Why Small Businesses Fail

They don’t really care about their Employees

Let’s be honest, small business owners and entrepreneurs, most of them, have little experience managing and leading.  They have ideas, they have a passion, they have conviction.  Small businesses don’t grow and don’t succeed because they don’t inspire and manage employees to share the passion of building something.  There is little to no time spent on the basics of management such as organizing files on employees, setting up objectives, showing how these relate to strategy, compensating on results and vision, hiring properly, legal compliance … and providing the direction that comes with the guidance of experienced HR management.

It’s all lip service.  It may be more fun to work at a small company where responsibilities can be more and the pains of bureaucracy less.  But, large businesses do invest in their employees – training, development, benefits, proper legal management, creating an environment free of sexual harassment and other discrimination.  Big businesses think about having some fun and including employees in idea creation and developing better ways to deliver in their markets.

Small businesses are always running, to the next crisis or the next opportunity … why? Because we think that’s what it takes to succeed.  And we are wrong!  Dead wrong!!  Companies grow because they have employees that care about the success, get guidance and accountability … and they create success by resolving problems on their own, delivering great customer service on their own, implementing a way for the company to save money on their  own.  But, that can’t be assumed, it must be nurtured and MANAGED.

I’ve worked at big businesses that really cared about development of employees and we’ve flourished.  I’ve worked at small companies and we don’t have the time.  That’s nonsense and short-sighted.  Financial ownership rarely understands the importance of this too and can become conflicted with these priorities that don’t appear to impact this quarter’s bottom line.  My advice, get some help, it’s not your expertise and you won’t ever make it a priority on your own time.

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