1.

MUHAMMAD AUFA RAFIQ BIN MOHD ANUAR UDC210258

2.AHMED ZUBAIR BIN ZAINALABIDIN SEBLI UDC210352
3. DANISH HAIKAL BIN MAHMUD ZAUDI
UDC210256
4. HARIZ IRFAN BIN AZMAN UDC210247
5. SITI HUMAIRAH BT ABDUL RAHIM UDC210337
6. MUHAMMMAD AIMAN BIN MOHD AFZAL KUMAR
UDC210145
7. LETICIA KAY FAUSTINA NONIS
UDC210274
Small Business and Entrepreneurship UECB 2102
Tutorial Discussion Questions

1. Explain three (3) reasons why small firms are

important to all national economies.
Small firms are important to all national economies for several reasons, including:

Job Creation: Small firms are significant job creators in any economy. They often
provide more employment opportunities than larger firms, and because of their
smaller size, they tend to be more agile and responsive to changes in demand
and market conditions. This ability to adapt quickly enables them to create new
jobs quickly, which can help to reduce unemployment rates and support
economic growth.

Innovation: Small firms are often the driving force behind innovation and
technological advancement in many industries. They are more likely to take risks
and pursue new ideas and concepts, which can result in the development of new
products, services, and business models. This innovation can lead to increased
competition, which benefits consumers and encourages further innovation and
growth in the economy.

Economic Diversity: Small firms contribute to economic diversity by creating new

markets and opportunities for different industries. They often specialize in niche
markets or offer specialized products or services that larger firms may not be
able to provide profitably. This diversification helps to reduce the dependence of
the economy on a few large firms or industries and creates a more resilient
economy that is better able to withstand economic shocks and fluctuations.

Overall, small firms play a vital role in supporting economic growth and
development, creating jobs, fostering innovation, and promoting economic
diversity. Their importance to national economies cannot be overstated, and they
should be supported and nurtured to ensure continued success and prosperity .
2. Explain three (3) advantages and three (3)
disadvantages of small business.
Advantages of Small Businesses:
1. Flexibility and Adaptability: Small businesses are often more flexible and
adaptable to change than larger organizations. They can quickly respond to
changes in customer needs, market conditions, and industry trends. This agility
allows small businesses to be more innovative and responsive to emerging
opportunities and challenges.

2. Personalized Customer Service: Small businesses can provide personalized

customer service to their clients, which is often difficult for larger organizations.
They can build strong relationships with their customers and provide tailored
solutions to meet their specific needs. This personalized attention can lead to
increased customer loyalty, referrals, and positive word-of-mouth advertising.

3. Entrepreneurial Spirit: Small businesses are often started by entrepreneurs who

have a passion for their product or service. This passion drives them to work
hard, innovate, and succeed. The entrepreneurial spirit that fuels small
businesses can lead to innovative products and services, increased competition,
and job creation.

Disadvantages of Small Businesses:

1. Limited Resources: Small businesses often have limited resources, including
financial, personnel, and technological. These limitations can make it difficult for
small businesses to compete with larger organizations or invest in new
technologies and infrastructure.

2. Risk of Failure: Small businesses are more vulnerable to failure than larger
organizations. They may not have the financial reserves or access to credit to
weather economic downturns or other unexpected events. This risk can make it
challenging for small businesses to secure funding, attract customers, or build a
stable customer base.

3. Time Constraints: Small business owners often have to wear many hats,
including managing finances, operations, marketing, and personnel. This juggling
act can lead to time constraints and stress, which can affect the owner's ability to
focus on critical tasks, make sound decisions, or maintain a healthy work-life
balance.