Nature of Small Business Ownership

 
 
 
 
Approximately twothirds of all business enterprises in the United States are classified as small businesses. The great majority of these firms, regardless of the form of business organization (sole proprietorship, partnership, or corporation) are familyowned. These firms account for approximately 40 percent of the employment of human resources in the American economy and generate approximately onethird of the nation's gross national product (GNP).

During a period of unprecedented change in the American economy (the pursuit of North American free trade, expanding the markets for American products in Asia, a changing American workforce, and so forth), American business enterprises must also change if they are to remain viable. Those business organizations that are most resistant to change are the small, familyowned firms. Considering the significance of such firms to the American economy, ways must be found to cause small, familyowned businesses to become more open to the need for and the implementation of change.

This study examined resistance to change in small, familyowned business firms in the United States. The research questions investigated through the conduct of this study were as follows:

1. What are the primary sources of or factors involved in the resistance to change in small, familyowned business firms? 2. What strategies may be employed to successfully overcome resistance to change in small, familyowned busi


     
 
 
 
    

 

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High Low Mechanistic Low Highstructure [source: Daft, 1992, 171] ================================================================= 3. Effective fiscal management is an essential ingredient in the successful performance of an organization. Fiscal goals are not viewed as the beall and endall of management. Their significance, however, must be recognized and addressed by successful managers. 4. The effective performance of an organization is dependent upon the effective management of conflict and change within the organization. In this context, the concepts of behavioral management become significant. 5. The manager is the individual within an organizational unit who is in a position to either insure than an organization will be a successful performer, or undermine any potential for successful performance. The underlying reason for resistance to change by individuals are insecurity, economics, and sociopsychological factors. Individuals develop a sense of wellbeing or security after adapting to an organizational pattern, and to changes to the status quo are viewed as threats to this security. The economic threat which is implicit in org

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