1. Islamia College Peshawar, Pakistan; syedarooj1@gmail.com
2. Islamia College Peshawar, Pakistan; syedali99@icp.edu.pk

*             Correspondence: syedarooj1@gmail.com

Keywords: SMEs, business management innovation; new economic normal; innovation path

1. INTRODUCTION

It is necessary to improve the individual abilities of the employees in order to improve the performance of small and medium-sized enterprises (SMEs), and doing so can also improve the performance of the enterprise [1]. In order to improve people’s awareness of business management, certain steps should be taken to encourage businesses to innovate their approaches to management of their operations in light of the new economic norm. If businesses want to innovate business management in light of the current economic new normal, they need to strengthen their internal business management awareness [2]. This is a prerequisite for any innovation in business management. The ability to innovate in business management is a crucial component of the management strategies utilised by small and medium-sized businesses (SMEs). It performs an essential role in limiting and directing the performance-enhancing decision-making processes of businesses [3]. In the new economic normal of Pakistan, the market of the enterprise and the management of the business are coordinated with each other. This was not the case previously. In general, small and medium-sized enterprises (SMEs) in Pakistan select the management mode that is most appropriate for their own development. This is done because this is the unending driving force that will enable the SMEs to continue developing and increasing their performance. It is necessary to continuously innovate the business management model of small and medium-sized enterprises (SMEs), particularly in the new economic normal of Pakistan, in order to improve the performance of the enterprise in future development [4]. This is especially important in light of the fact that Pakistan is currently undergoing a period of economic transition.

2. BUSINESS MANAGEMENT INNOVATION IN THE CONTEXT OF THE NEW ECONOMIC NORMAL OF PAKISTAN

2.1 Improving the Decision-Making Innovation

Small and medium-sized businesses (also known as SMEs) in Pakistan are struggling to perform well because of a wide variety of unsteady factors. Making poor choices during the decision-making process can result in significant financial losses for the entire organisation. Because the management style of the enterprise’s senior leaders has a direct effect on management innovation, it is essential that this be taken into careful consideration whenever decisions are being made [5]. However, because there are too many issues that need to be decided upon by enterprises, and senior leaders do not have as much time to carefully consider some decisions when making decisions, there is a possibility that mistakes will be made, and the decisions made by senior leaders of enterprises will directly affect the performance of the company [6]. The Business Management innovation Model appears to have no problems on the surface because the senior leaders of the enterprise are the ones who make all of the internal decisions for the enterprise. However, there may be issues with the senior management of the enterprise. Strengthening the leadership’s capacity for decision-making and management is necessary in order to achieve efficient performance [7]. The innovation in business management that is prevalent among SMEs, in general, places constraints on the working methods of employees and is unable to incite enthusiasm among workers for their jobs. The innovation of enterprise management is not very stable, and this instability is likely to result in the failure of businesses.  The impact of changes in the business management model of small and medical-sized enterprises was severe, resulting in a decline in performance that was severe. The senior leaders of the enterprise are also responsible for making the decisions that are made internally within the business management model of SMEs; however, one key difference is that there are not particularly stringent requirements placed on the work that employees complete within the enterprise [8]. It is worth noting that modifications to the business management model can have a positive impact on management innovation, which in turn can help to improve the performance of the enterprise. The innovation in business management enables employees and the top management of the company to make decisions on major issues together, enables management of employees through the use of the most reasonable management methods, and enables management to avoid problems caused by problems caused by their own decision-making mistakes [9]. Employees may become more adaptable to the growth of their own businesses as a result of a change in the model of business management, which may also encourage them to participate more actively in their work. The enhancement of the performance of the enterprise is made simpler and facilitated in this manner, which results in increased potential benefits for the enterprise [10].

