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РОЛЬ МЕНЕДЖМЕНТА В МАЛЫХ И СРЕДНИХ ПРОМЫШЛЕННЫХ
ПРЕДПРИЯТИЯХ
Рустамжон Исроилов, аспирант Университет Массачусетса Лоуэлл (США, г. Массачусетс)
DOI:10.24412/2411-0450-2023-4-2-114-121
Abstract. Small and medium-sized firms (SMEs) play an important part in the economic growth of industrialized nations since they help to create jobs and act as a training ground for capable management. The significance and standing of small and medium-sized firms (SMEs) in relation to economic development are shown by this study. The main characteristics of small and medium-sized firms (SMEs) and their current management practices are described in this work. The authors examine the management framework of small and medium-sized firms (SMEs) and engage in the surveillance of management as a basic aspect of the process of organizational management.
Keywords: management, economies, progression, structural adaptation, human capital, government initiatives, management methodology, small businesses.
Introduction. The progression of economies is facilitated by a diverse range of entities, including enterprises of varying sizes such as large, medium, and small businesses, as well as individual entrepreneurs. Each group of economic actors occupies a distinct ecological niche that is best suited to optimize its operational efficiency. It is a prevalent practice among major corporations to give precedence to the manufacturing of laborintensive commodities that demonstrate a significant level of market demand. On the other hand, small and medium-sized enterprises have a tendency to concentrate on the production of goods that may not be economically viable for bigger corporations. According to MacIntyre's (2002) argument, the advancement of small-scale private businesses and entrepreneurs can function as a strategy for cultivating the expansion of the country's economy.
Academic experts in the field of local economics have consistently emphasized the importance of Small and Medium Enterprises (SMEs) in generating employment opportunities and promoting the gradual development of the regional economy. According to the study carried out by S.Yu. Shevelev, E.A. Shevelev, and L.A. Kropotova, the transition of the economy from a centrally planned system to a market-oriented one is considerably impacted by small and medium-
sized enterprises (SMEs) through their structural adaptation. Moreover, these individuals constitute a novel group of businesspersons that operate as a societal foundation for the shift towards a market-oriented structure in the corporate domain. According to Shevelev et al. (2014), the aforementioned phenomenon plays a role in preserving social balance and promoting the irreversible advancement towards the market.
Furthermore, small and medium-sized enterprises (SMEs) Small and medium-sized enterprises (SMEs) possess the capacity to provide services to the general public and other businesses in a proficient and effective manner. Additionally, it is noteworthy to state that small and medium-sized enterprises (SMEs) exert a significant influence on the creation of job opportunities and the establishment of a framework for developing proficient personnel who can subsequently contribute valuable insights to prominent public and private entities. Therefore, it is crucial to acknowledge that the gross domestic product (GDP) of particular countries is predominantly comprised of small and medium-sized enterprises (SMEs).
A study conducted by the Stolypin Institute for the Economy of Growth has determined the proportion of small and medium-sized enterprises (SMEs) that offer value in a comprehensive manner. Based on the availa-
ble data, it can be inferred that small and medium-sized enterprises (SMEs) constitute 53% of the German economy and 58% of the Swedish economy. Small and Medium Enterprises (SMEs) account for 60% of the total contributions in Finland and Israel, while in Norway, they account for 61%. Small and medium-sized enterprises (SMEs) account for 63% of the total contributions in the Netherlands and 68% in Italy. In contrast, a mere 21% of small and medium-sized enterprises (SMEs) in Russia are found to be contributing to the nation's Gross Domestic Product (GDP). Industrialized countries exhibit a significant contrast in the per capita count of small and medium-sized enterprises (SMEs) in comparison to Russia, with the United States being the sole exception. According to the metric's findings, the prevalence of small and medium-sized firms (SMEs) in the Czech Republic is higher than that of Russia, Sweden, Spain, and Poland, with respective ratios of 4.7, 3.4, 2.7, and 2.1.
