Essays on Discuss the Challenge Facing Small Businesses in Australia in the Twenty-First Century Case Study

Download full paperFile format: .doc, available for editing

The paper "Discuss the Challenge Facing Small Businesses in Australia in the Twenty-First Century" is a perfect example of a business case study. ABS (1995, 1996) defines a small business as a privately owned and managed profit-oriented enterprise that may be a limited company by virtue of partnership or family-owned company by virtue of sole proprietorship.   ABS (1995) indicates small business employs less than 20 employees. Small business Reports (1993:26) argues a business entity with less than five employees is known as a micro-business and is classified as a small business or a small-micro-enterprise.

Scott and Bruce (1987:45-52) and Eichinger and Ulrich (1997:50-61) argue that small business grows in phases. Gibbs and Davies (1992:3-35) have indicated that the phases of growth of a small business are governed by owner’ s management skills, owner’ s ability to strategize and adapt customer changing product preferences, the geographical location of the business, level of income of the customers and degree of applied leadership skills. Shuman and Seeger (1986) argue that the phases of the growth should be planned before they are implemented subject to proportions of training on management skills of the owners. Economic benefits of small businesses Herzberg (1987:38-46) argues that small businesses economically add to gross domestic product (GPP) through internally or externally consumed or produced products and services.

Haapanieni (1996:4-18) argues that small businesses assist in the generation of government revenue through sales of business permits and taxes. Fowler (1994:34-37) indicates that retired workers are able to set up micro-businesses that help to reduce high dependence ratio among the working class as small businesses provide employment opportunities and are a form of investment. Bakke (1992:74-82) provides that small businesses create employment directly or indirectly.

According to Bakke (1992:74-82), small businesses directly employ workers who earn income and therefore alleviate standards of living. Drucker (1955) shows that small manufacturing businesses provide a market for raw materials that are provided locally as well as the market for imported raw materials. Losey (1998) indicates that small businesses provide a market for machines like cash registers that are required for tax registration and are vital tools for financial reporting as they show sales turnover of the firm which is essential in tax calculation of the business.

Barney (1991:99-120) shows that small businesses indirectly provides employment opportunities and market to service and tertiary sectors of the economy like insurance, transport and contribute towards urbanization and development of amenities like entertainment facilities, schools, health and shopping centers. Haapanieni (1996:4-18) argues that exports of goods and services produced by small businesses earn Australia foreign exchange hence contributing to government revenue. Success factors of small businesses Sibely (1998:8) indicates that although small businesses are easy to start, due to low capital inputs, they face many challenges as they grow and develop into medium and large business entities.

McKee (1997:151-156) and Churchill and Lewis (1983:30-50) indicate the biggest challenge as undercapitalization which is brought about by poor forecasting of the business phases of growth and business life cycles, poor planning both financial and human resource as opposed by unfavorable economic conditions outlined by Burke (1997:71-79). Marlow and Patton (1993) and Deshpande and Golhar (1994:49-56) show that small businesses are at risks of being exposed to insolvency conditions due to poor financial planning that may result into managers being declared bankrupt and sued in bankruptcy courts according to the theory of undercapitalization.

Rowden (1995:355-373) indicates that small business entrepreneurs should have enough capital to start and run the business for a period that the business will attain a financial position when the business can afford to pay allowances to its owner(s). credit insolvency that is sweeping across the globe has also reduced borrowing potential of small businesses as they cannot lend money by banks making small businesses to initiate downsizing that is characterized by lack of human resource procedures.

Bibliography

ABS (1995) Small Business in Australia 1994, Australian Bureau of Statistics, Cat. No. 1321.0, Commonwealth of Australia, AGPS, Canberra.

ABS (1996) Small and Medium Enterprises - Business Growth and Performance Survey, Australian Bureau of Statistics, Cat. No. 8141.0, Commonwealth of Australia, AGPS, Canberra.

Amba-Rao, S. and Pendse, D. (1985) "Human Resource Compensation and Maintenance Practices", American Journal of Small Business, Fall, 10(2): 19-29.

Andreichuk, B. (1991) "Getting Objective About Quality", Small Business Reports, March, 17(3): 28-38.

Bakke, E.W. (1992) "The Human Resources Function", Management International Review, First Quarter, 32 (Special Issue):74-82.

Barney, J., (1991). "Firm Resources and Sustained Competitive Advantage." Journal of Management 17(1): 99-120.

Barrier, M. (1999) "Leadership Skills Employees Respect", Nation's Business, January,87(1):28-30.

Boswell, (1973) The Rise and Decline of Small Firms, Allen and Unwin, London.

Brown, F. and Davidson, B. (1996) "HR Challenges in Family Businesses", Human Resources Professional, November/December, 9(6): 29-32.

