Management Consultancy Practices for Small and Medium Business

Management Consultancy Practices for

Small and Medium Business

SCM 463 - Global Supply Chain

Management

Arizona State University-Tempe

December 16, 2022

Abstract

This paper will discuss management

consultancy practices and will explore the

benefits that SMEs will obtain from adopting

management consultancy practices.

Moreover, it will review various definitions

of SMEs and compares management

consultancy practices employed in Sri-

Lankan SMEs and UAE. There are two types

of research methodology employed in this

paper. These include qualitative and

quantitative methods. However, more

emphasis will be put on qualitative research.

The method of data collection employed in

this research will be one to one interviews

that will be conducted on selected five UAE

small and medium-sized enterprises (SMEs).

The conclusions that will be drawn from the

research will offer some insight on whether

SMEs should adopt management

consultancy practices or not.

Introduction

Presently, the world of business is facing

constant transformations and challenges.

For small micro-enterprises to thrive in a

more complicated environment, they will

need to engage consultancy services in their

businesses to help improve their

performance. In every business, there comes

a time when the management will require to

expeditiously seek external expertise due to

limited resources or when the available

resources are being utilized maximally. The

small micro-enterprises are faced with

difficulties in trying to decide whether to hire

consultants or not. This is largely due to the

fact that they may not be sure of the costs

involved, are not familiar with the business,

they don’t understand how to go about it or

they are not certain whether they will get

time to ensure that the work is done or not.

Small businesses will need to hire

consultants so as to get in touch with specific

expertise that cannot be accessed within the

organization. Qualified consultants have

various skills, individual attributes as well as

knowledge which they can pass to the

regular employees. Every small business has

special needs and necessities. However,

there are several advantages that a business

advisor can inject into a small business

regardless of the sector or industry.

This paper will discuss management

consultancy practices and also explore the

benefits that SMEs will get from adopting

management consultancy practices.

Moreover, it will also review various

definitions of SMEs and compares

management consultancy practices

employed among SMEs in Sri-Lanka and UAE.

There are two types of research

methodology employed in this paper. These

include qualitative and quantitative

methods. However, more emphasis will be

put on qualitative research. The method of

data collection employed in this research will

be one to one interviews.

Definition of SMEs

Analoui and Karami (2003, p.24) confirm that

there are several definitions of Small and

Medium sized Enterprises (SMEs) due to a

wide range of businesses that fall under this

portfolio. The best definition of an

undersized firm is still the one employed by

the Bolton commission in its report on micro

firms written in the year 1971. This report

stated that an undersized firm is an

autonomous business that is run by its

owner (s) and possess a little market share.

This report additionally adopted several

statistical descriptions and approved that

size is related to the sector. This implies that

a firm of a specified size may be small in

connection to a specific sector whereby the

market is well established and there are

several competitors; while a firm of

corresponding size may be termed as large in

different sectors with smaller number of

competitors or fewer firms inside it.

Moreover, an SME can be defined as a

venture that has completed trade

registration or corporate registration in

agreement with law requirements and in

conformity with the following criteria:

• In the mining, construction, quarrying

and manufacturing industries, an SME

can be a paid-in investment of 2.42

million US dollars or a smaller amount.

• In the fisheries, forestry and agriculture,

gas, electricity and water, commercial,

warehousing, communications and

transportation, finance, real estate, and

insurance, commercial and industrial

services or personal or social services

industries; a sales income of 3.03 million

US dollars or a small amount in the

previous year for an organization may

qualify it for an SME.

The key factors that determine if a company

is an SME include the annual revenue or the

balance sheet and the number of staff. In the

event that an organization has employees

below two hundred and fifty, then it can be

categorized as an SME. In addition, the

yearly revenue for such an organization

should be approximately 50 million Euros. it

is also worth noting that there are business

organizations that still employ less than 50

workers and as such, they may not be

categorized as SMEs. They are rater referred

to as small scale businesses. Hence, SMEs

have a particular classification since they are

not necessarily small businesses.

A firm is termed to be micro if it has

employed less than ten employees and

realizes annual income of two million Euros

or less or a balance sheet sum of the same

amount. In reference to the kind of business

the government organizations are providing

leadership, an SME is defined in relation to

the number of regular staff as described

below:

• In the construction, quarrying,

manufacturing and mining industries, the

number of constant employees must be

lower than two hundred.

• Ventures with lower than one hundred

constant employees are grouped as

SMEs in the following industries: leasing

and real estate industries, forestry,

agriculture, animal husbandry and

fisheries industries, gas, electricity and

water industries; retailing and

wholesaling industries; restaurant and

hotel operation industries; insurance and

finance industries; communications,

warehousing and transportation

industries; technical, professional and

scientific industries; medical, social

welfare and healthcare service

industries; leisure, cultural and sporting

service industries; educational service

industries in addition to extra service

industries. Small micro-enterprises also

refer to businesses with less than five

people who are working on regular basis.

The European Commission defines SMEs as

small firms with maximum of ten employees

who are employed on full-time basis.

Additionally, the firm must realize annual

revenue of a maximum of two million Euros

or have a balance sheet of the same amount.

The European commission also defines SMEs

as micro firms with maximum of fifty

employees who are employed on full-time

basis and with a balance sheet of up to ten

million Euros or annual revenue of the same

amount (Johnston & Beaton 1998, p.200).

SME family business Vs non family business

There is no clear definition of what

comprises a family business. However, a

business with one family associate who is

actively engaged in the business is

considered to be non-family business, while

a business with more than one family

associate who is actively engaged in the

business is perceived to be a family business.

Jones and Haven-tang (2005, p.74)

emphasize that governance and competency

are issues to be put into consideration for a

family business to excel and for a plan for

succession of management and leadership

to continue. There is need for family

businesses to constantly build up

competencies and attract managers who

possess managerial competencies for the

businesses to excel because starting and

managing a SME may face several challenges

just like running a big firm. Individuals who

own small businesses lack managerial

capabilities which may lead to business

failure. Studies demonstrate that family

businesses are more likely to depend on

networking rather than relying on formal

education or on the job experiences in

establishing successors. Business

performance may also decline when family

ventures concentrate on family visions of the

business instead of focusing on maximizing

profits. Family businesses are usually

concerned with improving the lives of family

members across generations (Poutziouris

2006, p.80). Therefore, the vision of family

business differs with that of non-family

business. In most cases, the aim of family

business is to employ members of a family in

the administration team and guarantee

independent possession of the business.

Comparing SMEs and big firms

Harvie and Lee (2002, p.241) argue that

there are operational disparities between

large and small companies. Big and small

firms vary on how they practice quality

enhancement. These differences include

structures, procedures of developing

policies, and use of resources. The major

distinguishing element of big firms is the

presence of hierarchy with many levels of

management. Big firms have high rank of

standardization, specialization and

formalization which small firms lack. SMEs

are more advanced in developing

improvement ideas due to their low extent

of specialization. Large firms are

bureaucratic while SMEs are mostly organic.

The chain of arriving at decisions in large

firms is extended as compared to small firms.

It is evidenced that smaller firms are

moderately and completely less likely to

offer external training to all levels of

employees as compared to larger firms.

Management consultancy practices and

origins

Management consulting refers to the

process of assisting organizations to enhance

their performance mainly through studying

the problems that are currently facing the

business and coming up with enhancement

plans. Businesses may rely on management

consultancy services for several reasons.

These encompass access to special skills

offered by consultants and getting external

(and most probably objective) opinion. Due

to the fact that consulting firms are exposed

to and linked with several organizations,

they are informed of the best practices in the

industry. However, the transferability of

these practices from one business to another

could be restricted by the nature of situation

at hand. In addition, consultancies can offer

assistance in transforming the management

of an organization, implementing of new

technology, establishing training skills,

developing policies, or operational

enhancement services. Management

professionals frequently bring their personal

proprietary frameworks or methodologies to

direct detection of problems besides serving

as the foundation for proposing more

efficient methods of doing job tasks

(Czerniawska & May 2004, p.211).

The origin of management consulting is

attributable to the emergent of

management as a special area of study.

Arthur D. Little was the earliest firm to be

established in the field of management

consulting. This firm was established way

back in 1886 by MIT don and was

incorporated in the year 1909. Although this

firm initially specialized in scientific research,

it later developed into a universal

management consultancy firm. Later on,

Booz Hamilton was incepted before the start

of 1915.This was the first consultancy firm to

provide services to both government and

industry customers.

The Glass-Steagall banking act paved way for

various business ideas that were attached to

offering consultancy services. Although

consultancy services had been in place for

long even before the start of 1930s, lack of

well defined rules and regulations often led

to conflicts when conducting the business.

Since 1950s and beyond, consultancies

expanded their businesses in America,

Europe, South America and Asia. After the

Second World War, several fresh firms in

management consulting were established.

This brought a scrupulous systematic move

towards the study of strategy and

management. In addition, several firms that

were already running consultancy services

during the1960s and 1970s were mainly

motivated by knowledge obtained from

various centers of excellence. Some of these

centers included the Harvard school of

business and Mckinsey. These learning

centers were indeed instrumental in offering

guided and practical knowledge on various

consultancy related fields such as Strategic

administration. Several other professional

scholars also acted as impetus towards

knowledge acquisition in the field of

consultancy bearing in mind that they were

also part and parcel of most consulting

teams.

Sadler (2001, p.400) confirms that the

industry marked significant development in

the 1980s through 1990s by obtaining

substantial significance in connection to

state GDP. It is worth noting that firms which

had engaged themselves in consultancy

were quite small during the 1980s. However,

there were about 30 firms that were in this

business during the 1990s. This number had

risen from merely five firms. At the start of

1980s, the industry experienced tremendous

growth that was facilitated by the demand

for organization and strategy consultancies.

It is worth noting that information

technology was largely responsible for

myriads of development that were

witnessed during the 1990s. In mid 1980s,

the large accounting firms penetrated the

information technology consulting sector.

Ernst & Young, PWC, Deloitte Touché

Tohmatsu and KPMG were classified as the

large four bookkeeping firms. These firms

frequently provided advice plus their regular

services. However, towards the end of 1980s

and onwards, consulting services became

more crucial in connection to the

advancement in the market of auditing and

accounting. Towards the mid 1990s, the

above firms had developed more than the

service provider’s interested on organization

and corporate strategy. The consulting

business went on as usual notwithstanding

the case scenario whereby some of the well

established firms divided their lines of

service. The latter division was largely

caused by Enron scandals. The situation was

worsened when Arthur Andersen declined in

terms of performance. The industry declined

in the year 2001 prior to improving the

previous year with a present inclination

towards a clearer division of executive

consulting firms.

Management consulting practices of SMEs

in Sri-Lanka

The SMEs in Sri-Lanka contribute

significantly towards the economy of this

country by creating more employment

opportunities, bridging the gap between

sector growth inequalities besides income

generation, modernization and

technological improvement. Research

indicates that Sri-Lankan SMEs add up to

eighty- ninety percent of the total businesses

and contribute twenty percent of the

industry value. SMEs account for seventy

percent of employment created in the trade

sector. However, this sector is currently

facing many challenges that are limiting

faster development; especially difficulties in

accessing finances, expertise development

and entrepreneurship, market significance

and enhancing competitiveness. For SMEs to

remain competitive and strive for growth,

they need to employ consultancy services.

Management consultancy practices will help

SMEs to formulate good policies that will

enhance their effectiveness and efficiency. It

is crucial for Sri-Lankan SMEs to consider the

strategies implemented by adjacent regions,

especially in Eastern parts of Asia. This is

because SMEs in East Asia share similar

constraints with Sri-Lankan SMEs that

hamper their development (Annandale

2005, p.100).

