For small private enterprises, the boss has great influence on the enterprise. The leading core of this small private enterprise is generally the entrepreneur, that is, the boss. The motivation and quality of the boss basically determine the direction, goal and execution ability of the enterprise, and the leadership style of the boss often determines the management style of the manager and the behavior style of the employees. The operators of such small private enterprises are also owners, and the operators are only responsible for themselves, and everything is up to them. Therefore, from such characteristics, the internal control environment of small private enterprises is poor, and it is difficult to establish and implement strict internal control systems.
Small private enterprises are small in scale and relatively simple in organizational structure, and their systems and processes are not as complete and standardized as those of large enterprises, and their structures, systems and processes are in dynamic and rapid changes. Due to the imperfect and changeable system and organizational structure, it is impossible to implement effective budget control and performance appraisal, which makes the advantages of budget management and performance management in internal control unable to play.
Small private enterprises have few staff, flat management structure, overlapping internal post setting and division of responsibilities, and the phenomenon of multiple posts for one person is common. In addition, employees can communicate face to face conveniently. Because of the directness of communication, and the relationship between entrepreneurs and employees in key positions is mostly blood, hometown, school, etc., enterprises often have a strong color of "home", with more emotional factors and heavier human feelings. Companies rely more on "people" to maintain their organization, while rationality has a weaker flavor. That is, "rule by man" is more than "rule by law", so standardized assessment cannot be used.