Managing Small Businesses During Recession

2020 ◽  
Vol 6 (02) ◽  
pp. 51-59
Author(s):  
P A L N S Kalyani
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
Capacity Utilization ◽  
Small Scale ◽  
Business Organizations ◽  
Economic Cycle ◽  
Supply Shock ◽  
State Of Mind ◽  
Investment Capacity

A recession is narrowing of an economic cycle and it is referred as slowdown of economic action. The macro economic factors varies during recessions. There will be a fall in production, employment, GDP, investment, capacity utilization, spending, household income, inflation and business fall. The rate of unemployment and bankruptcies rise during recession. Due to adverse supply shock there will be a drop in consumption and there will be a bursting of economic buddle. Even though owing business organizations is not without struggles, the rewards they earn often worth it. Every entrepreneur enjoy great freedom and flexibility in comparison with a regular employee. With a right kind of state of mind and proper understanding of hardship with are to be faced, a proper plan is required to tackle the ups and down in the journey of Entrepreneurship with respect of Small Scale sector. One of the biggest challenges faced by small firms is its difficulty to reach break even. It often takes 2 to 3 years for small businesses to accomplish their goals. Especially during recession, small business organizations often hit the hardest. Reduced spending power, inadequate preparedness for recession, budget constraints etc., are making it impossible for small business to endure. The present article offers various suggestions for small businesses to manage during recession.

scholarly journals Comparative Small Business: Toward A Model

2011 ◽  
Vol 5 (2) ◽  
Author(s):  
M. Ruhul Amin ◽  
Sharmistha Banerjee
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Secondary Analysis ◽  
Capacity Utilization ◽  
Business Environment ◽  
Small Scale ◽  
Business Practices ◽  
Global Business ◽  
Ethnographic Studies ◽  
Structural Variables

This paper addresses the issue of comparability of the small business across geographical boundaries based on organizational contextual, structural variables and the effectiveness indicators. The authors argue that (1) there are already many features, profiles, managerial challenges and the role the small businesses play in a political economy that are common to many countries; (2) the gradual homogenization (due to successful penetration and integration of web based information and transactional technology) of business cultures in a borderless and seamless global business environment may enable tentative generalizations based on empirical as well as ethnographic studies. The paper first defines small business effectiveness and then outlines several common factors through a review of case and ethnographic studies. Finally, the author takes one of the common factorsthe issue of capacity utilization and proposes a quasi deterministic empirical econometric model and shares the findings through a secondary analysis of survey data collected from 179 small scale enterprises in West Bengal, India. The findings reflect positively on the efficacy of the model. The authors conclude: the scholarly pursuits such as this are likely to enrich and contribute to the nascent comparative small business literature and enhance the empirical understanding of the small business dynamics. Consequently, a greater homogenization of the global business practices may facilitate more small business to small business transactions within the country specific diverse global business cultures.

Characteristics of the ERP Systems Designed for Managing Small Businesses

2021 ◽  
Vol 13 (2) ◽  
Author(s):  
Petar Hlebarov
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Business Environment ◽  
Business Organizations ◽  
Erp Systems ◽  
Small Organizations ◽  
Business In Society

This article mainly aims to introduce the particular charactersitics of the ERP systems, used for managing small businesses, by answering several basic questions related to this topic: What do we generally understand by ERP systems? What is the essence of ERP for small business? What is the role of ERP for small business? What do we understand by small business? What are the characteristics of small business? What is the role of small business in society? What are the basic problems of small business? What is today’s business environment? In this respect, the report introduces the essence and the role of the ERP systems used for managing small business organizations in a structured and summarized way. It shows how the specific characteristics of small business and today’s business environment affect the ERP configurations, compared to those used in large organizations. At the end of the paper, a summary is provided of the characteristics of the ERP systems used for managing small organizations.

Doing Business in Paradise

2011 ◽  
pp. 221-243
Author(s):  
Michelle L. Kaars-Brown ◽  
Chingning Wang
Keyword(s):  
Financial Management ◽  
Small Businesses ◽  
Small Firms ◽  
Small Scale ◽  
British West Indies ◽  
Developmental Context ◽  
Financial Firms ◽  
Doing Business ◽  
Transfer Of Technology

This chapter presents findings from a case study of the Turks and Caicos Islands (TCI) in the British West Indies area of the Caribbean. TCI is a tax haven that has worked to attract offshore financial firms such as trust, insurance, and financial management companies. All of these firms, which qualify as “information intensive,” are small in size (average 11 employees), engage in business on a global basis, and yet must compete while dealing with local infrastructure challenges. TCI is presented as the developmental context in which small businesses (largely owned or managed by foreigners from other cultures) must interpret and cope with national infrastructure challenges in this very small, young, rapidly growing island nation. Not surprisingly, we found that these firms share similar challenges with those in other developing countries; however, the perceptions of these challenges and how these small firms cope provide insights into the importance of small firms, small-scale foreign investment, and cross-national transfer of technology expectations.

