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The classification of firms into micro, small, medium and large is undertaken primarily on the size of their payroll. As the business expands in size the role of the owner-manager becomes more complex and leadership more important. The owner-manager’s ability to develop his or her staff into a team who can operate systems efficiently and effectively is one of the most critical elements in the firm’s long-term success. If the owner-manager is unable to develop an effective team, capable of taking over responsibility for operation of the business, it is problematic that they can ever successfully grow their firm. In this chapter we look at the duties and responsibilities of small business owners when recruiting employees, and the importance of team building to the successful development of a small business. We also examine the need for the owner-manager to view their role as that of a coach and the importance of coaching skills to successful team building.
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