Small Business Management
Small businesses are arguably the most important part of our economy. In the U.S. alone, there are an estimated 30 million small businesses. These make up an incredible 99% of all businesses in the country!
Yet, even though they make up a large portion of the workforce, small businesses are also the most likely to fail in their first few years. Therefore, it is important for businesses owners to understand the concept of small business management and how it is different from corporate scale management.
In the United States, a small business is one with 250 or less employees. An MBA is potentially significantly helpful even for a “small business”.
What is small business management?
As the name implies, small business management concerns itself with how small businesses operate. Like other businesses, it deals with how managerial responsibilities extend across various departments. In order to be an effective small business manager, you need to have a wealth of knowledge in a variety of topics. Further, it is helpful to understand various business functions at a comprehensive level.
Regardless of the challenges, there are several benefits to being a small business manager.
Greater control over company vision
With a small business, the entrepreneur is the nexus for all ideas and control over the company. As one of the main decision makers in the business, you have much greater control over the direction the business takes. Whereas with a larger company, you may have less flexibility to do so. Some may see this as a drawback. The responsibility you take on to ensure business success increases when you are the sole individual in charge.
More roles in the business
Some people may find this to be a double edged sword. With a small business, you may lack the finances to hire individual people to form different departments and take charge of certain business operations. For example, as the entrepreneur, you may be in charge of accounting, human resources and management, all at the same time. Or at the very least, you will have more control and oversight over these operations. While this provides you more influence over business decisions, it also increases your workload immensely. You may also find it hard to delegate these responsibilities when you have a smaller staff.
Greater flexibility
Smaller organizations naturally have a decentralized command aspect. This allows for more efficient decision making and faster reaction to the ups and down of the economy. However, this flexibility can be stifled with lack of strong leadership so it is important that as a small business leader, you empower your employees to make sound and timely decisions.
Experience all the different functions of business
Being involved with all of the different aspects of your business is going to undoubtedly provide you with great experience for when you decide to scale your business up. Understanding the ins and outs of accounting, marketing, human resources and management will make you a better leader in the long term. If you have a better understanding of these functions, you will better understand the issues and challenges faced. Thus allowing you to provide much needed guidance to subordinates.
Learning more
This blog hardly scrapes the surface of what it takes to be a small business manager. If you want to learn more about what it takes to lead a successful small business, you can consider enrolling in a small business management course. The U.S. Small Business Administration (SBA) Learning Center contains a wealth of helpful knowledge. It helps assist new business owners with nearly every aspect of running their small enterprise. Further, those interested in gaining more comprehensive knowledge on running a business can look at a Masters in Business Administration (MBA) program. MBAs provide users with knowledge and experience to run a small business, their own or someone else’s. If you want to learn more about getting your MBA, check our blog on Is a Business Degree Worth It?, or visit our website to learn more!