SME/ Family business/ Government help for SMEs

Question 1

Govt assistance for small businesses

Answer 1

Reduce rates of profits tax (corporation tax)
Loan guarantee scheme- guarantees loan repayment % should the business fail
Information, advice and support

Question 2

Pros of a small business

Answer 2

Full control for owner 
Can adapt quickly to customer trends
Offer personal service
Easier to know each worker
Business culture is well motivated if family owned

Question 3

Pros of a large business

Answer 3

Can afford specialist managers 
Benefit from cost reductions 
Have access to sources of finance 
Risks can be spread eg different markets 
Can afford RnD

Question 4

Cons of small businesses

Answer 4

Limited access to source of finance
Few opportunities for economies of scale
Bigger risks

Question 5

Cons of a large business

Answer 5

Difficult to manage e.g. locations
Larger scale production- cost increases
Slower decision making
Poorer communication

Question 6

Pros of a family business

Answer 6

Commitment
Reliability and Pride
Knowledge continuity w

Question 7

What does SME stand for?

Answer 7

Small and Medium size enterprises

Question 8

Features of a medium sized business

Answer 8

No of employees= <250
Turnover in euros= <50m
Net worth shown on balance sheet= <43m

Question 9

Features of a small business

Answer 9

No of employees= <50
Turnover in euros= <10m
Micro= <10m