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Pricing and Distribution Decisions in a Context of Low Distribution Capacity

In: Entrepreneurial Marketing for SMEs

Author

Listed:
  • Luca Cacciolatti

    (University of Westminster)

  • Soo Hee Lee

    (University of Kent)

Abstract

SMEs often have to deal with the problems related to low profitability and low liquidity. Low profitability might also be affected by slow business growth and gives an indication of the lack of efficiency within an SME, whereas lack of business growth might indicate difficulties in the existing market, other than with the firm itself. Low market growth and low profitability cause problems in terms of liquidity, because undercapitalised SMEs do not have the necessary working capital-i.e., the capital used to cover liabilities with current assets — and therefore are subject to debt when assets cannot be turned quickly into cash.

Suggested Citation

  • Luca Cacciolatti & Soo Hee Lee, 2015. "Pricing and Distribution Decisions in a Context of Low Distribution Capacity," Palgrave Macmillan Books, in: Entrepreneurial Marketing for SMEs, chapter 9, pages 150-156, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-53258-9_9
    DOI: 10.1057/9781137532589_9
    as

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