Small Businesses

SMEs

It is a business with fewer than 250 employees according to the European Union’s definition.

Why do firms choose to stay small?

  • Out of fear
  • Expanding may lead to losing all profit
  • May not be able to expand
  • Country Laws
  • No high demand
  • Expensive to hire people

How can small firms survive?

By advertising their business:

  • Social media
  • Posters
  • Talking

Good customer service

Cheaper

Why?

  1. Personal service
  2. Owner’s preference
  3. Flexibility and Efficiency
  4. Lower costs
  5. Low barriers to entry
  6. Monopolists

Small businesses competing with large businesses – How to over come the treat

  • They can be cheaper than large businesses
  • Involving the location – closer to customer’s home
  • It could link to the customer’s wants
  • Popularity – Heard good reviews
  • Some customers may know the owners of the small business making it easy and accessible
  • Hard working – market research

Economy

Advantages –

  • Provides local jobs
  • Some products may be cheaper
  • More profitable and exhibit faster growth
  • Stability for the future
  • More flexible
  • Specialised markets

Disadvantages –

  • Not as much tax
  • Not on a large scale – less customers/profit
  • Unknown
  • No brands
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Entrepreneurs

Overview

Someone who starts and runs a business.

He or she makes a product and sells it, or perhaps they provide a service.

They may work alone, or they may employ others.

 

Characteristics

There is a large list of characteristics involved with entrepreneurs, these include:

  • Acknowledge constructive criticism
  • Understanding
  • Polite
  • Determined
  • Organised
  • Brave
  • Good at time management
  • Committed
  • Positive
  • Passionate
  • Good communication skills
  • Creative
  • Prepared to fail
  • Risk taker

A Basic Introduction of AS Business

Hello everyone! I have created this blog so that I can use it for my own revision! I felt that it was a creative way in which I can remember the things needed for my exams in May. I have never done business before this point in my education so it’s all relatively new to me.

On this post I will be discussing the key words I learnt at the start of the school year in September! (If anyone has any suggestions as to how I can improve this, please feel free to leave a comment.)

 

Business 

When a sole trader/partnership make money while doing something they enjoy (.e.g. – A sports shop).

Enterprise 

This is the same as a business only it involves more risks.

A Good

This is something you can buy to use (e.g. – Food).

A Service

This is something that is provided (e.g. – Hair Dressers).

Needs and Wants

A need is something vital for survival; for example food, water and shelter.

A want is something you desire to have; for example a mobile phone, a car and video games.

Stakeholder

A stakeholder is any individual, or group of individuals, that is affected by the actions of an organisation.