Senior Leaders in Small Enterprises: Insights Into the Field of Entrepreneurship

The focal article (Reynolds, McCauley, Tsacoumis, and the Jeanneret Symposium Participants, 2018) reviewed and discussed the challenges, practices, and opportunities for the assessment and development for senior leaders. They summarized a set of accepted wisdom for assessing senior leaders in the areas of assessment criteria, contexts, and implementation, and meanwhile, pointed out what should be explored and done in the future. One of the central premises of the focal article seems to be built on the assumption that organizations may have sufficient resources to follow the accepted wisdom to ensure the quality and effectiveness of assessment and development for senior leaders. In addition, most, if not all, of the research findings summarized and discussed in the focal article may be based on the studies under the context of established companies. Hence, whether the implications and suggestions from the focal article can generalize to small enterprises remain an open question. For example, a typical small enterprise in the United States is a company capitalized with about $25,000 (Shane, 2009). Most of these enterprises are highly centralized, have negative cash flow, and have troubles in securing cash and in obtaining customer acceptance (Rutherford & Buller, 2007). Thus, these companies may not be able to follow the accepted wisdom as recommended in the focal article. We realize that some small businesses and start-ups are extremely well funded, so our following comments apply only to those small enterprises with scarce resources.