There is an urgent need for SMEs in Sri-Lanka

to seek management consultancy services

which include business planning and

strategy. This is because advice and support

for SMEs in medium and low income states

are faced with global challenges. There are a

number of consultancy firms in Sri-Lanka

that provides services to SMEs for instance,

the Enterprise Development. This firm

provides services particularly in remote

areas. The objective of Enterprise

development is to establish mentoring and

training program that are sustainable. This

program aims to develop and spread out

several skilled business consultants who

have the potential to deliver a wide range of

services tailored to meet the needs of small

micro enterprises in Sri-Lanka.

The business advisers in Sri-Lanka provides

mentoring and on the job training to the

local employees and trainees. They also help

SMEs to come up with rational business

evaluation plans. They moreover offer direct

mentoring to help customers to develop

essential skills such as marketing and

financial reporting.

Annandale (2005,p.100) confirms that

though a number of special credit schemes

for small micro-enterprises have been

initiated in Sri-Lanka, amid the policies

instigated to enhance access to money, the

preparation of business plan seems to be

slow and thus, there is need for concern. At

present, the Sri-Lankan small micro-

enterprise toolkit offers some data on its

website concerning the design of, and the

motivation for, coming up with a business

plan that is successful. For this to be

achieved, management consultancy

practices for SMEs in Sri-Lanka need to be

improved to increase the efficiency and

effectiveness of this sector.

Small micro- enterprises are more innovative

and development oriented, thus they need

more attention and joint support.

Additionally, these firms have improved

prospects for achievement because it is easy

to manage their finances and administration.

Moreover, SMEs would be more

approachable to policy aid and facilitation.

Lastly, if small micro-enterprises are

provided with initial help and facilitation,

they would have improved success.

Management consulting practices of SMEs

in UAE

The SMEs sector in United Arab Emirates

creates employment opportunities for more

than fifty percent of UAE labor force. Small

micro enterprises that employ below two

hundred and fifty workers, conversely, lack

appropriate business and marketing power

to remain competitive. There are a number

of consultancy firms in UAE that help SMEs

to improve their businesses. For instance,

the Flagship is the chief marketing and

management firm in Dubai and is

instrumental in this area. This firm helps

SMEs to improve their marketing expertise

by highlighting new global practices in

addition to tailoring international practices

for the domestic market that is increasing

competence and outcome oriented. The

SMEs in UAE need to engage consultants to

get solutions and techniques that would

allow them to get a bigger market share and

establish better connections with their

customers through effective management

and marketing techniques (Biggs 2010,

p.200). Marketing plays a significant role in

the growth of SMEs. However, the need for

advertising events to maintain and develop

these organizations in a competitive

corporate environment was never evident in

the UAE.

Internal vs. external consultants

External consultants are people who help

business organizations to come up with

business strategies, lay out plans to reduce

costs and create business plans, in addition

to solving wide range of intricate issues. On

the other hand, an internal consultant can be

described as any group or individual that

provides services to internal customers in a

consultative ability. Secondly, external

consultants provide business solutions which

range from business plan to reorganizing

operation procedures. While internal

consultants provide services to internal

customers in a consultative ability which

include bringing a specialized administration

advisory skill to enhance the base line

performance of the organization or

company: working within the corporate

structure to resolve business problems and

implement remedies in fields that

encompass organizational efficiency or

growth, improvement of the processes, or

strategic scheduling: playing the role of a

facilitator, change representative, educator,

or instructor within your organization: aiding

internal customers in a joint service group

business, for instance finance; information

technology; human resources; and quality

management.

Moreover, external consultants usually take

duration to comprehend the organizational

culture, assess the situation, and come up

with the best solution while, on the other

hand, internal consultants are familiar with

the organizational culture and it’s easier for

them to solve problems (Lukas 1998, p.78).

External advisors could be valuable in

developing strategies and suggesting the

way out. However, these advisors mostly

lack an indulgent of the customer culture

and more significantly how to incorporate

change administration in the existing society

as compared to internal consultants. The

external advisors could be a valuable

resource when an organization wants an

objective scrutiny of skill or condition in a

particular field while, internal advisors are

employed across the organization from

business planning/ corporate development

to diverse human resources and additional

service or support roles.

Lukas (1998, p.78) argues that despite the

differences between external and internal

consultants there exist similarities in the

roles they play in business. These include:

advisory firms mostly share a general move

towards delivery entailing: understanding

the condition and difficulty or opening that

need to be tackled; developing the company

case to sustain the general plan: defining the

planned framework, launching baseline and

recognizing and prioritizing openings:

planning and building the key and creating

execution plans: building up detailed

execution plans, deliver payback and

oversee optimization process.

Benefits of consultancy services

Indentifying of gaps and challenges within

the businesses

From a careful review of literature, studies

have shown that consultancy services play a

significant role in ensuring victory and

survival for small businesses (Sturdy et al

2009, p. 3). Notably, consultancy services

help business owners to identify the gaps

that exist within the numerous sections of

their business. For this case, it is arguable

that consultancy services also help small

entrepreneurs to fill the gaps in their

businesses in order to meet the interests of

their clients. Needless to say, Smallbone and

Welter (2001, p. 1 2) comprehend that most

of the SMEs fail due to lack of know-how in

certain areas, a factor that is attributed to

limited skills and unfavorable organizational

challenges. According to McKenna (2006, p.

23), it is evident that consultancy services

help to improve the overall management of

small businesses. This has to do with matters

of rendering primary services to small scale

consumers. In line with this, one can

therefore, infer that such services are the

core tools of marketing products and

services provided by small and medium

enterprises (Smallbone & Welter 2001, p.

17).

I agree with McKenna’s (2006, p. 72)

arguments that SMEs should understand the

market trends better in order to seize

infrequent opportunities. Additionally, it is

certain that consultants might know the

market better than business people. For this

reason, they help them to obtain a fresh look

on the existing situation from a business

point of view. Consequently, this helps SMEs

to be able to identify goods and services that

are on high demand at a given season. In

addition to this, they help entrepreneurs to

get a direction for running their businesses

(Andriejute & Snieska 2004, p. 14). For this

reason, consultants aid entrepreneurs to

develop an organized thinking through

which they are able to utilize their assets to

meet the sales targets in a given time frame

(Sturdy et al 2009, p. 5).

Aids the businesses with marketing skills

Shaw, Shaw and Turley (2000 p. 81) argue

that in as much as a small and medium

business would desire to grow, marketing is

not an easy task. This is due the fact that it

needs sophisticated strategies to allow

business operators to reach out a large

number of people within a short period of

time. Sturdy et al (2009, p. 3) note that in

order to be competent marketers, SME

operators should have the skills to convince

customers about the goods or services

rendered in order to make their business

competitive. For this reason, every small and

medium entrepreneur should be convinced

that consultancy services will help to boost

and add value to their products in the market

(Smallbone & Welter 2001, p. 43).

In connection to the above, empirical

surveys have revealed that approximately

35% of SMEs collapse due to failure to

examine the feasibility of their business

ideas before implementing them (McKenna

2006, p. 34). Therefore, it has been proved

that consultancy services benefit SMEs by

helping them to examine the feasibility and

viability of the businesses ideas before they

implement them. At this juncture, feasibility

test has to do with matters related to

examining the technological, personal, legal,

environmental, market and financial viability

of a business (Andriejute & Snieska 2004, p.

13).That notwithstanding, economic

scholars are quite unanimous that

consultancy services help SMEs to conduct

and carry out financial review, a factor that

prevents premature failure of their

businesses. Research has revealed that more

than 50% of small and medium-sized

entrepreneurs often give up running their

business after realizing that they are not

feasible financially (McKenna 2006, p. 42).

Moreover, they lack better strategies of

financing their businesses. For this reason, it

is argued that consultants play a significant

role in not just examining feasibility of a

business but also on effective management

of such businesses (Shaw, Shaw & Turley

2000 p. 81).

Impacts businesses with specific skills

According to Sturdy, et al (2009, p. 4),

obtaining specific skills is one of the benefits

that is derived from consultancy services. It

is imperative to note that there are some

skills that are non-existent or scarce in

businesses. Therefore, hiring consultancy

services acts as an eye opener for

entrepreneurs to embrace the benefits of

such skills. Notably, as the business expands

it reaches a point where an entrepreneur

and his management team need to consider

external expertise in order to expand it fully

(Andriejute & Snieska 2004, p. 14).

Succinctly, this has to do with consideration

of expertise such as skills, knowledge and

resources that are limited or partially

utilized, a factor that creates an opportunity

for further investment. It is important to

note that though some business has what it

takes to grow in terms of skills and resources,

there is need to look for better options

within the external environment (Sturdy, et

al 2009, p. 6).

Provide entrepreneurs with an

independent view

In addition, empirical studies have revealed

that consultancy services help small

entrepreneurs to obtain independent view

from consultants (Sturdy et al 2009, p. 11). It

is essential to consider the fact that most of

the consultants are non-members of the

business and hence they bring in their

objective and independent view related to

the impending problems facing the business

(McKenna 2006, p. 52). In connection to this,

research has revealed that most businesses

face challenges due to poor strategies of

making decisions. In this case, difference in

opinions causes chaos and conflicts, a factor

that is likely to affect the growth and

management of a business (Shaw, Shaw &

Turley 2000 p. 83). To avoid such cases,

consultants act as the best alternative to

help the business to make decision on crucial

matters. Note that consultants are never

involved in internal politics and for this

reason; they are likely to provide opinions

and views that are unbiased (Andriejute &

Snieska 2004, p. 15). In line with this,

consultancy services assist entrepreneurs to

obtain external perspectives and this

encourages imagination and creativity.

Acts as a drive for change

McKenna (2006, p. 60) asserts that there

comes a time when a business requires

unique drive in order to change. In line with

this, this author analyzes that

comprehensive change in SMEs is crucial

since it brings about growth and

development. Nevertheless, management of

change in a business is crucial and highly

valuable in order to monitor the

performance of a business. According to

Smallbone and Welter (2001, p. 45), change

management in business is crucial and its

one of the most useful services rendered by

consultants. In this case, studies have shown

that 70% of the SMEs have benefited from

consultancy services where they are able to

structure and employ coherent approaches

in realizing growth and development (Sturdy

et al 2009, p. 14).

In order to experience such changes, there is

need to conduct an assessment in the

business in order to come up with

recommendations related to areas that

deserve changes. In this case, consultants

are the best people to use while conducting

such assessments. This is due to the fact that

they are neutral and hence they will make

recommendations that are not subjective.

Note that whenever, employees happen to

conduct such assessments, they are likely to

make recommendations that will favor them

in their areas of work. Moreover, such

recommendations might not even be

beneficial to the business. In this case,

consultants will not only make

recommendations just for the sake if

improving the organizational structure but

they will also ensure that the changes help to

maximize productivity. McKenna (2006, p.

61) refers to consultancy services as catalysts

for change. This is due to the fact that they

also advise small scale entrepreneurs on how

to implement recommended changes.

Acts as a tool for identification,

classification and solving of problems in

small businesses

Additionally, studies have shown that a large

number of consultants watches over the

process of problem solving and also advise

the entrepreneurs on effective means of

affecting a long-lasting solution. It is

important to mention that most of problem

solving techniques calls for the management

to make major changes in businesses (Shaw,

Shaw & Turley 2000, p. 84). For this reason,

consultants play a significant role of making

the managers to understand the effects of

the changes made their value and benefits to

the business. In line with this, McKenna

(2006, p. 64) asserts that problems that

affect small and medium entrepreneurs can

be diagnosed and classified in levels. In most

case, entrepreneurs fail to do this by

themselves, and this causes multiple

problems in businesses. Therefore, to avoid

the hurdles, small and medium

entrepreneurs employ consultancy services

in order to help them change their course of

thinking. According to Sturdy et al (2009, p.

9), failure to recognize and rank problems

compels entrepreneurs to apply a common

measure to all of them. In most case, this

might be ineffective and uneconomical since

different cases require distinct measures.

