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Lots of businesses commence with one individual’s idea. The person who starts the business and playing the role of an entrepreneur will find the commercial opportunity perfectly according to the market needs. In the modern competitive business world, it is very difficult to soldier on unless you bring in changes according to the needs of society or people. Running a well-established business is always easy when there are leaders guiding the younger lot with lots of advices and bringing in advanced technologies. Size of organisations really matter; when it comes to day to day operations. Recent days it has been witnessed that the changes in economy or financial policies also influence the growth and existence of businesses. Comparatively smaller organisations can easily overcome the effects of recession etc. as it has very less amount of resources and operations to handle with.
The economy needs smaller businesses too for its existence. Most of the requirements in day to day life are met by small organizations only. On the other hand we can say that the bigger organizations cannot survive in the industry without the help of smaller businesses. An entrepreneur is a person who helps himself to develop right skills, innovative ideas etc. for running the business successfully according to the society’s demands. When it comes to the growth, many believe that only larger organizations can survive in the business market but if we observe smaller organizations run their business more effectively. Some of the advantages of running a small scale business can be listed as below:
- The entire responsibility of the business lies with the owner / proprietor.
- Decision making will be easy compared to big companies as there won’t be any board meetings etc.
- In smaller business, the business owner can maintain good relation with their employees as the circle is limited.
- Monitoring of task allocation to employees also will be easy in small businesses.
- A family –like feeling can be maintained among employees.
- The entrepreneurship or partnership normally bring in big profit to the owner or owners and the same will be creating more interest in working harder and better.
Further small organization will be able to modernize and launch new products and services at a fast pace than larger companies do in the market. Generally industries like fashion, advertisement etc. run as small organizations and decision making is pretty easy there. The decisions can be made in few days and it won’t take months for implementation like bigger companies.
When it comes to competition between a big company and a small organization which are dealing with same type of products or services; strategies play an important role in nourishing the business. For instance, a big company working in the advertisement sector will deliver their services at a higher rate as their huge running and maintenance cost, salary other promotions etc. are to be covered when fixing the final price. With the latter the technology and customer coverage are the same but they can very well cut-down the final price as the overhead expenditure incurred will be relatively low.
In conclusion organization in smaller size will bring you more success compared to that of bigger ones if you match up with the changing customer needs. A well-established small scale business can easily learn the market situations and bring in the changes quickly. Small scale business owners enjoy independence, low cost and freedom in operation and at the same time reap higher benefits. The major points to be noted while planning to start a small scale business are;
- Proper market research
- A thorough idea about the product or services to be launched
- Product life cycle
- Techniques for promoting the business
- Distribution channels
If the above points are taken care, a small scale industry can easily compete with bigger companies who deal with same type of product or services.