MANAGEMENT AND

GROWTH OF A BUSINESS
IMPORTANT MANAGEMENT SKILLS
OF A BUSINESS

1. Skills in building entrepreneurial culture.

2. Vision and Leadership skills.
3. Conflict and consensus management
skills.
4. Team work and management skills
1. SKILLS IN BUILDING
ENTREPRENEURIAL CULTURE

 Have the ability to create a conducive working

environment that encourages high performance
 The manager must have the ability to understand
relationships between leaders and followers
 To take the lead in appropriate situations

 To control situations

 Take calculated decisions

 Manage actively and supervise. etc.

2. VISION AND LEADERSHIP SKILLS
 The manager should be visionary
 Focus on objects and goals

 Have good communication skills

 Be able to work as a team

 Share decisions

 Be empathetic

 Be a good listener. etc

3. CONFLICT AND CONSENSUS
MANAGEMENT SKILLS

Conflict is sometimes caused by decisions which are

incompatible.
Types of such conflicts may be
(a) Emotional or Affective: Situation leads to dislike or anger
(b) Cognitive: Focus on issues and not people involved

Managing conflict situations

 Avoid tactics that results in a win-lose approach

 Uncover the real issues

 Broaden the scope of the issues being considered

4. TEAM WORK AND PEOPLE
MANAGEMENT SKILLS
Teamwork is about creating a participative
style of management.

This kind of entrepreneur will:

 Involve others in decision-making

 Establish a team spirit.

 Provide knowledge to employees by organizing

continuous training
 Delegate duties and responsibilities

 Provide feedback to employees

 Communicate with employees.

BLACK ECONOMIC EMPOWERMENT
(BEE)-[BBBEE]
 This empowerment was meant to transform the
wrongs of the past (Apartheid era)
 It is currently a process of equipping blacks,
women and people with disabilities.
 It is an opportunity of growing the wealth of the
country while creating opportunities for people.
 A good entrepreneur will regard BEE as a
component of his /her business.
 THE IMPORTANCE OF BEE TO
YOUR BUSINESS
 Consult the BBBEE Act No.53 of 2003. This
section provides the transformation charters.
 Each charter stipulates the BEE targets and
timelines.
 These charters and knowledge will add value and
provide long-term equity for your business.
 A good manager or entrepreneur will keep
his/her business in line with the principles and
requirements of BEE.
THE IMPORTANCE OF INVESTING IN A
BEE BUSINESS
 This will ensure a healthy cash-flow.
 An assurance of a strong and committed
management team.
 An opportunity of bringing new business on the
table
 Creates a potential for growth
 FINANCING A BEE BUSINESS

Two main types of BEE financing:

 Leverage finance: this is provided to big and

existing businesses
 Contract finance: this is provided for SMEs, such
funding is from the government or by a corporate.
FINANCIAL CONTROL, RECORD KEEPING
AND INFORMATION SECURITY

Financial skills are needed to manage your

business during the early years.

What to take note to avoid financial growing pains

 Managing cash flow: income statement & balance
sheets
 Managing inventory: Too much inventory drains
cash flow
 Managing fixed assets
 Managing costs and profits
 Taxes: File returns of business at the end of the
year
TO BE CONTINUED…….
RECORD KEEPING
Good record keeping helps you to make informed
decisions and comply with legal business tax
requirements.