Module 10 Flashcards
Business owners must be the leader of their organization. They often provide the mission, values and goals for the small business.
Leadership and business ownership are two different things. Many business owners can run their company and complete operations with few problems. However, leading other employees can be a completely different issue.
leadership
is an important business function. Business owners often use accounting to record, report and analyze information relating to financial transactions. Small business accounting usually encompasses several different features
accounting
Business owners must pay careful attention to the human resource needs of their company. As a company begins to grow and expand, the hiring of employees is usually an essential part of small business management.
human resources
Operational management is a key part of small business management. Business owners carefully review their operations to ensure goods or services are produced in a high quality manner.
operations
A small business entrepreneur should be well oriented in the market, understand the specifics of her industry and know the specifics of his field of activity. Of course, the head of a large company should know all this.
excellent knowledge of the field of activity
If the small business succeeds, all profits, big or small, accrue to the owner. If he is not satisfied, he may exert more efforts to increase his profits. This opportunity is not afforded to plain employee.
opportunity to reap unlimited profits
Eugene Staley has mentioned five distinct ways in which small industries successfully coexist with large industry.
- competition
- supplementary
- components
- initiation
- servicing
Small industry can out-compete large industry in certain circumstances and in selected products. Some of these industries are bricks and tiles, fresh baked goods, condiments and preserved fruits, goods requiring small engineering skill, items requiring artistry and craftsmanship
competition
Small industry can “fill the cracks” between the big volume and standardized outputs of large factory. Staley mentions a Madras case where a small tricycle factory flourished alongside a large cycle factory.
supplementary
A small industry can produce components for a large industry. This is the most common example of the small manufacturing sector and many of them function under the protection of big industries. Very often they also derive the advantage of a protected market with assured supply of their output to one or more selected large manufactories.
components
Small industry can initiate new products and subsequently grow large with the growth of the product. Staley mentions that many of the automobile factories started this way in USA. In India, the electronics industry looks like taking to this pattern of development
initiation
Small industry can install service, and repair the products of large industry. In India these industries are growing in respect of major industries like refrigerators, radio and TV sets, watches, and clocks, cycles and motor cycles and motor vehicles in respect of repair, servicing and maintenance.
servicing
