Some Characteristics of Small Businesses
“Management in a small business is independent in the real sense of the term. In most of the cases, the entrepreneur himself is the manager of all the aspects related to his business. ”
A business is said to be a small one when it has small amount of investment involved and the value and quantity of its output is also not big. Additionally, such a business employs a small number of workforce, uses a limited quantity of raw materials and has less complexity involved in its operations.
Management in a small business is independent in the real sense of the term. In most of the cases, the entrepreneur himself is the manager of all the aspects related to his business. If he cannot arrange all the capital himself, he ropes in the services of a small group of local people for the realization of his endeavor.
This business has more of the qualities of a family as all the workers are well in contact with the owner and the scale of operations seldom involves other states or far-flung areas.
The owner is left with no option but to reinvest his profit back in is business in case he is desirous of expanding it. It’s because he has to run his livelihood as well as meet all the expenses of his business from the profit itself. The owner is not in a position to set up a unit that is not related to his main business.
A small business also cannot think of capturing the market even in the wildest of its dreams. However, a cartel of a large number of related small businesses may become a significant force to reckon with far and wide.
The marketing of a small business also has to be done with the help of scanty means and scarce input. Pamphlets in newspapers, strip ads in the local cable network and announcement via speaks atop mobile vans are the effective means of marketing for small businesses.
Sometimes, the owners of small businesses approach the local management and training institutes and take the help of students studying there for the promotion of their newly launched products (usually after some kind of small donation to the institute). The students sell their products moving door to door and gain points in return that play a role in the final assessment of their course.
Author - DeeKay
Tags - Finance, Economy
This article was created by DailyOjo staff. Report Spam/Abuse