Study Notes

Small businesses

Last updated 16 Aug 2019

This study note considers smaller businesses and how they survive and thrive in markets dominated by large, scaled competitors.

5 key reasons why firms may choose to remain small

1. Lifestyle choice of the owner(s) - maintaining a sense of control over work-life balance
2. Desire to keep overhead (fixed) costs to a minimum
3. Avoiding the costs involved in meeting regulatory burdens associated with bigger businesses
4. Maintaining quality control over the good or service provided
5. Keep a high level of flexibility an adaptability to respond to changing market conditions

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