Prediction model of business success or failure for Palestinian small enterprises in the West Bank

2018 ◽  
Vol 10 (1) ◽  
pp. 60-80 ◽  
Author(s):  
Samir D. Baidoun ◽  
Robert N. Lussier ◽  
Maisa Burbar ◽  
Sawsan Awashra
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
West Bank ◽  
High Rate ◽  
Business Failure ◽  
Business Success ◽  
The West ◽  
Content Type ◽  
Random Guessing

Purpose The aim of this study is to examine the factors that lead to success or failure of a small business in the West Bank of Palestine. Design/methodology/approach This study methodology is a survey research, testing the Lussier model of business success and failure with a sample of 246 small businesses (90 failed and 156 successful) to better understand the reasons of their success or failure using logistic regression statistical analysis. Findings The model is significant (p = 0.000); it will predict a group of businesses as successful or failed more accurately than random guessing 99 per cent of the time. The model will also predict a specific small firm as successful or failed 94 per cent of the time vs. 50 per cent for random guessing. The r-square is very high (r = 0.70), indicating that the model variables are, in fact, significant predictors of success or failure. Results indicate that having adequate capital, keeping good records with financial controls, making plans and getting professional advice on how to manage the firm are the most important factors for the viability and success of small businesses. Practical implications With the high rate of small business failure globally, results of this study provide a list of variables that contribute to the success of small firms. Firms that focus on these important factors will increase their odds of success. Thus, avoiding failure, firms better utilize resources that contribute to economic growth. Originality/value This is the first study that looks at success and failure of small businesses in Palestine. There is no one single accepted theory that may be applied to small businesses. This paper aims to further contribute to the global validity of Lussier success and failure model moving toward a theory to better understand why some businesses succeed and others fail.

scholarly journals Effects of public procurement of R&D on the innovation process: evidence from the UK small business research initiative

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kostas Selviaridis
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
Market Failure ◽  
Public Procurement ◽  
Innovation Process ◽  
Business Research ◽  
Content Type ◽  
Research Initiative ◽  
The Uk

Purpose The study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation. Design/methodology/approach PCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts. Findings The UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct. Research limitations/implications The study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts. Social implications The study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme. Originality/value The study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

THE ROLE OF FAMILY START UPS IN THE EMERGENCE OF A SMALL BUSINESS SECTOR IN BULGARIA

2009 ◽  
Vol 17 (03) ◽  
pp. 351-375 ◽  
Author(s):  
DENISE FLETCHER ◽  
EMIL HELIENEK ◽  
ZVETA ZAFIROVA
Keyword(s):  
Small Business ◽  
Informal Economy ◽  
Small Businesses ◽  
Small Firms ◽  
Family Relations ◽  
Entrepreneurial Activity ◽  
The Balkans ◽  
The Family ◽  
Start Ups

It is widely reported that entrepreneurial activity has a significant role to play in transition economies such as Central and Eastern Europe but little is known about the role that the family unit plays in facilitating small business emergence in the former command economies. This is surprising given that the link between family and small business development has been widely researched in market economies. In this study, attention is drawn to the role that family relations and resources play in small business emergence. The study focuses on Bulgaria, a country in the Balkans with much cultural diversity and which became a European Union member in 2007–8. Analysis is undertaken of research material drawn from a survey of 69 small firms. 42% of the surveyed firms are two generation businesses involving the entrepreneur and children or parents. 35% of the businesses are three generation businesses involving the lead entrepreneur, parents, children and siblings. The remaining 33% are firms that are run by couples and/or siblings. This suggests that the family household is the key channel for (and of) small business formation. In neglecting the role of family start-ups, this gives a false understanding to the role that households and families sometimes contribute to the economy. At the same time, it is also partly because of this dependency on family relations and resources that small businesses become rooted in the 'informal economy' — an economy that is based on family favours and which it is difficult to break out of.

