Wednesday, June 21, 2017

Important Characteristics of A Small Business

Small business is a fundamental part of the total business scene in any country. Through small in size such business activities cover almost any area of business viz. manufacturing, mining, wholesaling, retailing, service and the like. Now a days small business owners are mostly produce fashion item, they are mainly involved in different business such as: women and children clothes, accessories, jewellery, jute products, soil product, tie dye, block- batik, beauty parlor, boutiques, floral business etc. A small business is usually organized and managed by the owned and or his family members.

Small business means the size of which is not large- the size again depends on the yardstick one uses to measure. What is small to one may be medium or even big to some others.

Block printing
Fig: Block printing is a part of small business
Small business has been defined by various authors in various ways. Some such definitions are:
  • A business which is independently owned and operated & not dominant in its field. – Small Business Act (SBA), 1934
  • A Small business is one with fewer than 500 employees. – US Govt. Block printing is a part of small business
Characteristics of small business:
There are different essential characteristics of small business. The forms of small businesses are totally different from the medium and larger business organizations. The widely identified characteristics of small business are as follows:
  1. Business managed by the owner.
  2. Family workers and some other workers are hired.
  3. Mostly owner financed and limited borrowed funds are used.
  4. No scope for specialist service.
  5. Little emphasis on long term planning.
  6. Good relation between labor and owner.
  7. No or limited use of innovative production / marketing or promotion.
  8. Business is housed in small establishment.
  9. Rational cost possible to control.
  10. Business secrets are possible to safe.
  11. Main target is the local market and or limited non local market.
  12. Size of investment is relatively smaller.
  13. Quantity of sales relatively smaller.
  14. Unable to adopts modern technology.
  15. Mostly handicraft items are produce.
  16. Fashionable women and children dress are also produce.
  17. Minimum legal formalities are must be filling up to open a small business.
If you open a small business in your home, with your friends and family, you must know about the characteristics of small business. It is the primary knowledge to open a small business.

You can also like:

  1. Buyer Motivation in Fashion and Retail Business
  2. Roles of Organizations to Promote Garments Business
  3. Career Path of a Visual Merchandiser