The Benefits Of Small Scale Businesses
An idea of yours makes you start your business because of a gap being seen by you as an entrepreneur in the market. You then turn your idea into a product that can be marketed. The successful entrepreneurs are.
a. Ready to take risks
b. Not disappointed by the failure
c. Motivated by self
d. Determined to beat the competitors
Let’s take an example of Simon Woodroffe who got an idea of opening his Yo Sushi restaurant by imitating an idea in Japan. Today he has a chain of restaurants that are extremely successful.
Henry John sold Pickles, Vinegar and Sauerkraut in horse drawn wagons in Pittsburgh. Today, world’s some of the best known branded products like Baked Beans, Tomato ketchup, etc. are produced by him.
For a successful economy, the small scale businesses play an enormously imperative role. Other than producing the successful stories, the small scale businesses are able to meet the needs of the local people for example Hair Dresser, Financial Consultant, etc. They also help in meeting the requisites of the larger businesses e.g. printed stationary, photography services, etc.
The small scale businesses not only meet the requisites of the local people but also play a vital role in creating success stories in the future. Today ninety percent of the businesses in UK are small scale businesses having less than 6 people.
What are the benefits of the small scale businesses?
There are varied reasons for the survival as well as the growth of the small scale businesses.
1. Development of personal relationships-Small businesses easily builds personal relationships with employees, suppliers and customers. Having a small business makes you aware of the people you are dealing with. It’s imperative to have person to person relationship for building strong relationships.
2. Flexible response to the challenges and the problems-Small businesses hardly have a hierarchy. Therefore, the small businesses are extremely flexible. The decision making is exceedingly quick.
3. Innovation and Inventiveness-Since the owners of the small businesses don’t have to take the approval from anyone therefore, they are positioned well to not only introduce but also develop new ideas. Let’s take an example of Anita Roddick who set up the Body shop and developed enormous environmental friendly cosmetics. This brought a frown to the conventional companies of the cosmetics.
4. Overheads are low-Since the operations are small therefore, the cost of the overhead is also low. Premises obviously are small having low lighting and heating costs and even the rent is low. Low costs also lead to the lower costs for the customers.
5. Limited markets are catered to-Lower figures of the sales make the small business make profits. This is because the overhead cost is also low. They can target smaller markets yet earn handsome profits. Let’s consider an example of a local window cleaner who serves certain hundred markets, etc.
Many people feel independent and hence, opt for a small business. They are able to get the rewards they set for themselves.