Management skills that impact the organizational performance of small businesses: Literature review

Abstract

Background. Small and medium-sized enterprises (SMEs) are vital for global economic growth and job creation. However, they face significant challenges threatening their survival, such as high failure rates and the need for leaders capable of managing resources and adapting rapidly to market changes. Objective. This study aims to identify the managerial skills impacting the organizational performance of small businesses, providing guidance for their leaders. By doing so, it contributes to Sustainable Development Goal 8, promoting inclusive and sustainable economic growth through more effective management in SMEs and encouraging quality job creation. Methodology. A qualitative and exploratory approach was employed through a literature review. Research articles (80% of sources) were prioritized and complemented with books (20%), selected from studies published between 2019 and 2024. Searches were conducted in academic databases such as Google Scholar, Redalyc, and Dialnet, using keywords like "managerial skills," "organizational performance," "small businesses," and "leadership." Through matching matrices, key managerial skills essential for SME success were identified. Results. The literature review indicates that leadership and effective communication are crucial for organizational performance in small businesses. Additionally, competencies such as management, strategic thinking, and problem-solving are frequently mentioned. Conclusions. This study provides leaders with insights into key managerial skills that can enhance their adaptability and strategic response in a dynamic business environment, benefiting their companies' performance and sustainability.