Why do some small companies stay small
It is often assumed that if a small company fails to (0)..., it is because of external factors. So it may come as something of a surprise to discover that many small companies have only themselves to (19)... for their lack of growth. In fact, if you run a small business, you shouldn’t waste much time wondering whether you have (20)... to investment capital; still less, analysing fluctuations in (21)... exchange rates. You are more likely to (22)... the main barrier to greater success by looking in the mirror.
This is a conclusion that can be (23) ... from a recent study based on interviews with the owner-managers of 40 small businesses. The research makes the reason (24) ... : management behaviour, however well intentioned, is often the (25) ... of the problem. This was the overwhelming view (26) ... by the managers surveyed: the main barrier to growth was the fact that day-to-day issues (27) ... all their time. The problems that many larger businesses face - lack of funds and insufficient government support - were of relatively minor (28) ... for these small companies.
The survey shows that while owner-managers often work very hard running their business, many never take it on to the next (29) .... The reason is that they are too busy (30) ... their sales, marketing and finance functions. Limited resources may (31) ... to this, but many owner-managers are unwilling to delegate even insignificant decisions. As a result, without realising it, they create a style of working that (32) ... them from moving forward. One of the most important lessons for managers is learning to let go - very few people can do everything themselves. Instead they need to hire staff able to take (33) ... some of their responsibilities.

The region’s best smaller companies
Once again, readers of this magazine have the chance to vote for the region’s best companies. (0)
The awards will be presented at a dinner in Birmingham on May 17.
The pattern established in the first year, of awards for Best Established Company, Best New Company and Best Entrepreneur, will of course continue. However this year sees a new category, that of Best Communication with Investors. (8) ...
The Established Company of the Year will be one whose success has lasted for more than just a couple of months or years. Its share price will be performing above the average for its sector, but that is not the only measurement which will be taken into account. (9) ... Above all, the winner will be professionally managed, in a way that deals equally well with good and bad trading conditions.
The New Company of the Year ’will have gone public last year, but will already have shown its growth and management qualities. (10) ... In fact three early winners have already been successful in this second category, as well.
The Entrepreneur of the Year will be someone with a proven track record of expertise in setting up and providing leadership to one or possibly more businesses. He or she will have created an organisation that can deal with the demands placed on it as a public company. (11) ... The winner will have maintained a balance between that original energy and the need to adapt as the company grows.
In our new category, Best Communication with Investors, the winning company will show that it is engaging in two-way dialogue with both actual and potential investors. (12) ... All of these communication channels will be carefully tailored for the intended audience. In addition, the company is likely to distribute press releases by electronic means, to maximise its opportunities for publicity.
Nominations for awards were invited several months ago, and reduced by the judges to a shortlist of three in each category. The shortlisted companies are described below, together with details of how to vote. Please get your vote to us no later than 31 March.

Turning around a fast-food chain
Sparrow is a well-established fast-food chain, with 200 restaurants run by franchisees, and almost as many company-owned ones. Some years ago, the group to which Sparrow belonged was taken over by another company, which owned a variety of retail businesses. Although demand for a Sparrow franchise showed no sign of declining, overall the chain was in an unhealthy state. Its properties, the majority of them in small towns, needed refurbishment to stand comparison with its competitors. With more and more fast-food concepts reaching the marker, the distinctive Sparrow menu had to struggle for attention. And to make matters worse, its new owners had bought it as one of a number of companies, and had no plans to give it the investment it required.
Sparrow stagnated for another two years, until a new chief executive, Carl Pearson, decided to build up its market share. He commissioned a survey, which showed that consumers who already used Sparrow restaurants were overwhelmingly positive about the chain, while customers of other fast-food chains, particularly those selling pizzas or hamburgers, were reluctant to be tempted away from them. Sparrow had to develop a new promotional campaign - one that would enhance-the public’s perceptions of the chain and set it apart from its competitors.
Pearson faced a battle over the future of the Sparrow brand. The chain’s owner now favoured taking Sparrow’s outlets upmarket and rebranding them as Marcy’s restaurants, one of its other, better known brands. Pearson resisted, arguing for an advertising campaign designed to convince customers that visits to Sparrow restaurants were fun. Such an attempt to establish a positive relationship between a company and the general public was unusual for that time. Pearson strongly believed that numbers were the key to success, rather than customers’ spending power. His arguments won the day.
The campaign itself broke some of the fast-food industry’s advertising conventions. The television commercials played down traditional product shots - most of its competitors’ advertisements had mouth- watering shots of food - and focused instead on entertainment and humour. The usual jingles gave way to spots featuring original songs performed by a variety of stars. Instead of trying to show the superiority of a specific product, the intention was to position Sparrow in the hearts of potential customers.
Pearson hired two advertising agencies to handle this campaign, and spent a considerable time with them, discussing and developing the brief he had outlined. Once that had been agreed in detail, he left them m get on with their work. Instead of dividing responsibilities, as would normally happen when two agencies collaborate, they decided to develop a team concept, with both having equal opportunities for creative input.
Pearson also made other decisions which he believed would contribute to the new Sparrow image. He laid off 400 employees in the headquarters and company field offices, and reduced the management hierarchy. He insisted on uniformity of standards in all restaurants, and warned franchisees that if they ran untidy, unprofitable restaurants, Sparrow would dose them, or if necessary, buy them. In addition Sparrow offered to lower the rent of any franchisees who achieved a certain increase in their turnover.
These efforts paid off, and Sparrow soon became one of the most successful fast-food chains in the regions where it operates.