Научная статья на тему 'SOME FEATURES OF MANAGEMENT AT SMALL BUSINESSES'

SOME FEATURES OF MANAGEMENT AT SMALL BUSINESSES Текст научной статьи по специальности «Экономика и бизнес»

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Аннотация научной статьи по экономике и бизнесу, автор научной работы — Sharipova Z.R.

Modern economic theory and practical state policy attach special and multifaceted importance to small business, linking the achievement of the most important goals of socio-economic development of states and individual territories with the dynamic development of this sector of the economy. In the process of managing economic systems, the task of differentiating management approaches often arises, depending not only on the level, scope and forms of ownership of economic systems, but also on the scale of a separate economic unit, which is an enterprise. The functioning of production in small forms of entrepreneurship (small enterprises, Small and medium-sized enterprises, SMEs) creates additional effects of the development of the country's economy, as it generates additional market supply and demand for products and services, as well as labor resources, which, among other things, stimulates competition; contributes to the acceleration of scientific and technological progress, also encouraging large enterprises to introduce new technologies and increase efficiency. The article analyzes some features of management in small business entities.

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Текст научной работы на тему «SOME FEATURES OF MANAGEMENT AT SMALL BUSINESSES»

УДК: 334.012.64

Sharipova Z.R. master's student

Federal State Budgetary Educational Institution of Higher Education

"St. Petersburg State University of Economics"

Russia, St. Petersburg

SOME FEATURES OF MANAGEMENT AT SMALL BUSINESSES

Abstract: Modern economic theory and practical state policy attach special and multifaceted importance to small business, linking the achievement of the most important goals of socio-economic development of states and individual territories with the dynamic development of this sector of the economy. In the process of managing economic systems, the task of differentiating management approaches often arises, depending not only on the level, scope and forms of ownership of economic systems, but also on the scale of a separate economic unit, which is an enterprise. The functioning of production in small forms of entrepreneurship (small enterprises, Small and medium-sized enterprises, SMEs) creates additional effects of the development of the country's economy, as it generates additional market supply and demand for products and services, as well as labor resources, which, among other things, stimulates competition; contributes to the acceleration of scientific and technological progress, also encouraging large enterprises to introduce new technologies and increase efficiency. The article analyzes some features of management in small business entities.

Keywords: business, small business, entrepreneurship, management, management theory.

The development of small business contributes to the rationalization of the use of local sources of raw materials, including secondary raw materials of large-scale industries, as well as the formation of a competitive environment in the markets of factors of production. Thus, the development of new and adaptation of existing scientific approaches to the management of small forms does not lose its relevance. The fact that small business has historically been less developed in comparison with the economies of most European countries contributes to the actualization of the problem, in addition, the largest share of existing small the company is involved in the non-financial intermediary sphere of entrepreneurship [1-22]. At the same time, a highly developed small sector in industry has a tangible impact on economic growth - the experience of world development shows that in countries where a significant share of the national wealth created belongs to small enterprises, the most favorable conditions exist for overcoming crisis phenomena in the economy, its recovery and ensuring economic growth. Thus, there is a need to study additional effects. The

relevance of the research topic determines the development of industries in small forms, the formation of conditions for the effective development of small enterprises, as well as the development of principles and methods of managing the process of economic growth, taking into account the specifics of small enterprises [18-32].

Small and medium-sized enterprises play a very important role in ensuring the prosperity of the economy, in creating jobs, and in developing technological innovations. For these reasons, it is difficult to overestimate the importance of management for the small and medium business sector. Despite strong government support, many small and medium-sized enterprises fail every year. And one of the main reasons for the failure of small and medium-sized enterprises is the widespread lack of management skills and competence among leaders of small and medium-sized enterprises. This, in turn, leads to the inability to develop adequate systems of control and business management [3342]. In general, the essence of management is how strategies for managing an enterprise are developed and implemented. On the other hand, the formation of strategies is determined by how the company prefers to define its strategy and how it implements it through management. Ultimately, it is the approach to strategy formation that determines the possible management style. On the other hand, the management style and the degree of effectiveness of senior management can in turn influence the process of forming strategies in organizations. As a result, a specific approach to management is adopted. Only after the company has determined how it intends to form a strategy can it effectively follow the path of management.

