Are Small Businesses Dependent on the Presence of the Owner?
Many small businesses begin as oneperson operations. Most small business owners put in extremely long
hours and seldom take vacations. Although such firms later employ other workers, the management style
and personality of the owner seem to be necessary to the survival of the firm. Here are some examples.
Ted and Ralph formed a partnership to operate a service station in a Prairie city. Both were on the
premises from 7 a.m. until closing at 8 p.m. Both were skilled at greeting the public and they made many
friends as business boomed. Although they maintained ownership of the station, Ted and Ralph began to
spend time away from work, leaving capable subordinates in charge. But the firm just wasn’t the same
without Ted and Ralph on hand, and business dropped. Ted and Ralph realized that to keep the station
highly successful, they both had to be on the premises.
For many years, Mabel and Theo Harker operated Harker’s Cafe in a large city in the East. Theo was the
chief cook, and Mabel waited on customers who sat at the counter. Although they hired several other
cooks and waitresses, Mabel and Theo were the stable core of the business. The two worked long hours,
and business seemed to go more smoothly when the owners were there. Realizing how important they
were personally to the success of the cafe, the Harkers never took a vacation and never left the cafe in the
hands of the hired staff. Instead, in late summer and around Christmas, the Harkers closed down the entire
cafe for a week at a time. Customers agreed that the place would not be Harker’s Cafe without Mabel and
Theo.
1. Why does it seem to be necessary for the owner(s) to be on the premises all the time?
2. Can there be personality cults in small business? Is it possible for customers to create a personality
cult around the owners of a business?
3. How might the owner go about reducing customers’ dependency upon the presence and/or personality
of the owner and leading customers to depend more on the business itself?
