Chapter 9 Special Topics Of Management

Chapter 9

Special Topics in Management

Small Business Management & Entrepreneurship Entrepreneurship is an innovative, creative, risk-taking, and growth-oriented behavior that brings new opportunities for individuals/organizations to start a new business and produce new products that are beneficial to society.

Small Business Business that has a fewer than 100 to 500 workers; independently owned, operated, and financed.

Single Proprietorship Business owned by one person only; the owner’s income and the business income are one and the business.

Partnership Partnership is business formed when two or more persons formally agree to be joint owners of a business.

Corporation A business company involving five or more persons owning it. It is registered and recognized by law as a “legal person” that has legal rights and responsibilities.

Cooperative A group enterprise made up of several traders, consumers, and producers who are interested to produce or trade as a group. A group of officers called board of directors and the committees, headed by a chairman, manage its activities.

Business Registration A government requirement that orders new business owners to furnish government agencies with necessary information prior to legal operation of their business firm.

Business Registration Registration procedure of the legal forms of business differ from each other.

Family Business It is defined as a business owned and financially controlled by members of the family.

Family Business Globally, there are many successful family businesses run by the entrepreneurs who have different stories to tell and different formulas for their business success.

Family Business Some common characteristics of members of successful family businesses include the following: creativity, innovativeness, service orientation, ability to take risks, and do the hard work.

Why Small Business fails? 1. 2.

3. 4.

5.

Lack of experience/expertise / strategy Poor financial control Growing too fast Insufficient commitment Ethical failure

Lack of experience/expertise / strategy What shall I do? 1.

2. 3.

Attend on-the-job training/apprenticeship programs on the chosen business. Consult experts on the essentials of running the business. Take time to craft your mission and vision about the chosen business.

Poor financial control What shall I do? 1. Consult finance experts and

practice tight controlling methods.

For Growing too fast What shall I do? 1. Take time to think things over

before deciding to branch out; make sure that your business already has the capability to expand/grow.

For Insufficent Commitment 1. Have enough time to

oversee the running of your business.

For Ethical failures What shall I do?

1. Avoid temptations to

engage in unfair business practices.