REASONS FOR THE CONTINUED EXISTENCE OF SMALL SCALE BUSINESS

 REASONS FOR THE CONTINUED SURVIVAL OF SMALL SCALE BUSINESS UNITS

There are so many reasons for the continued survival of small scale businesses and industries. Some of the reasons are outlined as follows

small scale business

  • Small capital requirement: The small scale business requires small capital to set up.
  •  Easy to establish: The small scale business units are easy to set up or establish since no formalities are required.
  •  Provision of incentive for hard work:

There is always incentive for hard work since ownership instills pride and drive for success.

 small scale business

small scale business enjoy customer’s loyalty: Small scale business units always enjoy customers’ loyalty and good relationship, which ensure continued patronage.

ddgoods and services

  •  Ability to change policies: The policies of the business can be easily and quickly changed to meet with the changing needs of the customers.

  •  Low level of risks: The small scale business outfit usually involves low 1 of risks.
  •  Low overhead cost: The overhead « involved in small scale business is very low.

small scale business

  •  They meet the special needs customers: Small scale business i~ the peculiar needs of customers keeping variety of goods from w consumers can choose. read scale of preference here
  •  Availability of goods in remote areas: The small scale business also ensures goods are distributed to remote areas.
  •  Some serve the need of larger firms: Many small scale businesses serve need or provide the requirements of firms.

let us know what you think

This site uses Akismet to reduce spam. Learn how your comment data is processed.