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The Importance of Small Businesses Report

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Updated: Dec 9th, 2021

Introduction

“Companies that enjoy success have core value and a core purpose that remains fixed while their businesses strategies and practices endlessly adapt to a changing world.” (Collins & Porras, 1996, p. 65)

That axiom is true for large corporations and for small and medium business enterprises as well. In this paper we will discuss about small businesses. Many of these small businesses have been building their online pages in order to get more promotion and attract people. This is a new sector of the business world that has been developing quite rapidly in the last decade. Many people tend to think of big business as the only successful form of business. In fact they forget that small and medium enterprises are the ones that provide consumers with the majority of services around the world. Their role is indispensable. Nevertheless, one should mention that it is true that they are more vulnerable to market shocks and financial difficulties. In this essay we will discuss about one such small business company which has been developing in the city of Boroondara.

Vision and culture

Hawthorn Aquatic and Leisure Centre is a small business that has been gradually developing during the past five to six years. It is a community recreation facility dedicated to the promoting of a healthy life style and behaviour. The Hawthorn Aquatic and Leisure Centre is a type of ‘social and communitarian business type’. It is owned by the City of Boroondara and the initial financing was provided by public funds (“About us”, par. 2).

Its vision is to strengthen the values of community health behaviour, freedom, and social responsibility. These are the core values upon which they have based their business. As it is proclaimed at their website:

“The Centre offers a wide range of sports and fitness opportunities for people of all ages and abilities. Memberships are available to suit all individual needs. By investing less than a couple of dollars a day, you can improve your overall health, fitness and happiness.” (“About us”, par. 3)

The management team and staff have made the above statement their company culture. Respect for individual integrity and freedom, help people improve their health and through it their overall well being.

Difficulties for Alliance

There are some difficulties they currently face or will have to face in the future. The Centre has began operations being financed by public funds initially but they will ahve to maintain themselves by becoming self sufficient in funding. Here they may encounter one major problem. The major source of revenue and income for them are the membership fees.

As a community based centre they tend to have low fees since for them serving people has priority over profit for the business. Hawthorn Aquatic and Leisure Centre is neither supported by any large corporation nor is part of a big business. Being part of a big business company ensures the necessary financial flow of cash to keep the business going without having any major concern about the financial health. In these difficult times of financial turmoil less and less individuals and families are becoming members of the centre. Thus, being financially fit is becoming a difficult task for the Hawthorn Aquatic and Leisure Centre.

In regards to the stages of organizational growth the company is well established at the third stage. Creativity and friendship have been some of the qualities that have accompanied Hawthorn Aquatic and Leisure Centre since its inception. Organization and direction are also no concern for Hawthorn Aquatic and Leisure Centre since it is well established as a business and it has been growing steadily during the last years. The organization finds itself on the third stage of conflict. This does not mean that the organization is entering into a conflict area, but sooner or later every organization has to face problems of different nature that prevent it from achieving its target goals (Collins and Porras, 1996). The present situation of financial turmoil can serve as a promoter and catalyst for the enhancement and rising of these problems.

Recommendations

The first recommendation for Hawthorn Aquatic and Leisure Centre is to implement a system of reward for their staff in order to provide them with incentives for quality work. This system will ensure that more people to get memberships to the Centre. Also a member’s incentive program should be applied. This could be in the form of affiliate or sponsorship program.

Each member that will bring other members to the Centre The combination of these programs will ensure attraction for more people coming to get memberships at the Centre. This membership attraction program will serve as the basis for revenue increase and will make possible that the Centre has better financials.

Another program should then be implemented in order to provide incentives for the staff of the centre. This program will provide the staff with motivation to increase their performance and quality of work. If the Centre implements this two programs, then it will have more chances of getting out intact from the impact of the financial crisis.

Reference

Anonymous, January 2010. “About us”, Hawthorn Aquatic and Leisure Centre Online. Web.

Collins, J. & Porras, J. 1996. “Building your company’s vision”, Harvard Business Review, vol. 83, issue no. 4.

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