THE ROLE OF CONSULTING SERVICES IN THE ECONOMIC
DEVELOPMENT OF SMALL AND MEDIUM-SIZED COMPANIES
Anatolie Caraganciu
Lucian Blaga University of Sibiu, Sibiu, Romania
Alicia Erincz
Lucian Blaga University of Sibiu, Sibiu, Romania
Tiuhtii Constanta
Lucian Blaga University of Sibiu, Sibiu, Romania
DOI: https://doi.org/10.31410/limen.2018.88
4th International Scientific – Business Conference LIMEN 2018 – Leadership & Management: Integrated Politics of Research and Innovations, Belgrade – Serbia, December 13, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Engineering Management – Belgrade, Serbia; Modern Business School – Belgrade, Serbia; Faculty of Business and Management Sciences – Novo Mesto, Slovenia; Faculty of Business Management and Informatics – Novo Mesto, Slovenia; Business Academy Smilevski – BAS, Skopje, Macedonia; BAS Institute of Management, Bitola, Macedonia, ISBN 978-86-80194-15-8
Abstract
The development of information and communication technologies that have linked the whole world together; have led to a global change of all aspects of life, of people’s way of life and not just of material production. The correlation and the contrast between work and leisure have changed the types of economic activity also. The speed of all economic processes has increased, owing to the unprecedented increase in the speed of information transfer and the technological development of production, management and exchange processes. There is an opportunity to introduce instantly organizational changes based on technical novelties (implementation of project management systems, workplace training, etc.). In these circumstances, the economic entity faces a growing competition, making faster decisions and introduce organizational changes. As a result, there is a need for specialists to help make changes. This raises intellectual entrepreneurship through specialized advice.
As a result, consultancy becomes a benchmark in the development of companies’ competitiveness and sustainability in the market. For the success of its business, the enterprise must react to the emergence of “weak signals” in the external environment.
For this purpose, it is necessary, first, to monitor the evolution of events in the external environment in order to identify these weak signals. However, a small business cannot hold such observer – specialists within the company. However, some and the same information on outside events has different meanings for different companies, they can be positive for some and negative for others. The role of consultants is to monitor changes in the external environment and solve problems related to a particular firm, assessing the role and importance of market signals for this.
Although the use of consultancy as a resource for growth and adaptation of new market demands is spread among corporations due to high costs, it plays an important role in the economic development of small and medium-sized enterprises. They do not have the ability to monitor all the changes that appear, just as large companies can have marketing or strategic analysis staff. To have specialists in various fields such as strategic management, staff management, marketing, and more so for narrower areas such as information technology, financial analysis, etc., in a small business is expensive. Thus, the use of advisory services on certain issues could provide timely vital information for the company by enhancing its information system.
The work analyzes the impact of using consultancy services in small and medium-sized businesses on their economic development and sustainability.
As a result, consultancy becomes a benchmark in the development of companies’ competitiveness and sustainability in the market. For the success of its business, the enterprise must react to the emergence of “weak signals” in the external environment.
For this purpose, it is necessary, first, to monitor the evolution of events in the external environment in order to identify these weak signals. However, a small business cannot hold such observer – specialists within the company. However, some and the same information on outside events has different meanings for different companies, they can be positive for some and negative for others. The role of consultants is to monitor changes in the external environment and solve problems related to a particular firm, assessing the role and importance of market signals for this.
Although the use of consultancy as a resource for growth and adaptation of new market demands is spread among corporations due to high costs, it plays an important role in the economic development of small and medium-sized enterprises. They do not have the ability to monitor all the changes that appear, just as large companies can have marketing or strategic analysis staff. To have specialists in various fields such as strategic management, staff management, marketing, and more so for narrower areas such as information technology, financial analysis, etc., in a small business is expensive. Thus, the use of advisory services on certain issues could provide timely vital information for the company by enhancing its information system.
The work analyzes the impact of using consultancy services in small and medium-sized businesses on their economic development and sustainability.
Key words
consultancy services, development, small and medium-sized enterprises
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Japan and the United States. London 1999. ISBN: 0-262-02465-9
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the Knowledge Society?” // Policy Futures in Education. 2003. Vol. 1, N 1. P. 106-124
Biech, E. The Business of Consulting: The Basics and Beyond. Second Edition, 2007. ISBN:
978-0-7879-9464-8
Peter Drucker. Innovation and Entrepreneurship. London, 2014. ISBN9781317601364
Harold Demsetz. The Economics of the Business Firm: Seven Critical Commentaries.
Cambridge University Press, 1997. ISBN: 0-521-58865-0
