Which organizational structure is typically used in small businesses where a few people make decisions?

The entrepreneurial structure is indeed the most accurate description of how decision-making typically operates in small businesses. In such environments, the business is often led by a small number of individuals, or even a single person, who have a direct influence over all major decisions. This type of structure allows for streamlined processes, as there are fewer layers of hierarchy between the leadership and operational staff, enabling quick responses to changes and innovation in the business environment.

Entrepreneurial structures also foster an agile approach, necessary for small businesses to adapt and grow, as those at the top can make strategic decisions rapidly without needing to consult many layers of management. This can be particularly important in the early stages of a business when rapid development and flexibility are crucial to success. As a result, the emphasis on central leadership and decision-making aligns closely with how small businesses function effectively in a competitive market.