Shaw, Shaw and Turley (2000, p. 82)

comprehends that with the aid of

consultants, it is easier for entrepreneurs to

diagnose, classify and determine

appropriate measures to be taken to solve

each problem.

Acts as source of temporary and

professional services in small businesses

Another benefit of consultancy services is

that they provide small business

entrepreneurs with temporary and

professional services. It is imperative to note

that small businesses often get themselves in

a position whereby they lack adequate

expertise (Shaw, Shaw & Turley 2000, p. 82).

In this case, they are unable to hire or

employ extra managers and employees.

Therefore, studies have shown that most of

them use consultants as temporary

professionals. Notably, this helps the

businesses to run well rather than

breakdown due to lack of professionals.

In addition to this, evidence has shown that

those businesses that use consultant

services often perform well than those who

decline such services. This is due to the fact

that, whenever an entrepreneur engages

some of the activities such as assessment to

consultants, the managers are relieved. In

this case, they are able to concentrate on

core business activities such as controlling

resources and monitoring the staffs. Besides

this, consultancy services provide small and

medium-sized entrepreneurs with interim

management services. This entails

temporary resources, skills and techniques

that can be used in management. Notably, is

normal at some point to experience shortage

of management resources, skills, or

procedures. In this case, consultants stand in

and supplement SMEs with such resources

to prevent them from collapsing (Andriejute

& Snieska 2004, p. 16).

Acts as a short-term asset for pursuing

projects in small businesses

Apparently, McKenna (2006, p. 67)

complements that consultants act as short

term assets from small and medium-sized

businesses. This is due to the fact that it

becomes easy for entrepreneurs to

collaborate with them and can also dismiss

them very easily when need arises. Arguably,

the fact that consultants are easy to replace

is a benefit for SMEs (Shaw, Shaw &Turley

2000, p. 82). In line with this, the

replacement gives room for entrepreneurs

to collaborate with consultants only on

matters that require external intervention.

In this case, consultant services become

cost-effective. In addition to this, this shift

gives small business a chance to replace

consultants with those that suites a

particular project. In connection to this, is

essential to note that businesses are subject

to risks and uncertainties. Empirical studies

have exposed the fact that a significant

number on SMEs do not have effective

strategies for managing risks that face their

businesses (McKenna 2006, p. 34) In this

case; consultancy services help employees to

develop ethical procedures through which to

use to manage impending or anticipated

risks.

Shaw, Shaw and Turley (2000 p. 82) analyze

that whenever employees’ skills are

improved, they are able to prevent

anticipated risks in business. In addition to

this, prevention and management of risks

help to make the performance of the

business stable. Needless to say, it is

apparent that training workers also equip

them with skills that enable them to monitor

growth and development in a business

(Andriejute & Snieska 2004, p. 14).

Training of employees and equipping them

with healthy working ethics

Furthermore, Shaw, Shaw and Turley (2000,

p. 82) assert that consultancy services

benefit small businesses through training

employees. Notably, consultants transfer

their knowledge and skills to employees

indirectly and this improves their

performance. According to Sturdy et al

(2009, p. 10), such services provides a solid

foundation through which employees build

their skills. Consequently, they develop

healthy working ethics and hence they are

not easily destructed by mere challenges

facing the businesses. In line with this, it is

certain that in a business, there are

numerous forms of resources that should be

monitored and utilized appropriately in

order to realize the organizational goal.

Help to improve productivity and sales

performance in small businesses

From a careful review and analysis of

literature, Sturdy, et al (2009, p. 26)

comprehend that very few entrepreneurs

understand or possess the mechanics of the

concept of sale function. In this case,

organizing their sales becomes a complex

task for them to execute. Needless to say,

most of them do not know the appropriate

sale strategy to use and therefore they use

those that they feel they are convenient for

them (Gelderen, Frese & Thurik 2000, p.

166). Therefore, consultancy services help

them to derive better strategies to use in

measuring and promoting sales

performance. Moreover, they advise them

on the products and services that are likely

to give them attractive returns (Andriejute &

Snieska 2004, p. 17).

Staffing plan

From a careful review of literature, most of

the Small and medium sized businesses

often have ambitious expansion plans.

Nevertheless, such ambitions are never

realized due to lack of effective staffing plan.

In this case, consultancy services help SMEs

to develop a sophisticated staffing plan in

order to push the businesses across all levels

of growth (Sturdy, et al 2009, p. 37).

Needless to say, consultants help

entrepreneurs to impact immediate change

in the organization work force. This entails

considering workers interests and what they

can perform best, a factor that enable one to

allocate them in the appropriate work

stations depending on their competence

(Shaw, Shaw & Turley 2000, p. 82).

Management of Human resources

McKenna (2006, p. 72) argues that

consultancy services provide effective

strategies for organizing and managing

human resources in small and medium-sized

enterprises. From a careful analysis of

literature, scholars assert that human

resources are crucial assets in a business

since they create effective responses to

ensure appropriate functioning of a

business. In this case, there is no business

that can function well without human

resources. Most of SMEs misappropriate

these resources and this often results to

failure or poor performance of their

businesses (Sturdy et al 2009, p. 41). In this

case, most of the SMEs employ consultants

who give them guidelines and procedures on

how to manage the resources in their

businesses. Nevertheless, is imperative to

note that consultants provide varying

guidelines depending on the operations and

needs in a given business. Notably, there

those business with specific requirements

and need and hence this is considered

independently (Sturdy, et al 2009, p. 44). Of

essence to note is that consultants should

give guidelines and procedures that are

geared toward developing a realistic strategy

for achieving the goals in a business.

Moreover, Smallbone and Welter (2001, p.

22) argue that effective management of

human resources ensures that all practices

and policies are implemented effectively and

this boosts the performance of a business.

Critical arguments whether or not

consulting services would help SMEs

Why consultancy services are not helpful to

SMEs

It is imperative to note that having

consultancy services in small and medium

sized business can either cause positive or

negative effects to small and medium-sized

businesses. In this case, the significance of

consultant services is argumentative and it

all depends with an individual perspective. It

is imperative to note that there exists a

management controversy over whether

consultancy services would help SMEs or

not. In the meantime, there are scholars who

have come up with overwhelming

arguments that consultancy services are not

of help to SMEs. For this case, in as much as

consultancy services can help the SMEs to

grow and develop, they heavily interfere

with their performance in numerous ways.

This is due to the fact that consultants tend

to focus on the performance and operation

of a business without considering the fact

that there is a specific context in which they

operate. Having noted this, Smallbone and

Welter (2001, p. 27) highlight that a new

entrepreneur who is thinking of hiring

consultancy services for his business have

got a long way to go if only he will be able to

overcome all the shortcomings. In this case,

consultants intervene and interfere with the

operation of the business without

considering crucial factors affecting growth

and success. Therefore, it is arguable that

consultancy services are not a cure-it-all for

SMEs since they are associated with

numerous demerits (Sturdy, et al 2009, p.

45).

Moreover, Smallbone and Welter (2001, p.

27) warn that young entrepreneurs should

not hire such services for businesses that

have not began to earn income. Instead,

they should only consult them when need

arises and the services should comply with

the legal requirements of the business.

Further studies have shown that there are

scholars who argue that consultancy services

tend to be ineffective and thus not helpful

for SMEs. This is due to the fact that most of

the consultants stays at the bench rather

than being involved during some of contract

agreements made by SMEs. In this case, they

do not have background information

concerning the history of the business hence

the decisions and procedures offered to the

entrepreneurs do not match with the needs

of the business. Moreover, their interference

affects the services they offer to business

men.

Notably, scholars who oppose that

consultancy services can be of help to SMEs

argue that these services are meant to

increase operational costs and not much is

done to help the business improve

(Andriejute & Snieska 2004, p. 17).

Succinctly, consultancy team involved in

consultancy prolong and complicate the

projects making SMEs to undergo extra costs

and in most cases, no changes are realized.

This mostly happens when consultants

collaborate with clients who are not willing

to embrace and implement their ideas in the

businesses. Notably, employing consultancy

services in SMEs increases operational costs

and this can be a risky investment especially

if it is prolonged.

Gelderen, Frese and Thurik (2000, P. 166)

recommend that small and medium-sized

businesses should hire consultants who will

be able to work collaboratively with them

not just to make money but to create a

positive impact in the business. This is due to

the fact the small and medium-sized

businesses have to make complicated

financial decisions such as obtaining

business loans in order to hire consultants.

Therefore, consultancy services add value to

the products and services in SMEs. Pointless

to say, most of the consultants serve

numerous businesses. In this case, their

skills, opinions and attitudes tend to be

duplicated among the businesses. In this

case, there lack creativity and originality

among businesses especially those that

produce similar goods and services. This is a

factor that makes the market not to be very

competitive and hence affects the

performance of the businesses.

That notwithstanding, studies have shown

that most of the consultancy services only

deliver the content in terms of skills,

knowledge and procedures of defining and

refining products in SMEs without explaining

how such can be resourced. In this case,

most of the consultancy services do not

deliver creativity to SMEs (Sturdy, et al 2009,

p. 56). Most of the consultants produce ideas

that have worked in big companies and apply

them for SMEs without considering the fact

that they might become a burden or fail to

be realized. In this case, they fail to offer

issue-specific ideas and procedures

depending on the problem faced by a

particular business. Notably, generalization

of ideas in business might be fatal and can

ruin the success of certain business

(Andriejute & Snieska 2004, p. 14).

In connection to this, studies have shown

that determining quality control among

consultants can be tricky for entrepreneurs

(Gelderen, Frese & Thurik 2000, P. 170). In

most case, entrepreneurs get to hire strange

consultants and hence they lack background

history about their skills, knowledge and

experience. At this juncture, there lacks

visibility and, in cases where consultants

demand full independence they can offer

shoddy services. For this reason McKenna

(2006, p. 81) recommends that SMEs should

hire consultants on referral basis where they

are allowed to offer services in bits and they

are allowed to proceed on the merit of the

results.

Nevertheless, SMEs usually benefit from

minimal impacts provided by consultancy

services especially when there is no long-

term partnership. In this case, consultants

only focus on the specific need in a business

and might ignore others that might be

beneficial to an organization. This implies

that for a business to experience long-term

impacts from the services, they have to incur

extras cost and form a permanent

partnership with the consultants. Needless

to say, most employers do not know the right

consultants to get for certain issues

(Smallbone & Welter 2001, p. 46). In this

case, they end up getting decision that does

not specifically address the impending

situation as anticipated.

Needless to say, Sturdy et al (2009, p. 49)

argue that much of the time that could be

used to invest is used up through

consultancy services. For instance, a

consultant might realize that most of the

problems facing a certain business are due to

poor skills among workers. In this case, the

entrepreneur might decide to initiate

training programs for the employees to

acquire the non-existing skill. Consequently,

much of the time will be spared in the

training program rather than in investment.

Pointless to say, most consultants demand to

work in line with organizational leadership.

Therefore, leaders are compelled to

abandon some of their duties to attend to

consultation schedules. Moreover,

consultation schedules need ample time in

order to facilitate the consultation process.

Certainly, partitioning some of the

production time might affect the operation

and performance of the business (Andriejute

& Snieska 2004, p. 18).

From a sociological perspective, evidences

have shown that most of the consultants are

influenced by external politics. Notably,

these forces compel them to make biased

ideas in favor of one party against the other

in a business. For example, formulation of

terms of services in a business might favor

the leaders against the workers and vice

versa. It is essential to note that using

consultants as de facto advocates can mess

up the business by making inappropriate

policies. In line with this, more that 40

percent of the SMEs collapses due to such

discriminative policies and hence consultant

services hold the blame. Sturdy, et al (2009,

p. 51) point out that some of strategies

supported by consultants do not add any real

value to the business.

In a shift of focus, there is need to

understand that most of the SMEs are

corporately organized by a team of leaders

unlike those that are family-based.