Burke, W. (1997) "What human resource practitioners need to know for the twenty-first century", Human Resource Management, Spring, 35(1):71-79.

Cameron, K. (1994) "Strategies for Successful Organizational Downsizing", Human Resource Management, Summer, 33(2):189-211.

Caudron, S. (1993a) "How HR Keeps Pace in Growing Companies", Personnel Journal, November, 72(11): 56-58.

Caudron, S. (1993b) "Recommended ways of setting up a new HR department", Personnel Journal, November, 72(11): 59.

Churchill and Lewis, (1983) "The Five Stages of Small Business Growth", Harvard Business Review, May/June, Vol. 61, No. 3. p: 30-50.

Deshpande, S. and Golhar, D. (1994) "HRM Practices in Large and Small Manufacturing Finns: A comparative study", Journal of Small Business Management, April, 32(2): 49-56.

Drucker, P. (1955), The Practice of Management, William Heinemann, London.

Eichinger, R. and Ulrich, D. (1997) "It's de-ja future all over again: Are you getting ready?", Human Resource Planning, 20(2): 50-61.

Fowler, A. (1994) "Personnel's model army", Personnel Management September, 26(9):34-37.

Fraza, V. (1998) "No Small Feat", Industrial Distribution, September, 87(9): 48-49.

Gibb, A. and Davies, L. (1992) "Methodological Problems in the Development of a Growth Model of Business Enterprise", The Journal of Entrepreneurship, Vol. 1, No. 1, p: 3-35.

Haapanieni, P. (1996) "The people/performance paradox", Chief Executive, July/August, CEO Brief Supplement, 4-18.

Heneman, H., Metzler, C., Thomas, R., Donohue, T. and Frantzreb, R. (1998) "Future Challenges and Opportunities for the HR Profession", HR Magazine, SHRM 50th Anniversary Issue Supplement, 43(3):68-75.

Herzberg, F. (1987) "Overcoming the Betrayals of the '80s", Industry Week, 13 July, 234(1):38-46.

Losey, M. (1998) "HR Comes of age", HR Magazine, 43(3):40-53.

Luthans, F. Hodgetts, R. and Luthans, B. (1997) "The role of FIRM in sustaining competitive advantage into the 21st Century", National Productivity Review, Winter, 17(1):73-81.

Marlow, S. and Patton, D. (1993) "Research Note - Managing the employment relationship in the smaller firm: Possibilities for Human Resource Management", International Small Business Journal, July- September, 11 (4): 57-64.

McKee, K. (1997) "The Human Resource Profession: Insurrection or resurrection", Human Resource Management, Spring, 36(1):151-156.

Rowden, R. (1995) "The Role of Human Resource Development in Successful to Mid-Sized Manufacturing Businesses: A Comparative Case Study", Human Resource Development Quarterly, Winter, 6(4): 355-373.

Ruffino, S. (1994) "An Ounce. of Prevention", Small Business Reports, February, 19(2): 9-13.

Scase, R. and Goffee, R. (1985) "Proprietorial Control in Family Firms: Some functions of 'Quasi - Organic" Management Systems", Journal of Management Studies, January, Vol. 22, No. 1, p: 53-68.

Schuler, R. (1992) "Strategic Human Resources Management: Linking the People with the Strategic Needs of the Business", Organizational Dynamics, Summer 21(1): 18-32.

Schuler, R. and Harris, D. (1991) "Deming Quality Improvement: Implications for Human Resource Management as Illustrated in a Small Company", Human Resource Planning, 14(3): 191-207.

Scott, M. and Bruce, R. (1987) "Five stages of growth in small business", Long Range Planning, June, 20(3): 45-52.

Shuman, J. and Seeger, J. (1986) "The theory and practice of strategic management in smaller rapid growth firms",

Sibely, K. (1998) "Human resources now biggest CIO headache", Computing Canada, 16th March, 24(10):8.

Small Business Reports (1993) "All in the family", November, 18(11): 26.

Teasley, C. and Williams, L. (1991) "The Future is Nearly Now: Managing Personnel in the Twenty First Century", Review of Public Personnel Administration, Spring, 11 (2):131-138.

Thatcher, M. (1996) "The Big Challenge Facing Small Firms", People Management, July, 2(15): 20-25.

Tung, R. and Miller, E. (1990) "Managing in the Twenty-First Century: The Need for Global Orientation", Management International Review, First Quarter, 30(1):5-18.

Wagar, T. (1998) "Determinants of Human Resource Management Practices in Small Firms: Some evidence from Atlantic Canada", Journal of Small Business Management, April, 36(2): 13-23.

Download full paperFile format: .doc, available for editing
Contact Us