In the present context, conducting business is the responsibility of proficient and strategically-minded entrepreneurs. The era in which inexperienced entrepreneurs could readily introduce their solutions to the market with ease has elapsed. The significance of management, management culture, and management methodology in contemporary business is particularly noteworthy. The success of a company in the current competitive landscape is contingent upon the quality of management and its capacity to proactively anticipate future developments. Hence, enhancing business management ought to be regarded as a principal element in augmenting its efficacy.
Discussion:
The modern setting places significant importance on innovation across various domains, particularly in the realm of advanced management principles. The importance of establishing causality, evaluating the sustain-ability of a particular business model over an extended period, and creating novel business paradigms cannot be emphasized enough in academic discourse. Kadiri (2012) posits that small and medium-sized enterprises (SMEs) are accorded priority by governments due to their significant impact on job creation, labour force development, and national GDP.
The impediment of Small and Medium Enterprises (SMEs) development is attributed to a plethora of barriers that can be classified as either external or internal in nature. According to the research conducted by R.R. Si-dorchuk in 2012, the aforementioned concerns pertain to challenges in management, a shortage of qualified personnel, and a lack of knowledge and familiarity. Several critical success factors for small and medium-sized enterprises (SMEs) that attain rapid growth in turnover and staff numbers have been identified by European researchers. The aforementioned factors encompass proficient management, particularly in the realm of human capital, a management structure that prioritizes marketing, continuous training, and collaboration with external consultants and analysts. Several studies have reported this phenomenon, including Gieraga's (2014), Lorincová et al.'s (2019) research.
It is a commonly observed phenomenon that individuals in managerial positions within Small and Medium-sized Enterprises (SMEs) frequently lack formal education in the field of management, instead acquiring their skill sets through experiential learning. Government initiatives offer specialized aid to individuals via a grant mechanism that is intended to attract experts. The implementation of recruitment tactics by French businesses was primarily observed among small-sized establishments, with 59.9% of them employing this method. Among the entities mentioned, 25.1% were identified as medium-sized firms, while 13.1% were classified as micro firms.
The effective management of small and medium-sized enterprises (SMEs) is a commonly encountered challenge that extends beyond the borders of Russia and is faced by numerous countries worldwide. According to Banik, S. (2018) perspective, the sustained expansion and competitiveness of small and medium-sized enterprises necessitate the continual enhancement of production procedures and the integration of cutting-edge technologies, including management technologies that diverge substantially from those employed by larger systems. Under certain conditions, the distinct attributes of small and medium-sized enterprises afford them a favorable stance.
Conversely, there exist various attributes that constrain their expansion and render them subordinate to larger entities.
The inherent flexibility of small and medium-sized enterprises (SMEs) is a notable primary benefit within their context. Smaller organizations have the ability to quickly adapt to market changes and demands. Small businesses have the capacity to respond to emerging market needs, such as quality, design, and after-sales services, with minimal disruptions, in contrast to their larger counterparts, which are frequently associated with sluggishness.
Small businesses exhibit certain advantages in comparison to larger organizations, including but not limited to a higher potential for innovation, a simplified organizational structure, reduced initial capital requirements, and an augmented ability to collaborate and network. Small businesses display a stronger proclivity towards entrepreneurial endeavors and exhibit a heightened willingness to adopt innovative technological solutions, particularly those that do not require substantial financial contributions and investments. The obstacles encountered by Small and Medium Enterprises (SMEs) present a substantial peril to their sustainability and expansion. The limitations that hinder the expansion of small businesses can be ascribed to both external factors and inherent attributes of these enterprises.
