Publication Date


Document Type


First Advisor

Green, Gerald G.||Novak, Ralph S.

Degree Name

M.S. (Master of Science)

Legacy Department

Department of Management


Small business--Management


The small businessman has a multitude of problems emanating from his position in the economy as a small competitor. The management consultant represents a potential source of external assistance available to the small businessman. The purpose of the investigation was to analyze the utilization of management consultants by small business. The study further attempts to acquaint the small businessman with the services of the management consultant and the utilization of these services. The study was based on an analysis of the following questions: 1. What services can the management consultant offer to small businessmen? 2. Why do small businessmen need outside aid? 3. When do small businessmen need help in solving their problems? 4. How does the small businessman select a qualified consultant? 5. What must the small businessman do in retaining and working with the management consultant? The data was gathered from periodicals, books, and government publications. The mentioned sources revealed the type of services offered by the management consultant and also the need for these services. Problems along with related literature were reviewed in order to determine when the small businessman should employ the services of the management consultant. The Small Business Administration offices in Washington, D.C. and Chicago were contacted for publications referred to as "Management Research Summaries" and "Small Marketers Aids." In cases where "Management Research Summaries" indicated a necessity for further investigation the entire research project was purchased from the author or authors. The study indicated a lack of effective communication between the management consultant and the small businessman. The lack of effective communication between the management consultant and the small businessman seemed to create a gap between the services available to small businessmen and the use of these services. The lack of specialized training and mixture of management abilities along with insufficient time to perform operations seemed to be dominant factors contributing to the high rate of small business failures. The fact that management is becoming more complex, specialized, scientific and professionalized coupled with the fact that competition is becoming greater should arouse the need for outside counsel by small businesses. The small businessman seemed to be aware of planning on a short range basis, but considers long-range planning an aspect of the larger organization. However, due to the availability of necessary information and the economic pressures of competition, long-range planning has become a necessity to both small business and large business. The small businessman when selecting a consultant should should evaluate proposal measures, investigate the possibility of conflicting interest situation, and check references of the consultant. The decision to employ a consultant should be the result of a group decision and not a unilateral decision. Specific end results are difficult to achieve when the consultant is forced upon employees who reflect his presence. The attainment of end results must be viewed by the client and the consultant as a mutual responsibility. The client, the consultant and the involved personnel should work together in order to: (a) plan and initiate the engagement; (b) execute the plans; (c) conclude the engagement.


Includes bibliographical references.||Includes multiple issues of the US Small Business Adminstration's "Management Research Summary."


iii, 67, 3, 4, 4, 4, 4, 4 pages




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