Consequently, management is concerned with those decisions that are associated with the selection of a suitable market or product. It helps company strategists to better understand the current situation and to develop the goals and objectives of the company. In order to be effective, especially in small and medium-sized enterprises, the management process does not always have to be strictly formal. Research has shown that companies that frequently use management tend to be more successful than those that do not. Management allows the organization to act preventively, to take preventive actions, not limited to only retaliatory steps, increases its readiness to face both controllable and uncontrollable situations with confidence. Management provides a clear strategic vision and gives meaning to the company's mission. This helps to effectively communicate the plans of the organization to all employees, thereby ensuring their readiness to solve organizational problems. Management allows you to assess the strengths and weaknesses of the organization and focus on strategically important areas. Evaluating the effectiveness of the implementation of the strategy, the organization receives the necessary information about how the strategy corresponds to the external conditions of the environment [43-62].

Small and medium business is an important component of a market economy. The experience of industrialized countries shows that up to 60% of

the gross domestic product is provided by small and medium-sized businesses; more than 50% of the total number of employees work at their enterprises. An obvious fact is the objective need for all-round development of small and medium-sized businesses in Uzbekistan, which in many respects lags behind small and medium-sized businesses in Europe, the USA and Japan.

Management plays an important role in entrepreneurship in general and in small and medium-sized businesses, in particular. At the same time, small and medium-sized business management has its own characteristics associated with the small scale of activities and the resulting imperfection of the organizational structure, and the lack of a clear division of labor. When considering management in small and medium-sized enterprises, one must bear in mind the flexibility and dynamism of the latter, the combination of the rights, duties and responsibilities of the owner of a small enterprise and the manager.

Entrepreneurial ability is the ability to make decisions and take risks. It is entrepreneurs in a market economy who decide, at their own risk, the main issues related to the choice of the sphere, directions and methods of activity, and make the most responsible decisions. The specificity of successful entrepreneurship in small and medium-sized businesses lies in the multifaceted activities of a businessman who dared to open and run his own business and is ready to be responsible for the results of his activities. An entrepreneur is at the same time a manager, economist, marketer, financier, production worker, lawyer and must be able to independently make decisions, taking into account each of the listed roles.

The entrepreneur, as the owner and representing the firm in various instances, interacts with various elements of the external environment, which includes buyers, suppliers, creditors, arbitration courts, local authorities, legislative and legal bodies, local society, as well as educational institutions, employees of the firm, etc. Each of the above elements of the external environment requires the entrepreneur to develop appropriate tactics of behavior on which both short-term and long-term success of the company will depend.

Small and medium-sized businesses are characterized by the same management processes as large business associations. However, they differ due to the size of the enterprise and the volume of production capacity. When solving problems of managing an object, an entrepreneur must, first of all, have a good understanding of the main functions of management and from these positions consider the object of management, that is, analyze it, plan results, make decisions on their achievement, organize effective activities of structural divisions, monitor the progress of fulfilling planned targets, correct decisions and motivate employees.

Small and medium-sized businesses differ in a number of factors, and each of them, to one degree or another, affects the specifics of managing a particular firm. Among such factors are the size of the enterprise, the number and composition of employees, the form of ownership, the branch of activity,

the volume and range of products and services, the organizational structure of the enterprise, the characteristics of demand and consumption, production and services provided.

Small enterprises with a small number of employees (up to 15 -20 people) often lack a special management unit, and management itself is carried out at an elementary level and includes accounting, monitoring the profitability of economic activities, and work management. At enterprises with up to 70 people there is a special unit capable of managing the economy in an organized manner. The technology of production, sales, labor and finance management is practiced. Specialized management units can be created at enterprises with up to 100 employees. Each of these units has a higher management technology in its area.

This division of enterprises by management level has its own logic. In a small store, cafe, hairdresser, etc., there is no need to have a specialist manager, and this is expensive. Usually, the management functions of a small enterprise are taken over by its owner, that is, positions are combined. At the same time, the indicated size of the enterprise in terms of the number of employees is not the only mandatory criterion for assigning it to the appropriate level of management. The need to create one or another management unit or the involvement of a specialist manager depends on a whole series of other factors that characterize the conditions of activity of a particular enterprise: the range of products (services), the composition of the employees, the organizational structure of the enterprise, the industry, etc.

In small organizations, as a rule, the manager takes over the management functions, believing that it is better to perform them himself than to delegate to others.

However, refusal to delegate authority (or part of it) entails a lack of time for management activities and negatively affects the results of the enterprise. In addition, the head of the company must deal not only with the current work of the company, but also see the prospect of its activities. Therefore, it is advisable to spend time training an employee capable of performing certain functions, and delegate authority to him, then to constantly perform this work.

