small business management
Does all of these were all applicable to business owners?
Answer by site admin.
Thank you for asking that question. I am not really clear about the specific question but i want to think that you are asking if the function of management applies to business owners.
The function of management may applies to business owners if they are directly involved in the day to day running of the business. As we know sometimes some business are not run by the owners, they are run by the board of directors who are employed by the owners to run the affair of the business.
In this case the directors or management run the business in with the interest of the owners or shareholders in mind. But this is not always true as it can give rise to the agency theory. Agency theory arise when there is clash of interest between the business owners and the management who are also known as board of directors.
If the business is run by the owners as in most small and home business then the functions of management applies to all business owners who aimed to succeed in running their business.
The business owner needs to carry out the fundation stage of setting up a business and this is planning. Without a good plan it will be very very difficult for a business to succeed. Lets look at it this way, will you be able to build a house without a plan? of course no. For a better understanding of planning your business read business strategy and PEST Analysis
Once the planning stage is completed the next stage will be the organizing, directing and control as described on the small business management process.
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