University:
Central Arizona College
Course:
BUS122 | Small Business Management
Academic year:

2023
Views:

412

Pages:

2
Author:

Lucas H.

Characteristics of Small Businesses Independent ventures have their peculiarities that make them unique in comparison with the large companies. These include: 1. Size and Scale: Small business have less number of employees and less level of revenue than that of big business organizations. This option makes it possible for more flexibility and precise decision-making since you’re dealing directly with the capital market. 2. Owner Involvement: Business owners or the founders are typically involved in management and this may mean that they provide the role of manager, marketer and even the cashier. 3. Customer Relationships: Coombs (2005) explains how small business people have long term acquaintance with their clientele, which makes the patrons loyal. 4. Niche Markets: Some of the ventures are niche markets where they may be supplying and providing small goods or services that meet certain market demands. 5. Resource Constraints: Due to scarcity of funds and people, small business persons must utilize the available funds and personnel effectively and proactively which strengthens the Hick’s concept of resourcefulness. Entrepreneurial Mindset and Innovation ● It comprises of decision making, innovation, tolerance of risks and absorptive capacity. ● it’s important for entrepreneurs to be able to recognize a problem/situation, then create a new idea and solution, as well as continue persisting through all the problems that are inevitable. What entrenches small businesses is the factor of innovation. - It deals with the processes of bringing new products, services, or new efficient processes into the organization or the market. - Due to their flexibility, the small businesses can adopt more strategies in their operations and get to the market early enough. - Constantly promoting the values of innovation throughout the company is known to help establish long-term sources of competitive edge. Entrepreneurs should also learn issues that are fashionable within the industry or various technologies. ● it helps them align their business strategies and benefits from new opportunities that exist in the market. ● Interacting with other business people and attending trade shows can be helpful as it gives an overview of the industry and the people you can turn to in times of need.