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

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