Planning and control in the small business: Case studies from construction industry

This work is concerned with a comprehensive review of the importance of small businesses and the use of accounting and management systems for planning and control in a small business. Whatever definition of small business is used it is clear that the small business has played an important role in the U.K. economy during the 1980's. The small business faces many problems for example, limitations of the owner-manager, acquiring finding, and the lack of use of good accounting practices. The 1980's was a period of growth and for the small business to continue to flourish it must implement accounting and management information systems. There is no shortage of 'techniques' or 'technology'. The personal computer has brought computing power to the smallest business and there is no shortage of general purpose accounting software. The study has also considered the implementation of planning systems within two small construction companies; Bailey Group and B J Group. The two companies had implemented computerised accounting systems, one with considerable difficulties, but had not made the next step into planning and control systems. The system developed for the Bailey group was at the operational level (although some help was also given in the developing of a planning model) for site planning. The system developed for B J Group was at the strategic level; a comprehensive planning model for a new subsidiary. Both systems were developed in a well known spreadsheet package called Lotus 1-2-3 already available in the companies (if not widely used). This type of software has the advantage of offering an easy 'entry-point' to the less sophisticated and inexperienced user but offering an environment within which sophisticated models can be developed as the user becomes more experienced and ambitious - and this proved to be the case. Both systems created considerable interest and provided the stimulus for other work carried out within the companies.