Therefore, those that are institutionalized

have got directors and stake holders who can

perform the role of monitoring the

performance of the business. In this case,

such stake holders will be able to take a

wider view of external ideas and broad-

based perspectives to benefit the

organization. Consequently, they can make

appropriate measures to meat strategic

goals and objectives even with the absent of

consultants. This implies that external

consultancy services are irrelevant and

might not be much helpful to such

businesses. This explains the reason why

most of small and medium-sized

entrepreneurs ignore consultancy services.

From a careful review of literature, most of

the entrepreneurs believe in no failure at all.

In this case, it is assumed that those who hire

such services are the ones that believe in

failure.

In some cases, credit market failure is also a

factor that makes consultancy services

unhelpful to SMEs. Needless to say, it

becomes very hard to monitor the liquidity

constrains in the market and most of the

times the situation is never constant (Sturdy,

et al 2009, p. 52). Therefore, only those

entrepreneurs who are determined to

increase their sales volume take the risk of

hiring consult-ants. For those who decline

hiring such services, they perceive success as

sheer luck.

Why consultancy policies are helpful to

SMEs

Nevertheless, from a critical point of view, it

is definite that consultant services are

necessary evil. Elaborating on this, (Sturdy et

al 2009, p. 52) notes that in as in as much as

consultant services helpful for SMEs, they

have a key role in helping such business

break through in terms of performance

(Gelderen, Frese & Thurik 2000, p. 169).

Needless to say, good consultant services

have been known to have good reputation of

helping small and medium-sized

entrepreneurs to achieve their strategic

goals. In this case, such services are helpful

in myriad ways. For example, it is apparent

that the business owners understand their

organizations better and thus they are not

the most suitable to evaluate and access

critical issues such as customer services

(Dean & Zinman 2011, p. 1278). This is due

to the fact that entrepreneurs are likely to be

subjective and this prevents them from

administering customer services effectively.

In this case there is a need for a neutral team

to suggest how activities can be done in ones

business. In this case, hiring a consultant

helps SMEs to increase objectivity.

Furthermore, Sturdy, et al (2009, p. 55)

acknowledge that external consultants are

able to go beyond the SMEs blind spots

hence they are able to visualize things that

go without being noticed.

Besides this, studies have revealed that most

of the skilled consultants have

multidimensional approaches to issues

affecting business. Contrastingly,

entrepreneurs fail to make concrete changes

since they use a unidirectional approach.

Therefore, (Shaw, Shaw and Turley (2000 p.

112) argue that consultancy services help

entrepreneurs to develop a fresh or external

perspective on handling issues in businesses.

Empirical surveys have demonstrated that

business men who employ external decisions

and problem solving approaches have got

higher chances of success in business than

those who dwell on common strategies

(Gelderen, Frese & Thurik 2000, P. 166).

Recent research has revealed that

consultants are helpful to entrepreneurs

since they are used a tools to challenge or

support existing strategies in business. From

a political perspective, consultants can be

used to oppose fractions of procedures and

policies against other. Therefore, Sturdy, et

al (2009, p. 56) assert that consultants act as

de facto adjudicators.

Research Methodology and why qualitative

research

It is essential to note that the research

methodology used is quite diverse in order

to capture the general population and derive

their perspectives on why they use

consultancy services or not. In line with this,

it is vital to mention that this research deals

with personal opinions on the role played by

consultancy services in SMEs. For this

reason, this research study must take a

critical approach in order to obtain data that

is relevant for the study. It is crucial to

consider the fact that research methodology

used in any topic of study highly depends on

the type of data to be collected (Mays &

Pope 1995, p. 109) Needless to say, research

methodology is also determined by the

nature of the topic being studies. Denzin and

Lincoln (2005, p. 8) argue that by considering

such factors, one gets an opportunity to

select the most appropriate method for

research.

According to Creswell (2003, p. 4), there are

two major types of research methodologies

that are used to collect data in the field.

These methodologies include qualitative and

quantitative research methods. Mays and

Pope (1995, p. 109) establish that

quantitative research method is appropriate

while collecting data that need to be

presented in numerical form. In line with

this, this method is suitable while collecting

data that can be quantifies such as number

of years, votes, and other statistical facts

(Creswell 2003, p. 8). In most case,

quantitative data is presented in forms of

tables, charts or graphs. Further studies have

shown that qualitative research begins by

formulating a hypothesis which acts as a

guide during the research. Needless to say,

these hypotheses or questions are normally

very brief and therefore they allow

respondents to provide precise responses

that are mostly either yes or no answers

(Creswell (2003, p. 11). For instance, in the

context of the topic of study in this paper,

one can formulate questions such as

whether SMEs use consultancy services or

not. Moreover, this method of research can

formulate questions that will help to get data

related to sales volume, years and other

statistical figures.

Contrastingly, qualitative research method is

used to collect data that need to be

presented in theoretical format (Mays &

Pope 1995, p. 109). To emphasize on this, if

one want to collect data that is historical and

can not be quantified, qualitative method

can be used. Pointless to say, there are some

aspects of life that can not be quantified such

as opinion, behavior and history (Creswell

2003, p. 12). At this juncture, qualitative

method helps an individual to study and

collect data related to aspects of life such as

opinion, behavior and altitude since they can

not be quantified.

Denzin and Lincoln (2005, p. 4) complement

that a good research should entail the two

methods of research. This implies that they

should complement each other. In addition

to this, Mays and Pope (1995, p. 110) assert

that neither qualitative research method nor

quantitative one should be perceived as

superior to the other. In this case, a

researcher should give them equal chances

in the field. Due to this argument, there is

need to understand that in every topic of

study, there is no way you can rule one

method out. For example, even the form of

data that can be quantified and presented in

tables need to be interpreted (Creswell

2003, p. 12). Therefore, in as much as

quantitative research method plays a

significant role in collecting the data needed,

qualitative method must be used to analyze

and interpret that data. In the context of the

research topic, I intend to apply qualitative

method due to the nature of information

required.

It is imperative to note that the two research

methodologies have their strengths and

weaknesses (Denzin & Lincoln 2005, p. 6).

Having known this, a researcher should

utilize them simultaneously in order to

increase the accuracy of data collected. For

instance, it is believed that quantitative

research method provides more accurate

data since it collect data that is precise, brief

and therefore easy to record, interpret and

analyze. Mays and Pope (1995, p. 101) notes

that qualitative method is prone to errors

since data provided is in theoretical or story

form. In this case, it becomes complicated

for the researcher to record, analyze and

interpret information provided to him by

respondents. In lie with this, theoretical facts

obtained can be subjective, prone to

misunderstanding and hence there is a

tendency of biasness (Denzin & Lincoln

(2005, p. 4).

Why qualitative research

From a sociological point of view, empirical

studies have revealed that qualitative

research is widely used (Creswell 2003, p.

15). This is due to the fact that this method

is able to study objects in their natural

settings. Therefore, through the method,

one is able to make sense of, analyze and

interpret phenomena without external

manipulation. For instance, this method

helps to study the behavior of entrepreneurs

and their altitude toward consultation

services. In addition to this, Mays and Pope

(1995, p. 109) assert that qualitative method

especially when studying why SMEs use

consultancy services or not will use a

naturalistic approach. This enables one to

give priority to first hand data that entails

numerous philosophies. Moreover, in order

to achieve this, one should incorporate

numerous study designs and techniques.

Such encompasses use of in-depth

interviews, discussion groups, participant

observation, content analysis and use of

focus groups (Denzin & Lincoln 2005, p. 12).

In this research, the main reason as to why

qualitative research has been highly

preferred is due to the fact that it enhances

an in-depth understanding of behavior and

factors affecting it. For this reason, this

methodology will enable one to answer

questions such as why, who, how, when and

what (Mays & Pope 1995, p. 109). For

example during the research one will be

required to have samples that will help to

answer the question in relation to why SMEs

use consultancy services or not. That

notwithstanding, it is important to note that

as the research progresses, new issues

emerge and this will demand an in-depth

enquiry (Denzin & Lincoln 2005, p. 13).

Notably, quantitative research is usually

restricted and gives no room to address

emerging issues. In this case, qualitative

research method is more preferable in order

to address emerging issues through

discussions and interviews.

Succinctly, qualitative research is more

suitable to study phenomena that can be

classified in social disciplines (Mays & Pope

1995, p. 109). For instance, one can use a

social approach to study the benefits of

consultancy services to SMEs. Note that the

topic being studies in this paper has

numerous aspects that are interlinked

together forming relationships. Therefore,

sociological knowledge will help one to

identify the relationship between the

aspects and how they influence each other

(Denzin &Lincoln 2005, p. 17). For instance,

it is definite that there exist a relationship

between SMEs and consultants. In this case,

one can use qualitative method of research

to identify and analyze how the absence of

each aspect affects the other.

Mays and Pope (1995, p. 110) comment that

qualitative research provides a room for

clarifying and questioning about the nature

and behavior of social objects. Note that this

is impossible while using quantitative

research. This makes Creswell (2003, p. 19)

to comment that qualitative research

method is unsurpassable since it is rich in

details. Mays and Pope (1995, p. 109)

complement this statement where he assert

that the method has got exploratory power

that is intuitive undeniable. Studies have

shown that qualitative method best deals

with topics of social sciences in order to

unearth the invisible (Denzin & Lincoln 2005,

p. 9). For instance, when researching on why

SMEs use consultancy services, one need to

understand the people’s views, knowledge,

fears and why they opt to make their

decision. It is important to note that there

are valuable insights that can not be

obtained from the respondents by

observation. In this case, one has to interact

with the target audience in order to collect

vital details related to the topic of study

(Mays & Pope 1995, p. 109). In this case, one

of the strength of using qualitative method

in this research is that it will enable one to

develop a complex textual description

related to entrepreneurs’ experiences with

consultation services.

Most importantly, Mays and Pope 1995, p.

112) argue that some of the issues that need

to be researched on are not readily apparent

and hence the researcher should understand

in order to interpret them. For instance,

when researching on SMEs there are

intangible factors that make entrepreneurs

to use consultancy services such as customs,

social-economic status and social norms. In

this case, such finding should be derived

from the characteristics of entrepreneurs

and personal opinions. Additionally,

qualitative research method has been

known to embrace both verbal and non-

verbal communication (Creswell 2003, p.

21). This helps the researcher to study

behavior of the respondents, a factor that

aids in revealing the subtlety of complex

issues.

Denzin and Lincoln (2005, p. 13)

acknowledge that qualitative method is very

diverse and there are myriad techniques of

collecting, analyzing ad interpreting data.

Needless to say, this gives a researcher an

opportunity to be flexible where you can use

more than two techniques of collecting data

simultaneously. Qualitative interview is

usually and commonly used as vital method

of collecting data. This is where the

researchers make appointments with

respondents in order to interview them on

matters related to the topic of study. The

interviews comprise of questions set for

guidelines in order to avoid mixing of

concepts or wasting much time (Mays &

Pope 1995, p. 112). It is imperative to

emphasize that there are two types of

interviews namely structured, semi-

structured and unstructured. Moreover,

these guide questions ensures that

important matters are not left out. It is worth

to emphasize that qualitative interview are

very flexible since the researcher and

respondents can diverge into new matters

that sprout up in the interview process

Denzin and Lincoln (2005, p. 15). This makes

qualitative methodology to be suitable for

the study topic unlike the case in

quantitative research.

In line with this, participant observation is

another method of collecting data where

researchers observe objects in their natural

settings. Creswell (2003, p. 33) asserts that

this technique is also flexible since it give

room for greater spontaneity. Moreover, it

allows the researcher to adapt the

interaction that exists between him and

participants. Mays and Pope (1995, p. 109)

point out that the interaction between

researchers and their participants is less

formal and this makes the latter to be more

elaborate and this encourages them to give

correct responses. Nevertheless, from a

careful review of literature, evidence has

revealed that observational research vary in

diverse settings.

