Small Business Management Essays

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Essay Plan 1 Definition of smaller enterprises There are various definitions of smaller enterprises provided from different times and areas. One of the earliest definitions was provided by Bolton Report (1971), which has indicated that a small enterprise should meet three criteria: independent (not part of a larger enterprise); managed in a personalized manner(simple management structure); relatively small share of the market(the enterprise is a price ‘taker’ rather than price ‘maker’). There are also quantitative definition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971). 2 What is entrepreneurial small business Throughout…show more content…
Indeed, it is significant that the SMEs enterprises learn to join hands with other resources in their industry at early stage (Deakins and Freel, 1998). • Ability to assimilate experience and opportunity The ability to learn from experience is one of the key abilities and it is possible to recognize and grasp the opportunity that arises out of the experience. Penrose (1971/1952) argued that the possibility of internally experienced personnel to formulate development strategy is essential to gain confidence in the outcome. • Ability to reflect on past experience and mistakes The relationship of past experience and growth is not novel. As Penrose (1971/1952) has mentioned that the availability of former experienced executive resource would allow for a expending of the planning horizon. Therefore, the ability of entrepreneur to formulate and execute development company plan is significant from internally experienced successes and mistakes. • Importance of the “entrepreneurial team” In the leading team, to involve additional members to the entrepreneurial team would be critically affect to the company development. Throughout the business process, as we can see from Deakins and Freel’s case study (1998),
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