STRENGTH & WEAKNESS OF SMALL BUSINESS

Click to edit Master subtitle style AMEENA ASHRAF

S4 MBA

6/14/12

SMALL BUSINESS
It is privately owned and operated business with small no. of employees and low volume of sales.

6/14/12

STRENGTH
o

The enterprising spirit

The growth of small-scale industry has a vital role to play in the evolution of the entrepreneurial psyche in the social classes and geographical areas .
o

Employment Generation The small business is a job engine.Indian

economy is hugely dependent on small industries for its teeming millions who are unemployed

6/14/12

Distribution of economic power

The income benefit to small enterprise is derived by a large population, while large enterprises encounter more concentration of economic power.
o

Export potentiality

small firm have the advantage of low overheads and the capacity to respond quickly to changing condition.
o

Adjustability and Adaptability

Small firm have an exceptional quality of being able to adapt and adjust to changing and sometimes disruptive economic circumstances
6/14/12

Decentralization of industry

Helps to tap local resources : raw material, ideal spacing, local talents and also improves the standard of living in backward region.
Mobilization

of resources

The small enterprises are able to tap talent resources . small enterprises provide that envt which encourages a growing n/w of feeder and complimentary relation among plant and firms.
6/14/12

Variety in the product offered

Even when firms of different sizes produce ostensibly the same prdct,the qualities contained in different brands will differ markedly.
o

Social equilibrium

It enable the employment of less skilled people who otherwise have little scope of migrating and finding employment in larger industries.

6/14/12

Weakness
it

requires tremendous marketing and the planning and implementation of proper strategies. improper handling of loans or investments can often lead to the downfall of a small business very quickly. of authenticity:- Most people prefer to do business with established industries rather then to put their trust in small businesses which have several risk factors
6/14/12

The

Lack

 Non-payment

of loans or grants undertaken by the business owner, when he is not capable of running a business properly

6/14/12