apart from the impact of personal and financial goals on organizational choice, an individual’s

    perception of his or her present job situation may influence small business adoption. Difficulties

    experienced within the organization such as their thinking that it lacked opportunities and that

    their pay were low and not commensurate to their performance pushed them to start their own

    businesses (Moore and Buttner, 1997). Furthermore, those who have no work also forced them to

    become entrepreneurs (Still and Guerin, 1991), even though the clarity of the entry of business

    and its form are not that clear to them at the start (Praag, 2003; Vodopivec, 1998; Walker, 2004;

    Walker and Brown, 2004; Burke et al., 2002; Burns, 1996; Buttner & Moore, 1997;

    Process of Starting Up the Business

    The entire work culture and scenario of the small and medium business has improved a lot in

    the last few years. Success or failure of any business depends on its start up. This is the first and

    most vital step which decides the future of enterprise. All other steps are secondary, but

    establishment of the firm should be done carefully, so that it can grow and develop to its full

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 13

    potential (Carter et. al., 1996; Carter & Anderson, 2001; Carter & Cannon, 1988; Chaganti &

    Parasuraman, 1996; Cliff, 1998).

    The steps involved in the business start up can be classified as:

    Business Start Up

    In this section, we will consider both theoretical and practical aspects. Variation between

    theories of starting up a business and practical situation faced by the owner will be highlighted

    here (Coleman, 1988).

    It is quite likely to have difference in the theories and practical aspects, which are as follows:

    Formation of idea

    Theory- An entrepreneur has the idea of business before starting up any activity. This step is

    very important because each and every aspect of business is considered in it. This step is also

    very important because every pros and cons of the particular business is decided at this stage

    (De-Bruin & Lewis, 2004; Deakins & Whittam, 2000).

    Opportunity Recognition

    The entrepreneur must be able to recognize opportunities for business and this is not an

    easy task. Opportunity might result from certain trends in the market such as the need for a new

    product or service (Kotler, 1972; Deshpande, 1983).

    Market Research and Business Plan

    It is quite likely to have difference in the theories and practical aspects, which are as follows:

    he should carry out the SWOT Analysis to analyse the strength, weakness, opportunity and threat

    in his business (Kotler, 1990; Dyer, 1994).

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 14

    Arrangement for Finance

    There are various sources of finance available for the entrepreneur and the small and medium

    sized firm. However, in the simplest way, it can be classified as the internal and external source.

    Internal sources of finance include the personal equity of the entrepreneur, usually in the form of

    savings, remortgages or perhaps money raised from family and friends (Feldman & Bolino,

    2000; Fielden et al., 2003; Fitzgerald and Muske, 2002; Leazar, 2002).

    Usually, in the small and medium firms, there is highest possibility that the major fraction of

    the total finance is contributed by the internal sources like family and friends (Lee & Mathews,

    1999; Hisrich, 1986).

    On the other hand, banks, equity from venture capitalists and informal investors and short

    term trade credit are the external sources of finance. Other external sources are leasing, hirepurchase

    and factoring (Anderson, 1997).

    Optimum Use of Resources

    To make any business successful and for its best possible growth and development, optimum

    and proper use of the resources is very important. In small towns, where business activity is less

    as compared to cities, the small business owner’s ability to mobilize and gather the required

    resources from their environment becomes vital (Gimeno, 1997; Gray, 1993; Gatewood et al.,

    1995; Gundry & Welsch, 2001) Moreover, such areas are viewed as being lean in terms of those

    resources associated with the business start up. They are portrayed as being distanced from main

    markets and main centres of business activity, have lower and more dispersed population, a

    weaker infrastructure, local markets are limited due to lower population.

    “Despite the apparent difficulties in starting up and running a business to towns, the number of

    businesses has grown”. (Anderson, 1997)

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 15

    Problems in Starting Up a Business

    When starting up a business, the owner is bound to face some problems. There are basic

    steps and procedures that should be followed by the entrepreneur, while starting a business. But

    the problem arises when the successful implementation of these steps becomes difficult, due to

    the problems in the market. Sometimes things do no happen in reality as they were expected and

    also it may take longer time than expected (Martins et al., 2002; Marschack, 1994; Morrison,

    2000; Olson, 1992; Praag, 2003; Rainbird, 1991).

