Delegation challenges in small and medium enterprises

Abstract

Abstract: Delegation can be referred to as the practice of turning over work-related powers and authority to subordinates in order to accomplish the goals and objectives of an organization more effectively. Delegation can be defined as a principle that is built on decision-making under strategic interdependence. Moreover, delegation is accompanied by actions that show commitment and competence that leads to positive outcomes. Small and medium enterprises (SMEs) face delegation challenges due to their size. Delegation of authority is “power”, “authority”, and “responsibility” given to subordinates. Small business owners/managers often have difficulty delegating for a number of reasons. There might not be enough scope or room for these “power” dynamics in a small-sized entity. The study was aimed at finding out the reasons why SMEs owners/managers are reluctant to delegate authority to subordinates and how this affects performance. This study explores the various challenges facing SMEs in delegating responsibilities to employees. A qualitative research paradigm was used to explore and understand the challenges of delegation in SMEs. The target population for this study was SME owners in Johannesburg, Gauteng Province, South Africa. Participants were selected, based on their expertise and experience in running SMEs, through purposive sampling. A total of 15 participants shared their experiences and views through in-depth, semi-structured interviews. Results show that SMEs owners/managers are reluctant to delegate because of some of the following reasons, lack of management skills, lack of trust in their subordinates, incompetence, and oftentimes, fear that their subordinates might out-perform them. The study recommends small business owners to delegate as this practice enhances overall business performance.M.Com. (Strategic Management