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ROLE OF THE LEADERS IN SME GROWTH STRATEGIES IN AUSTRALIA

Introduction

The importance of leaders in any type of small, medium and large organization or Business Company is undeniable. To continue the race in this competitive world, leaders take the major role and initiate the company s goodwill and trustworthiness to the customers. Small and Medium Enterprises (SMEs) are initiating numerous discussions about the leadership plan and program that they are organizing for further growth of their own. The main task of the leaders is to influence the group of people (who usually have a common goal) to achieve the desired outcomes. For bringing a positive impact on the entire company, efficient leadership skill is required to increase the performance of the team and the organization. The effectiveness of the leaders is considered as the main root of the success or failure that the company goes through. Though there are no written criteria for effective leadership quality, it is believed that the personal performance of the leaders plays a major role as the deciding factor in the growth strategies.

Aim

The aim of this project is to evaluate role played by the leaders in developing growth strategies for Medium Enterprises.

Objective

• To identify the responsibilities of the leader to improve the company s economic growth
• To identify the challenges that leaders face for running a company successfully and how they respond to those situations is important in deciding the company s fate regarding success or failure.

        To identify the role of leaders in banishing the sexism and racism in the workplace and thus improving strategies for the growth of medium enterprises

        To prevent the discrimination among the employees and contribution of leaders in this maintain the morale of the employees

• To provide a clear direction to team and finding their strength to make the Enterprise grow economically.

Research Question

• Why is the role of the leaders important in the growth of Medium Enterprises?
• What are the challenges faced by the leaders for running a medium enterprise successfully?
• Why leaders need to take an active initiative for abolishing the issue regarding discrimination about sexism and racism from the workplace?
• Why leaders need to provide a clear and ethical direction to their team?
• How is it important for the leaders to make their employees more efficient by finding their strength?

Background of the research

The betterment of the strategy taken and followed by the leaders can only be achieved if the strategies are more comprehensible. Contribution in the growth process of enterprises is directly linked to how good the approach of those strategies is. Building a high-performance team, clearing the doubts and issues faced by the employees, searching and then developing the best talents for the company is needed to increase the growth and leaders take the most important and responsible role regarding the same.  The leadership strategies should be highlighted and emphasized upon.  As one of the main purposes for these enterprises is to draw the finance, so creating a better economical background has been a major issue that the leaders face to run the company (Frantz et al. 2017). The need for success is increasing day by day for being there in the rat race. Henceforth, maintaining the innovation and remembering the current business atmosphere is extremely important. Performance of the organization based on the leaders and how they are responding to cope up with the ever-changing situation. Extreme efforts are needed to understand the strategies better and distribute the efforts among the leaders and the employees equally. For the best possible outcomes and products, utilization of the resources that are available is needed. The responsibility of the leaders is also to draw the attention of stakeholders for the benefit of their organizations (Marek and Jabłoński, 2021). A country s economic background is based upon the financial background of medium enterprises; therefore, the key responsibilities of the leaders are also associated with that also.

Literature review 

Importance and role of the leadership medium industries

As opined by Stoyanova and Iliev (2017), for improving the total growth of the company, it is extremely important to provide a clear and dimensional overview to the employees about the desired outcome. Directing the team in a clear way along with motivating and inspiring them is one of the important key factors in taking the strategy of the leadership. A broader picture and determining a proper goal is required in order to achieve the results. Involving every employee in a more productive way encourages him or her to work more efficiently. To allocate accurate resources and raise them in the proper way when it is needed has been important all along. Opportunity to research in various fields and being democratic, instead of being authoritative, helps to create an employee-friendly atmosphere where inhibition does not come in a middle way. On the other hand, Wijnenberg (2017), the business performance mostly depends upon how the company is taking the strategy in order to grow the business and make the stability about the financial orientation. Implementing the strategies taken into the different sectors of medium enterprises and taking care of those are again the key factors of the leaders. Taking decisions in certain situations has a direct and proper link to an employee's well being. Unlike the big enterprises, the employees take the leadership styles and strategies in more of a personal way. Thereafter, the strategies of the leadership are influential on the customers and as well as the company s overall growth.

Challenges that are faced by the leaders in SMEs 

According to (Budur, 2020)The medium companies generally run on a day-to-day basis. Therefore, the need for leadership plans and strategy is ignored in these segments of medium enterprises. Individual s ability to run the organization is being focused but the small group of people does not need the leadership in every segment. Simultaneously keeping the spirit, values and cultures maintained and moving into an organization is also a difficult part to do for the leaders. In addition to that, the different departments of the company are not organized properly and hence leaders are not able to communicate with their employees, which finally affects in producing low qualities of work. On contrary Puhovichov and Jankelov (2021), providing the necessary skills and keeping, the environment intact in such a medium business has also been a challenging part. Interaction with the peer groups and discussing the real-life case factors has been established as one of the most important challenging objects. Arranging multidisciplinary groups are restricted due to the small environment of those businesses. The leaders have reported this as an obstacle. Appreciation and funding from the government sectors are not that much appreciated which leads to the dissatisfactions of the leaders. As opined by Peter (2018), in medium industries, it is noticed that everyone is putting the blame on others. Handling these situations is quite difficult for leaders. Reduction of cash flow is a consistent problem that leaders have to face in small enterprises. Sexism and racism are one of the most vital burning problems, which need to be addressed from the side of the leaders. To increase the annual turnover these challenges must be resolved. Apart from that, considering the regional networks and lack of availability from them is not appreciated according to the leaders.

