Companies Don’t Grow in Developing Countries. Social Research Paper

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Why Companies Don’t Grow in Developing Countries
When companies grow, there is a reduction in unemployment, GDP growth, and an increase in disposable income. This growth requires the involvement of different stakeholders working together to achieve the firm’s goals and objectives. Nevertheless, not all firms that grow right from inception because of management and leadership issues. Companies are the economic growth drives of every country, which is why it is essential to determine the factors that make them not grow. These factors include leadership and administration, financial analysis, value proposition, customer satisfaction, and the firm’s values and goals. Once these factors are compromised, the company will remain in a stagnation stage or even fail. Therefore, companies in the third world country fail to grow because of mismanagement and improper prioritization.
Leadership and management failure make companies in developing countries not to grow. Leaders who exhibit poor management will struggle to maintain the company, which will eventually fail if there is no improvement or change in administration. Leaders with inadequate in making management decisions and inappropriate staff supervision will be a drawback for any company that is struggling to grow in third world countries. Disagreement among the top management teams will cause contradict the instructs they give to the staff. Often, when challenges that require top-notch problem-solving skills occur, leaders are usually reluctant to find solutions and take charge to address the issue. Eventually, the company will start shifting towards failure. Also, the dysfunctional management team will affect the operations of an institution, from employee productivity to financial management. Poor leadership can reduce the company’s employee engagement score. Ineffective leaders will transfer lousy work habits to the employees, which will create a cycle of negative consequences and eroding the fabrics of the team (Freemanand Siegfried Jr 35). Ineffective management programs and strategies will reverse the trends in the success of a firm. Incompetent leadership will fail to coordinate tasks with the various departments in a firm. It also impedes collaboration and makes workers focus inwardly on the role they play rather than the broader goals of the company. As a result, the firm experiences low turnover; therefore, not growing. This factor can make the company lack strategic focus and resources, and lack of work commitment to implement policies that will steer the company forward.
Finance is one of the pillars of the company’s success. Therefore, poor financial management will mark as a starting point for company failure. The company does not succeed because financial auditing does not account for any amount receives and spends at a given time. The inappropriate audit will make a company bankrupt, and it will keep on paying debts instead of generating more funds for development purposes. Some people start a company to make profits without considering the availability of skills that will propel the company forwards achieving the common goals. Poor tax flow, too many expenses, taxes,...