According to reports from the Organization for Economic Co-operation and Development (OECD), financial difficulties are a significant concern for small and medium-sized enterprises (SMEs). The majority of challenges encountered by SMEs are related to financial matters, as reported by the OECD in 2004 and 2006. Hall and Young (1991) conducted a study in the United Kingdom which revealed that a significant proportion of the participants, specifically 86.6%, attributed financial factors as the primary cause of their business failures. The correlations between the outcomes of financial tactics and choices and the operational effectiveness of the organization have been extensively recorded by several scholars (Salazar, Soto, & Mosquedo, 2012). The Organization for Economic Co-operation and Development (OECD) posited in 2006 that small and medi-
um-sized enterprises (SMEs) situated in developing economies are prone to facing financial obstacles, particularly with regards to obtaining external funding.
The SME concept:
The categorization of small and medium-sized enterprises is contingent upon the socioeconomic circumstances prevailing in the particular economic locality or nation being examined. As per Storey's (1994) assertion, the absence of a universally accepted definition for Small and Medium Enterprises (SMEs) is evident. According to the Bolton Committee Report of 1971, small and medium-sized enterprises (SMEs) are entities characterized by limited market share, personalized ownership management, and the absence of an established management framework. These entities function independently and are not affiliated with a conglomerate or larger organization.
In 2006, the Organization for Economic Cooperation and Development (OECD) acknowledged the significance of small and medium-sized enterprises (SMEs) and entre-preneurship as pivotal drivers of dynamism, innovation, and flexibility in both advanced industrialized nations and emerging and developing economies. Small and medium-sized enterprises (SMEs) are widely recognized as a crucial component of the European economy. According to a report published by the European Commission in 2012, small and medium-sized enterprises (SMEs) constitute 20.7 million businesses and 98% of all enterprises. These entities are accountable for 67% of all employment and 58% of the gross value added in the European Union.
The significant contribution of Small and Medium-Sized Enterprises (SMEs) towards fostering social and economic development has been widely recognized in both developed and developing nations, particularly since the 1980s (OECD, 2006). The relationship between development and the expansion of small and medium-sized firms (SMEs) has been established by ArdÍ9, Mylenko, and Beck (2010) through empirical research. Based on the research conducted by Ard9 et al. (2011) and Beck (2010), it can be inferred that there exists a significant and favorable association between the relative magnitude of
Small and Medium-sized Enterprises (SME) industry and the growth of the economy, even after controlling for other variables that may influence growth. Small and medium-sized enterprises (SMEs) possess significant socioeconomic characteristics that extend beyond their role in augmenting the gross domestic product (GDP). These factors encompass their ability to increase job prospects and alleviate poverty.
Objectives:
The purpose of this study is to illustrate the management in small and medium-sized enterprises (SMEs), considering its close association with development and its consequential societal implications that are linked with the developmental priorities of the nation. The study's primary aims are as follows.
- The potential Strategies to Management in Small and Medium-Sized Enterprises (SMEs)
- The significance of management in facilitating progress.
Management is a fundamental process employed by individuals and organizations to attain their objectives through the efficient coordination of resources and the implementation of appropriate mechanisms for management, organization, leadership, and performance and workforce command.
Methodology:
Interviews are a suitable technique for gathering comprehensive data on individuals' viewpoints, cognitions, encounters, and emotions. Interviews are a valuable tool for investigating topics that necessitate detailed questioning and extensive inquiry. Face-to-face interviews are an appropriate method of data collection in cases where the target population's communication skills are better suited to in-person interactions as opposed to written or telephonic communication.
The significance of management in the advancement of Small and Medium Enterprises (SMEs) has prompted a requirement for scholarly inquiry on management procedures within the context of domestic business. The authors conducted a remote survey of 100 SME managers to identify management weaknesses, uncover the root causes of problems, and determine priority measures for enhancing this domain.
Characteristics of management in SMEs:
The management phase is an essential and complex component of supervising an organization, encompassing the development of strategic and operational choices that direct and harmonies its activities. The aforementioned phase pertains to management and encompasses the process of formulating organizational objectives and devising strategies to achieve them. The requirement for managerial supervision is pervasive in all organizations, regardless of their size or field of operation. Dumay, J. (2016) posited that the level of requirement is subject to a range of factors, such as the corporate ethos, managerial methodology, the goals of the proprietor/manager, and the extent and arrangement of the business portfolio. Gassmann, O. (2012) argues that it is crucial to take into account environmental factors, specifically those that are relevant to the industry in which the organization operates, in addition to the factors mentioned earlier.
