3.2 reasons for staying small

Question 1

Reasons

Answer 1

Offer a more personalised service and focus on building relationships with customers.
High ability to respond quickly to change in customer needs.
Rapid growth can cause diseconomies of scale which is what a business does not want.

Question 2

Technology effects on small businesses

Answer 2

Caters needs of small and niche markets.
Reduce cost differential between mass produced and niche.
Favour small scale and personalised rather than mass produced and impersonal.