Operational issues in Small Business Management.

Today a business faces challenges from globalization of the market place to the digitization of technologies revolutionizing communication.  There are also challenges from outsourcing of core business processes to innovation and customer relations.

Some studies indicate the following as major issues facing small business:-

Competition – attracting new customers – access to capital and financing – growth (how to grow) – recruiting new employees – increasing costs – training and retaining good employees – change management – government regulations – customer/vendor relations.

For small business day-to-day operational issues such as communication, government regulatory compliance become very important.  Improving product and services quality remains the most important for small business.  Also limited resources, such as money, people and time are constant issues for small business.  Shortage of key people means each employee has many responsibilities and must function across a wide spectrum of functions for which they may not have expertise or time.  Time becomes critical in day- to-day operations.

Critical Issues from managerial perception:

• Managing growth,
• Conveying to middle level managers and employees the business vision,
• Training, maintaining and retaining employees,
• Customer service,
• Strategic planning,
• Leadership,
• Health-care costs,
• Reducing operational costs,
• Eroding margins,
• Emerging markets,
• Government regulations – form of tax, tariff and procedures,
• Supplier`s communication.

Small Business should have the following 'Check-List' for effective operation of the business:

• Are responsibilities clear and matched by authority?
• Is the business structure clear yet flexible?
• Are communications focused on finding solutions rather than placing blame?
• Do people have the information and resources necessary to do an excellent job?
• Do you and your employees care about the business?
• Does staff come in early and stay late on their own initiative?
• Are mechanisms for conflict resolution working?
• Is disorder minimized and channeled?
• Does a corporate plan spell out the firm`s Vision?
• Do employees pitch in unasked during a crisis?
• Do customers and suppliers prefer to do business with you?

The Management of small business must constantly keep an eye on day-to-day operations for immediate action and solution to survive in the market.

Questions:

• What are the major issues facing the small business?
• What are the critical issues faced by the management of small business?