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
Good customer service
- Personal service
- Owner’s preference
- Flexibility and Efficiency
- Lower costs
- Low barriers to entry
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
- Provides local jobs
- Some products may be cheaper
- More profitable and exhibit faster growth
- Stability for the future
- More flexible
- Specialised markets
- Not as much tax
- Not on a large scale – less customers/profit
- 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
- Good at time management
- Good communication skills
- Prepared to fail
- Risk taker
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.
This is something you can buy to use (e.g. – Food).
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.