SMALL BUSINESS SUCCESS

Small Business Success

Small Business Success

Introduction

A small business is mostly one which is a privately owned corporation, partnerships or sole proprietorships. By small it could be used to imply towards the government support or the tax policies, under the Fair Work Act 2009 in Australia a small business is mostly comprised of fewer than 15 employees (Australian Government, 2010). Small businesses are beneficial for any economy and can also help an owner start up a new venture since most small businesses can be started at a relatively lower cost; internet marketing is also a very significant aspect of a small business and can help expand into various regions. Small sized businesses are important for an economy because they provide the economy with sustainability, they are easier to manage, very flexible and can easily adapt to economic changes. Another huge benefit of small businesses is that it creates employment opportunities for people (Mason, n.d).

This paper is the literature review that will justify the fact that small businesses are indeed a success but will also discuss the key factors that lead to such organizations being a success. In particular we will discuss the role of leadership and effective management in small business success.

Discussion

Theme

The literature will be divided into two themes that look into how leadership can be considered an important factor that leads small businesses to success. We will also discuss how small businesses can fail if they do not have the right management.

Sub Theme

Study I: Leadership Perception: Small VS large businesses, the training implication By Dalglish (2003)

Leadership plays a crucial role in the success of entrepreneurial ventures since they provide the required assistance that is required to bring the business success. Small businesses usually comprise of a few employees and managing them and maintaining a strong leadership can ensure that the employees are motivated and perform according to the requirements of the company. Leadership for any entrepreneur can be interchangeable and there is little distinction based in the two principles. According to Timmons (1999) a successful entrepreneur leader includes six dominant features; determination and commitment, tolerance of risk, uncertainty, opportunity, creativity, self reliance and the ability to motivate to excellence. Successful entrepreneurs are those who can successfully juggle various distinct roles.

Methodology

Based on the literature available the research formulated a questionnaire that aimed at understanding the role of leadership is the success of these businesses. The questionnaire was divided into two separate parts, one part asked the respondents to rate leadership attributes important to them and the second part asked them to rate a leader they admired.

Findings

The data was collected globally from various countries and small and large organizations. 57% respondents were from Australia, 16.3% from Europe and so on. The results obtained help understand the required leaderships that would help a small business flourish. For small businesses the following leadership details were provided; A leader in any small business needs to be inspiring and motivating in order to uplift the employees and bring the best out of ...