As the scale of enterprise activity grows, there is a need to involve a management specialist, ie. e. when creating a manager or even a dedicated management team. If the organizational structure of the enterprise changes, i.e. the team is divided into a number of groups, it may be necessary to separate linear and functional management specialists.

In this case, the role of the enterprise manager is largely reduced to the coordination of the actions of linear and functional services.

Thus, a number of factors have a significant impact on the methods, forms and style of personnel management of a small and medium-sized company. The task of the manager (head of the company) is to determine the optimal management system in order to achieve success, taking into account the entire set of specific factors of a particular enterprise.

The dynamic change in technologies, the struggle for the consumer and the quality of products (services), the aggravation of competition force the enterprise to consider the whole range of management issues in a new way. Management activity in modern conditions acts as one of the most important factors in the functioning of enterprises and organizations. Recently, the restructuring of intra-firm management has become the core of the reorganization of the entire economic mechanism of enterprises.

Flexibility in management, the ability and capability to quickly rebuild, innovation and not miss the new opportunities offered by the market are now

becoming more important than direct savings in management costs. Focusing on consumer demand, pursuing rapid scientific, technical, innovative and market policies, striving for innovation have become the main ideas of the new management philosophy. According to experts, any company, regardless of its size, should have certain goals that justify its presence in society.

The special place of management in a market economy is due to the fact that it is it that should ensure the coherence, integration of economic processes at the enterprise. Enterprise management links together its internal resources and external environment, the most essential components, which are state regulation of the economy and competition, the state of the social environment. Management enhances the adaptability and competitiveness of the business.

Modern management theory reflects the objective conditions for the development of productive forces and, accordingly, production relations. It is characteristic that the concepts of "management" and "class of managers" appeared with the separation of capital-property from capital-function, when managerial labor became hired, credit appeared, and widespread development of entrepreneurship became possible.

Thus, summarizing the developments in the field of enterprise (organization) management, it is possible to formulate the following fundamental provisions (main characteristic features) of modern management. " The gradual abandonment of the management rationalism of the classical schools of management, according to which the success of the enterprise is, first of all, the rational organization of production, cost reduction, the development of specialization. Flexibility is the ability to shed light on the challenges of adapting to the ever-changing environment. As the system of social relations (economic, political, social) that makes up the management environment of an organization becomes increasingly complex, the importance of environmental factors decreases sharply.

There is a reasonable integration of the "hard" and "soft" types of management into an integrated management system that is appropriate to the conditions. " Application to management of a situational approach, according to which the organization of activities within the enterprise is a reaction to various external influences. The main thing is the situation, that is, a specific set of circumstances that have a significant impact on the operation of the enterprise in

a given period. " Recognition of the need to develop and implement a strategic enterprise management system. The essence of the strategic management system is that enterprises, on the one hand, must have a clearly defined and organized so-called strategic planning. On the other hand, the structure of enterprise management, the systems and mechanisms of interaction of its individual links should be built in such a way as to ensure the development and flexible implementation of a long-term strategy for success in competition in the face of changes in the external environment and create a management toolkit for transforming this strategy into current production and economic plans. The strategic management method combines a strategic approach to setting objectives and a program-targeted approach to their implementation. " Understanding that it is crucial for the formation and organization of innovation management in the future, it ensures that enterprises are inclined to new

things, the achievements of scientific and technical thought. The basis of innovation management in the enterprise is the formation of an appropriate organizational environment, employee initiative, the creation and promotion of adequate forms of innovation. " Recognition of the social responsibility of management both to society as a whole and to the people working in the organization. An enterprise is, first of all, a social system, the efficiency of which depends on its main resource - a person. The task of the manager is to organize effective joint work, in the process of which each person is able to maximize his potential.

The implementation of these management principles requires a radical revision of the philosophy of business, changes in the psychology of workers (including managers themselves), and an increase in their qualifications. Despite this, an increasing number of enterprises are trying to move away from the previous intra-firm command-hierarchical relations and strengthen their position by better using the strengths of the staff. At the same time, the approaches to the formation of the development strategy of the enterprise and its goals, the construction of the structure of the organization and management, the process of developing and making management decisions, working with personnel and evaluating the effectiveness of the organization, its divisions and employees are changing. A modern (or new) organization can react to these dynamic changes, ever-changing technologies, and the uncertainty of the external environment. A modern approach to organization is a balanced combination of human values, a constant adaptation to organizational change and external change.

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