Original scientific paper

Role of management consulting in a process of professionalization of SME management

Anton Florijan Barisic orcid.org/0000-0002-9566-7777 ; Chronos Info Consulting, Croatia
Morana Bozicevic ; University College VERN

Abstract

We are witnessing the constant changes in the business world, due to fierce competition, technological innovation and a variety of political, economic and social developments. These changes require effective and timely management of the company which will enable the changing environment and achieving the main long-term goals - to increase profits and the value of the business system. Although the growth of the consulting industry shows positive effects in all areas of business activities, there still lingers some skepticism versus consulting, especially in small and medium-sized enterprises that are largely using outdated management and business administration techniques where the entrepreneur/owner is at same time the manager who oversees all business processes in the company having, in most cases, no adequate knowledge, expertise and experience. The problem encountered is insufficiently effective professionalization of management in small and medium-sized enterprises in Croatia. Given that Croatia is dominated by small and medium-sized businesses, and that the accelerated globalization brings challenges which requires faster business model changes and flexible adaptation to the business environment, it is necessary to introduce changes in the education and behavior of entrepreneurs, enabling them to answer those requirements and expectations on more effective and professional manner. Entrepreneurs generally lack sufficient knowledge about management consulting, they are not aware about standards and processes in providing consulting services, which is one of causes of reluctance in purchasing and using of consulting services. The primary objective of the research was to determine whether there is a correlation between the use of consulting services and professionalization of management in small and medium enterprises. The second objective was to examine whether small and medium-sized enterprises that have used the consulting services faster and better have come from the entrepreneurial stage to a professional managerial lead, and how a use of consulting services affected the improvement of professional skills of managers. This paper presents the results of the research on the role and use of consulting services in the process of professionalization of management in small and medium-sized enterprises in Croatia.

Keywords

entrepreneurship; SME management; management consulting; education, knowledge

Hrčak ID:

130401

URI

https://hrcak.srce.hr/130401

Publication date:

1.12.2013.

Article data in other languages: croatian

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