    Major problems in starting up a business can be classified as:

    • Goodwill- When a business is new, it lacks good reputation in the market, which is called

      Goodwill. In business, it is very important to have goodwill. It means that the business has

      trustworthy image in the market. Sometimes, just because of lack of goodwill, customers don’t

      trust the company (Reynolds, 2000; Robichaud et al., 2001).

    • Market Prediction- It is essential for the entrepreneur to have the market predictions. The

      market trends keep on fluctuating. Thus the entrepreneur has to mould himself according to the

      market situations. If he does not maintain pace with the market trends it becomes very difficult to

      be in the race. This is not a very easy job (Robinson, 1994; Shane, 1995; Smith, 2000).

    • Financial Gap- The existence of a financial gap arises because demand from small firms is

      greater than the willingness of financial institutions to supply the finance at current market

      conditions. For finance such as bank loans, these gaps may be termed as credit rationing

      (Stanworth & Stanworth, 1997).

    • Getting the premises in prime location- Getting a good location to set up the business is a very

      big issue. The entrepreneur should keep in mind to get the best location. If the location is good

      and is very close to all the available resources then he can grab the opportunities of using these

      Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 16

      resources (Taylor, 1980).

    • Judging the customer expectations- It is very hard to match the ever changing expectation and

      demands of the customers. It is very difficult to have an exact idea about the choice of the

      customers. In this case it becomes very difficult for the new firms to have an idea about the

      customer expectations (Timmons et al., 1985).

    Growth of the Firm

    Greiner’s Growth Phases Model describes the Framework which helps in understanding why

    certain Management styles, Organizational structures and Coordination mechanisms work in

    some phases and why these don’t work at certain phases in the development of an Organization.

    In 1972, Larry E. Greiner originally proposed this model with five phases of growth and more

    recently he added a sixth phase to his model (Harvard Business Review, May 1998). Each phase

    has a particular management style, faces specific problems, and each phase has been dominated

    by particular management style to achieve growth. This model suggests the organizations to go

    through the 6 stages of growth and need appropriate strategies and structures to cope up

    (http://www.mindtools.com/pages/article/newLDR_87.htm).

    Phase 1: Growth through Creativity

    This phase comes at the start-up stage of a company. In this phase, entrepreneurs of the firm

    will be busy in production and opening up markets. As there will be less staff, very hard work is

    required and the informal communication will work. This phase ends with a Leadership Crisis.

    New professional management people will be brought in (Walker & Brown, 2004).

    Phase 2: Growth through Direction

    In this phase, growth continues in an environment of more formal and functional Organization

    structure, Accounting, Capital management, budgets and focus on separate Standardized

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 17

    processes like marketing and production. Incentive schemes will be introduced as a financial

    reward. This phase ends with an Autonomy Crisis: New structures based on delegation are called

    for (http://www.mindtools.com/pages/article/newLDR_87.htm; Walker, 2004).

    Phase 3: Growth through Delegation

    The Organization continues to grow with a decentralized organizational structure. The top

    management just monitors and deals with the big issues, where the mid-level managers freed up

    to react fast to opportunities for new products. In this phase the operational and market level

    responsibility increases and formal communication will be maintained. This phase ends with a

    Control Crisis: More sophisticated functioning from the head office is required and business

    need to work together ( http://www.mindtools.com/pages/article/newLDR_87.htm).

    Phase 4: Growth through Coordination and Monitoring

    Growth continues with the formation of product groups, thorough review of formal

    planning, centralization of support functions. Corporate staff will be hired for the oversees

    coordination. Investment finance is allocated centrally and managed according to Return on

    Investment (ROI). Incentives are shared through the lower level of company in order to motivate.

    This phase ends on a Red-Tape Crisis: A new culture and structure must be introduced (Birley &

    Westhead, 1994).

    Phase 5: Growth through Collaboration

    In this phase, new evolutionary paths are introduced. The previous formal controls are

    replaced by decentralized support staff to deliver projects in a matrix structure supported by

    sophisticated information systems and team-based financial rewards. This phase ends with a

    crisis of Internal Growth: Partnerships with complementary organizations is required (Greiner;

    Birley & Westhead, 1994; Burns, 1996).