Moreover, Creswell (2003, p. 34) argues that

observation is a reflective method of

learning and therefore one can not use a

single method of observation. For example,

while carrying out the study on whether

SMEs benefit from consultancy services or

not, a researcher needs to use participant

observation to collect crucial information. In

this case, one is expected to mingle with

small and medium-sized entrepreneurs to

observe the role played by consult-ants in

their businesses. This provides an

opportunity for one to gain a closer insight

on consultants’ practices, motivation for

SMEs and emotions portrayed by workers.

Creswell (2003, p. 37) notes that some

insights might not be observed if the

researcher does not participate in the study.

On the other hand, a researcher can decide

to collect data without interfering with the

target population. For this case, he observes

them in their natural settings without them

noticing it. Creswell (2003, p. 37) argues that

non-participatory observation has an added

advantage since the target population do not

provide manipulated data. To emphasize on

this, Creswell (2003, p. 47) establishes that

target respondents often change their

behavior, opinions and perspective once

they realize that they are being studies.

Notably, this can result to collection of

incorrect data.

Besides this, studies have shown that

qualitative method applies diverse

approaches in line with identified techniques

in order to collect data. Creswell (2003, p.

48) establishes that such approaches entail

use of grounded theory, ethnography,

narrations, storytelling and shadowing. In a

shift of focused, Denzin and Lincoln (2005, p.

24) assert that the method also collaborate

with other methodological approaches that

make it easy to collect diverse forms of data

during research. For instance, these

methodological approaches include use of

action-network and action research

theories. Empirical studies have revealed

that this method of research categorize data

on numerous basis in order to organize,

analyze and interpret results. Mays and Pope

(1995, p. 101) analyze that qualitative

research methodology has numerous ways

of analyzing data. Commonly, a researcher

can use interpretive analysis that is based on

his personal impression. In this case, the

researcher is perceived as an expert who can

observe record interpret and analyze data.

Notably, interpretative analysis will highly be

used in the research topic in order to derive

a recursive conclusion.

Nevertheless, Denzin and Lincoln (2005, p.

41) lament that qualitative method of

research is not systematic and this deprives

it the scientific merit of drawing, testing and

announcing its conclusion. Moreover, there

are scholars who argue that information

obtained through the methodology can not

be generalized. This is due to the fact that

respondents tend to provide information

depending on their views, beliefs and

opinions (Creswell 2003, p. 42). Moreover,

evidences have revealed that this method of

research only address a limited number of

audiences as opposed to quantitative

research. For instance, while comparing the

benefits of consultancy services for SMEs in

Sri Lanka and UAE, only a few respondents

can be interviewed in a given time. This is

due to the fact that numerous forms of

interview become lengthy especially for

respondents who do not provide brief

responses.

In line with this, Mays and Pope (1995, p.

101) point out that data collected through

qualitative research is very subjective since it

is based on personal opinions, interests,

altitudes, values and beliefs. From a careful

analysis of literature, most of the

respondents are likely to provide

information which they lack solid

background about it (Creswell 2003, p. 51).

For instance, most of the small and medium-

sized entrepreneurs can provide details on

why they use SMES or not. Nevertheless, the

fact remains that majority of them have

never attempted to hire such services. In this

case, information provided about their

benefits and demerits could be guessed.

Consequently, the researcher will make

biased conclusions since it is hard for him to

verify the authenticity of details given by

respondents.

In connection to this, Creswell (2003, p. 67)

points out that the method is complicated

especially when it comes to matters of

analyzing data. This is due to the fact that

most respondents provide dissimilar views

and hence it takes time for a researcher to

compare them and come up with a common

idea (Mays & Pope 1995, p. 112). Moreover,

some of the information provided is lengthy

and hence it takes time to analyze it such as

stories and content analysis. Further review

of literature revealed that most of the

respondents often lie to researchers and it

becomes hard to identify this (Creswell 2003,

p. 88). Additionally, there are those who shy

away from providing crucial information to

researchers and this makes the study to be

very complicated. Nevertheless, amid the

identified shortcomings, qualitative research

methodology remains the best choice for

studying why SME hire consultancy services

or not.

Data Collection Method

One to One Interviews

Interviewing of direct subjects of a study is

the most widely used method of conducting

research. Research has proven that it is very

reliable in gathering credible information for

the creation of desired documents.

Successful interviews are supposed to be

carried out with careful research on

information needed as well as prior

preparations. During my interviews, I

ensured keen listening, careful analysis, and

also made sure that I maintained optimal

control over the depth and range of

information. I ensured that I was extremely

observant bearing in mind that this is a

critical aspect of obtaining quality outcome.

After every interview, I gave undivided

attention to my findings by revisiting all my

notes. Since I was severally forced to work

with some limitations like divided attention

and poor communication by respondents, I

emphasized on strengthening relationships

by developing strategies which buffered

most of the inevitable weaknesses.

Literature has revealed that the most basic

and universal technique for researchers to

gather information is organizing well

planned interviews (Seidman 2006, p. 30).

The subjects (respondents) for this case

were chief executive officers and the general

managers of specific companies based in the

UAE. More opinions were also gathered from

other members of the corporation for

instance technical directors and members of

executive boards. These are some of the

people who have the relevant knowledge on

the operation of organizations which I

needed to explore.

There were several factors which had

significant effect on the interview. At times,

the targeted parties had to take time out of

their busy schedules to respond to my

research concerns. This made me to

optimize the limited time by making sure

that I gathered important information only.

My contact with the different persons was

an important favor which was granted to me

and therefore there were restrictions and

strict deadlines to keep. I employed my

experience in contacting interviews. I took

my steps with expertise before and during

the interviews to ensure that I was effective

Before the interviews

When preparing for the exercise, I was keen

to build a good base upon which I could

execute successful interviews. I did this by

being strategic and keen. I narrowed my

focus to several important aspects of face to

face interviewing.

Defined objectives

I defined the purpose of all interviews. I was

interviewing to gather information which

would help me to explain why SMEs should

or should not use consultancy services. This

was a documented step of performing my

research. My established and pre planed

goal helped me to set the scope of my

interview. My final findings were supposed

to be detailed information which was going

to be analyzed and used to make a sound

conclusion about SMEs. I prioritized the

latter and thereby managed to get the right

information. My research paper required an

open and general range of information. Step

by step details were avoided. I obtained a

specific data.

Researching the subjects

I reviewed variety of background materials

on consultancy. I also did enough research

on the companies chosen. This gave me

documentation of the organizations.

Continued operations of the organizations

were a base for the information gathered.

Acquiring of background information such as

the financial positions of enterprises helped

in making better questions for the interview.

Great compliance was given to the outlined

list of questions which were chosen for

different parties. This helped me in keeping

track of the study subject of my interviews.

It also assisted in making sure that there was

no any important concern which remained

unasked. I grouped my questions according

to the levels of detail I aimed at. The topic

was covered to its entirety. This gave the

interviewees an important perception that I

was well prepared and highly focused.

Assembling my necessary toolkit

I was careful to use the appropriate kit for

my activities. I decided to remain organized

by gathering everything I needed during the

interviews. I was equipped with all common

tools. I made sure that before I started any

interview either through Skype or by physical

meeting, I had ready notes and writing

materials. These tools helped me to keep all

my interview attachments and notes safely.

In addition, I made sure that I was well

equipped with the right directions. I also

created plenty time for my movements

because I expected to encounter difficult

traffic patterns.

During the interviews

When I interviewed the respondents face to

face, I was able to gather the much needed

and useful information. This was the goal of

my project. In many cases, the interviews

were the most resourceful way I could

gather information with. When the chance

was disrupted I opted to come back for more

information or clarification of several issues.

I was keen to manage the flow of my

interviews. I took this caution to make sure

that I got the most appropriate responses.

Active Listening

This technique proved to be highly

dependable. It was not easy to maintain a

clear attention to the issues raised by

respondents. However complete attention

was given to the respondents.

Panneerselvam (2004, p. 298) notes that

“hearing is not listening.” He elaborates that

listening is giving attention to the details of

what is being said while hearing is the mere

perception of sound (Panneerselvam 2004,

p. 300). I gave all my speakers undivided

attention by being focused on listening. I

controlled my talking to make sure that I did

not distract the mental plans of relaying my

questions. I remained relaxed and by so

doing, I was able to navigate my movements

from one question to another.

Open-ended interview questions

Questions used for interviews demanded

detailed answers which were more than just

“no” or “yes”. My open-ended questions

sought to explore whether SMEs needed or

did not need the services of consultants.

They also made the different respondents to

give their personal opinions in the issue of

management consulting.

Control of interview

This was necessary especially due to time

constraints. I was careful to make sure that I

did not antagonize them. It was also

important to maintain professional

relationships so that I could not arouse

negative feelings. I kept in mind that persons

are offended not just by words but also by

gestures of impatience. I made sure that my

tone was relatively lower than the one of

interviewees. The environment of all

interviews which were conducted was

personalized accordingly. Whenever areas

were found to be distractive, for example by

the reception of numerous phone calls, I

made requests for the interview to be

conducted in conference rooms which had a

better set up. Given that there were cases in

which the interviewees were to use a

computer to demonstrate different things, I

made sure that they could use their personal

computers accordingly. This helped in

ensuring that quality and accurate

information was obtained. In situations

where the officer was too busy to afford me

enough time, I was compelled to comply

with the given environments. There are

times I was forced to get the best I could

from very unfriendly situations.

Paraphrasing information to repeat it

This was helpful in getting full details of

complex principles of organizational

operations. Paraphrasing ensured that

details were reinforced with additional

information. There were cases in which the

information could not be easily clarified.

Whenever this was the case, I put the

information down in own words. This was

because a basis for asking more questions

was needed. A majority of people were

ready to continue proving information

provided that I continued raising questions

about my subject matter.

Identifying gaps in data

Interviewees are not able to give every

necessary detail in a planned way. This made

it important for me to rearrange

information. By doing so I was able to spot

gaps in the reports I obtained. This was

important for my organization wide

documentation of data. It helped in

structuring questions which for seeking

clarity of information.

Accuracy

It was important to get correct statistics in

every case which was studied. Information

about the enterprises was corrected

accurately. Accuracy of data was essential in

avoiding a painting of wrong pictures about

organizations. It is harmful to reflect bad

images of an organization due to careless

collection of incorrect or biased information

about it.

Organization

It was helpful keeping marks of notes which

needed to be clarified later. Where

procedures of questioning branched, one

part was exhausted and the other was dealt

with at a different time. This made it easier

to guide the collecting of information with

respect to the demands of my research.

Pieces of information which had to be

gathered at a latter time were marked using

highlighters. In addition to this, a running list

which had leading information was carried.

These provided a peaceful flow of

interviews.

Closing interviews

At the termination of every interview it was

remarkable that I had developed good

relationships. This made me to feel pretty

good in regard to the information I had

gathered. I took this chance to reinforce the

success o f my interview. I showed my

sincere gratitude to all my hosts and

enquired whether I could call back for follow

up. Most officers were ready to continue

cooperating with me. They allowed me to be

part of their mailing lists. I kept on contacting

them as I continued to compile the findings

of my study.

After the interview

Kothari (2008, p. 123) indicates that follow

through is a reliable technique to use in

digesting the information obtained from

research interviews. After conducting all

interviews I followed through the notes I had

gathered. This was immediately in order to

ensure that I did not develop unnecessary

lethargy. Gaps in notes, deciphers and

cryptic notations were filled accordingly.

Indeed, I gave some of informants a chance

to review my write ups.