2.2 Improving the Business Management Innovation System

Modifications to the way that small and medium-sized businesses (SMEs) manage their operations can improve the capacity of their workers to perform their jobs. Improving the business management innovation system’s claim that it can determine what kind of working environment employees need, when they are working, combined with their actual working status [11]. Making appropriate adjustments to management practises at the appropriate times can better promote employees’ enthusiasm for their work.  Some businesses, despite the intense market competition that exists today, continue to use the inherent business management model. At the same time, these businesses pay insufficient attention to the innovation of business management, which causes limitations and restrictions on the actual development of the businesses [12]. Therefore, in the management of businesses, the first thing that should be done is to improve the company management awareness of the internal personnel, and then let the management take the lead in implementing the innovative concept of business management from the top down, so as to establish a new circumstance for the progression of the innovation system [13]. Second, the introduction of new business management concepts has the potential to improve departmental communication and cooperation within an organisation, as well as the quality of the basic information that management uses to make decisions and the level of rationality and science that underpins those choices [14]. In conclusion, the managers of SMEs should conduct an analysis of the flaws in the management system, and then, while conducting extensive research and drawing on the advanced experience of others from the outside, in conjunction with the actual development of the enterprise itself, gradually form and improve the industrial and commercial management system that is in line with the actual development of the enterprise itself, so that the industrial and commercial Management work of the enterprise When it comes to the actual development process of an enterprise, the management’s understanding of business management and the emphasis they place on it will both have an impact on the development of the enterprise. Additionally, the decisions that management makes directly influence the future development of the enterprise. As a result, those in charge of running businesses need to pay adequate attention to business management and incorporate business management innovation into every facet of enterprise production and operation [16].

 2.3 Improving the Talent Management Innovation System

The growth of an organisation is almost entirely dependent on the efforts of its talented employees. The cultivation of talent is inextricably linked to every aspect of an organization’s operations, including production and management. Because of this, the promotion of business management within an organisation needs to also focus on the cultivation of talents and the construction of teams [17]. When an organization’s human resources department recruits relevant personnel for business management, it is not only required to evaluate the personnel’s knowledge reserve but also to inspect their work experience, work philosophy, and career planning. This is done in order to ensure that the personnel will be a good fit for the position. The allure of an organisation to skilled workers can be bolstered by offering adequate compensation in the form of welfare and promotion opportunities. Only in this way will they be able to entice and keep exceptional individuals on staff, as well as establish a solid foundation of talent for the innovation of enterprise business management [18]. To begin, the business should devise a human resource management system that is based on the actual situation, such as job division, and it should provide each employee with the opportunity to compete for a position as a department leader. This should be done so that the employment and selection practises of the business are fair. Enterprises should fully reflect the principle of distribution according to work, adhere to the principle that different employees in the same position should have the same salary and treatment, and create a fair and competitive environment for themselves [19]. In addition, remuneration should fully reflect the principle of distribution according to work. Second, companies have a responsibility to pay attention to the training of their personnel and should make it a routine practise to provide employees with appropriate business training on a regular basis. While they should be working to improve the theoretical level of their employees, they should also be encouraging their employees’ enthusiasm and initiative in their work. The enterprise’s business management work will not be able to advance quickly or realise innovation unless there is a sufficient number of high-quality talents [20].

2.4 Improving the Technological Innovation System

Innovation in enterprise business management is inextricably linked to advancements in scientific research and technological development. Both technological innovation and innovation in the management of businesses can be seen as complementary in some ways. As a result, those in charge of the operation and management of businesses need to have a comprehensive understanding of the market demand for the enterprise’s products. Additionally, they must innovate and upgrade the technologies that are relevant to those products, continue to boost the added value of those products, and strengthen the market competitiveness of enterprise products by giving them advantages in areas of technological innovation. For instance, businesses can encourage their employees to innovate in their day-to-day work by providing certain rewards to employees who have demonstrated successful innovation [21]. This has the potential, over the course of time, to foster an environment of innovation among all employees of the enterprise, to enhance the overall innovation level of the enterprise, and to advance the overall innovation of the enterprise. Therefore, when it comes to the operation and management of an enterprise, it should be based on its own reality, effectively combine enterprise development with business management, and constantly improve the internal innovation mechanism of the enterprise in order to continuously improve the core competitiveness of the enterprise [22].

