Small Business Strategies For Company Profitability And Sustainability

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Studies reveal that business success is contributed to the management practices, entrepreneurial competencies and personal characteristics of business owners while study of Parilla (2009), emphasized the link of management practices, entrepreneurial competencies and business success.

Small Business Strategies for Company Profitability and Sustainability

Chow and Dunkelberg (2011) explained small business leaders produce half of all private gross domestic product (GDP) and employ half of the private workforce. The purpose for this qualitative multiunit case study was to explore what strategies small business owners used to be profitable in business.

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The population comprised small business owners located in Denver, Colarado who have been profitable by year 5 of being in business. Semistructed interviews is used in this descriptive multiunit qualitative case study design to gain an understanding of what strategies small business owners used to achieve profitability by the end of the first 5 years of opening their business. The data from the participant interviews and company document revealed strategies for profitability that have the potential to aid small business owners in numerous ways.

The findings acquired from the study have the potential to improve business practice by educating future and current small business owners on profitability strategies. It is recommended that potential future and current small business owners should pay attention to the results because they can benefit from the finding of the importance of knowing the seasonality of your business, remaining dedicated and passionate about your small business, and hiring the right employees. This article can be relate to our study because it focuses on the strategies of small business owners used to be profitable in business and on the other hand, our study focuses on the business management skills and sustainability of sari-sari store.

With that, the connection between the strategies of being profitable and business management skills will be emphasize in order that the business will be sustainable and continue its transaction in the industry.

In addition, this study sought to establish the social and environmental factors that influence sustainable entrepreneurship (SE) in small and medium-sized(SMEs). It also attempted to identify whether the demographic background of the entrepreneur influences the SE in SMEs of the Iranian food industry. A mixed method approach, employing the use of questionnaires and interview from a sample size of 130 participants and 12 owner-managers of SMEs in food industry, was used to collect data. The qualitative data were analyzed using a thematic coding technique that is suitable for the semi-structured interview carried out in the study. Data were analyzed using descriptive statistics and several inferential analysis. Finding showed that certain characteristics of the entrepreneur, including work experience and education, have a significant impact on SE. Furthermore, out of the eight identified factors, according to the participants’ perception, the most important factors towards sustainable performance of SMEs in food industry are social factors, including customer orientation, as well as human resources and environmental factors, including recycling and the future of Earth. The result is confirmed by Dickson and Solomon(2008) and by Cooper et al.(1994) who have indicated that the chances of both a successful and high growth among among SMEs had a strong positive with the correlations with the education level and industry specific knowledge. This research paper concludes that considering the social and environmental aspects of sustainability and employing experienced staff would majorly contribute to the pursuit of SE and SMEs of food industry. It Is recommended that people who are planning to put a new business should get an idea in this research to have knowledge in running their businesses. This article can be relate to our study because with our variables Business Management Skills and Sustainability of Sari-sari store it has a correlation. In the article, it was stated that the factor of being sustainable are social factors, including customer orientation as well as human resources and environmental factors, including recycling and the future of Earth and if an entrepreneur knows how to manage business then it will be sustainable. Social factors is inline with the skills of an individuals and the environmental factors is inline with the action of an individual being responsible. Hence, this article is closely related to our study.

Exploring Strategies Required for Small Business Sustainability in Competitive Environments

Owners of small businesses contribute 39% of the gross domestic product and create 2 out of every 3 new jobs, but only 25% of start up small businesses stay afloat after 5 years. The purpose of this study was to explore strategies small auto dealership business owners use to sustain businesses in New York City. Data were collected through semi-structured interviews from 3 participants who owned small auto dealership businesses and succeeded beyond 5 years. The preferred research design was a case study approach. Aggressive marketing strategies were pivotal to the success of small business owners revealed by the participants that competitive pricing and product differentiation contributes to success. Additional, aggressive marketing strategies which participants use to remain in business for more than 5 years include service differentiation, and cost management. The results could become the guide for small business owners struggling on the successful strategies and practices to improve and survive competitive market environment. The intent of this study was to provide small business owners within highly competitive markets environments with strategies that increase business success. The recommendation from this study consist of strategies that can benefit current and future small business owners for sustainability and growth. Subsequent researchers should analyze this study to further the research and probe into the knowledge of small business success. The result of more research, when considering other variables, would provide small business owners a more comprehensive analysis of business success. With that, the connection between the strategies required for small business sustainability and business management skills is that we can have a guide to know what is the strategies to do in order for the sari-sari business become successful and to improve competitive market environment.

Level of Management Practices of Micro and Small Business

This study focused on the similarities and differences of the management practices of micro business and small business owners in the Province of Ilocos Norte. The respondents consisted of two groups; a sample of business owners coming from the different municipalities of Ilocos Norte. The respondent businesses were limited to those who have been existing for five years and more because they are already established and successful businesses considering their number of five years of existence. In this study, descriptive method was used to determine the similarities and differences of the management practices and personal competencies of micro business and small business owners. The result attributed to the fact that small businesses have more formal structures because they have higher capitalization and the room of errors in managing a small business should be minimal or avoided. With this, small business owners should really be religious in practicing different established standards so that to ensure the success of the businesses. It is recommend by the following: The Department of Trade and Industry should focus on developing the owners of micro and small business in Ilocos Norte. The government of the Province of Ilococs Norte should align some of its funds and budget to support micro-businesses and small business especially those trait exhibit a strong capability to grow and eventually develop into globally competitive enterprise. The micro-business and small business owners of Ilocos Norte should organize an Association of Micro-business and Small business Owners to promote, support and inform owners of the current trends, problems faced, opportunities, support programs and other key areas of concern for micro and small business owners. The micro-finance sector and other financial institutions should make available financial support especially to those viable micro-businesses being threatened by stiff competition. Northwestern University, as an academic institution, can help in the improvement of the micro and small business operations. A similar should be undertaken to determined what specific assistance and support the micro-businesses and small businesses in the province need most and on the impact of these government assistance programs for micro-businesses and small businesses. This article related to our study because it focuses on the management practices that can be suitable in a small business just like our study which is ‘Business Management Skills and Sustainability of Sri-sari Store’. The connection between level of management practice of micro and small business will help us to know the capability skills of each business owners.

Developing Management Skills in Small Family Business for Sustainability

The purpose of this paper is to assess the contribution of management skills in small family business. Manager should combine theoretical knowledge with practical skills, which increase business efficiency and contribute in the growth of the organization. The participants are the managers as well as the owners of the small business. The research design is case study based on semi-structure interview, observation, and using management tools. First, semi-structure interviews were conducted with the main people involved in the analyzed producers in order to understand the governance in small family business. The results clearly support the view that managerial skills have significant influences on a small business growth.