Strategy to improve the leadership qualities in SMEs

Creating an environment where learning is easy and non-inhibiting can be implemented all along. Allowing the employee to take the initiative and encouraging them about the same can significantly improve the leadership qualities among medium enterprises. Listening effectively to the needs of the employers and having a disciplined work environment will particularly provide the growth for enhancing the quality of strategy in leadership programs. Learning should be constant and any kind of conflicts should be taken care of very delicately. For an example, Bed threads, Allerton Swimwear, Andaha this type of companies will be taken to gather information. Being stagnant in providing satisfaction both for the customers and the employees will contribute to the negative outcomes, thereafter it should be avoided. According to Soni (2020), providing a sense of self-worth by giving the employees more responsibility will surely ensure the bonding more effectively with the company. Setting out a strategic goal for every employee provides a sense of organizational togetherness. Managing the work dedicatedly and efficiently should be one of the main targets before creating the strategies. Whenever support is needed from the leaders should be proactive. Appreciation and recognition should be given from leaders in order to encourage employees. The sense of us should be increased and this strategy will motivate the employees and enhance the leadership capability of leaders. When facing the challenges the leaders must take the responsibilities in order to dismiss the conflicts.

Also, creating interpersonal skills by developing the communication process would be convenient for the employees as well as for the leaders. The skill of problem solving should be prioritized as well, for enhancing the strategies of leadership.

Methodology

Data collection technique

For this research, secondary thematic analysis will be taken. The secondary data and the availability of these have been acquired easily. Secondary analysis helps to complete the research at a minimal cost, which is very helpful for the researcher. Along with that, time will be saved for collecting these secondary data. A vast variety of data can be gathered from secondary sources, which help to create a non-biased outcome (Bibri, 2019). It was observed that, most of the Medium Enterprises have reported a turnover above $10 million a year. Annual growth rates of 15% were registered for the Medium enterprises. Mass media information and government statistics are clearly distinguished which helps in better understanding and helps to compare those data with the recent facts. Bed threads, Allerton Swimwear, Andaha and this type of SME will be selected for this research and for gathering information from secondary sources.

For this research, thematic analysis will be used to understand the importance of the topic. Thematic analysis helps the researcher to make a clear structure for the research. On the other hand, the thematic approach also helps to narrow vast data and helps the reader to understand the provided data easily. Besides that, this analysis helps to summaries the key features easily from a large data set. For this research

Research approach

 An inductive approach will be taken for this research; it will help to understand the entire growth of the Medium enterprises by providing a clear view of the previous relationship that is associated with the progression of these enterprises. A clear direction to the employees has been provided by the leaders and thus the study of the observation that is followed all along the market conducts a better understanding regarding the pathway of those medium enterprises. This inductive approach helps to analyze the qualitative data from the case study or articles which is very important for this research (Woiceshyn and Daellenbach, 2018).

Research philosophy

Positivism philosophy will be selected to conduct this research. This philosophy helps the researcher to observe the factual data from secondary sources. This philosophy also allows measurement for the desired outcome in order to enhance the strategies of leaders for developing the growth of Medium Enterprises. According to Alharahsheh and Pius, (2020), positivism philosophy helps to connect the general data with pure analytical data. Therefore, this philosophy will be taken for this research 

Expected outcome

In medium enterprises, the choosing of leadership strategy and the growth of the respective enterprises are vividly linked. With the help of the strategies taken including directing their employees in an ethical way, banishing the discrimination among the employees and economical growth should be increased. Issues and challenges that were previously faced should be decreased significantly. Recognizing the success and empowering the employees by giving them responsibility, communicating more effectively with them should come as the result. Inspiration and motivation must be in the place for the desired success of the company. Keeping the employees informed about the knowledge and the goals- should be marked as necessary. Looking out for employee s welfare must be a key concern that will be considered as the expected outcome from this research.

Timeline of the project

Table 1: GANTT chart

(Source: Created by learner)

Ethical consideration

When considering the ethical facts, some of the most vital items should be kept in mind. The risk of harming a particular group of people or targeting someone or some group should be considered clearly (Surmiak, 2018). The potential risk of the researcher may include disclosing the objective, aim and previously done works in the same area. Disclosing these can bring financial harms, as well as physical and mental harms can occur. Hence, the researchers should consider these as one of the most important parts. 

 The participants who are taking part in the research program should be informed in the first place and without their consent, the research process should not be carried forward. The participants should also sign an official statement form and they should not be forced anyhow in taking part in this. 

Confidentiality and anonymity should be prioritized all along with the previous points. It is the duty of the researcher to protect the identity covered. The temperament of the researcher is clearly reflected in this; hence respecting the idea of others needs to be considered. Being respectful about others giving due acknowledgement is necessary (Surmiak, 2018).