2.5 Improving Innovative Marketing

It is necessary to place a strong emphasis on developing innovative marketing strategies if one wishes to innovate business management in Pakistan in light of the new economic normal. Businesses have a responsibility to ensure the successful promotion of their own products through creative new marketing methods in order to increase their economic benefits and remain competitive in the market. Enterprises are required to pay real-time attention to market trends, fully understand the market, and ensure that they can effectively adapt to market changes in order to occupy a favourable position in the market [23]. This is because the innovation of enterprise marketing methods requires these enterprises to innovate their marketing methods. On the basis of having a comprehensive understanding of the dynamics of the market, businesses need to focus their attention on the management of their internal human resources and finances. Additionally, businesses need to combine their internal management with the external environment in order to make timely adjustments to the marketing model, innovate enterprise marketing methods, and improve enterprise business management. During this time, businesses need to fully comprehend the strengths of their rivals, analyse the business strategies they employ, and work towards further improving and innovating the marketing of their own products [24]. This is all part of the process of increasing the competitiveness of their operations through the use of marketing methods. Against the backdrop of Pakistan’s new economic normal, it is of the utmost importance to innovate in the way that marketing methods are carried out, to realise innovations in business management, and to make use of the continuous adjustment of marketing models to enhance the competitiveness of enterprises in the market. This will help to promote the long-term development of enterprises in the new economic situation [25]. In order to do this, it is of the utmost importance to innovate in the way that marketing methods are carried out.

3. CONCLUSIONS

The performance of small and medium-sized businesses needs to be improved, and one way to do this is to boost the capabilities of each individual employee, which will also benefit the business as a whole. It is necessary to increase business management innovation in order to implement business management innovation against the backdrop of Pakistan’s new economic normal. This is the case even though Pakistan is experiencing a new economic normal. In Pakistan, small and medium-sized businesses (also known as SMEs) benefit greatly from adopting innovative approaches to business management. This is an essential management strategy. The management of senior leaders is an important consideration to give careful attention to because it has an immediate impact on the innovation of management. Small and medium-sized enterprises (SMEs) are required to make decisions regarding an excessive number of distinct issues, and the senior leaders of these organisations do not always have enough time to carefully consider all of the available options. As a consequence of this, mistakes might be made, and the decisions made by senior leaders will have an immediate effect on how well a company does its job. As a result of the unstable nature of innovation in enterprise management, there is an increased likelihood that businesses will fail. Modifications to management procedures implemented at the appropriate moment can be of assistance in boosting the motivation of workers. Some companies, despite the intense market competition that exists today, continue to use the inherent business management model. At the same time, these companies give insufficient attention to innovation in business management, which places limitations on the actual growth of the companies. Businesses can make themselves more appealing to talented individuals by offering appropriate compensation in the form of welfare and promotion opportunities for their employees. They will not be able to bring in top talent, keep it, or build a solid talent pool to support enterprise business management innovation unless they do this. In addition to the candidates’ levels of knowledge, the human resources department of a company needs to take into account the candidates’ previous experiences, work philosophies, and career plans when hiring qualified candidates for business management positions. Both technological innovation and managerial innovation in businesses can, in some ways, complement one another. Therefore, in order to effectively operate and manage businesses, it is essential to fully comprehend the market’s demand for their products, as well as to innovate and upgrade related technologies, further increase product added value, and boost the competitiveness of business products on the market through technological and innovative advantages. In order to effectively operate and manage businesses, it is essential to fully comprehend the market’s demand for their products. In light of the new economic norm in Pakistan, it is of the utmost importance to place primary emphasis on the development of original marketing strategies in order to innovate business management. In order for businesses to compete more successfully in the market, they need to market their own products in an effective manner, which requires them to use innovative marketing strategies. In order for businesses to ensure that they continue to have a competitive advantage in the market, they need to continuously monitor market trends, ensure that they have a comprehensive understanding of the market, and ensure that they are able to successfully adapt to changes in the market. It is necessary to continually innovate the business management model of small and medium-sized enterprises, particularly in the new economic normal of Pakistan, in order to improve the performance of the enterprise in future development. This is especially true in light of the fact that Pakistan has recently entered a new economic normal.

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