In the present-day world, businesses face numerous risks, and their ability to overcome them positively correlates with their chances for survival in the future. The possibility of bankruptcy evokes significant concerns in entrepreneurs regardless of their experience in the field and position on the market (“The primary reasons why businesses become bankrupt are ineffective management and ineffective leadership,” 2019). However, the financial aspect of the matter does not necessarily present the sole threat to their success since ineffectiveness in management and leadership within organizations has a predominant impact on this area.
The attention to this topic is defined by the increasing competition in the market and the necessity to create a competitive advantage based on different components. Most companies tend to pay greater attention to specific elements, such as the conditions of the marketplace, financial indicators and predictions in this respect, accidents, and tax-related problems (“The primary reasons why businesses become bankrupt are ineffective management and ineffective leadership,” 2019).
They can be collectively referred to as the monetary aspect of their activity. Meanwhile, to ensure the proper functioning in these areas, it is vital to promote leadership skills among employees at different levels so that they could efficiently manage them. The failure to do so would indicate inappropriate decisions of a company, which, consequently, might increase the risks of bankruptcy.
Thus, it is critical to thoroughly examine the presented issue from the perspective of the abilities of business owners and their personnel to develop a set of strategic actions. It is essential for the management of all operations and can be achieved through enhancing leadership. Further consideration of this idea should be performed concerning employees’ soft skills allowing them to establish a model for others to make correct decisions.
Reference
The primary reasons why businesses become bankrupt are ineffective management and ineffective leadership. (2019). ELITE Institute. Web.