Operation – Small Business Management
Introduction
Small business plays a key role in the society and the economy in several ways. They promote job creation, develop leadership roles within communities, supplement larger businesses by providing niche services/products, offer diversity, and magnificently influence progress in the economy.
Share your thoughts or examples of firms that haven’t gotten what they expected because they are rewarding the wrong thing.
Whether dealing with monkeys, rats, or human beings, it is hardly controversial to state that most organisms seek information concerning what activities are rewarded, and then seek to do (or at least pretend to do) those things, often to the virtual exclusion of activities not rewarded(Kerr, 2005). Indeed it’s a reality that many firms have attained their expectations because they rewarded the wrong aspects of their operations. For instance, some firms establish vague and generalized goals and thereby end up establishing a reward system that is not realistic. Even with clearly defined objectives, some firms will assume that they can obviously achieve there expectations and do not pay attention of how they set up the rewards system. In such situations, managers will not pay close attention on the behavior of employees who might have not maintained focus on achieving the firm’s goal. At any given moments, organizations are not keen to reward employees that deserve to be appreciated but instead reward erroneous behavior such as ignorance. These faulty rewards systems make organizations loose value for their expenditure.
Select 3 issues and offer solutions that would be helpful to micro businesses facing those particular problems. Is there anything that communities or economic developers can do to help micro businesses become and remain successful?
The first issue is about motivation. Micro businesses may solve employee’s motivation issue by offering consistent training to their current employees in order to increase the level of productivity due to improved knowledge and skill. Lack of efficient skills is one of the basic reasons as to why employees lack motivation. Secondly, the issue about inability to meet customer needs may be met through looking for contract manufactures. This will enhance scalability and lead to overall benefits. Consequently, may business may invest in technology in order to improve on the quality and quantity of production in order to meet the customer needs. Thirdly, Micro business encounter benefit issues due to the high cost incurred in production which eventually leads to low return on investment. Therefore, they need to focus on cutting down operational costs and this include restructuring management and cutting costs such as energy costs through power purchase solar companies depending on the available state and federal tax. Communities and economic developers can help micro business become successful through such things as providing favorable environment that is politically stable and also embracing the available resources.
Two Major Problems and How to Address Them as Community Leader
Marketing is one of the major problems experienced by small businesses. However, communities can address this issue through approaches such as offering market trends analysis and enhance effective approaches to marketing through such things as competitive pricing. Another approach can be through community marketing and this may be done through events and attractions. Conversely, communities may establish training and accessibility on programs concerning effective ways to increase market and this may include web and e-commerce. Another significant problem is financing. Therefore, community leaders may implement money management programs and financial support to micro businesses.
Do you agree with the RUPRI’s research findings that entrepreneurship may offer one of the best strategies for sustainable and appropriate development? What is your understanding of appropriate development with regards to entrepreneurship?
I agree with RUPRI’s conclusion that entrepreneurship may offer one of the best strategies for sustainable and appropriate development. This is basically due to the fact that entrepreneurs play a key role in improving economy and standards of living of many individuals. Consequently, my understanding on appropriate development with regards to entrepreneurship is as follows; entrepreneur’s drives innovation and creativity and this is bench mark for improved development. This means that entrepreneurs influence development in all many aspects through the knowledge, skills and attitude during business creation.
Do you agree or disagree that traditional economic development programs or organizations tend to be obsessed with job creation as a primary outcome metrics? Why or why not.
I agree with the idea that traditional economic development programs or organizations tend to be obsessed with job creation as the primary out come metric. This is because these programs are mainly focus on the existing or current development efforts. Traditional economic development programs advocate for entrepreneurship as a job creation strategy rather that the focus of the future impact of entrepreneurship on development. Entrepreneurship has a bigger role in the society apart from job creation and that why these traditional programs easily succumb to entrepreneurial constraints due to inadequate investment in the entrepreneurial approach.
Conclusion
The needs of small scale entrepreneurs are diverse within the society in which they reside. On the same, these enterpreneurs play a key role in promoting appropriate sustainable development through innovation and creativity. Therefore, all stakeholders of economic development need to combine efforts and address various issues facing micro business entrepreneurs.
Reference
Kerr, S(1995). An Academy Classic: On the Folly of Rewarding A while Hoping for B. Journal of Management Executive vol. 9. No. 1
