Small Businesses - Literature review Example

Small businesses: Annotated Bibliography Books Bridge, Simon, Ken O’Neill, and Stan Cromie. Understanding enterprise, entrepreneurship and small business. New York: Palgrave Macmillan, 2008. Description/Summary: The authors of this book cover small businesses broadly from the perspective of enterprising and entrepreneurship. The authors also assert that the often creators of jobs are the small businesses compared to big businesses, and people wishing to encourage as well as promote creation of more jobs have keen interest in small businesses. They also link the formation and development of small businesses to entrepreneurship which is an essential sub-set of enterprise for many people. Evaluation/Assessment: Despite this book being insightful and interesting it is also clearly and concisely written. However, the concepts and theories of enterprise and small business presented are a rich source of insight to people interested in entrepreneurship. Thus, it is undoubtedly evident that this book is the ultimate reference to scholars and practitioners in the field of enterprise, entrepreneurship and small businesses. Kennedy, Joe. The small business owner’s manual: Everything you need to know start up and run your business. Franklin Lakes, NJ: The Career Press, Inc., 2005. Description/Summary: In this book Kennedy asserts that in order to start and successfully run a small business one needs to be fully equipped with the relevant information. He discusses a wide range of issues that should be adequately researched on or prepared prior to starting a small business. He provides comprehensive information on how to start a small business, types of small businesses, legal issues involved in registration and licensing of small businesses as well as how to manage customers, finances and stocks. Evaluation/Assessment: Kennedy’s book is a good guidance manual for anyone interested in starting and running a small business in a clear and concise manner. The book is very interesting, insightful and a well reasoned one with the ability to act as a one stop source of information to anyone managing or interested in small businesses. Quotations: “Starting or expanding a small business takes an immense amount of energy, passion, and savvy-all centred on a specific idea that gets you excited” (11). Journals Bhattacharya, Debasis. Leadership styles and information security in small businesses", Information Management & Computer Security 19.5 (2011): 300-312. Description/Summary: Bhattacharya asserts that many small businesses in the U.S. are vulnerable to cyber attacks by cybercriminals who target to hack their databases with an intention of maliciously using their content. The study focused on determining the link between small businesses leadership styles and information security. The research design was quantitative, descriptive and correlational, and the results were statistically significant that leadership styles determine the concerns toward information security in small businesses. Evaluation/Assessment: This article is logically presented and there is a flow in the presentation of concepts. However, inclusion of only 10 small businesses in the pilot study out of 800 in the sample size is not likely to give a comprehensive feedback of the corrections intended in the questionnaire. Triangulation was also essentially used to improve validity, reliability and credibility of the study. Quotations: “The literature on leadership styles and information security concerns within small businesses is very limited. The literature gap may be due to the evolution of cybercrime, which initially targeted the computer systems of large corporations and government organizations”. (302) Boysana, Mbonyane, and Watson Ladzani. "Factors that hinder the growth of small businesses in South African townships", European Business Review 23.6 (2011): 550-560. Description/Summary: Boysana and Ladzani assert that small businesses play a very crucial role in the global economy, but they usually face numerous challenges which hinder their growth and they need to overcome them in order to succeed. They continue to reiterate that in South Africa small businesses account for 80 per cent of the entire business sector, but the failure rate of small businesses to growth is as high as 50 per cent. The factors attributable are criminal acts, lack of capital, lack of experience and lack of training in management. Evaluation/Assessment: The study design that was employed was qualitative, descriptive and exploratory in nature, and it was aimed at obtaining information that was relevant, most recent and in-depth about the lack of small businesses growth in Kagiso. Moreover, an inductive format that was used was also appropriate. The sample size of 30 small was however, adequate leading to identification of the factors hindering growth of small businesses to be poor financial management, access to credit, and poor crime prevention. Quotations: “These crimes include robbery, break-ins and vandalism, and employees are injured or traumatised. As a result, losses incurred by small businesses include the cost of improving security or repairing damage and compensating affected staff members”. (553) “…..many small business owners in townships struggle to obtain capital and a guaranteed income. As a result, they have poor credit records, which lead to poor cash flow. These factors constitute a real threat to small business growth”. (553) Hotho, Sabine, and Katherine Champion. Small businesses in the new creative industries: innovation as a people management challenge", Management Decision 49.1 (2011): 29-54. Description/Summary: