Filed at 1:30 pm under Financial by admin
A small business is low in capital but high in labor intensity. Most small businesses do not have sufficient financial resources. So they cannot purchase big machines or modern equipment. What is only possible for them to do is to use labor instead of machine in their business operations. These are usually in retailing and service industries.
A small business is efficient specialized skill or service. It can well produce goods or services that are designed to the particular needs of an individuals or a few clients. For instances, repair works on cars and appliances require individualized service. Also taikors, barbers, real estate agents and other provide services that require specialized knowledge for specific needs.
A small business succeeds in small, isolated or overlooked markets. In rural communities where markets are small due to the few redidents, a small business is viable. For example, a convenient store, tailoring shops, small restaurant and grocery stores are profitable enterprises. Clearly, giant corporations cannot survive in small towns where demand is limited.
A small business often operates in unstable markets. Big corporations are careful in their investments. To be sure of safe in their business ventures, they conduct, market or feasibility studies to determine viability. This is actually the standard procedure in putting up a business which involves huge resources in terms of money, machines and materials. Such feasibility studies do not apply in most small businesses. With little capital, they are not afraid to experiment or test the market. They can easily respond to changing economic conditions. if these are not favorable, they can quickly get out. Unlike big corporations, they have a big buildings or large factories. It is not eay for them to retreat from business wthout suffering from huge losses.
Filed at 1:25 pm under Relationship by admin
Personalized Personalized relationships wih customers and employees. Retailer and shop owners deal with their customers on personalized services. The owners know many of their customers by name. The small business owners are involved in social, cultural and political affairs in the community. Such personalized services or relationships with customers are a big economic advantage which big corporations do not have. There is also a close relationship between owners and employees. Because of this good and informal relationship, efficient employees give their loyalty to their employers.
Flexibility in management. The owner being the boss and the manager, he can easily introduce changes in his products or services, experiment on price strategies or change store hours to fit market conditions. Furthermore, small business owners are quick to learn changes in the needs and interests of their customers, and also the activities of their competitors. So , they can immediately respond to such situations.
Government incentives. The national government has been promoting the organization of small enterprises. It extends both financial and technical assistance, particularly production an marketing, to small entrepreneurs. Such programs of the government are releant to the nature of our economy. The masses have to be helped in helping themselves.A micro business is possible for them through government guidance and assistance.
Simple record keeping. Small enterprises require few and simple sets of records. They may consists only of a cash receipt journal which records all sales, and a cash disbursement journal which records all expenses or payments.
Independence. Small business owners are the masters of their own destinies. They are ot employees. They make their own decisions. They do noy apply for vacation or sick leaves. They do not worry about being late, absent or laid off. to many individuals, this is thekind of life they enjoy. wih customers and employees. Retailer and shop owners deal with their customers on personalized services. The owners know many of their customers by name. The small business owners are involved in social, cultural and political affairs in the community. Such personalized services or relationships with customers are a big economic advantage which big corporations do not have. There is also a close relationship between owners and employees. Because of this good and informal relationship, efficient employees give their loyalty to their employers.
Flexibility in management. The owner being the boss and the manager, he can easily introduce changes in his products or services, experiment on price strategies or change store hours to fit market conditions. Furthermore, small business owners are quick to learn changes in the needs and interests of their customers, and also the activities of their competitors. So , they can immediately respond to such situations.
Government incentives. The national government has been promoting the organization of small enterprises. It extends both financial and technical assistance, particularly production an marketing, to small entrepreneurs. Such programs of the government are releant to the nature of our economy. The masses have to be helped in helping themselves.A micro business is possible for them through government guidance and assistance.
Simple record keeping. Small enterprises require few and simple sets of records. They may consists only of a cash receipt journal which records all sales, and a cash disbursement journal which records all expenses or payments.
Independence. Small business owners are the masters of their own destinies. They are ot employees. They make their own decisions. They do noy apply for vacation or sick leaves. They do not worry about being late, absent or laid off. to many individuals, this is thekind of life they enjoy.