Accounting and Marketing—Key Small Business Problems

1983 ◽  
Vol 7 (4) ◽  
pp. 19-26 ◽  
Author(s):  
Henry Wichmann
Keyword(s):  
United States ◽  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
The United States ◽  
Business Administration ◽  
Small Business Administration ◽  
Business Failure ◽  
Business Managers

The Small Business Administration (SBA) estimates that small businesses represent 97 percent of all businesses in the United States [5, p. 1]. The SBA defines a small business as “one that is not dominate in its field.” While the ma and pa shops fall within this definition, much larger firms are considered small under SBA criteria. The owner-managers of these small firms face unique problems—success or failure is keyed to solving these problems. Each year in the United States, some 500,000 new businesses start and 400,000 businesses discontinue operations [1, p. 47]. These discontinuances are not all due to business failure (a bankrupt firm). Some small firms are merged with larger companies, while the spark of life leaves other small firms because the owner retires without a son or daughter to take over the reins of leadership. The purpose of this article is to aid small business managers by (1) reviewing the process of beginning a business, (2) identifying some of the attributes that characterize a successful or unsuccessful small business, and (3) discussing small firms’ problems common to the frontier states of Alaska and Wyoming.

The Italian state and small business

1984 ◽  
Vol 25 (2) ◽  
pp. 214-241 ◽  
Author(s):  
Linda Weiss
Keyword(s):  
Small Business ◽  
Small Firms ◽  
Division Of Labour ◽  
Scale Economy ◽  
Industrial Society ◽  
Small Enterprise ◽  
Small Scale ◽  
Scale Production ◽  
Organisational Form ◽  
Italian Case

Despite the certainty with which our theories of industrial society chorused the demise of the small-scale economy, Italy'ssmall producers have not merely refused to disappear but have continued to nourish, multiply and predominate in the postwar economy. Most explanations for this phenomenon have centred oneconomic factors—whether the old linear notions of delayed development and backwardness (Fuà 1976; Sereni 1966), or the more fashionable centre-periphery model which attributes the survival of small-scale production to Italy's ‘latecomer’ status within the international division of labour (see, e.g., Paci 1979; Bagnasco 1977). In this paper I shall attempt to provide a non-economic explanation for the persistence and reproduction of Italy's small business stratum. The weight and importance of small enterprise in a given economy is not entirely explained by economic factors, since comparative statistics tell us that in many advanced economies petty production is by no means a marginal organisational form. Indeed they indicate that the processes of industrialism, far from generating homogenous and purgative effects, produce a diversity of conditions in which small firms can survive. On these and other empirical grounds, the paper argues that the differences observable in the Italian case are the product of particular social and institutional factors.

scholarly journals IMPROVING THE MECHANISM FOR MANAGING THE FINANCIAL SUSTAINABILITY OF A SMALL BUSINESS ORGANIZATION

2019 ◽  
pp. 32-36
Author(s):  
M. R. Mamaeva
Keyword(s):  
Small Business ◽  
Crisis Management ◽  
Small Businesses ◽  
Financial Sustainability ◽  
Small Enterprises ◽  
Business Organization ◽  
Business Organizations ◽  
Legal Form

Managing financial sustainability is one of the key mechanisms of enterprise crisis management. The article discusses the features of managing the financial sustainability of small businesses that are characteristic of economic entities of a given legal form. The analysis of the peculiarities of ensuring the financial sustainability of small enterprises in Russia in modern conditions is carried out and directions for improving the mechanism for managing the financial sustainability of small business organizations are proposed.

MODERN PROBLEMS OF PREPARATION AND RETRAINING OF PERSONNEL FOR SMALL BUSINESSES

2017 ◽  
Vol 6 (3) ◽  
pp. 30-35
Author(s):  
Свистунов ◽  
Vasiliy Svistunov ◽  
Лобачев ◽  
Vitaliy Lobachyev ◽  
Алешина ◽  
...  
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Practical Interest ◽  
Business Organizations ◽  
Current Characteristics ◽  
Domestic Organization

This article analyzes the current characteristics of the training and retraining of personnel for small businesses. In times of crisis survive the organizations that managed to capture trend changes and quickly adapt to them, including through development of its strategy of work with personnel. In this regard, of practical interest are current directions of personnel work of small businesses. Analysis of practical results in this direction in the work of small businesses suggests that today, the domestic organization is often inefficient to implement in practice. This gives grounds to speak about the need to improve work with the staff of small business organizations.

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