A key issue surrounding management in small and medium-sized enterprises (SMEs) is the degree to which managers in these entities can allocate adequate time to proficient management practices. This phenomenon can be attributed to the burden of numerous tasks that are linked to the implementation of predetermined strategic choices. As per Vuk-mirovic, N. (2016) research, it is commonly believed that proficient time management for managers encompasses the distribution of 60% of their time towards management and development, 25% towards ongoing tasks, and 15% towards routine tasks.
Therefore, relying on small and medium-sized enterprises (SMEs) to engage in decision-making processes related to the management of their businesses. According to Bu-latovic, D., & Jokic, B. (2017). the management of a company by an entrepreneur can be likened to a strategic plan that outlines the organization's scope, potential, viable financing options, methods for acquiring necessary resources, and judicious resource allocation.
The proprietors undertake managerial choices to fulfil both internal and external requisites. The initiation of a novel business endeavor or the introduction of fresh prod-
ucts, markets, technology, or other associated factors prompts the management team of a company to devise a business management plan. The application of bank loans necessitates the integration of business management principles. The determination of the viability of an entrepreneurial idea is contingent upon the decision rendered by the management. The adoption of business management practices can serve as an internal control mechanism, setting a standard for supervising and governing organizational activities.
Modern business managers encounter a challenging and laborious task of devising a suitable organizational framework that facilitates optimal resource utilization and operational execution. The design of an organization is influenced by a variety of internal and external factors, including but not limited to company size, organizational life cycle phase, management decisions, available technology, inter-unit relationships, and employee dynamics (Gnanzou, D. 2013) Management in SMEs: According to Wheelen and Hunger (2010), management refers to a collection of managerial judgements and activities that ascertain the enduring effectiveness of a corporation. The focal point of strategic management in an enterprise is to achieve a sustainable positive performance. This is accomplished through four fundamental components: environmental scanning, strategy formulation, strategy implementation, and evaluation and control, as emphasized in the description. According to Wilson (1994), strategic management facilitates the development of a more distinct strategic vision for the organization, a heightened emphasis on strategic priorities, and an enhanced comprehension of a dynamic business landscape. The implementation of strategic management in small and medium-sized enterprises (SMEs) is of paramount significance, given that SMEs must function and
contend in environments characterized by elevated levels of risk and unpredictability.
Zimmerer and Scarborough (2005) assert that effective management of small businesses necessitates the development of a comprehensive and enduring strategy that guides the organization towards its intended objectives. Maintaining focus and avoiding diversions are crucial factors in ensuring the smooth operation of a business. It is recommended that scholars refer to the work of Zimmerer and Scarborough (2005). Pleitner and Barney (1989) have suggested that small and medium-sized businesses are adapting their strategic management practices to cope with the mounting stress arising from both internal and external sources. The attainment of organizational goals can be facilitated by utilizing strategic tools such as SWOT analysis and risk/opportunity analysis, in conjunction with the formulation and execution of a comprehensive business vision.
The implementation of management methodologies and strategies within small and medium-sized enterprises can be attributed to the constantly evolving nature of the modern business environment. Despite facing greater risks and uncertainties compared to larger enterprises, small and medium-sized enterprise (SME) owners and entrepreneurs have traditionally neglected strategic management processes. Given the dynamic nature of the contemporary business milieu, individuals who engage in entrepreneurial pursuits and those who own and operate small-scale enterprises have become increasingly cognizant of the challenges and opportunities that are inherent in their respective competitive spheres.
As a result, it is acknowledged that it is crucial to develop sustainable competitive advantages to achieve organizational objectives. Zimmerer and Scarborough (2005) is a scholarly reference.
