3.2.4 Reasons For Staying Small

Question 1

6 reasons why small firms exist?

Answer 1

-offer personalisation n focus on close relationship building
-unable to access finance for expansion
-aimed at niche market
-being small allows rapid response to dynamic change
- avoid deos
-owners goal is to satisfied not to profitmaxx

Question 2

What is the benefit of advancements in technology to small businesses?

Answer 2

1. Can reduce the cost differential between the mass produced and the niche product
   (E.g by using machines to make personalised shit instead of doing it by hand, now u have less labour costs)
2. E-commerce = less fixed costs, less barriers to entry