A Small Business Is Not a Little Big Business

A traditional assumption among managers has been that small businesses should use essentially the same management principles as big businesses, only on a smaller scale. Underlying that assumption has been the notion that small companies are much like big companies, except that small businesses have lower sales, smaller assets, and fewer employees. We would argue, […]

by

John A. Welsh

and

Jerry F. White

by

John A. Welsh

and

Jerry F. White

From the Magazine (July 1981)

A traditional assumption among managers has been that small businesses should use essentially the same management principles as big businesses, only on a smaller scale. Underlying that assumption has been the notion that small companies are much like big companies, except that small businesses have lower sales, smaller assets, and fewer employees.

A version of this article appeared in the July 1981 issue of Harvard Business Review.

JW

John A. Welsh is adjunct professor of business administration and director for entrepreneurship of the Caruth Institute of Owner-Managed Business at Southern Methodist University.
JW

Jerry F. White is associate director for entrepreneurship at the Caruth Institute. The authors also wrote the book Administering the Closely Held Company (Prentice-Hall, 1980).

A Small Business Is Not a Little Big Business

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