In this article Hotho and Champion assert that innovation and creativity is the most important aspect towards the growth of many small businesses. They have presented the findings from their case study on small and medium sized businesses situated in the industry of computer games which is among the new digital industries which is young but growing very fast. The paper provides an insightful examination of how management practices such as strategic change influences innovation is small businesses. Evaluation/Assessment: Despite the fact that the article is written in a very clear and concise manner, the study has a limitation because the single case study is likely to be generalized. However, multiple collections of data as well as triangulation are likely to mitigate these limitations. Thus, as a result of the well reasoned research study and writing this article has managed to conclude that innovation is undoubtedly a major factor of small businesses which immensely contribute to economy mainly because they have been widely acknowledged in the new creative industries. Quotations: “Increasingly, the literature has shifted towards innovation rather than efficiency as the key driver of growth, business success or failure”. (30) “Thus, factors facilitating or hindering innovation have been related to external and internal, structural and resource factors, and their possible correlations. External factors include government regulations, policy actions, and relative access to funding, weak contract enforcement, or local labour markets, levels of networks and relationships or knowledge networks”. (32) Newspapers Miller, Claire C. “Marketing Small Businesses with Twitter”. New York Times 23 July, 2009, late ed.: B6. Description/Summary: Miller asserts that Twitter has been an inevitable marketing tool for small businesses globally. She notes that many new small businesses and startups are turning to the use of Twitter in order to market their products or services. She gives examples of Curtis Kimball, Shamus Booth, Cynthia Sutton-Stolle, Scott Seaman and Chris Mann as some of the people who have used Twitter to successfully market their small businesses. The advantages she gives for using Twitter are: it is free, reliable, accessible and simple to use. Evaluation/Assessment: This article is undoubtedly a model of how business articles should be written. This is due to the fact that it is very insightful, informative as well as interesting. The author has presented it in a clear, concise and simple manner that ensures the reader grasps the main points at once. The fact that she has given numerous examples to confirm how small businesses have embraced Twitter marketing is a well thought idea. However, the limitation of the article is that it does not have any negative effect of using Twitter for marketing. Quotations: “Small businesses typically get more than half of their customers through word of mouth, he said, and Twitter is the digital manifestation of that. Twitter users broadcast messages of up to 140 characters in length, and the culture of the service encourages people to spread news to friends in their own network”. (para. 7) Monaghan, Angela. “Britain's smaller companies buckle under pressure”. Telegraph 05 Nov. 2012. Retrieved from http://www.telegraph.co.uk/finance/economics/9654563/Britains-smaller-companies-buckle-under-pressure.html Description/Summary: In this article Monaghan notes that both small and medium business in Britain are being ravaged as a result of lack of funding, weak demand, as well as late payment, issues which need to be addressed with immediate effect in order to salvage small businesses from collapsing. She also asserts that small businesses are operating under tough economic conditions due to reduced production and exportation as well as high interest rates. However, she emphasizes for a policy to enable small businesses access funding from banks. Evaluation/Assessment: This article is clearly an eye opener to many scholars and practitioners in the field of business. The author gives an insightful evaluation of the real situation facing small businesses in Britain. She identifies lack of funding to small business, and high interest rates to the ones which manage to secure a loan from lending banks as one cause of ravage to small businesses. Also, low demand, reduced production and a decrease in exports are other reasons. A good policy as the solution she gives is undoubtedly essential. Quotations: “While Funding for Lending seems to be having a positive effect for some, small businesses are still struggling to get loans at commercially viable rates”. (para. 13) “After more than four years of serious attempts to stimulate bank lending, no scheme have managed have a substantial impact on lending to small businesses.” (para.14) Websites U.S. Small Business Administration. “Explore Loans, Grants & Funding”. 