Since the mid-1970s, small firms have been experiencing a re-emergence and an increase in prevalence and popularity. Some authors argue that this interest in small business has arisen from a desire for differentiation in products (Barrett and Rainnie, 2002). …
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Whatever the reason, small businesses have become a prevalent part of the United Kingdom economy, and consequently, it is important to understand their nature and the way in which they operate.
Small firms are more than simply scaled down versions of their larger counterparts, they operate differently, make different decisions and are driven by many factors that do not affect larger firms (Atkinson, 2008). It is often perceived that small businesses have an ideal management structure, which is harmonious, where management and employees work together towards a similar goal. This essay examines what type of management styles are present in small businesses, whether this perception of ‘small is beautiful’ is real, and what influences management of small firms.
Not just size alone
Many theories and approaches to examining management of small firms assume that there is harmony across the industry. However, small firms are not homogenous with one another; instead they are subject to a range of different factors that influence the way that they operate, their management styles and their success. For example, ownership structures differ between small firms, with the owner being either, self-employed, owner-director, owner controller or a small employer. Because of these variations between small businesses, any consideration of the management styles and methods of control must also consider other factors about the firm, such as structure and agency (Barrett and Rainnie, 2002).
... Even when sections of the industry are taken into account there is still substantial variation in the way that businesses operate and what factors drive them (Ram and Edwards, 2003). For example, some firms focus primarily on profit, while others desire a family business and are not willing to put this in jeopardy even if this would mean increased profits. Likewise, some small firms compete directly with larger ones by producing similar products, while others produce a unique and distinct products do not directly compete with larger firms. Therefore, it is not possible to provide an overall model of the small business industry, or to predict what management styles will be present under different sets of circumstances. A more effective approach is to examine the different management styles that are present in small firms and how these differ from those common in larger firms. It has been argued that the definition of a small firm needs significant work, as the current perception focuses mainly on number of employees and the precise number differs between publications. The problem with this method of defining small firms is that it does not take into account the complexities and variation that is present within the small industry sector. Some authors or publications make use of key business characteristics to determine whether the company is a small business, or a combination of industry and size. An example of this is the suggestion that in the manufacturing industry, a small business is one that has less than 200 employees. One suggestion has been to modify the definition of a small company so that it uses a qualitative
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...to acquire them is vital. As Rubin (2010) in a new report that is attempts to discover a winning formula, he depicts that there is no formula in their management. It takes a lot of freedom to own and manage them, something that for sure makes them beautiful to manage. Considering the managerial styles hoped for in them, any individual owner of a business seeks to broaden on character traits that entail personality. These are all about dimensions that will associate small business owners with a great deal of success, Rubin (2010). To begin with, there is an aspect of collaboration that is seen in the owners of these small...
...undertakings. Transparency International rated it second together with Finland after Iceland. This is as per 2005’s study of 159 countries using CPI- Corruption Perceptions Index. New Zealand was also considered stable, open as well as competitive economically, has a business oriented governance, and cost competitive structures with low policy in inflation, flexible labour market and low rates of corporate tax. (wellington.govt.nz, 2011) According to Oliver and English, in their book, a small business refers to a business that is personally owned or managed. It may also be taken to be that entity which is void of managerial staffs that are specialists or does not form part of a bigger entity. Also, the...
...Government Regulations for SmallFirms
The goal of this paper is to make an assessment of the role government regulations play for the smallfirms. In the modern business world this question is very relevant and worth- discussing. In this paper, the main question to answer is whether government regulations of smallfirms are “much ado about nothing” or serve an effective instrument of managingsmallfirms’ activities.
Very often small business is positioned as small fish in the ocean, where only strong sharks can survive due to strict conditions,...
...Small Business Management Answers The research to be done before the marketing strategy of the online clothing store should ideally include intensive trend analysis of the kind of apparel the store will deal in along with the segmentation information to correctly target the core market for the store. While the forecasted spending of the whole population of the country can provide you with the ‘big picture’ of the economy and an idea about the sector is set for growth or not; for the online store to perform well the initial planning has to be done based on the analysis of the online market; traffic trends; marketing vehicles; promotional activities and most importantly the preferences of the market....
Small business management entails precise analysis of how an entrepreneur provides the goods and services of his business in the market. It involves identifying the strengths and weaknesses of the business to be able to handle them in the production stage and ensure competitive advantage. An efficient management of a small enterprise requires an efficient marketing plan strategy that indicates the approach of the venture operation. The owner should establish the structures of the business that can effectively define the qualified professionals for the job. Operation of the small enterprise entails control of marketing strategies, sales, and advertising of the enterprise (Zimmerer & Scarborough, 2005, p. 12). Experts agree t...
.... Another consideration is how to price products and services, as well as when to provide discounts and how much.
With regard to the hiring of staffs and other personnel the entrepreneur must deliberate as to the number of employees that will be needed to meet goals, and also to remain a small business if this is desired for tax purposes (de Bono & Heller, 2006). Determining also the skill sets of staffs is essential to provide a consistent and quality product or service to the market. Initially as an entrepreneur/manager issues such as style of management and leadership must be considered. Alternatively if a manger is hired the entrepreneur will want to consider...
...Globalisation: Small is Beautiful Globalisation Starting of it is imperative that one defines what true globalisation is and what is meant by the term in its literal sense and also give credit to the people initially coined the term and what are the true implications of globalisation in the contemporary world. Globalisation in one of its truest and most literal meanings means the process that is used to make a local phenomena or a concept a global or a globally accepted one and to market it through out the world in order to achieve certain organizations or for that matter any sort of goal. The term 'global village; is also being used to describe the process of Globalisation because true Globalisations...
...Information Strategy for Virtual Transport Introduction Small Business operations have played a crucial role in the world economy since ancient history and provide the foundation for developing businesses in to large-scale operations. Despite the importance of small business enterprises to the economy, almost 80% of small businesses fail during its first 5 years (Allen 2000). Among the key factors contributing to such failure lies the lack of proper information systems and monitoring strategy of the business operations and financial aspects (Venter, Eden & King 2004). This results in poor business planning, financial and human resource management as well as inability to...
...Strategic Management of SmallFirms Contents 3 Problem ment 3 Research Objectives 3 Research Rationale 4 Literature Review 4 Research methods 5
Methods of analysis 5
Ethical considerations 5
Future Research 6
Literature Review 7
Strategic competence of smallfirms 7
Management of Small businesses 8
Reference List 11
Strategic management is a study that has gained attention since the 1950s. This study has been largely devoted to big corporate. In contrast the literature developed in the context of smallfirms’ strategic management is...
...In developing a business model for a mobile vending kiosk of homemade ice cream, the business model canvas can be utilized. The steps that can be followed are discussed below.
First and foremost, it is imperative to identify the key suppliers and in this case, these involve the companies that supply the ingredients used in making ice cream.
The next step is to define the key activities that will be carried out. This includes preparing the ice cream and marketing it to different customers through a mobile vending kiosk.
Value proposition-mainly deals with creating value of the product offered. Effort will be made to try to appeal to the interests of the customers so that they can perceive this product as valuable to them... developing a ...
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