Values are the strong enduring beliefs and tenets that the company holds dear. A good leader must define and exhibit his or her values clearly to employees and customers alike. Examples of values are honesty, keeping promises, and providing customers with the best possible service and respect. Value statements have a direct impact on managing employees because they state how every individual within the small business are expected to behave. This behavior is towards each other, towards customers, towards suppliers (any relational businesses), and toward the community. A leader states the firm's aspirations for what it would like to be.



Small enterprises are often characterized by strong entrepreneurial leadership. As a small business grows and develops, the need for formal structures, systems, procedures, and controls increases. An entrepreneur leader may introduce strategic planning systems as part of this process. A strategic planning system is a set of integrated and coordinated commitments and actions intended to achieve a stated goal. A necessary component in the planning system of a successful leader is the mission statement. The mission statement defines a company's business and provides a clear view of what the company is trying to accomplish for its customers. It is more specific than the vision and provides more guidance. The mission statement guides the developing plans that can be implemented to fulfill the vision. Some examples of a mission statement include providing quality products, offering friendly service, and settling customer issues rapidly. The creation of a mission statement does not have to occur at the start up of the organization. As the founder, who is also the leader, pursues growth of the company, he/she must learn new skills and change from a ?doer? to a ?manager?. The mission statement keeps the founder's vision alive and prosperous, communicates the actions and behaviors necessary to do so, and allows a larger number of employees to comprehend the vision at one time.

There are two types of management of a small business: entrepreneurial management and professional management. The entrepreneurial management is characterized by the period of time that the founder/entrepreneur implements the start-up phase of the organization. The professional management is when the founder (entrepreneur) relinquishes control to additional professionals within the field by hiring managers and supervisors for the small business. The threshold firm is characterized by a firm that is at (or near) the point of transition from entrepreneurial to professional management. Some small organizations never grow past the first management type. Staying in the initial phase of a business does not mean the business fails. The leader of the organization determines whether the organization will transition based on his/her mission and vision; thus; determining the growth, structure, and organizational behaviors of the small firm. As long as the leader is aware of his/her vision, be it growth into a large corporation or remaining a one-man operation, the results will match the leadership.

The threshold firm needs a mission statement. Many small businesses fail to grow because the founder (manager) fails to make this transition. During the growth process, the leader may become increasingly removed and distant from employees. In doing so, the entrepreneurial vision may no longer be shared by new staff, new professional managers and new investors. The mission statement acts as the transitory stabilizer, sharing the actions needed to maintain the vision. The benefits of mission statements include developing a unity of purpose within the organization, providing a guide to behaviors and decisions and motivating staff. In addition, mission statements communicate the organization's image and enhance performance. Firms with an articulated customer service mission were more likely to keep quantitative measures of customer service performance, to survey customers and to monitor a large number of total customer service performance related activities. Another aspect of the mission statement can include an emphasis on survival. Employees then have a defined understanding that everything they do according to the mission statement relates to the survival of their own positions and earnings in addition to the greater good. Quality leadership means combining the vision, mission statement and values into the framework of the small business.