SMALL BUSINESS MANAGEMENT

Small Business Management

Small Business Management

Difference in characteristics and approach of motivation

While the corporate goals are formulated, the basic reason for the difference in strategic approach of small and large organizations is in the association between ownership and control. The large organizations are bound to consider the requirements of its stakeholders which include employees, customers, suppliers and shareholders. The interest of small business is the interest of owner who is responsible for drawing out beyond the commercial needs to the personal needs of his/her family. Therefore, the main direction of business goals and objectives might include the financial aims and mission statement. However, for the comprehension of the goals of small business, it is significant to comprehend the motivation behind the startup of the business. There are a large number of causes why people start their own businesses. For instance, people since birth, mixed lifetime background and experiences are categorized as environmental affect and precursor like parental education, personal education. Former work experiences or traits of an entrepreneur shape the reasons why people from employment to self employment. Some of these factors are positive influences like making a hobby or former experiences into business, desire for independence. Some of these factors are negative affects like disagreement with former employers, unemployment or redundancy. Al these factors come together as a business objective and goals to develop a firm. These factors are replicated specifically in management approaches and approaches towards the product, expansion of the firm or personal lifestyle (Butler, 2012 pp. n.d.).

Some businessmen are classical business owners who have no interest in the formation of a business which will provide employment to others instead of making sufficient earnings for the continuation of eminence of self-employment. Indeed, some of these businessmen approach to initiate their own business in order to earn money. However, they also intend to have power and control over their destiny. Retention of power in the business while growing, where the probability of survival is highest and decency and credibility in the society have been obtained. It is crucial to comprehend the attitude approaches of businessmen of small firm to recognize towards the association between business and lifestyle. They identify whether their business pay for their lifestyle. This may include their social status in the society and good lifestyle, political activities and social work. Small forms owners may require to spend long hours at work and they make all the decisions. The goals in small firms are not set in stone. The management attitude varies with growth, experiences, success and failure. When business starts survival the direction of the organization may be malformed to integrate the evident requirements of the upcoming generations (Butler, 2006, pp. 24-30).

Differences in Resourcing Of the Business

When the small firm fails to achieve the goals and objectives, it can only hurt the family, employee, community and the business owner. The business failure is the result of lacking skills or management knowledge of business owner, their bad outcomes can be evaded with the help of owner ...