principles of small business management pdf

In addition, small business leaders’ heavy involvement in day-to-day operations further constrains the time they have for SMPs (Williams, Manley, Aaron, & Daniel, 2018b). Yet, as small firm leaders strive to lead their firms to sustain and succeed (Dunne, Aaron, McDowell, Urban, & Geho, 2016 Pustovrh, Jaklič, Martin, & Rašković, 2017), they often lack a deep management team to whom they can delegate tasks related to strategy development and execution, which we refer to as strategic management practices (SMPs) (Williams Jr., Manley, Aaron, & Daniel, 2018a). Because small businesses generate jobs, tax revenues, functional products, charitable donations, technological developments, and social contributions to communities (Chaganti, Brush, Haksever, & Cook, 2015 Halabi, Barrett, & Dyt, 2010 Hettihewa & Wright, 2018 Peake, Harris, McDowell, & Davis, 2015 Pinho & de Sá, 2013 Sharir & Lerner, 2006 Thompson, Smith, & Hood, 1993), their success and sustainability is important to societal and economic development. workers, generated 1.9 million net new jobs, and represented 287,835 exporters (Small Business Administration, 2019). In 2018, small businesses accounted for 99.9% of U.S. printing companies, we found four different configurations of SMPs related to higher small business performance. Here, we apply Fuzzy set Qualitative Comparative Analysis (fsQCA) to explore how various combinations of six different SMPs – entrepreneurial orientation (EO), strategic planning, goal setting, total quality management (TQM), social capital, and small business owners’ analysis of financial ratios – affect performance. Small business leaders may apply various combinations of SMPs to achieve performance objectives.

Given these contributions, and small firms’ limited resources, it is important to understand what strategic management practices (SMPs) – activities engaged to develop and implement strategy – positively impact small firm performance. Small businesses contribute to society on many fronts: job creation, tax revenues, functional products and services, charitable donations, technological developments, and social contributions to communities.

Principles of small business management pdf