How Managers Are Affected When Small Businesses Grow

When small businesses expand, it brings about changes for managers — with consequences for their health.

A new study at the University of Gävle has investigated how the health and working conditions of managers are affected when businesses grow, and how expansion can occur without negatively impacting work health.

Elena Ahmadi FOTO: Anders Munck/Högskolan i Gävle

Elena Ahmadi FOTO: Anders Munck/Högskolan i Gävle

Elena Ahmadi is one of the first to research managers' health in small, growing businesses. In her doctoral thesis in work health science, she followed 20 managers in 12 companies in Gävleborg County, where the businesses experienced good growth and economic success.

Managers in small companies play a crucial role in their company's well-being and efficiency due to their central position. At the same time, managers in small businesses face unique challenges compared to larger companies. Previous research has shown a connection between managers' well-being, their leadership, and employee health.

Impact on Productivity

Growth creates jobs and often leads to economic success, but it also brings organizational changes. How this growth and these changes affect managers' work health remains unexplored.

“How managers feel impacts their leadership behavior and their company’s productivity. My research shows that managers were more productive when they felt well. For example, they spent more time on the floor talking with employees, showed more appreciation, and were open to engagement. When they didn’t feel well, they were less social, less solution-oriented, and more critical of their surroundings,” says Elena Ahmadi.

There are several significant differences between being a manager in a small business and a larger one, particularly in terms of health risks. Small businesses are more vulnerable because they have fewer employees, which means the manager often has to work more operationally and sometimes fill in for absent employees. It’s also common for managers in small businesses to be both the owner and entrepreneur driving the company, which comes with its own set of pressures.

“Most of the managers I met during my studies felt well and had a good work-life balance, but the job had certainly been a challenge for them at times. It becomes a burden when there are few people in the company, and the manager has to step in when it’s not really intended,” says Elena Ahmadi.

“At the same time, when they look back to when the company was smaller, they recall working long hours, evenings, and weekends. Some worked up to 100 hours per week for several years. Many report that they didn’t feel well, experienced physical and mental health problems, and had a poor work-life balance.”

"Managers Need to Prepare for Growth"

As small businesses grow, gain more resources, and hire more staff, it often results in an improvement in the working environment for managers, as tasks can be delegated more, freeing up time and reducing the burden on managers.

“Managers can move away from being a jack-of-all-trades and take on a more defined leadership role. They describe this as resulting in less workload, fewer working hours, and a better work-life balance,” says Elena Ahmadi.

But the growth phase can also be demanding. It can lead to uncertainty within the organization and requires adjustments to handle the expansion.

“Managers emphasize the need to prepare the organization for growth, create a more developed structure, better routines, and expanded leadership at multiple levels,” says Elena Ahmadi.

Facts

About the study:
Managers in the context of small business growth: a qualitative study of working conditions and wellbeing | BMC Public Health (springer.com) examined managers' well-being and working conditions in small businesses (between 4 and 50 employees) with various levels of growth. Growth was a part of the business context.

About the dissertation:
The dissertation focuses on managers' work, working conditions, and well-being in small growing companies (Managers’ Work, Working Conditions, and Wellbeing in Small Companies with Profitable Growth (diva-portal.org)). The studies in the dissertation examined: managers' work in SMEs with profitable growth (1), how managers' well-being affects their leadership (2), factors influencing managers' well-being (3), and how managers experience their working environment and well-being in relation to growth (4).

About Framför:
The dissertation follows a regional project called Framför (Successful Companies in Gästrikland), which has been ongoing for 24 years in collaboration between the University of Gävle, business organizations, and municipalities in Gästrikland. The Framför project annually awards the 50 most successful companies in Gästrikland. The project nominates 120 companies, ranking highest in economic performance among other companies in Gästrikland. The nomination emphasizes growth with maintained profitability. University students interview the nominated companies, and then 50 companies are selected to receive a diploma during a festive event, celebrated at the university, where all companies and the county governor are invited. Elena Ahmadi has followed the project for several years, studying the companies nominated for the award.

How Small Businesses Can Expand Without Compromising Work Health

  • Prioritize health and well-being. Be attentive, present, and supportive as a leader, and most importantly, don't forget your own well-being. The health of managers influences their performance and trickles down to employees. Elena Ahmadi’s research shows that managers were more constructive when they felt good and could even be destructive when they were not.
  • Mentorship. It is beneficial if an experienced person within the organization can mentor or coach the manager, such as a board member who has been through a similar "journey" before. Experience with expansions is invaluable when forming a new organization, not only to avoid unnecessary mistakes but also to provide reassurance and reduce stress, which impacts work health.
  • Prepare for the new organization. Growth often leads to staff turnover and new roles for both new hires and existing staff. Managers need to be prepared for this—it may initially mean more work even though hiring new staff will reduce the manager’s workload in the long run.
  • Foster a positive social climate with trusting relationships and regular interaction with employees. This benefits both managers’ and employees’ well-being, which in turn contributes to a healthy and efficient workplace. Satisfied and healthy employees are a protective factor for the manager's own well-being, as shown in the studies, and lead to increased productivity. Healthy employees give energy and contribute to a positive work environment.
  • Maintain close relationships with employees and practice an active and engaged leadership style, which often characterizes small businesses, even as the company grows. This can be done by distributing leadership across various levels and involving more people in leadership roles (sub-managers and team leaders).
  • Support for new managers. Expansion often involves hiring new managers. If they are inexperienced, they will need extra support to grow into their roles.

4o

Kontaktperson

Elena Ahmadi

Doktor i arbetshälsovetenskap

Kontaktperson

Anders Munck, profilbild

Anders Munck

Press Manager

This page was last updated 2024-10-03