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ABE HELOU
Dean, College of Business and Public Management
University of La Verne
Commercial
bankruptcies among the nation’s more than 25 million small businesses
increased by nearly 81 percent between June 2008 and June 2009.
According to Equifax, California topped the nation in commercial
bankruptcy filings. This clearly indicates small business owners’ lack
of understanding about how to best utilize their core assets: employees
and customers.
Business owners who are facing the
prospects of layoffs tend to disengage from their employees and avoid
discussing with them the economic reality of their enterprise. This
often complicates the situation and prevents the business owner from
capitalizing on the knowledge, creativity and problem-solving skills of
their employees. The objective of a business owner during an economic
downturn is to sustain his or her enterprise, and employees are an
integral part of any sustainable organization. Therefore, being candid
with employees and involving them in the process of finding ways to
sustain the enterprise will position a business owner to benefit both
during and after a recession. Business owners who engage their
employees in problem solving during lean times can usually avoid
layoffs by enacting temporary across-the-board pay reductions or by
lowering the total number of hours that each employee works.
Andrew J. Policano | Anil Puri | Esmael Adibi
Abe Helou | Linda A. Livingstone | Timothy Peters
Ahmad Hosseini | James G. Ellis
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ABE HELOUDean, College of Business and Public Management
University of La Verne
Commercial bankruptcies among the nation’s more than 25 million small businesses increased by nearly 81 percent between June 2008 and June 2009. According to Equifax, California topped the nation in commercial bankruptcy filings. This clearly indicates small business owners’ lack of understanding about how to best utilize their core assets: employees and customers.
Business owners who are facing the prospects of layoffs tend to disengage from their employees and avoid discussing with them the economic reality of their enterprise. This often complicates the situation and prevents the business owner from capitalizing on the knowledge, creativity and problem-solving skills of their employees. The objective of a business owner during an economic downturn is to sustain his or her enterprise, and employees are an integral part of any sustainable organization. Therefore, being candid with employees and involving them in the process of finding ways to sustain the enterprise will position a business owner to benefit both during and after a recession. Business owners who engage their employees in problem solving during lean times can usually avoid layoffs by enacting temporary across-the-board pay reductions or by lowering the total number of hours that each employee works.
Andrew J. Policano | Anil Puri | Esmael Adibi
Abe Helou | Linda A. Livingstone | Timothy Peters
Ahmad Hosseini | James G. Ellis
BACK TO MAIN PAGE
Abe Helou | Linda A. Livingstone | Timothy Peters
Ahmad Hosseini | James G. Ellis
BACK TO MAIN PAGE
