The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It

Posted: August 14th, 2013





Executive Summary

Small businesses do not work because of the perception held by the people, the expertise employed to run the businesses, the business strategy employed by the managers and the lack of objectives for the business. For a small business to thrive there should be a well set out a strategic plan, which will state the business’s vision, mission, objectives and ways to achieve the objectives. The research conducted describes the reasons why small businesses do not work and ways to solve this problem.


Why most Small Businesses do not work and what to do about it

Lack of a good marketing strategy

Marketing is the communication of values of goods and services to a customer for the purposes of convincing him or her to buy goods and service. By learning about your demographic environment, how people regard what one wants to offer them and their surrounding environment, one can learn how to market goods and services he/she offers to them. By doing this, one is improving a small business and therefore needs for a proper marketing strategy.

Poor strategy of management

This causes small businesses to stagnate in growth since with no proper management systems in place, any small business cannot thrive. This therefore necessitates the need for a proper management strategy.

Poor organization’s strategy

Most of the small businesses come to the field of the business with no clear intentions of what their organization needs to do, the roles in the organization and who should perform each role in the organization. Each position in the organization needs to be placed with its clear roles in order to ensure a well-defined structure and environment for these small businesses to thrive.

Lack of clear Objectives, Aims and Opportunities

For any business to work, it should have an aim for its existence. Small businesses have no clear aims for their existence the reason as to why many of them never succeed. A business should have a strategic objective that is meant to achieve its primary objectives. This will ensure growth of small businesses.


Poor business model

For any successful business model, the values that are generated by the business should be consistent. A fair deal today and a poor deal tomorrow will cause the customers to change their loyalty to people who are consistent in production. The business regulations should be followed to the latter and each activity undertaken should be recorded in the business’s manual. This model will help a small business to grow.

Poor integration of Management, Entrepreneurship and Skilled workers

A skilled worker is a technician who understands the technical aspects in his field of specialty. An entrepreneur is a person that manages a business entity with a view of making profits by initiating risks. A manager is one who organizes the factors of production in order to achieve the set objectives. Without proper integration of the three, a small business cannot grow.

Absence of quantifications and innovations

Innovation is the action of producing new products and services in an improved, efficient and profitable manner. Quantification involves measuring the quality of the products to know whether they meet the customers’ demands. This will enable the small business to embrace technology in order to meet the customers’ demand hence increasing sales and the overall growth (Gerber, 78).

Poor perception of the people

A business is supposed to be done happily, and anyone doing it should do it with passion. For a small business, time and attention are required in order to ensure its prosperity. If the owner of the business lays little emphasis on the business, many people will lack interest in the business leading to failure.


Improper systems

For any successful business, information systems to collect data and information concerning a business are required. The systems that show people how jobs are done, and all the components that solve problems are crucial to a successful business. The lack of improper systems causes a stagnated growth or the failure of small businesses.



















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