Leadership of Small Medium Enterprises Literature Review

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.

Definition of key words

The key word popularly evident in this article is Small and Medium Enterprises (SMEs). They are companies whose number of workers and employees and turnover hardly pass a certain criteria. Companies with less than nine employees would be considered to be micro-firms due to the limited number of employees. For a firm to be called a small firm it has to have up to 49 employees. Companies with a range of 50-249 employees would be known as a medium firm. Large firms are those with over 250 employees. This data was gotten from the department for business, enterprise and regulatory reform (BERR). SMEs have to make certain that they match up to the regulatory provisions (Levchenko, 2008).

Contribution of research to the Literature

The research undertaken while assessing the situation of SMEs will directly affect the literature in question. The line of argument is whether leadership theory changes can have an impact on development of SMEs. Factual points representing this assertion depict that Russia's economy could improve if it adopted the best management personnel. Managers will assist the SMEs to develop into bigger firms through making the right decisions, integrating other development strategies such as market penetration, product development and many other strategies.

References

Albertini, F. (2011). Entry Strategy for SMEs in the Russian Market. School of Business and Economy. 8(2), 3-5.

Analovi, F. & Karami, a. (2003). Strategic management in small and medium enterprises. New York: Cengage Learning EMEA.

Bolden, R. (2001). Leadership Development in Small and Medium sized Enterprises. Retrieved October 11, 2012 from http://centres.exeter.ac.uk/cls/documents/SME2.pdf

Dallago, B. (2012). Small and Medium Enterprises in Central and Eastern Europe. University of Trento, Tokyo. Retrieved October 11, 2012 from http://src-h.slav.hokudai.ac.jp/pdf_seminar/031210smes_3.pdf

Levchenko, M. (2008). EU-Russia Cooperation Mutual Benefits for SMEs in Framework Programs. Retrieved October 11, 2012 from http://publications.theseus.fi/bitstream/handle/10024/17568/jamk_1212141105_2.pdf?sequence=2

McIntyre, R. (2001). The Role of SMEs in Transition: Growth and Entrepreneurship. Retrieved October 11, 2012 from http://www.wider.unu.edu/publications/working-papers/previous/en_GB/rfa-49/_files/82530864978209474/default/rfa49.pdf