2012. Retrieved from http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/explore-loans-grants-fund Description/Summary: U.S. Small Business administration is one of the most important institutions concerned with issues that relate to small businesses in the U.S. However, in this article it discusses various ways of financing small businesses such as loans, grants and bonds as well as funding. In particular, this article covers several areas of small businesses financing such as available loans and grants, venture capital as well as a search tool for available loans and grants. The venture capital is available for high-growth technology firms and startups. Evaluation/Assessment: This article is undoubtedly one of the most important articles by the U.S. Small Business Administration because it addresses a very critical area of many small businesses. Financing is one of the major challenges facing many small businesses because they are not able to secure credit from financial institutions. It also clearly distinguishes the available forms of financing to small businesses in the U.S., in addition to providing a search tool which can help a small business owner to locate where to access these funds. Quotations: “You have a variety of options when it comes to financing your small business. Explore your opportunities that range from traditional loans to grants and bonds”. (para. 1) Barone, Lisa. “SMBs Moving Toward Digital, Diversified Marketing”. October 31, 2012. Retrieved from http://smallbiztrends.com/2012/10/smbs-moving-toward-digital-diversified-marketing.html Description/Summary: Barone asserts that internet marketing has become an integral part of many businesses ranging from small to large ones, but it has also become more complex to many small businesses over the past few years. She notes that, nowadays e-marking has taken over by making their marking efforts diversified and more digital-based. She reiterates that social networks such as Facebook or Twitter, email Marketing, Google Places, video (on website) and online banners are the way to go for small businesses marketing. Evaluation/Assessment: This is undoubtedly one of the best internet articles concerned with marketing in small businesses. This is mainly because it is very insightful and interesting and provides a logical evaluation of the importance of diversifying marketing strategies by small businesses. It is also written is a clear, simple and concise manner allowing the reader to grasp the logically flowing points at the first glance. It is also crucial to note that the author concludes by posing a very significant question to the owners of small businesses. Quotations: “As small business owners trying to stay afloat in a more fragmented market, it’s interesting to take notice of where they’re moving. Facebook is an obvious standout with its low barrier to entry (Matt McGee recently shared 12.8 million local businesses now have business pages), and the promise of an already-existing user base. Newspapers, sponsorships, and email marketing are all areas familiar to many SMBs. And now eyes are turning to Google Places, video (on website) and online banners to engage and entice a potentially new audience, as well”. (para. 5) Government Document: A Report Australian Government. Australian Government Payments to Small Businesses: A Performance Report. The 13th Survey, 1st July 2010 to 30th June 2011. Web November 6, 2012. Description/Summary: This 13th Australian Government report is a survey of agencies of the Government of Australia payments to small businesses. This is a report of a survey is aimed at monitoring the compliance of these agencies for the period from July 1, 2010 to June 30, 2011 to the Procurement Thirty Day Payment Policy for Small Business. The proportions of invoices paid by value (amount of money) and by number (volume) are the two payment performance measure captured in this survey and calculated for each agency. Evaluation/Assessment: This report is logically presented thereby making the meaning of the results of the survey to be grasped by the reader at the first glance. This is mainly because both tables and charts have been used to appropriately present the collected data in an organised manner. Moreover, the breakdown of the report’s survey results on monthly basis effectively captures the attention of the reader and simplifies it by making the findings more clear and easy to relate. The report is a well reasoned and researched piece of writing. Quotations: “In December 2008, the Australian Government commenced the policy where an agency must pay simple interest for contract procurements that they fail to pay on-time upon receipt of a correctly rendered invoice with a value of up to $1 million from a small business”. (2) Works Cited Australian Government. Australian Government Payments to Small Businesses: A Performance Report. The 13th Survey, 1st July 2010 to 30th June 2011. Web November 6, 2012. Barone, Lisa. “SMBs Moving Toward Digital, Diversified Marketing”. October 31, 2012. Retrieved from http://smallbiztrends.com/2012/10/smbs-moving-toward-digital-diversified-marketing.html Bhattacharya, Debasis. Leadership styles and information security in small businesses", Information Management & Computer Security 19.5 (2011): 300-312. Boysana Mbonyane, and Watson Ladzani. "Factors that hinder the growth of small businesses in South African townships", European Business Review 23.6 (2011): 550-560. Bridge, Simon, Ken O’Neill, and Stan Cromie. Understanding enterprise, entrepreneurship and small business. New York: Palgrave Macmillan, 2008. Hotho, Sabine, and Katherine Champion. Small businesses in the new creative industries: innovation as a people management challenge", Management Decision 49.1 (2011): 29-54. Kennedy, Joe. The small business owner’s manual: Everything you need to know start up and run your business. Franklin Lakes, NJ: The Career Press, Inc., 2005. Miller, C. Cain. “Marketing Small Businesses with Twitter”. New York Times 23 July, 2009, late ed.: B6. Monaghan, Angela. “Britain's smaller companies buckle under pressure”. Telegraph 05 Nov. 2012. Retrieved from http://www.telegraph.co.uk/finance/economics/9654563/Britains-smaller-companies-buckle-under-pressure.html U.S. Small Business Administration. “Explore Loans, Grants & Funding”. 2012. Retrieved from http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/explore-loans-grants-fund Read More