Small Business Development Strategy: Leading Methods and Models

DOI

10.2991/assehr.k.200526.023How to use a DOI?

Keywords

small business, leadership, development strategy, forecasting

Abstract

Small business is one of the most important and leading segments of the economy of any country which forms competition in the market of goods and services, affects the improvement of their quality, and provides tax deductions to budgets of all levels. At the same time, small businesses are severely limited by resources, both financial, material, and informational. Their activity in conditions of lack of information makes it impossible to have a clear vision and strategy for development and, consequently, their decisions about which value proposition should be developed, which should be removed from the market and which consumer segment is ineffective for the organization are often unfounded and taken on an intuitive level. The paper offers a solution to this problem from the perspective of forecasting and planning the organization’s revenue as the main component of the development strategy. The proposed method involves building a business model (using the method developed by Osterwalder) which allows us to analyze the relationship of such subsystems as value proposition, consumer segments, activities, resources, income, and expenses. For projection purposes, we have proposed an integral indicator of assessment of market capacity, which is aimed at the volumetric flow values of revenues allocated in the business model. This indicator considers depth and width, the uniqueness of value proposition, competitive prices and the level of competition and the level of service distribution channel. We also developed a mathematical model that provides the opportunity to quantify the factor. The value of the integral indicator is used to predict the number of potential customers in the consumer segment and the volume values of revenue streams. The developed mathematical models are based on methods of economic analysis and differ in their adaptation to analyze the results of business modeling. Special attention should be paid to the proposed model for predicting the number of potential customers in the consumer segment, which is an adapted version of the queuing system efficiency model that gives accurate forecast results in queue management systems.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Aleksandr Vostroknutov
AU  - Tatyana Baranovskaya
AU  - Tatyana Kramarenko
PY  - 2020
DA  - 2020/05/27
TI  - Small Business Development Strategy: Leading Methods and Models
BT  - Proceedings of the 6th International Conference on Social, economic, and academic leadership (ICSEAL-6-2019)
PB  - Atlantis Press
SP  - 155
EP  - 161
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200526.023
DO  - 10.2991/assehr.k.200526.023
ID  - Vostroknutov2020
ER  -