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Small Businesses - Essay Example

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This research details the theoretical and practical aspects of setting up a small business, in relation to how worthwhile it will be to start up a new small business. Small business constitutes an important segment of the economy and it is estimated that around 98 % of all the business are small scale businesses…
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Small Businesses
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Download file to see previous pages From this research it is clear that business success or failure is not ultimately the result of fate or random chance, but there are good reasons why a business did well or the other one didn’t. When a business man plans to set up a business, he may have some initial concerns such as which particular business to be started, who are the main customers to be targeted, how much capital to be invested and what market to be concentrated etc. In today’s rigorously competitive market landscape, the main indicator for the success or failure of a business is the ability of the business to meet customers’ specific as well as general requirements and thus to ensure customers’ satisfaction. As Freeman emphasized, no one who starts their own small business plan to fail, but sadly they fail to plan and therefore they fail. No matter whether the business is small or big, developing a well thought about plan and comprehensive strategic planning is critical to setting a business successfully. In the modern business contexts, small businesses represent a good portion of the economy since it 1) provides increased employment opportunities, 2) Requires less gestation period, 3) encourages growth of local entrepreneurship and 4) improves the standard of living of the local people. In the UK alone, it is estimated that there are 3.7 million small businesses and this plays greater roles in its economy. A small scale business is one in which management is mostly independent and usually the manager is the owner, area of the operation is mainly local and ownership is held by an individual or small group of people. (Analoui and Karami ...Download file to see next pagesRead More
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