Emerging issues

In general, my cooperation with the different

organizations was optimally beneficial to my

research. It was not highly limited by in

adequacies in communication, personality

disparities or lack of respondent’s

intellectual commitment. According to

Gubrium and Holstein (2007, p. 476) these

are the major factors which demerit face to

face interviews as a method of gathering

information. It is true that a researcher can

not control the cooperation level of every

interviewee (Cohen, Morrison & Manion

2000, p. 145). This was observed in cases

where persons were conceptual thinkers. It

took me extra time to get information from

several managers who needed to

conceptualize the issue of my research. This

lot had to be given more time to revisit the

consultancy undertakings for their

companies.

Another phenomenal issue was timing in

relation to when to start using consultancy

services. It seems unwise for SME

entrepreneurs to start paying for theses

services without proper timing. The best

time should be determined. Apparently, the

moat appropriate moment is soon the

organization arise a serious need for

consultation. Engaging in consultancy

requires skill to negotiate for what a

particular business organization can

comfortably accommodate. Although these

services gives the company sound advice, it

is important to understand that it can be a

challenge.

One major aim in this activity is to

communicate problems to consultants. It is

therefore important to anticipate an

eradication of ideas which seemed null. They

should be replaced with others accordingly.

Consultancy can not be separated with

business intelligence. 5they both come in to

provide methods of operation which act as a

guide of organizational operation.

Specific interview rationale

My selection UAE based small and middle

sized enterprises for data collection came in

handy. This approach gave a classical

coverage of all the concern of the study. In a

keen review of relevant literature I realized

that interviewing was the best choice for this

work. Information which contained opinions

and principles of how SMEs operate were

gathered. The companies I focused on were

a real representation of average SME’s. They

displayed all the dynamics of operating a

successful company. This gave a quality

research outcome and indeed thoroughly

enjoyed the discussion process with various

people I gathered the data.

Interviews can have a complex structure or a

simple basic structure. Usually, unique list of

questions is often given to each respondent

in a structured interview. In semi structured

interviews the interviewer follows the theme

of his research concern to make a growing

conversation as they obtain and record the

necessary details. This technique is referred

to as laddering (Seidman 2006, p. 200).

Gubrium and Holstein (2007, p. 400) point

out that the use of this approach helps

interviewees to make smooth movements

from a statement to another. They are able

to joint together premise information to

come up with truths which account for basic

or known principles. The descriptions

involved about questions asked to different

people reveals all the necessary data. It

therefore becomes possible to deduce

conclusions from the notes gathered during

an interview.

In my profession I have experienced a lot of

exposure to research. Quantitative research

gives direct results. Many cases of debates

crop up. This paves way for me to dig deeper

and to understand the holistic aspect of

research. At times I take a general approach

in which my research interest is generalized.

This needs open discussions which are in line

with a given topic of study.

The issue of whether SME’s should, or not

employ consultant services is an

organizational decision (Curnow 2005, p.

200). It should be noted that every business

organization has specific goals to achieve in

both short and long run. According to Buono

(2004, p. 124) consultant services are

supposed to help organizations by improving

their performance. This is supposed to be

attained through the tackling of existing

organizational challenges and a

development of more plans for future

improvements and comes with organization

wide changes (Curnow 2005, p. 300). It is

therefore most appropriate to interact with

the corporate members of organizations in

gathering information about particular

SME’s consulting patterns.

Since my study concern is to gather

information, my questions must be highly

integrated. I thought my questions should be

able to bring out a pool of information from

which I can be able to deduce conclusions on

whether SME’s should or not employ

consultant services.

• Can organizations can attain optimal

performance without the employment of

management consultant services?

• Your understanding of the best way to

apply consulting services

• Is the question of whether SMEs should

or not employ consulting services

significant in today’s global economy?

• Would you mind paying money to a

consultant to evaluate your business?

• Do you think small and developing

companies can comfortably afford

consultancy cost?

The questions are meant to be so

comprehensive such that they are supposed

to start a discussion which will grow

according to my concerns. As I pointed out

earlier, an interview is highly effective if it

exposes more details than the expectations

of the researcher. Otherwise, it does not

help in making a dependable foundation for

making conclusions based on research

findings.

How information was analyzed

After sourcing all my data, I needed to

analyze it so that I could make a summary of

findings. I had to be keen to use right

approaches and strategies. My major aim

was to remain organized rather than to

uphold the “dos” and “don’ts” of analyzing

research data. I began by doing a preliminary

analysis of all the opinions of the

respondents I used. I used the practices in

the given companies to come up with

information. I then built on this information

using the data which I had gathered from

literature reviews. A comparison of the

realities in the operations of the companies

with principles of management consultancy

was made. By doing this it was possible to

make evaluations which illustrated the

benefits of employing consultant services.

Responses and explanations from different

people were a basis for making conclusions

depending on what had been experienced in

the management consultation of the

organizations.

I did my analysis with the aim of moving my

readers to a point beyond raw data. This kind

of qualitative research yielded a large

amount of information in relation to the

question. Hence, the desired foundation was

built based on the earlier research thesis that

had been developed. Explanations of the

findings given by the interviews were

arranged according to specific concerns.

These were the links used to analyze the

common themes of the employment of

consultant services. I took an evidence based

analysis in which all the statements were

designed to be convincing. This is the most

elementary phenomenon of every kind of

knowledge (Panneerselvam 2004, p. 156).

Arguments are rendered invalid if they lack

the ability to give to speak out in a

quantifiable way. The notes gathered from

interviews with every officer were an

ultimate basis for the development of the

theory in my paper.

A discussion was to put forward all the

chosen claims. Companies which use

consultant services in operation provided

explanations of why they do it. It was

necessary to get their point of view in order

to develop collective and real experiences.

Cohen, Morrison and Manion (2000, p.231)

points out that researchers use quotes of

their final findings to execute their task of

giving sound accounts for their work. A good

example was the use the implications of

consultancy management in all the given

companies. This was used to equip me with

the knowledge I needed. It was an important

tool used to judge whether it is worth for

such organizations to continue employing

these services.

Ethical considerations

After the formulation of the interview

process I took time to analyze the people I

was to interview. I was keen to rely on a

group that had desirable professional levels.

One of the things I wanted to do away with

was a possibility of choosing parties who

could not respond to me openly. This is why

I put much effort in structuring my work in

way which could be appealing. It is normally

possible to get twisted information from

interviewees. This makes feelings and

emotions an important issue which must be

given due attention.

Cohen, Morrison and Manion (2000, p.231)

in there work recommend that building trust

is an important attribute which interviews

use to ensure that researchers obtain the

exact information they are looking for. It is

evident that obtaining trust is much difficult

in cases where the parties participating in an

interview have never met before. These

truths gave me a base to work on. I placed

my self in a position where I was comfortable

enough to have a successful interaction with

the people I chose for my interviews. I gave

close attention to cultural concerns, gender

and the different levels of experience in their

professions. I majored on officials who have

gained much experience in the running of

their organizations.

I chose to do all my approaches with

relatively high levels of professionalism.

Otherwise it could be impossible to gather

reliable information. My initial activity was

to book appointments and to speak to my

officers personally. I made it clear to them

that I would like to be granted a chance to do

an interview on the employment of

consultants to their organizations. I also

went ahead and explained that the study

called for my personal involvement. I was

also keen to mention that I would be open to

and helpful to their organizations during and

after my engagements with them. This

simply that I was going to be traceable for

any contacts needed for the sake of

clarifications.

It was necessary for me to share all the steps

I was going to execute in the study. I was

flexible enough to welcome any profitable

recommendations from my counterparts. It

was so good that all the persons were highly

fascinated by my research. They kept on

mentioning that this was a good topic of

study which has remained unexhausted to a

number of given factors. It became clearer

that my quest of finding out whether MSEs

should or not use consultancy services were

going to be resourceful to many

organizations. This was a good motivation. It

is highly motivating for a researcher to

realize that his or her research topic is

significant. The purposes of a study are well

attained if its result is informative to both

the researcher and other parties who must

not have participated in it (Panneerselvam

2004, p. 180).

Discussion points – rationale on the

research

Is the question of whether SMEs should or

not employ consulting services significant in

today’s global economy

Upgrading skills for all professionals is a

central element which should be worked on

in order to improve performance (Curnow

2005, p. 262). The current global economy

which is knowledge based calls for a change

in the management of businesses. SMEs

must be able to adapt quickly to changing

environments. Curnow (2005, p. 271)

recommends that there is enough evidence

that failures of SMEs are particularly due to

lack of formal management training. The

findings from the five companies in UAE and

a literature survey on the case of Sri Lanka

shows that these companies have managed

to evade terrible failure through the use of

managerial technical training.

How does SMEs compare in the UAE and in

Sri Lanka

It was clearly reported that demonstrated

that high performance of SMEs relies on SME

management consulting and training. The

use of universal training in Sri Lanka leads to

increased efficiency. Governments’

advocacy for such training has led to the

stabilization of management systems.

Although there are no clear definitions of

SMEs in Sri Lanka, the development board

for enterprises plays a very important role

(Noack 2007, p. 149). This board has created

a team of experts which is provides national

consultancy services to small and medium

sized business organization (SMEs). It gives

training to young companies and offers

consistent counsel to the established ones.

Businesses have therefore been equipped

with flexible management skills needed for

survival in the current competitive business

environment.

Management skills for SMEs with UAE and in

Sri Lanka have a separation in the aspect of

skill endowment. It is evident that the

organizations in UAE are more focused on

the pursuit of management consultancy

from organizations (Noack 2007, p. 150).

Through consultation these organizations

have been able to acquire knowledge for

their teams. Small firm managers seek

training from experts working with

established organizations. Entrepreneurship

has been fostered through competition. This

is different from the case in Sri Lanka where

small sized organizations are at amateur

levels of using management consulting. It is

worth to argue that the general professional

system in a region plays an important part in

educating the business leaders there in.

Kiggundu (2002, p. 295) notes that

differences in the success of SMEs in these

regions are as a result of ineffective

application of management. A wrong

perception that SMEs can be ran

comfortably without management training

has played against their welfare.

Data Analysis and Sense Making

It should be noted that research papers are

well compiled if the relevant data is collected

in a wide range. This means that the research

creates a rich store of notes from which they

can draw conclusions. After winding up my

data collection it was good that I had

collected more than what I required. I

decided to write all my information

systematically according to the different

persons and organizations I visited during

the interviews I carried. I gave them

headings in line with my research questions.

I found it easy to peruse through my

headings as I matched similar themes

obtained from different instances. All I

needed to do was to highlight them in

different colors. This coding was very

important in making sure that I redeemed

time. It was in line with the system I had

made to use during the interviews. It seemed

like I had several lots of mixed information

because of mistaken recording. This was

because it was challenging to record

information as my interviewees were talking

to me.

I managed to deal with the several

challenges of my study by choosing to be

relaxed as I compiled my report. I chose early

morning hours for this duty. I realized that I

could maintain a very balanced mindset. It

was easier for me to remain focused

although I had other activities to attend to

during the day. I could easily put my self back

to the time of my research and thereby

realized that it is possible to recall most of

the major elements obtained from my

information search.

I tried as much as I could not to merge my

earlier research findings with what I was

obtaining during my active interviews. I did

not want to depict a biased picture to the

respondents. This could happen if I shoed

elements of knowing too much about what I

sought to gather. My personal opinion was

therefore kept at bay as I pushed limits to

gather more information. Whenever

different opinions differed with the line of

my knowledge I could make sure that I dwelt

on the area until I obtained solid

explanations.

My decision to take the position of a learner

was a major factor of my quality findings.

The fact that I chose to remain reserved as I

waited for the officers to move from an idea

to another gave them the opportunity to

exhaust all relevant details. I could see lots of

enthusiasm in the explanations I obtained.

I remained vehement as the managers gave

me facts about their respective

organizations. This motivated Mathew to

credit my skills. He noted that the issue I was

dealing which had strong basis on revealing

the entrepreneurial risk taking secrets of

organizations. He felt that my approach of

waiting for information could give me quality

findings. Mathew further advised me to

focus on factual information which

happened.

