Priorities of Small Business Management

Abstract

The economic stabilization of a country in a market economy
transition period significantly depends on the society's stability.
Small businesses are the basis of today's Georgian economics,
but because of unsuitable management, advantages
of this form of business organization are not completely realized.
Mostly small entrepreneur structures are handled by
their owners, but it is not always advisable. Mainly nonhierarchical
small business management structures do not give
rise to formal relations, what not existence of suitable managing
style stipulates inadequate organization behavior, but
unorganized management becomes primitive. It is often the
reason small business entrepreneurs fail. So, suitable management
for small business is as necessary as initial capital,
tangible assets and other factors of development. Because of
small business managements, un-development increased following
negative events: diversification policy directing
becomes harder because of little opportunities to overcome
the difficulties of entering and leaving from one sector to
another, effective inventions attraction opportunities are
reduced while groundless business-strategy conditions;
bankrupt risk is large because of uncompetitive managerial
decisions; the quality of using business consulting is low and
it is often used not to make optimal decisions but to documenting
already made decisions; business educations system
in Georgia can't satisfy the requirements of small business,
because neither entrepreneurs have exact formulated
demand on managerial education, nor is the active staffers
re-training system market adequate. It's clear that solving the
aforesaid problems is impossible without concerning consensus
achievement of stakeholders and strong will. Most managers
and entrepreneurs pay less attention to strategic
approaches while managing small business structures.Managers of small structures are required to be flexible
thinkers and dynamic actors in the marketplace, while estimating
strategic alternatives for elaborating the most preferable
strategy by observation of the environment without complex
research. They provide SWOT analyze, estimate competitiveness,
foresee opportunities of outsourcing, analyze value
chains, plan business operations and project organization
process and etc. All of this requires a special style of management,
one which must provide small business advantages
such as: high maneuvering, flexibility, effective informational-
communicative connection, entrepreneur - innovative
potential and other. Time budgeting by a manager must
include equal expenses for work planning-organizing and
control, also motivation and support for employees.