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 18

    Phase 6: Growth through Extra-Organizational Solutions

    Greiner’s recently added sixth phase to his model suggesting the organizations that growth

    may continue through merger, outsourcing, networks of organizations and by involving other

    companies (http://www.mindtools.com/pages/article/newLDR_87.htm); Carter et al., 1996).

    A Case Study of a Successful Entrepreneur

    Dr. Naveen Parihar was born in 1963 in his home town Nagod, situated in Madhya

    Pradesh, a State in India. He is a dental surgeon by profession. After his schooling, Dr. Parihar

    took admission in BDS (Bachelor of Dental Surgeons), in 1982. After completing BDS from

    Rukhmani Devi Dental College Lucknow, Uttar Pradesh, he worked with a private dental clinic

    as a junior dental specialist, to gain some experience.

    Later, Dr Parihar got the opportunity to join the renowned Birla Hospital, as a dental

    specialist. He grabbed this offer because of the reputation of the Hospital and also because the

    hospital was in district headquarters Satna, 25 Kilometres from his hometown Nagod.

    He continued working with the Birla Hospital for 7 years. An entrepreneur to the core, Dr

    Parihar was not enjoying the stereotypes life and then he decided to become self employed by

    establishing his own business. As he was specialised in dentistry, he decided to stick to his skills

    and start a business in this field. Later on, he did thorough market research and considered all the

    aspects related to this business. He found out that establishing a dental clinic in the nearby

    headquarters (Satna) would not be a fruitful idea because of the cut-throat competition and

    saturation in the market. Therefore, he decided to open a clinic in his hometown (Nagod) itself.

    The main aim of Dr Parihar, behind opening this clinic was to provide dedicated and quality

    services to the local and nearby residents of the town. He always believed that the profit can only

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 19

    be achieved by providing good services to the customers (Patients).

    Curewell Dental clinic was established in 8th, August, 2001. The clinic was set up in only

    three rented rooms in a building, in which one room was waiting room for patients, the second

    room was the meeting room and the other room was for the check up. The check up room was

    equipped with essential surgical equipments like dental chair.

    The owner was bound to face some problems by starting up a clinic in a small town. The first

    problem faced by the owner was the lack of skilled helping hands in the town. Dr Parihar also

    realised that hiring skilful assistants from the city would not be a very good decision, as it would

    increase the start up cost of the clinic.

    Also, he did not want to comprise with the quality and skills. Hence, Clinic was started with

    limited helping hands and in its early stage there were only three skilled assistants in the clinic.

    Belief of the Owner in Entrepreneurial Theory

    As written in most of the theories, he has always kept the things simple and stuck to the

    basics without forcing the things to get happen. Dr Naveen Parihar has the experience of almost

    20 years, in this field. He set a goal to achieve profits and he was aware of the limitations of its

    clinic in its early stage.

    He has always been confident enough to take risk, creating and adopting new ideas in the

    business, if necessary. If we talk about his qualities then he is highly specialised in his field and

    has the ability to identify market trends. On the other hand, he is hard working, intelligent,

    courageous and knowledgeable.

    Sources of Finance for Small and Medium Scale Entrepreneurs in the United Kingdom 20

    Problems Faced By Curewell Dental Clinic

    • Costly Dental equipments- It was one of the main issues in starting up a clinic as the dental

      equipments are very costly. For Dr Parihar, cost of the equipments including dental chair was

      half of the total start up cost. He also wanted to install latest and efficient equipments. Thus, for

      him it was tough task to manage this.

    • Registration of the clinic- To start any business in health and safety sector, it has to be

      registered with the government section called ‘Health and Safety Society’. Before getting

      registered with this section, one needs to fulfil certain criteria. This can take few weeks or

      months and can certainly delay the whole project.

      It also requires lot of documentation before applying if the registration. Dr Parihar also suffered

      the same problem and got the registration after two months.

    • Marketing- It was the matter of concern for the owner as he was setting up his business in a

      town. Thus, there were very limited chances of advertisement in th

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