Kiggundu (2002, p.79) notes that in the

analysis of data it is important to cut down

all masses of raw data which is not easy to

manage. Mr. Mathew managed to equip me

with the right mind set as I interviewed the

different officers I had chosen. Remaining

relevant was inevitable through out the

research. I therefore made it an issue of

great concern. It was a key characteristic of

all my research questions.

To ensure that my research matched with

the intention of my study, I was keen to put

together relevant questions. The major

theme of my study was to find out the

importance of employing management

consultants in small and medium sized

companies. This explained why all the

questions were revolving around

performance of SME’s with or without

practice of management consultancy.

Although there were open discussions, I kept

a close interest on all details which related to

the organizations’ practices of consultation.

By doing so I managed to do a utilization of

the wide range of opinions and observations.

It was therefore possible to bring the whole

picture out.

Can organizations can attain optimal

performance without the employment of

management consultant services

All the chosen leaders in the organizations

highly valued management consulting. This

practice of the provision of organizations

with managerial aid improves the

performance through analyzing all business

problems and coming up development plans

for improvement (Kiggundu 2002, p. 150).

Research has shown that organizations

procure management consultancy services

at different times (Kiggundu 2002, p.150).

Companies rely on these services to operate

in a competitive way. In given timescale of

about twenty years, a company that uses

management consultancy realizes

consistency. This is not the case with

companies which do not.

The general manager of operations, Advance

Technologies & Power Industry by the name

Abdulhaziz gave reasons why his firm keeps

on employing the services of consultants. He

gives the reasons why the company has

continued use them; to increase cash flow,

Income and sales. Resolving Sales and

marketing mishaps. This helps in getting rid

of impairments which have limiting factors

on the productivity of the organization. It

creates a necessary turn around in every

department of the organization. This

involves all general changes in business

culture. He felt that the organization has

been able to survive the pressures of

competition in the market.

Companies are able to enhance their

operation in more efficient and effective

way. Buono (2004, p. 35) shows that the

progressive management of innovative and

new ideas is a key factor of the well being of

a company. It takes many minds make

convincing decisions about how an

organization can adopt better ways of

operation. A reliance on consultant services

at different times in fiscal year comes with

specific situations.

Abdulhaziz observed that there are typical

situations which bring the necessity of going

for the services of management consultants.

There are times when the organization

needs skills in specific areas of which they

have no internal expertise. In other given

periods several activities such as

organizational change need to be carried

within a very short period of time. This can

only be done comfortably if the services of a

professional are employed. Mathew also

commented on this. He felt that when

attempts to meet the needs of the

organization from within fail, it is wise to

involve consultants so that there will be no

replication of failure. As organizational

members keep on having disagreements of

the most appropriate way to tackle an issue,

it is always important to bring the input of

consultants. Special skills of facilitating the

process of making a consensus are valuable

to the organization.

Organizations are systems which can only be

run if a general perspective of doing

activities is laid down (Buono 2004, p. 70). It

is not easy for a company to operate

optimally if there is no incorporation of

different managerial resources. It is evident

that the goals of any given organization are

achieved if inputs are drawn from a wide

range of angles. It is possible to operate

organization without much ado if managers

learn to execute their duties perfectly.

However, there is an inevitable need for

SMEs like Advance Technologies & Power

Industry to continue using consultant

services in all areas of operation.

Mathew who was the chief executive officer

at A.L.P. Emirates Panel Manufacturing

Company elaborated that his organization

depends highly on the services of

consultants. He was quick to outline the

several ways through which they employed

the services of consultants. They have been

able to equip all departmental heads with

the right skills for managing the operations

of the organization. Bi Almah recommended

that through consulting and hiring the

appropriate management consultants the

managerial needs of the organization have

been met well She posited. We have been

able to know the differences between the

available approaches.

Management consultants help to ferry

organizations across the waters of facing

their challenges. A challenge to an

organization becomes organizational if the

internal officers find it hard to solve it using

their normal skills. This calls for a concerted

involvement of the services of expert

consultants. A.L.P. Emirates Panel

Manufacturing Company used the guidelines

provided by management consultants to

redeem their performance. An assessment

and diagnosis helped all individuals to

identify and state the problems which affect

the company at the moment it was facing a

decline in cash flow. Suggestions provided by

the contacted consultants were helpful. For

instance a step of using different sources of

information for the company boosted the

skills of employees. Research analysis

equipped members of the company to have

a better understanding of the issues it was

facing.

It was found out that the organization’s goals

were under threat of several obstacles,

irregular business trends and events in the

market. This could be solved accordingly

through the employment of clinics to drill all

officers with more skills. Lloyd (2007, p. 76)

points out that the use of seminars to give

staff members the essential skills is a reliable

way of absorbing the difficulties of an

organization. Retreats for officials were

important tools which helped the

managerial team to be able to come up with

relevant steps of executing the chores in the

organization. A summary of an

organizational process is communication,

collaboration and smooth resolution of

differences which occur during daily

undertakings. This process is normally

reinforced through the input of expertise

services of different consultants. Research

has shown that organizations are placed in

better positions if they deny their

independence and pay keen attention to aids

of trade (Lloyd 2007, p. 120). Buono 2004, p.

77) explains that a good coordination of aids

of trade like consultancy with an

organization’s resources gives the

organization a strong foundation to operate

on.

Account for the benefits the organization

has gained from management consulting

Consultants are well known for their

expertise ability to come up with special

ways of doing things (Lloyd 2007, p. 124).

Organizations are out to ensure that they

exercise a suitable expenditure of all the

resources they have drawn from funders.

This is a major reason as to why consultants

are brought in to assist in solving the puzzles

encountered in daily operations.

Organizations use consultants to give

credibility to the decisions made. It is

believed that they bring in a unique taste of

carrying out the operations in an

organization. In most time it is the

experience of management consultants

which help to get managers from managerial

labyrinths (Lloyd 2007, p. 140).

Procurement of the services of a consultant

is a strategic action taken for the benefit of

an organization. Bi Almah the chief executive

of Zian Designs gave comprehensive

information about how these services

helped the developing company.

Management consultation has helped this

company with a provision of overviews of its

position in the market at different times. This

helps the company managers to make long

term, mid term and short term goals. It also

helps it in coming up with the right angels to

take at different situation. Typically, there

are situations which face the company from

time to time which require a deep

experience of consultants. They have always

helped to bring in a broad understanding of

most of the recurrent problems experience

by the organization. Consultants have been

able to give proper unbiased reviews of all

proposed courses in Zian she explained. She

felt that the expansion of the realities behind

several choices made in the company has

helped them not to loose the track of

profitability. Decisions have been made in

knowledgeable ways because consultation

has played towards the creation of a better

organization. I would be playing the game of

unprofessionalism if I do not give credit to

the experts who have brought my

organization this far she felt during the

interview.

The input of professional consultation acts as

a catalyst towards improvement (Noack

2007, p. 123). This happens as alternatives

are recommended into organizational

management. In most cases manager have

blurred pictures of the most probable ways

to take in manage. Consultation helps the

top leaders of an organization to understand

how they can move from one option to

another. Noack 2007, p. 125) points out that

organizations use the services of consultants

to enhance cohesion in the team which

ensures the well being of an organization. He

notes that this is achievable through the use

of consultants to manufacture quality in-

built abilities which boost the togetherness

of a team (Noack 2007, p. 125). This

intention is normally attained through the

cultivation of a suitable environment for

cooperation to grow.

Small companies and consultancy cost

The question on whether small, medium-

sized and growing companies can afford

consultancy services is answerable. Indeed,

they can enjoy the importance of

management consulting. What is important

is their timing in terms of whether they really

need such services or not. Lloyd (2007, p.

56), recommends that SMEs can afford cost

of management consulting if they act

according to reliable plans. This means that

they can acquire the services after the

organizations have gained reasonable

stability. It should also be noted that there is

a wide range of firms which offer affordable

consultation services. This means that a

small company can be allowed to acquire

what it can afford by customizing the

services accordingly. Private consultants are

also available for SMEs. There was varied

view to this issue as seen in the interview

below:

Bi Almah from Zian designs noted that their

company had a consistent reliance on

consultants since it was small. She reported

that it was necessary for them to get the

services from individual practitioners who

agreed to offer the services at affordable

rates. On a similar note, Joe the chief

executive at Al Muhaidib Technical Supplies

agreed that cost was a challenge although it

did not bar them from management

consulting. He noted that proper timing was

essential. “We only approached consultants

when it is very important,” he noted.

Mathew the chief executive officer, A.L.P.

Emirates Panel Manufacturing Company

pointed out that according to his personal

opinion, all companies must practice

management consulting.

No one is an absolute expert when it comes

to the management of successful

organizations

These business organizations are always

geared towards the achievement of success.

It is not easy to achieve total success in an

organization without the incorporation of

the basics needed. Buono (2004, p. 311)

outlines that there are numerous degrees of

success for small and medium sized

enterprises. This is illustrated by the fact that

a company may be called unsuccessful even

when its managers believe they have the

relevant objectives.

Mathew who is the chief executive officer,

A.L.P. Emirates Panel Manufacturing

Company gave the major marks of success in

organizations. He felt that these elements

are heavy tasks which can only be attained

through concerted involvement of a variety

of managerial skills. These skills are normally

used together with guidelines from

consultancy experts. Every area has a set of

strategies which led to the successful

execution of roles. It is not sound to assume

that a person can lead an organization to

success without the use of outside

resources. For instance desirable outcomes

are achieved through the proper following of

guidelines. When a fix is encountered, it is

always recommended that professional

should use the services of consultants. This

organization has been able to attain success

in many ways through overall specification of

desirable goals with the help of consultants.

Indeed, for problems to be solved

successfully, the objectives set in daily

operations of an organization should be put

in line with the overall direction of the

organization. It is easier to work with

consultants during turbulent moments of an

organization. In general, success comes

when organizations complete its operations

within the set times and budget limits,

quality relations are upheld between

different departments such as marketing

and human resource management and when

problems are solved in such a manner that

they do not keep on arising from time to

time. It is evident that the creation of

harmony in an organization may not be

possible if a diversity of actions is not put in

place. Since human managers are limited in

several ways (For example they cannot

manage a whole organization without the

help of subordinates), it is important to

recognize the invaluable services offered by

consultants (Noack 2007, p. 121).

Consultants have managed to equip

developing SMEs in the UAE with the right

skills of commercial risk taking (Noack 2007,

p. 146).

Bi Almah from Zian designs gave a sincere

account of her experiences for thirty years in

managing organizations. She explained that

managers have to exercise relatively high

intellectual excellence. It is totally impossible

for a manager to succeed in executing duties

without appreciating the fact that they are

limited in several ways. Bi Almah pointed out

that although she knew that she was an

expert, it was crucial for her to demonstrate

intellectual humility by accepting that she

too needed the help of other experts. She

gave lots of credit to all management

consultants who enriched her management

techniques. She illustrated how growing

organizations like Zian designs had to highly

rely on the services of external consultants

from time to time.

Kiggundu (2002, p. 127) in his work outlines

that business organizations become

successful if they are given an opportunity to

draw expertise diversely. He adds that a

business is a set of dynamic processes which

must be adaptive in reference to the

transitions of economies (Kiggundu 2002, p.

127). This should make organizational

decision makers to learn how to depend on

consultants in order to stay highly updated.

It is a sound illustration of why there is a

great need for management consultation for

business organizations of both small and

large sizes.

Your understanding of the best way to

apply consulting services

There are different methods used in

management of SMEs. Joe, Ahmed and

Rosalia had a common understanding of the

basic way of using management consulting

services. Ahmed who was also the board

member at Al Haider Restaurant

Management Company stated that the use

of a standard way of applying consultation

had been of great help to the organization’s

performance. Joe, the chief executive, Al

Muhaidib Technical Supplies agreed that if

organizations followed the right procedure

when using consultancy services, there

would be improvement in performance.

