SMALL BUSINESS

Management of Small business in Rural Areas

[Institutes` Name]Abstract

How we define small business in rural areas goes a long way in determining the trends and impacts of criminal victimization faced by this class of commercial operator. The U.K. Small Business Administration has a fairly liberal definition of a small business, with most commercial sector concerns being defined as small if they have fewer than 500 employees (Ayozie, 2004, 76). Another complication in defining small business is the question of whether to examine company-level data or establishment-level data; many large commercial concerns are made up a multitude of smaller branch operators or franchises that have operational scales similar to small businesses. In this paper, we try to focus on the Management of Small business in rural areas.

Table of Content

CHAPTER I: INTRODUCTION4

1.1 Background4

1.2 Problems statement5

1.3 Purpose and Significance5

1.5 Research Objectives6

CHAPTER II: LITERATURE REVIEW7

2.1 Succession Planning7

2.2 Development of Succession Management Systems9

2.3 Small Businessin rural areas Succession Management10

2.4 Leadership Impact12

2.5 Leadership Development12

CHAPTER III: METHODOLOGY13

3.1 Qualitative Research13

3.2 Research Design13

CHAPTER VI FINDINGS15

CHAPTER V CONCLUSION17

Reference18

CHAPTER I: INTRODUCTION

1.1 Background

The leaders of small business in rural areas are faced with the challenge of developing a succession management system. Leaders are critical to the development of the depth in the interdependent activities of human resource capital. The executive leader is important to the acquisition, development, and retention of talent (McGee, 2006,3) within the organization because (a) leaders support for the development (Kesler, 2002, 33; Roddy, 2004, 487; Bernthal & Wellins, 2006, 31) and use of a succession management system is important to successful implementation (Hambrick and Mason, 1984,193), and (b) leaders within the organizational hierarchy must be willing to mentor and train new leaders for successful transfer of skill and knowledge often releasing control over a developed power base (Peay & Dyer, 1989,47).

The strategic partnership between leaders (development of talent) and human resource management (processes that are used to develop talent) is vital to the development of depth in the talent pool (Huang, 2001,736). Human resource professionals must be able to provide (a) diagnostic assessment; (b) strategic leadership; (c) process, data, and technology management; and, (d) network building (Kesler, 2002, 40). These four fundamental areas help to create the framework that will support the creation of succession management systems in an organization of any size. However, most small businesses in rural areas do not hire specialists in human resource management.

1.2 Problems statement

Development of a succession management system that enables an employee to understand that a distinct career path is being developed to offer them unique opportunities for growth is critical to the successful retention of talent (Metz, 1998, 31; Taylor, 2003, 34; Vaughn & Wilson, 1994, 43; Vigilante, 2004, 62; Ulrich & Eichinger, 1999, 154). Human resource management professionals often discuss succession planning in the literature. A clearly defined plan for implementing a succession management system that links succession planning needs with career path development to create depth in the talent pool (Kesler, 2002, 44), while addressing the unique challenges of small business is nonexistent. In fact, even ...