Leadership of Small Medium Enterprises

Leadership of Small Medium Enterprises

Leadership History

With statistics from the Federal State Statistics Service (ROSSTAT) and other Federal Tax Services (FTS) in Russia, the 2010 results indicated that the Russian Federation is subject to over five million SMEs. These include 1.3 million micro enterprises found in Russia. In the enterprises, all of them have an average of over 15 people as employees. The company's annual turnover has been 60 million rubles.

According to historical articles and material, SMEs have been in existence ever since the beginning of transitions in Russia. A small number of the small businesses managed to survive the Soviet period though most of the businesses were privatized. However, others were under the co-operating ownership and the state. Rivalries against the SME sector in Russia were due to intensive economic reforms. The leadership of the SMEs was not sturdy enough, as the enterprises hardly managed to foster growth economically especially during the transition. When compared to the size of Russia, there is reason to believe that the number of SMEs in their country is of a limited number. There was no entrepreneurial growth in Russia. The argument was that the sizes of the SMEs were too diminutive to make a difference in the competitive market economies and other modern competitions in business (Dallago, 2012).

The researchers in strategic management have tirelessly collected data to realize and recommend best strategies for SMEs, especially in the early 90's. The concern has been on management and leadership styles that need to be adopted by the SMEs. Consequentially, the sector is linked to critical development opportunities in economic growth and job creations. Proposals had to be provided, and most of them insisted on integration of well established management styles, which allow for company analysis for both the strengths and weaknesses. The company's opportunities are later used to counter the weaknesses and hence ensure strong establishments for business (SWOT analysis). Leadership models have been conceptualized to ensure SMEs in Russia are self-sustaining and capable to impact the economy at large (Analoui & Karami, 2003).

Gaps expected to be filled by research

The research will collect data from data collection sites and sources together with reference from previously researched work. This will ensure most of the loopholes affecting leadership of SMEs have been addressed and recommendations provided. The research will mostly focus on Russia, targeting SMEs and other small companies currently and in the last decade. Relevant papers will be examined and analyzed for a final recommendation and finding to be reached. The research will concentrate on the elements that have been neglected in the leadership of SMEs, including the control and implementation of business practices that will counter challenges, and also ensure training programs for leaders in charge of SMEs in Russia (Bolden, 2001).

The research already appreciates that SMEs have the ability to grow rapidly in any given economy if well managed by effective leaders who are implementers. The SMEs still have hope and opportunity, but they hardly seize the available chances. There is a necessity that the SMEs developed and sustain economies, but before that, leadership developments are necessary. The only way the SMEs will have an impact is through expanding and adopting leaders who are business oriented. Despite the fact that the expansion process might be time consuming and gradual, patience has to be practiced because the same SMEs are responsible for social stability and transformational impacts such as generation of employment. Different theories such as the neo-classical theory have provided for the establishment of systems in the market, but most of the theory's provisions are assumed when developing new SMEs. This drives us back to the issue of leadership inefficiencies (McIntyre, 2001).

The SMEs are competitive in Russia, but many under developments are causing a lag in the developments of the companies. There are many inconsistencies in the leadership, but other factors also discourage the improvement of the small companies. These issues include lack of resources in Russia, and also lack of capabilities. The development in infrastructure has proven to be slow and also lack of equipment. Many companies are waiving from the Russian market mainly because of the complexities and also the issue of transition economies.

SMEs are not taking advantage of strategies that will elevate them to economy driven positions. The SMEs are not taking the right measures to establish business relation. The SMEs have to commit themselves in the market, it terms of investing, acquire the best personnel and realize their potential through time management. Modes of success have to be analyzed and adopted through joint ventures, engaging in sales and distribution, getting the best contracts in the market and being in control (Albertini, 2011).

Research questions

When coming up with the research questions, the emphasis of the questions was on leadership for SMEs. The most relevant question would be "Is leadership the main factor slowing down development in SMEs?" The question focuses on the factors of leadership, and the best manner to manage small enterprises so as to expand them and stabilize the economy. The query's relevance is vital as it would assist to explain the outcome of effective leadership in SMEs. The question, therefore, analyzes and interprets market realities and also the aspects of free-market ideologies.