Importance and Benefits of Small Bussiness

IMPORTANCE AND BENEFITS OF SMALL BUSSINESS :
Importance
Many businesses start as one person's idea. The creator is often an entrepreneur who spots a gap
in the market or a commercial opportunity. S/he turns the idea into a marketable product or
service. There are four main types of business: manufacturing, wholesale, retail and service.
Some characteristics found in successful entrepreneurs, show they are:
 prepared to take risks
 driven by achievement
 not put off by failure
 self motivated
 determined to stay ahead of the competition.
Small businesses are vital to the success of the economy. Not only as they provide the success
stories of the future, but also because they meet local needs (e.g. hairdresser, financial
consultant, emergency plumber). They serve the requirements of larger businesses e.g. for
photography services, printed stationery, catering and routine maintenance.
Of course, you don't have to set up your own enterprise to be enterprising. Being entrepreneurial
simply means developing the right skills, attitudes and initiatives to make an innovative
contribution to an organisation. This case study gives you some idea of what is involved and how
exciting it can be.
The number of small businesses Most UK businesses today are small. Two thirds are owned and
run by one person. Nearly 90% employ less than 6 people. They are also an important source of
employment. Just over 2.5 million UK workers are self employed; one in eight of all workers. It
is from these small companies that tomorrow's big names will probably arise.
Benefits
Small businesses survive and prosper for many different reasons:
 Developing personal relationships
Small businesses are well placed to build personal relationships with customers, employees, and
suppliers. With a small business you know who you are dealing with; you can 'put a face' to the
person you are in contact with. Person-to-person interaction is as important as ever in building
strong relationships.
 Responding flexibly to problems and challenges
In a small business there is little hierarchy or chain of command. Large businesses may have set
ways of operating and establish procedures that are hard to change. Small businesses are often
far more flexible. It can also reach a quick decision on whether or not it can do what is required.
 Inventiveness and innovation
Small businesses are well positioned to introduce and develop new ideas. This is due to their
owners not having to report or seek approval from anyone else. For example, when Anita
Roddick set up The Body Shop, she developed a range of environmentally friendly cosmetics in
unsophisticated packaging. This would have been frowned on in a conventional cosmetics
company.
 Low overheads
Due to the small scale of operation, small businesses have lower overhead costs. They operate in
small premises with low heating and lighting costs, and limited rent and rates to pay. Low costs
result in lower prices for consumers.
 Catering for limited or niche markets
Large firms with high overheads must produce high levels of output to spread costs. By contrast,
small firms are able to make a profit on much lower sales figures. They can therefore sell into
much smaller markets: e.g. a local window cleaner serving a few hundred houses, a specialist
jewellery maker with personal clients.
The main reason many people choose to set up a small business, is because it gives them
independence. They also reap the rewards for themselves; these are two powerful incentives.
Importance of Entrepreneurship Education
Entrepreneurship is a key driver of our economy. Wealth and a high majority of jobs
are created by small businesses started by entrepreneurially minded individuals, many of
whom go on to create big businesses. People exposed to entrepreneurship frequently
express that they have more opportunity to exercise creative freedoms, higher self esteem,
and an overall greater sense of control over their own lives. As a result, many experienced
business people political leaders, economists, and educators believe that fostering a robust
entrepreneurial culture will maximize individual and collective economic and social success
on a local, national, and global scale. It is with this in mind that the National Standards for
Entrepreneurship Education were developed: to prepare youth and adults to succeed in an
entrepreneurial economy.
Entrepreneurship education is a lifelong learning process, starting as early as

elementary school and progressing through all levels of education, including adult
education. The Standards and their supporting Performance Indicators are a framework for
teachers to use in building appropriate objectives, learning activities, and assessments for
their target audience. Using this framework, students will have: progressively more
challenging educational activities; experiences that will enable them to develop the insight
needed to discover and create entrepreneurial opportunities; and the expertise to
successfully start and manage their own businesses to take advantage of these
opportunities.

Importance and Benefits of Small Bussiness

Uploaded by

Copyright:

Available Formats

Importance and Benefits of Small Bussiness

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Importance and Benefits of Small Bussiness

Uploaded by

Copyright:

Available Formats

IMPORTANCE AND BENEFITS OF SMALL BUSSINESS :

Some characteristics found in successful entrepreneurs, show they are:

 prepared to take risks

 not put off by failure

 determined to stay ahead of the competition.

Small businesses survive and prosper for many different reasons:

 Developing personal relationships

 Responding flexibly to problems and challenges

 Inventiveness and innovation

 Catering for limited or niche markets

Entrepreneurship education is a lifelong learning process, starting as early as

You might also like