Small Businesses


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



  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


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



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.



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.)



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


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.


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