SMALL BUSINESS
What is a small business?
Small business are privately owned corporations, partnership, or sole proprietorships that have fewer employees and / or less annual revenue.
Describe the Cottage Industry
This is one that takes place in people's homes and is usually small scale.
small business owners provide the ''personal _______''
which large businesses are unable to achieve.
"Touch"
Large businesses can become too c_ _ _ L _x to handle.
COMPLEX
What is internal economies of scale?
This is producing more at lower cost per unit of output.
small businesses often find it difficult to get loans,
What are the options used to get money for the business?
Borrow money from relatives and friends
or access small loans through government agencies.
Name three common types of products in the cottage industry:
Textiles
Wood Furniture Products
Processed foods
Small businesses usually have small and manageable numbers of staff members…how is this an advantage?
Staff problems can be more easily detected and dealt with, staff relationships can be greatly enhanced.
Why would customers find the large organization too impersonal?
There may not be a personal touch from business owners and customers in a large organization.
Land, Labour, Capital & Entrepreneurship
What are the four factors of production?
What is a cottage industry?
This is a small manufacturing operation, often run out of a persons home
Name one benefit of the cottage industry
Use of raw materials, creation of local income and boosting tourism
Large businesses can obtain _____prices and discounts
special
In small businesses management may become lonely... Explain
In small businesses normally only one manager is in the businesses and they will not have a counterpart to consult when making a decision.
I am the advantage that a large business has over a smaller one in terms of being able to produce a larger output at a lower unit cost
I am a enterprise that has 6-15 employees
I am a small business
What does MSMEs mean?
Micro, Small Medium Enterprise
Often small business are located in small districts and towns not serviced by _______________
Large businesses
Lines of internal communication and management become unwieldy. True/False
True
What is financial economies of scale?
Large firms are able to obtain greater amounts of assets. This gives them and advantage of being able to access loans, they are also able to maintain better cash flow.
True or False: An advantage of being a small business is that it is easy to get funding
False
True or False: Cottage business usually rely on family as part of their labour
True
Why do you think small business provide a service to the community that large businesses do not always provide or do well with.
Large business do not provide a personal touch for its customers. They sometimes don't get feedback as to adjustments or changes that can be made to the product.
Managing the business becomes more difficult since there are so many business activities.
Small or large businesses
Large
What is managerial economies of scale.
as a firm expands its operation into a large scale production. The need for highly skilled and specialized managers are increases. This allows greater organization and control of the operation.