Advantages And Disadvantages Of Small Business

Small businesses are very crucial for most countries in modern days as small businesses have become the most common form of business worldwide. In most countries, small businesses have become the backbone of their economy, helping in economic growth and social development (da Silva et al., 2014), especially countries in Asia-Pacific region. These are mostly due to the modern technologies, helping and encouraging small business to interact in exporting activities (Cui et al., 2014). Small business can be defined as a small scale firm that is usually owned, funded, managed and operated by its owners with limited staff number, financial resources and assets (Shaper et al., 2011). In this essay, I will explain about small business, then I will …show more content…
Thus, there are various definitions of small business depending on the national boundaries (Adisa et al., 2014). There are many differences between small and large business. Various main differences are there are more female owner-managers of small businesses, small businesses are less likely to export, small businesses have fewer employees, and they are commonly owned by one or two individuals (Shaper et al., 2011). Just as large businesses do, small businesses also have their own advantages and disadvantages. The advantages are small business’ owners have more direct control over the business, this include the business culture, products, and their decisions; small businesses owner will also be able to fulfill personal interests or personal goals, they can turn their hobby into a business; small businesses also have the potential to be a financial opportunities as they can be very profitable if manage properly; and lastly it benefits in long term, providing income and wealth to the children who inherit the business (Shaper et al., …show more content…
They are starting a whole new business from a scratch and buying an existing business. In order to succeed, the potential small business owners need to carefully consider several factors before deciding on whether to start a new business or buy an existing one. The first and most important factors to consider are the business opportunity and resources availability, and lastly the potential owner’s abilities (Shaper et al., 2014). According to the market situation, one of the two ways to start a small business may gain advantage. For example is resources availability. If the owner is considering to enter the competition where the resources are scarce, it would be best to buy an existing business rather than starting a new one, as it is easier to possess the resource with the influence and connection that an existing business already had (Marek,