3.2.4 Reasons for staying small 👝 Flashcards
What is a small business?
A business with fewer than 250 employees
What is a micro business?
A business with 0 to 9 employees 
Why would a business want to stay small?
Lifestyle choices- maintaining a sense of control Work life balance
Desire to keep overheads cost to a minimum
Avoiding the costs involved in meeting regulatory burdens
Maintaining quality control of the goods and services
Keeping a high-level flexibility and adaptability to change to market conditions (agile)
What are the four ways a small business compete in the competitive market?
Product Differentiation and USP
Flexibility in responding to customer needs
customer service
e-commerce
How may product differentiation and USPS help a small business compete in the competitive market?
Because specialise in one product
they can have a wider product choice
high-quality
handmade - job production
How many flexibility in responding to customer customer needs help a small business compete in the competitive market?
Can change your customer order once it’s been paid
can adapt to changes quickly due to external factors
First move advantage more agile
can make special requests
How many customer service help a small business compete in the competitive market?
Can provide personal service
relationship and
Loyalty
can communicate easier
convenient
social media-Respond to feedback quicker
How can e-commerce help a small business compete in the competitive market?
Help small businesses compete with larger
one reduces barrier to entry
Freemium mode
What are the five reasons why businesses choose to stay small?
Start-up - Limit funding
personal choice - want to stay involved with aspects of the business
Large business may be too stressful less risk - smaller scale
Small stores - less time
demand limit- Demand for small corner shop is insufficient for large businesses
Cost limits -Limit funding
less lost or fails
technology- Low cost access 
