How Some Small Businesses Get Their Ducks in a Row and Grow While Others Remain Undistinguished (original) (raw)
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Strategies and Strategic Management in Small Business
MPP Working Paper No. 15/2002, 2002
After many years of academic and scientific interest in the strategies of large enterprises, the situation has, not too many years ago, turned increasingly to the strategic behaviour of smaller enterprises. This is certainly justified, in fact essential, if we take into account the importance of small and medium-sized enterprises in the economies of most countries. Implementing strategic management in the current activity of the small enterprises has become a stringent necessity. This situation is a consequence of the serious challenges that exist on the market place, of the unstable balance of the business environment forces and other influencing factors that can be identified in the actual economic context, especially in the transition economies, where SMEs are very predominant and also very young and inexperienced (Lobontiu & Lobontiu, 2001). The existing literature on strategic management, whilst being difficult to reconcile in terms of the conflicting theories stated in the field, appears even further flawed in the SME context. On the other hand, if there is a single difference between the strategies of the SME and the large corporations, it is that they seem to be heading in different directions (MacGregor, 1999). Whilst SME strategies largely appear to be about growth and development, the corporate sector appears to have spent the last twenty years in a process of sub-division and shrinkage. This paper is a theoretical one, whose aim is to synthesize and systemize the most important ideas outlined in some of the papers and articles published in the field of strategic small business management. The problem here is that the information is very dispersed and it’s difficult for both a small business manager and an academic researcher to have a rapid overview of this field. So the author of the present paper is trying to facilitate this process, presenting the relevance of strategic management for small businesses. The author is also proving that the small business managers are actually very preoccupied by the issues of strategies and strategic management and that SMEs are displaying a pronounced strategic competitive behaviour.
Organizational Strategies for small & medium sized enterprises
Global Journal of Business Research, 2016
This paper is a descriptive research to identify the types of strategies used by Small and Medium Enterprises (SMEs), to provide a main competitive factor. Data collection involved two instruments, taken from Vezina (2011). We use an interview guide and questionnaire to directors and/or managers. We used the strategies typology of Miles and Snow (1978). Evidence shows that managers of small and medium enterprises for the most part, adopted a strategy that adapts to the environment. We further find that exploring and analyzing strategies were the most representative for small businesses, defined by staying in a more dynamic environment. Midsize companies adopt further to the analyzing type, characterized by trying to minimize risks and maximize profits in a safer environment and always supported by an administrative management system.
Small business enterprises (SBEs) significantly contribute to the economic and social progress of many nations, particularly in the developing world, but managing them requires effective organizational strategies and implementation tactics to deal with the complex business environment. This study aims to identify and describe the organizational strategies and implementation tactics employed by managers, supervisors, and owners of small businesses. The study’s respondents were a total number of 60 small business owners, managers, and supervisors in Capas, Tarlac. The study employs a descriptive quantitative approach, using closed-ended 5-point Likert scale questionnaires as the data collection instrument. Furthermore, the study applies a simple random sampling technique to select the sample size from the population. The study's results show that the majority of respondents agreed that their businesses are achieving their goals in terms of organizational strategies with a mean of 4.53, described verbally as "strongly agree," and implementation tactics with a mean of 4.33, described verbally as "strongly agree." It is clear that small business owners in Capas, Tarlac, recognize the importance of effective organizational strategies and implementation tactics and believe that their businesses are successfully achieving their goals through organizational strategies and implementation tactics. While using these organizational strategies and implementation tactics helps their business grow, small business owners, managers, and supervisors should continue to adopt and adapt organizational strategies and implementation tactics that suit their business needs and goals and seek to learn how to efficiently and purposefully use these strategies and tactics.
2007
In many countries all over the world, the number of Small and Medium Enterprises (SMEs) is now increasing. SMEs are vital part of those economies. They dominate in many sectors. SMEs also perform a significant role in the economic growth of Sri Lanka. However there is a research gap of focusing the area of business and managing practices of SMEs which have a high impact on their business success. The specific problem addresses in the present study was to examine the business and managing practices of selected entrepreneurs who are owner managers of SMEs. Data were collected through an interview from selected ten urban entrepreneurs who are owner managers of SMEs from Textile and Jewelry trade. Ten cases were developed based on the information of indepth interviews and observations. Analysis was done on qualitative basis. The conclusions drawn from the study could provide some insight of business and management practices of entrepreneurs who are owner managers of SMEs.
revistafuture.org
The aim of this article is to understand the mechanisms of strategic implementation as used by entrepreneurs in the processes of establishing new functional strategies (production and marketing) for their companies. A survey of 169 micro-and small businesses was carried out. The results show that the relation between the use of strategic process by micro-and small entrepreneurs is middling, but the general use of implementation mechanisms is low and the correlation with the adoption of entrepreneurial strategies is weak. The possibility of justifying the use of these strategies is tenuous when associated with entrepreneurs' stronger mastery of strategic management techniques.
The aim of the present research was finding out why an overwhelming majority of small enterprises are incapable of growth. The paper provides a completely new view and explanation of the small and medium-sized enterprise development problem and presents the challenge-solving algorithm integrated into the web service for timely assessments facilitating a successful transition of enterprises into a group of big enterprises. The findings confirm that laws of the enterprise development are more universal than people commonly believe and not so dependent on external factors. The suggested concept of the informational challenge is a key development factor at small fast-growing enterprises managed by talented entrepreneurs. The concept helps to understand difficulties and cope with them in time of a business transition to the category of medium-sized enterprises. Long-term observations of 68 enterprises (longitudinal study) in Russia made it possible to identify preconditions for gazelle enterprises to appear and factors that prevent them from the sustained growth with an emphasized importance of some internal factors in these processes like entrepreneurs' personality traits in particular.
Strategic planning for increased profit in the small business
Long Range Planning, 1990
This article examines the problems facing the owner-managers of small businesses, and details the investment required in strategic process development which would guarantee the critical 5 per cent difference to ensure the successful growth and adaptability of the company. Formal strategic planning needs to blend with team development to create the concept of *strategy-in-use' and the development of effective management teamwork out of a planning process.