Small businesses lack well documented business plans, vision and mission statements which hinders the strategic planning process. Small businesses do not understand the unique needs of the customers hence offer standardized products and services to the target market. Small businesses can achieve sustained growth through merging with other businesses which is critical in resource sharing. Small businesses should implement internet technologies in order to overcome their location barrier as well as increase their turnover. The small businesses should also maintain financial statements which are critical in accessing debt financing. Characteristics of small businesses visa-a-vis well resourced large companies Introduction The definition of small business has been controversial if not difficult. Some definitions which have been advanced consider the profitability of the business, the value of assets, the annual turnover, the number of employees and the branch network (Pride, Hughes & Kapoor 2010, pp. 24). Small businesses can be analyzed from their distinctive managerial, marketing, organizational and developmental characteristics. Small businesses have certain characteristics which distinguish them from well resourced large businesses. Numerous scholars have used different methods in determining the size of the business. However, most small businesses have less than ten employees and are either family business. Unlike well resourced large businesses, the small businesses have limited options in raising expansion capital since they are sole-proprietorships, partnerships or limited liability companies (Storey, 2002, pp. 6). Small businesses are managed by the owners unlike well resourced large businesses which are capable of employing professional and expert employees and managers. Unlike the well resourced large firms whose shares are able to be traded in the stock markets, the small businesses are closely held hence lack of inference in the management of the business (Little, 2005, pp. 42). Small businesses lack professional board of directors hence most of the strategic decisions regarding the objectives and goals of the business are taken by the owners who are still the managers of the business. Small businesses do not enjoy expansive branch network and distribution channels hence most of them have limited chances of market share growth. Well resourced large firms are able to enter in to strategic partnerships and alliances with other firms hence they can easily penetrate in to new markets unlike the small businesses (Little 2005) Distinctive managerial characteristics Small businesses management is different from the management of well resourced large businesses. Most of the small businesses are family businesses which are managed by the owners. Small businesses may not have enough funds to employ qualified management hence the owners of the businesses make all the strategic objective decisions regarding the source of funds and the expansion programs (Little 2005). Well resourced large businesses are able to list in the stock exchange markets and secure financing by offering shares to the public unlike the small businesses. Well resourced large businesses can afford to hire expert management hence can compete effectively in the business environment. Small businesses employ few employees who may not be qualified in the services which they offer to the business (Lavoie, et al.,
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