Nobody downloaded yet

How can microeconomics help small business owners - Essay Example

Comments (0) Cite this document
Summary
Economics is the study and exercise of choice, it is therefore concerned with the manner in which the human wants and desires of people are converted into a number of material goods and services through careful use of scarce and productive resources (Todaro, 1982). Economics is…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.6% of users find it useful
How can microeconomics help small business owners
Read TextPreview

Extract of sample "How can microeconomics help small business owners"

Download file to see previous pages Microeconomics derived from the Greek word “mikros” which means small, deals with a part of the economy rather than the whole. It deals with total output, total employment, total spending but in relation to single firms and single households. Microeconomics seeks to understand the individual consumer, the buying decisions that are made at this level and the different factors that affect the consumer behavior.
The subject matter of microeconomics is mainly commodity pricing, factor pricing and welfare theory. Commodity pricing entails how prices of commodities are affected by market forces of demand and supply. The price of commodities usually determines the demand of the products by the consumer. Factor pricing are the determination of rewards for the different factors in the production process that include land, labor, and capital. These earn the business rewards in terms of wages, rents, interest and profits. Welfare theory explains the optimum allocation of resources in order to maximize utility. It is therefore crucial for small business owners to understand more about the consumers and different factors that affect the spending behavior of consumers such as price of products, income and supply
Any business whether start-up or on-going needs to undertake a research of the market and actually draw up its business plan before starting operations. This gives the business its objectives and goals and provides sense of direction in the market. The following are some of the ways in which micro economics aids small business owners achieve their business goals and objectives:
Understanding the individual behavior of the consumer. Consumer decision making is the most critical aspect of the micro economics as consumer spending makes up the highest part of the economy. Consumers after spending usually save surplus invest and put away for future use. Microeconomics determines how much a household save, for how long and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“How can microeconomics help small business owners Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1687234-how-can-microeconomics-help-small-business-owners
(How Can Microeconomics Help Small Business Owners Essay)
https://studentshare.org/macro-microeconomics/1687234-how-can-microeconomics-help-small-business-owners.
“How Can Microeconomics Help Small Business Owners Essay”, n.d. https://studentshare.org/macro-microeconomics/1687234-how-can-microeconomics-help-small-business-owners.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF How can microeconomics help small business owners

The characteristics of small business owners&8223, and the nature of small business in general

...) goals ((Deakins, and Freel, 2009). By setting SMART goals, small business owners can maximize the use of their limited resources and minimize risks. Aside from being able to spot opportunities quickly, small business owners must know how to generate the right kind of information to conduct a thorough analysis of the risk involved in the business. Taking risks is very important in any business endeavors and for small business owners to survive the fierce market competition; they need to take calculated risks by factoring...
6 Pages(1500 words)Essay

How social commerce help business

...? How Social Commerce Help Business Introduction Social commerce is often considered as an emerging tool assisting businesses to execute their operations with a better communication facility. To be more specific, social commerce is regarded as a process of performing business transaction through internet technologies. In this regard, social media as well as social networking technologies are recognized to create a greater positive impact on businesses. Social commerce is further determined to possess four major elements which include business, people, technology as well as information where each of these factors are...
8 Pages(2000 words)Essay

Small business

...? Are there long-term employers in the area? Is the region's economy stable? Are there seasonal variations? 11 Your customers 11 S.W.O.T. analysis[List each of your businesses strengths, weaknesses, opportunities or threats in the table below and then outline how you plan to address each of the weaknesses/threats.] 11 Your competitors[How do you rate against your competitors? How can your business improve on what they offer?] 11 Advertising & sales 12 Vision statement[What is your business' vision statement? It should briefly outline your future plan for the business and include your overall goals.] 13...
4 Pages(1000 words)Assignment

Globalization: A Microeconomic Approach

...(or no) control over the price. The competition between private small oil companies is enough but oil producers should have more competition to avoid a cartel-like effect. Also, competition is capable of leading prices to go down. Insights Gained from Microeconomics With all the knowledge I have gained from Microeconomics, I realized that economics is not just about dealing with business, poverty, stock markets, exchange rates, and those other things that we usually see on television. We encounter economics in our everyday lives in the form of prices, goods, establishments, and even ourselves, as consumers. I have also learned that studying the concept of elasticity is...
7 Pages(1750 words)Book Report/Review

Small business

.... The premises have been secured at £2.500 per month. ABS & Associates is considered a complete ‘accounting and consultancy firm. We will offer a wide range of services, some of which will include: Tax Consultancy: ABS & Associates will assist businesses, individuals and other entities with tax strategy, planning, and compliance. ABS & Associates will also be delivering a wide range of business advisory services through its dedicated tax professionals spread all over the country. Our cream of tax consultants, lawyers and other in house resources will be the idea integrated solution to the client’s problems. Audit and Assurance: At ABS, our pool of human capital and resources will...
10 Pages(2500 words)Essay

Small business

...outlets and sell their nutritious foods in at least ten festivals in the UK consistently and further increase this number by two festivals annually. This will be made easier by the increase in number of festivals held in the UK. Participation will definitely lead to a higher number of customers and subsequent success of the business. This is also the only way that the business will gain the prominence and fame it intends to achieve. The team also intends to carry out both verbal interviews and distributed questionnaires to capture the opinions of the festival goers and get their preferences where food is concerned. There is also a plan to give samples in small festivals so as to attract...
4 Pages(1000 words)Essay

How can knowledge of macro and microeconomics help the small business owner today The large multi-national corporation

...Number and Number Importance of Macro- and Microeconomics to Small and Large Business OwnersMicroeconomics discusses the basic supply and demand curve. Basically, business owners should be aware that they can take advantage to increase the market prices of their goods and services in case demand exceeds supply. On the other hand, business owners should lower down the market prices of their goods and services in case supply is more than its demand. On top of the basic supply and demand theory, the study of economics also makes business...
1 Pages(250 words)Essay

Small Business

...cannot compete with the rest, researching on their behalf and then providing the findings that enable them know the opportunities present in the federal government that they can benefit from, teaching them sustainability techniques, acquisition processes and even opportunities for contracts. How passing of “The Historical Underutilized Business Zone (HUBZone) Act, 15 U.S.C. 631 of 1997, increases the chances of landing a government contract. The HUBZone is a program by the federal government that provides contracting assistance from the federal government to small businesses that are located in the historically underutilized business...
2 Pages(500 words)Essay

Small business

...How does the Entrepreneurial Mindset Add Value in the Business Environment March 28, Introduction The fast evolving pace of business environments demands a fundamental change in the manner in which business is conducted. Part of the fundamental change is represented by the entrepreneurial spirit, and it becomes an important factor when adjudging performance of businesses. In business psychology, entrepreneurial personalities share some given characters: a successful entrepreneur is highly motivated, creative, opportunistic and proactive. In the contemporary setting, the General Enterprise Tendency (GET) test can be used...
4 Pages(1000 words)Assignment

Small Business

...Business Plan Introduction Jacob’s Grill is a small restaurant that serves a loyal s who go the restaurant every evening and weekends to enjoy custom meals. The main food is grill food and drinks, both alcoholic and non alcoholic. Strategy to compete with Jacob’s Grill Timely meals and drinks An observation of Jacob’s Grill indicates that one of the challenges that it faces is with regard to how they are able to serve their customers. They are not able to predict demand for the day and this means that they are not able to serve the customers effectively and fast. When a customer orders for a custom meal, the customer has to wait for too long and this means that customer satisfaction is...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic How can microeconomics help small business owners for FREE!

Contact Us