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Advantages and disadvantages of small businesses

Advantages and disadvantages of small businesses

Answers

Faith
Advantages of Being Small
1. Freedom of action and decision making for owner, manager
2. The owner, manager can take quick decisions/actions where situations change. (No need to consult with others).
3. Little working capital—so many Kenyans can start small businesses.
4. Better supervision and control.
5. Since owners are members of local community they can assess market needs better.

Disadvantages of Being Small
1. Lack of specialization the owner manager does all activities, buying, store-keeping, personnel, accounting, marketing, etc.
2. Difficulties in raising additional capital either for expansion or renovations.
3. Cannot attract qualified employees as it does not offer job security.
4. Lack of continuity.
Titany answered the question on October 26, 2021 at 13:03

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