 The practice of descriptive language and unnecessary exaggeration of a fact should be avoided clearly. Telling the truth and keeping the promises need to be considered among the other facts. Discrimination and harassing content should not be produced. An optimistic and realistic approach should be done in order to consider the ethical facts.

Reference list

Alharahsheh, H.H. and Pius, A., 2020. A review of key paradigms: Positivism VS interpretivism. Global Academic Journal of Humanities and Social Sciences, 2(3), pp.39-43. Viewed from https://www.gajrc.com/media/articles/GAJHSS_23_39-43_VMGJbOK.pdf [Accessed on 23.8.2021]

Bedthreads.com.au , 2021 It s our birthday viewed from https://bedthreads.com.au/ [Accessed on 23.8.21]     

Bibri, S.E., 2019. The anatomy of the data-driven smart sustainable city: instrumentation, datafication, computerization and related applications. Journal of Big Data, 6(1), pp.1-43. Viewed from https://journalofbigdata.springeropen.com/articles/10.1186/s40537-019-0221  [Accessed on 23.8.21] 

Budur, T., 2020. Effectiveness of transformational leadership among different cultures. International Journal of Social Sciences & Educational Studies, 7(3), pp.119-129. Viewed from http://eprints.tiu.edu.iq/390/1/ijsses.v7i3p119.pdf [Accessed on 23.8.21]   

Frantz, E., Dugan, A., Hinchberger, K., Maseth, B., Al Sharfa, O. and Al-Jaroodi, J., 2017, June. SMEs: The effects of strategic management. In 2017 IEEE Technology & Engineering Management Conference (TEMSCON) (pp. 388-393). IEEE. viewed from https://ieeexplore.ieee.org/abstract/document/7998406/ [Accessed on 23.8.21]

Marek, A. and Jabłoński, A., 2021. Care of the Common Good as a Responsibility of Business Leaders. Catholic Social Teaching Perspective. Religions, 12(2), p.125. Viewed from https://www.mdpi.com/2077-1444/12/2/125/pdf [Accessed on 23.8.21]  

Peter, F., Adegbuyi, O., Olokundun, M., Peter, A.O., Amaihian, A.B. and Ibidunni, A.S., 2018. Government financial support and financial performance of SMEs. Academy of Strategic Management Journal, 17. Viewed from http://eprints.lmu.edu.ng/2288/1/Government-financial-support-and-financial-performance-1939-6104-17-3-207.pdf [Accessed on 23.8.21]   

Puhovichov , D. and Jankelov , N., 2021. Leadership in Conditions of Industry 4.0. In SHS Web of Conferences (Vol. 115, p. 03013). EDP Sciences. Viewed from https://www.shs-conferences.org/articles/shsconf/pdf/2021/26/shsconf_appsconf2021_03013.pdf [Accessed on 23.8.21]   

Soni, V.D., 2020. Importance and Strategic Planning of Team Management. International Journal of Innovative Research in Technology, 7(2), pp.47-50. Viewed from https://www.researchgate.net/profile/Vishal-Dineshkumar-Soni-2/publication/342571600_Importance_and_Strategic_Planning_of_Team_Management/links/5efbfc78a6fdcc4ca44085b5/Importance-and-Strategic-Planning-of-Team-Management.pdf  [Accessed on 23.8.21] 

Stoyanova, T. and Iliev, I., 2017. Employee engagement factor for organizational excellence. International Journal of Business and Economic Sciences Applied Research (IJBESAR), 10(1), pp.23-29. Viewed from https://www.econstor.eu/bitstream/10419/185656/1/v10-i1-p23-29-organizational-excellence.pdf [Accessed on 23.8.21]   

Surmiak, A., 2018, September. Confidentiality in qualitative research involving vulnerable participants: Researchers perspectives. In Forum: Qualitative Social Research (Vol. 19, No. 3, pp. 393-418). Freie Universit t Berlin. Viewed from https://www.qualitative-research.net/index.php/fqs/article/download/3099/4268?inline=1 [Accessed on 23.8.21] 

Woiceshyn, J. and Daellenbach, U., 2018. Evaluating inductive vs deductive research in management studies: Implications for authors, editors, and reviewers. Qualitative Research in Organizations and Management: An International Journal. Viewed from https://www.researchgate.net/profile/Jaana-Woiceshyn-2/publication/324596659_Evaluating_Inductive_versus_Deductive_Research_in_Management_Studies_Implications_for_Authors_Editors_and_Reviewers/links/5b78d9aa92851c1e121f7477/Evaluating-Inductive-versus-Deductive-Research-in-Management-Studies-Implications-for-Authors-Editors-and-Reviewers.pdf [Accessed on 23.8.2021] 

Zwijnenberg, A.J., 2020. Resources for employee-driven innovation in a formalised setting (Bachelor's thesis, University of Twente). Vieweed from http://essay.utwente.nl/82016/1/Zwijnenberg_BA_faculty.pdf.pdf [Accessed on 23.8.21]