Executive Summary

Overview

The process of developing a set of core management skills that would be helpful to small business owner/operators is not a complex task. Getting small business owners together for a few days can easily produce a meaningful framework for skills, competencies and standards. Having education institutions, councils, unions, associations and governments buying into the process is the most time-consuming and challenging part. The National Retail Federation's experience in the US with industry standards is worth noting:

"Coming up with the standards isn't that difficult. What's hard is getting industry consensus, as well as input from unions and educators" ..." Its a buy-in process. We could have done standards in a day, but nobody would have cared"

It can take up to two years to develop the competencies for one standard given all the ground work that must be done before the standard can be published.

The process to put in place management competencies, skills and standards for small business owner/operators for use by sector councils should be a significantly shorter process for several reasons.

1. The Alberta Tourism Education Council has paved the way for the development of competencies , skills and standards for a small business owner/operator.

2. The buy-in and approval process does not need to be long and bureaucratic if existing structures are effectively integrated. The Canadian Tourism Human Resource Council provides a basis to build this process.

3. The five Councils representing the Sector Councils Steering Committee are committed to developing a set of generic competencies and skills sets for use by small business in their sectors and to be used by other Councils.

Project Approach

The primary objective of this project is to develop management competencies and skill sets for small business owner/operators. In order to effectively develop performance measures (standards) for these competencies and skill sets and implement learning programs some thought needs to be given to the frame work that would support and evolve these management standards. A working group of five Sector Councils, the Sector Council Coordinator, small business, Industry Canada and Human Resource Development Canada was set up to oversee the development of the project. The five Councils are Tourism, Automotive Repair, Impression 2000, Software and Horticulture.

The approach focussed on a review of several Sector Council standards programs and specifically those dealing with small business management. When all completed, components from these standards provide the framework for developing management competencies and skills of the small business owner/operator.

In addition, a brief review was conducted of small business certification and accreditation of management core skill sets , training delivery strategies as well as analysis of success and failure factors of small businesses.

A review of the Industry Canada's small business management training data base could not be undertaken since the data base is not yet complete and will not be released until later in the fall. Information is provided on the framework of this data base, as well as, reference to other sources of management training programs. This activity could be easily undertaken at a later date.

The results of these activities provided the following which are summarized in this Executive Summary:

• an outline of a set of competency blocks and core management skills that would lead to the development of a small business management standard; and,

• recommendations for a framework on small business management standard. Core Management Competencies and Skills

After reviewing management competencies, skills and standards, certification and accreditation programs of the participating councils and others the following have been identified as the key competency blocks necessary for a small business owner/manager to operate his/her business.

Competency Blocks

1. Business Planning
2. Marketing/Sales/Service
3. Fiscal Planning
4. Human Resource Management
5. Business Operations
6. Professionalism
7. Computer Technology*
8. Industry Awareness
9. The Business Cycle*

*not part of the Alberta Tourism Education Council

These competency blocks follow traditional functional activities in the operation of a small business and in the teaching of business management. The significant difference between management skills required by a small business owner/operator and management in a medium to large size organization is the small business owner needs to perform and/or be actively involved in all these functions, where as in the larger organization, marketing and human resource management for example, are line functions managed separately, usually reporting to another level of management.

Of these 9 competency blocks 7 are contained in the Alberta Tourism Education Council Standard for Small Business Operator. The Skills that are required for each one of these competencies are identified in Appendix I containing a draft of the small business owner/operator competencies, skills and major tasks required to perform the skill.

Some consideration should be given to a competency block for entreprenurial values (skills). Although, some of these attributes like leadership, motivation, creativity and initative are evident in professionalism, they are known to have a significant impact on success and failure of a small business venture.

At the outset of this project one of the premises of investigation was not to "reinvent the wheel". After careful examination of various management standards, learning and certification processes, the Alberta Tourism Education Council Standard for Small Business Operator provides an excellent core of competencies, skills sets and performance measures to build a broader framework for a small business owner/operator management standard. The Standard and the process to develop it are central to achieve buy-in from participating councils, government agencies and government departments. In fact, much of this paper is used to demonstrate the rationale for using this standard as an essential building block.

Recommendations- A Framework for a Small Business Management Competencies, Skills and Standard

The following recommendations are intended for the current working group to propose to the Sector Council Steering Committee:

• The Working Group propose the development of small business owner/operator management skills, competencies and standards based on the draft consultation report.

• An appropriate process be established to oversee the development of competencies, skills and standards for the small business owner/operator. This would include using the framework outlined by the Tourism Human Resource Council (Appendix 2) as a guide. One or two Committees of 10 - 16 representatives should be established with representatives from sector councils, small business, government agencies such as the CLFDB and Business Development Bank of Canada.

• Extend the mandate of the working committee to Identify other cross-industry standards issues for small business and management skills.

• The Sector Council Coordinating body act as the Secretariat for the committees.

   

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