The Effect of Leadership Style on Organisational PerformanceBackground of the StudyVarious researches have already pointed out the importance of leadership. Leadership has been considered important in view of its influence on the success or failure of organizations. This is generally attributed to the fact that the effective leader aids the organizations and its members to fully realize their goals, thereby leading them to the attainment of the latter. However, it has also been recognized that the leaders cannot merely rely on themselves to accomplish the said task (Northouse 2009; Gill 2006; Palestini 2009; Barman 2009). Hence, they must come up with initiatives by which they could foster a climate of leadership within the organization. The latter, in turn, also helps the organization in attaining the desired level of success. Most of the studies conducted in relation to leadership and its effects on the success of the organization have been conducted in the context of private organizations (Gardner, Avolio and Walumbwa 2005; Palestini 2009). Nevertheless, the importance of leadership is also evident as regards the members of the public sector
BACKGROUND OF PROBLEMA small business is independently owned and operated and not dominant in its field of operation (U.S. SBA, Office of Advocacy, 2004). A small business is a single entity that conducts business transactions, such as services or industrial operations (The U.S. Census Bureau, 2005). Over the past 30 years, the United States has witnessed a powerful emergence of small businesses (Kuratko, 2007). Americas small businesses generated more than half of the nations GDP, served as the principal source of new jobs in the U.S. economy, and employed more than 50% of the private workforce, which grew to 51% (Wong, 2002; Howard, 2006). In 2002, small businesses accounted for 75% of total employment growth in the U.S. (“Vital Role,” 2002). Small businesses are essential
The Economic History of Small Business (Kuratko, 2007)
What is the history of small business in the United States?
What’s interesting is how the U.S. has progressed over the past 30 years. Large business owners have seen their business and activities come and go. Many businesses today have grown business to become their main source of income. Many companies have incorporated on or adjacent to smaller businesses, and many other businesses have been closed by small business owners. The U.S. in some respects had a relatively high overall number of small businesses and low overall number of small businesses within its own communities.
On the other hand, for the first 20 years of the 20th century, many of these small businesses had been located around the country or its borders. In particular, the local area of the business was more concentrated than the region where we live. This pattern of small business ownership is consistent with recent American economic changes.
The following table provides an example of American business activity and the extent to which this is changing as a result of today’s change (Figure: National Business Directory).
Small Business Ownership in the United States
In 2001, the U.S. experienced large growth. That year, there accounted for 1,500 businesses located throughout the country (Figure: National Business Directory). By 2008, that figure had increased to 1,000 businesses, which represented nearly 1% of total U.S. businesses (Figure: National Business Directory). In contrast, in 2001, there were fewer than 35,000 businesses located within 4 miles in 2001 (Figure: Federal Tax Database, United States Income Tax Database). In response, the number of small businesses increased (Figure: National Business Directory). By 2008, the US had reached a multi-year high of 3 million (Figure: National Business Directory).
The United States is now experiencing an explosion of small business ownership growth. Between January 2004 and September 2007, the number of small businesses in the United States grew by 603,000 (Figure: National Business Directory). The total number of small businesses grew by 464,000 (Figure: Federal Tax Database, United States Income Tax Database). While these small businesses are not a source for large business income or large business business income, small businesses also provide economic incentives to create and maintain thriving businesses and to create and maintain large office centers and other small business functions (Figure: National Business Directory).
What did small business owners do about this explosion?
Small business owners often had limited discretionary income as the primary source and source of revenue. In an effort to expand their business, small business owners often had to take a cut of discretionary income or a portion of that discretionary income (Figure: United States Government Printing Office, Annual Report 2005).
In addition, small business owners typically also were struggling financially (Figure: Federal Tax Database, United States Government Printing Office). In many cases, this cut of discretionary income was the result of a combination of low income and low quality