Ahmed was keen to point out the major

stages which should be adhered to. This

ranges from document preparation to

exercise closure and evaluation.

The following procedural guidelines are

instrumental and therefore should be

adhered to the letter (Kiggundu 2002, p.

320). The process starts with

documentation. Proposals are prepared to

be used in selecting an appropriate

candidate to hire. Reliable selection of a

good consultant for SMEs is done through

the use of market intelligence. Several

factors such as financial and technical

specifications are also considered. This is

followed by a formal approval of a

management consultant. After this a

contract should be prepared and given the

signatories of both the client and the

consultancy firm.

Joe, the chief executive at Al Muhaidib

Technical Supplies informed me that their

focus on strategic consulting has been crucial

to the organization.

The necessary focus in management

consulting

Consultants play a significant role of making

the managers to understand the effects of

the changes made their value and benefits to

the business. Problems that affect small and

medium-sized entrepreneurs can be

diagnosed and classified in various levels. In

most cases, entrepreneurs fail to do this by

themselves. Lack of focus towards

management consulting may later cause

multiple problems in a business

establishment. Therefore, to avoid the

hurdles, small and medium-sized

entrepreneurs ought to employ consultancy

services in order to help them change their

course of thinking. Failure to recognize and

rank problems compels entrepreneurs to

apply a common measure to all of them. It is

imperative to mention that this might be

ineffective and uneconomical since different

cases require distinct and specific measures

to be applied. It is easier for entrepreneurs

to diagnose, classify and determine

appropriate measures to be taken to solve

problems that arise especially when

managing their business organizations. In

the case of Small and Medium-sized

Enterprises (SMEs), management consulting

plays an even bigger and more significant

role towards the success of the organization.

A consultant is a professional or expert in any

particular field. This means that consultants

are bestowed with wide knowledge on

specific subject matters. Management

consultants help to bring desirable changes

in any business organization. Although there

are various areas of focus, the objectives of

management consulting are geared towards

maximizing the operational abilities of an

organization (Curnow 2005, p. 214). It comes

with technical, economic and strategic

approaches. All these aspects help

organizations to maintain their capability of

pursuing their goals.

Abdulhaziz informed me that the technical

part of managing is organization has been a

success through the incorporation of several

tools. Above the numerous ways he had

used in running the organization he notes

that management consulting is important in

ensuring a smooth coordination of the

departments which make the organization.

The managers of all the departments had

been benefiting from alternative ways of

dealing with problems which have been

proposed during consultation. The

difficulties of making decisions of the

improvement of their organization have

been minimized since consultants were

always called in to assist in all cases of

problems. He added that his organization

was likely going to face lots of failure if they

had not developed the culture of

professionalism.

Strategic and economic elements of

management consulting assist in placing

companies in a more competitive position.

Companies which have quality strategies

build for themselves a stable position to

operate from. For instance, Rosalia gave an

account of how her organization had

managed to attain profitability in the highly

competitive UAE market as observed in the

interview below.

She outlined that her organization Al Haider

Restaurant Management Company had kept

a clear record of a continuous development

of highly dependable strategies. She

explained that this was a practice learned

from the services of experienced business

management experts. Once strategies were

made a combined effort of bringing them

into action would be put in place. This

assisted the company to do away with all

possibilities of keeping paper plans which

would never be turned into a reality. Ahmed

who was her counterpart reported that he

had come to believe that it is perpetually

impossible for a business to grow if its

managers are rigid. He also pointed out that

from his experience; he had come to

ascertain that most businesses had realized

failure because they simply did not want to

incur expenses of hiring management

consultants.

Literature rationale

Is the question on whether SMEs should

employ consulting services or not

significant in today’s global economy

Upgrading skills for all professionals is a

central element which should be worked on

in order to improve performance (Curnow

2005, p. 262). The current global economy

which is knowledge based calls for a change

in the management of businesses. SMEs

must be able to adapt quickly to changing

environments. Curnow (2005, p. 271)

recommends that there is enough evidence

that failures of SMEs are particularly due to

lack of formal management training. The

findings from the five companies in UAE and

a literature survey on the case of Sri Lanka

shows that these companies have managed

to evade terrible failure through the use of

managerial technical training.

How does SMEs compare in the UAE and in

Sri Lanka

It was clearly reported that demonstrated

that high performance of SMEs relies on SME

management consulting and training. The

use of universal training in Sri Lanka leads to

increased efficiency. Governments’

advocacy for such training has led to the

stabilization of management systems.

Although there are no clear definitions of

SMEs in Sri Lanka, the development board

for enterprises plays a very important role

(Noack 2007, p. 149). This board has created

a team of experts which is provides national

consultancy services to small and medium

sized business organization (SMEs). It gives

training to young companies and offers

consistent counsel to the established ones.

Businesses have therefore been equipped

with flexible management skills needed for

survival in the current competitive business

environment.

Management skills for SMEs with UAE and in

Sri Lanka have a separation in the aspect of

skill endowment. It is evident that the

organizations in UAE are more focused on

the pursuit of management consultancy

from organizations (Noack 2007, p. 150).

Through consultation these organizations

have been able to acquire knowledge for

their teams. Small firm managers seek

training from experts working with

established organizations. Entrepreneurship

has been fostered through competition. This

is different from the case in Sri Lanka where

small sized organizations are at amateur

levels of using management consulting. It is

worth to argue that the general professional

system in a region plays an important part in

educating the business leaders there in.

Kiggundu (2002, p. 295) notes that

differences in the success of SMEs in these

regions are as a result of ineffective

application of management. A wrong

perception that SMEs can be ran

comfortably without management training

has played against their welfare.

Personal reflection

I had read a good number of books about

how to do this qualitative research. One of

my greatest concerns was to make sure that

I remained keen and attentive to the

information collected from literature

reviews and the interviews I conducted. I felt

that although I had mastered my interest

and matched it with the question of study. I

decide to take the role of a careful

investigator. I knew this would be a very

helpful strategy. It would help me not to lead

the interviewees into areas of my choice.

This was a good learning opportunity. I used

it to compare my knowledge on

management with that of other managers.

Indeed, it was interesting to see how people

can be highly resourceful if they are granted

the opportunity to offer what they know.

Personal opinions of chief executive officers

were in line with established facts. Since I

had already hypothesized that SMEs needed

to employ management consulting, I was

glad to meet experienced officers who

illustrated how their organizations had relied

on these services.

My intention to venture into the field of

consultancy was validated. It was highly

fascinating to come across persons who kept

on encouraging me to plunge into the

essential profession. I realized that one of

most important steps to take was to come up

with an initiative which could demonstrate

to SME runners why they needed to employ

consultation. Taking an angle of mentioning

cases of organizations which employed these

services was better than trying to convince

companies how they had failed to utilize

them.

Summary

As mentioned in the analysis of findings, the

objective of the study was to respond to the

query whether SMEs should employ

management consulting or not. It is

important for such organizations take a

paradigm of upgrading management skills

and training through consultation. This is the

key to improvement in performance. It is an

era in which pressure in mounted on SMEs

by globalization of economies and highly

dynamic technologies of business operation.

Organizations which do not make modern

restructuring to attain flexibility and

adaptability have no chances of surviving.

Expertise services granted by consultants are

important and can not be dismissed. They

are a crucial array of organizational and

managerial tools for growth. SMEs must

depend on management consultation to

create inventions and innovations which are

resourceful in making organizations more

competitive. There is no opportunity for

organizations of any size to succeed if they

do not build an adaptive and participatory

managerial structure.

The available evidence shows a relationship

between good management performance of

SMEs and the use of management

consultancy. In most instances organization

wide consultation rates small organizations

at the same rank with highly performing

ones. This is mostly in the level of

professionalism recorded.

Need for Further research and conclusion

The above data suggested that small and

medium sized enterprises should employ

management consultants just like other

business organizations. It is evident that

management consultancy is essential to all

organizations regardless of their scale of

operation. Small and medium size

organizations benefit largely from expertise

of consultants. It has demonstrated that

SMEs which do not employ management

consultancy do not have a privilege of

technical, managerial and informational

support. It is also clear that the small and

medium sized companies practice the

employment of consultants. They have

managed to attain a relatively high efficiency

as a result of consultancy.

Management consultation among SMEs

helps to define the position of an

organization. It reviews both short and long

term strategic actions and acts as a catalyst

to change through recommendation of

alternative ways of action. Organizations are

strengthened by emergence of team work

resulting from consultant-client relations.

According to the findings of this study and

the literature rationale provided, it is clearly

shown that SMEs should use the services of

consultants. On top of the findings of this

paper, more objective research is necessary.

This should be done by setting more specific

study goals on the operation of SMEs. For

instance, it is important to find out the exact

consultancy needs for a given company.

It is important to undertake an executive

decision to implement total management

consulting. There are recognized structures,

authority and responsibility for quality

assurance; a fully controlled, documented

and effective procedural system in place; a

workforce experienced in the required skills

and competences to undertake jobs in an

effective manner; a very busy corrective

action loop and regular quality related

meetings to take place in order to discuss

specific problems. So what is improved?

Where is focus for change directed?

Small companies usually have a

management resource problem. The

responsibility for improvement initiatives

usually rests with management and the

degree of success measured by how good or

bad that one individual organize and carry

out responsibilities. The latter is indeed one

fundamental factor which creates a sense of

organizational direction.

Where is focus initially going to be placed?

The answer is to solve problems by improved

communication, involvement and training.

As a matter of fact, capacity building and

training of an organizational workforce

ought to be considered as an integral

ingredient in management consultancy. Such

an approach towards consultancy will

eventually provided a form base for

management sustainability especially in the

event that an SME establishment

experiences incessant and inadequate

accesss to consultancy services.

The overall managerial decision is to enlist

outside consultants to facilitate change and

solve problems. Management consulting

assists SMEs greatly. In dealing with SMEs,

consultants handle the whole spectrum of

management in general. Consultants are

professionally trained to have reliable

experience. They change the developmental

activities of small firms into more

appropriate approaches.

This research offers issues that could add to

our understanding of management

consulting practices in enterprises, and thus

provides several guidelines for improvement

of management capability. The findings of

the study highlight the importance of

technology management in high

technological enterprises. The study has

empirically examined the relationship

between management capability in small

and medium-sized enterprises. The findings

indicate that the enterprise with higher

management capability level can achieve

better performance. Since management can

be decomposed into three categories of

elements namely resource, organization,

and quality, the managerial implication is

that all elements should be emphasized and

management consulting should be improved

in all its aspects.

Findings also shed light on the roadmap of

promoting management capability of

enterprises. Although it is emphasized that

harmonious development of technology

management is crucial, it does not

necessarily imply that the element with the

lowest maturity should be improved firstly or

the three elements should be improved

simultaneously without much difference.

During the course of improvement, a certain

order should be followed due to the rule

existing in the interactions of the

management elements.

On a final note, it is worth to reiterate that

this study has explored management

consultancy among SMEs. Results show that

the order by which it should be emphasized

or prioritized is resource management

followed by organizational management and

finaly quality management. The latter

reveals the routine of the developing

enterprises. The managerial implication is

that to enterprises, high quality is based on

effective organization and resource

management while excellent organizational

issues rely on effective management. This

explains the dependency management

consultancy which determines the

difference between some enterprises and

others.

There are numerous limitations to this

research study and therefore creates room

for further research. This study has its own

limitations just like any other. First of all,

although the enterprises analyzed in this

study are technologically-intensive and

cover some sub industries, these enterprises

are mostly private and may not represent

the whole of the high technology industry.

Thus, interpretation of the findings from the

study should be conservative. Secondly,

through the survey conducted, personal bias

due to subjective responses to the

questionnaires should be taken into

considerations. Thirdly, the theme of

research is not fixed. As the environment

changes, the applications will also change.

The latter may affect routine practices in an

organization. This has been left for future

research.

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