Types of business management in small business:
Financial 1 Management I Marketing Management I Accounting 1 Management
Human Resource D Management 1 (HRM) 1 Strategic Management 1 Operations 1 Management
SMEs as sustainable suppliers in global supply chains:
Businesses of varying magnitudes are experiencing mounting demands to demonstrate their commitment towards CSR/CER (corporate social responsibility/corporate environmental responsibility) from a diverse array of external stakeholders. A novel system, referred to as "supplier management for risks and performance," has been proposed to incorporate environmental and social factors into supplier evaluations that are primarily centered on economic considerations (A' cs ZJ 1999).
The second approach, particularly "supply chain management for sustainable products," encompasses more than mere adherence to regulations. The assessment of a product's influence on the environment and society necessitates the establishment of criteria that are grounded on the entirety of the product's life cycle. According to cited sources (Kovacs G. Pappis CP 2008) , it is the responsibility of certified businesses at both the upstream and downstream ends of the supply chain to ensure compliance with the aforementioned regulations.
Research findings indicate that small and medium-sized enterprises (SMEs) could potentially account for up to 70% of the total industrial pollution in the United Kingdom (Mao Z. 2008). This highlights the significant environmental impact that these enterprises may have. However, it is possible that small and medium-sized enterprises (SMEs) may priorities their corporate social responsibility (CSR) and corporate environmental responsibility (CER) initiatives towards internal stakeholders rather than those situated in the supply chain, as suggested by previous research (A' cs ZJ 1999).
One of the primary challenges faced by small and medium-sized enterprises (SMEs) pertains to the significant expenses and resource allocation required to establish and oversee Corporate Social Responsibility/Corporate Environmental Responsibility initiatives across the supply chain. Meeting such demands can pose a significant challenge for small and medium-sized enterprises (SMEs) operating in developing countries. As per the citation provided in reference (Scozzi B. 2008) the implementation of Corporate Social Responsibility (CSR) or Corporate Environmental Responsibility (CER) practices by Small and Medium Enterprises (SMEs) in developing nations is majorly influenced by the involvement of customers or supply chain partners belonging to developed countries.
The current research primarily emphasizes on the role of small and medium-sized enterprises (SMEs) in maintaining large businesses via efficient management. Small and medium-sized enterprises (SMEs) possess a capacity for innovation that can be utilized to guide customers throughout the supply chain towards adopting more ecologically sustainable practices. As per the literature recommended in reference (Walker H, Preuss L. 2008) the task can be achieved through the development of innovative sustainable technologies or procedures.
Conclusion. The modern commercial landscape necessitates that the advancement and expansion of a corporation is contingent upon the capacity of its leadership to establish a coherent vision and mission, discern pivotal success factors, evaluate competitive forces, articulate management resolutions, and devise strategies for effective execution. The
achievement of business success or growth environmental events, flexibility, and risk ac-and development of an organization is con- ceptance that characterizes the management tingent upon the proactive attitude towards of SMEs.
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THE ROLE OF MANAGEMENT IN SMALL AND MEDIUM-SIZED INDUSTRIES
Rustamjon Isroilov, Postgraduate Student University of Massachusetts Lowell (USA, Massachusetts)
Аннотация. Малые и средние предприятия (МСП) играют важную роль в экономическом росте индустриальных наций, поскольку они помогают создавать рабочие места и выступают в качестве площадки для обучения компетентного менеджмента. В данном исследовании показано значение и статус малых и средних предприятий (МСП) в отношении экономического развития. В работе описываются основные характеристики малых и средних предприятий (МСП) и их текущих практик управления. Авторы исследуют управленческую структуру малых и средних предприятий (МСП) и занимаются наблюдением за управлением как основным аспектом процесса организационного управления.
Ключевые слова: управление, экономика, прогресс, структурная адаптация, человеческий капитал, инициативы правительства, методология управления, малый бизнес.
