Business Administration of Small Businesses - Article Example

While performing these functions, the business administrator must search the environment for potential growth and expansion, and financial viability. The importance of business administration is usually misunderstood and poorly implemented because people target output, instead of the process of management (Longenecker, 2012). Business administration needs to focus on good management practices, in addition to addressing the challenges of managing the internal and external environments. This provides the strategies and foundations for confronting business administration challenges.

The business administration of a small business should consider the external environment of its operations. Traditional business organization implies that a business has a social contract with its customers, employers, and employees. Adhering to fixed sets of standards and obligations, in addition to defined responsibilities and roles will enable the business administrator to meet the objectives of the small business. The organizational structure of a business is conceptualized by the business administrator. The structure guides the business as it interacts with its external environment (Longenecker, 2012). As a result of the organizational structure, the business administrators should internalize the ever-increasing organizational functions. Business administration is also concerned with external environmental factors such as the role of government agencies in the marketplace.

Business administration of internal environmental issues involves the management of issues such as communication, balancing personnel and schedules, setting responsibilities and tasks, and managing business teams. The business administrator must ensure that people in the workplace communicate effectively. Effective communication plays an integral role in the management of operational activities. Open communication strategies ensure that the business can respond to external and internal environmental issues effectively (Longenecker, 2012). The management of personnel and schedules ensures that the organization has an effective work structure that can help in the reduction of stress, in addition to facilitating production activities.

Business administration involves setting responsibilities and tasks effectively. Businesses are characterized by their nature and determination of the responsibilities and tasks of their employees. In this case, a business administrator has the responsibility of clearly defining the roles and responsibilities of each of its employees. The business can develop a human resource system that will help in the management of duties and responsibilities. While managing duties and responsibilities, a business should also have the capacity to manage its business teams. The stability of a business is dependent on how the business manages its teams. The management of business teams involves activities such as the delegation of authority and increasing productivity. A business administrator should develop a checklist that will assist in the management of business teams (Longenecker, 2012).

Conclusion
Business administration involves a variety of activities that help in the management of the business. The topic of discussion, in this case, is management challenges facing the business administration of small businesses. Business administration of small businesses faces challenges from internal and external environments. Internal environmental issues that affect small businesses include open communication, management of human resources, allocation of resources, and organizational structure. External environmental issues that affect small businesses include governmental regulatory agencies, government policies, and competition. Read More