a) Indirect competitor: 17
b) Future competitor: 18
i. Systematisation: 20
ii. Web presence: 20
iii. Customers: 20
iv. Plan: 21
Small business enterprises play an important part in the economy if a country. Small businesses constitute the maximum business establishments in any country where the number of employees is less than 500. In developed countries the major portion of the business is occupied by the small business entities, whereas in developing economies it is seen as an opportunity to eliminate unemployment and poverty (Unido, 2004, p. 17).
A small business enterprise is defined as an independent business entity. The small business entity is found not to be dominating the operations in its own field. A small business is different from the large business in context to its functionality and way of approaching the business market. The main objective of this research is to provide an insight about the small business. An analysis based on the strength and weakness of the small business enterprise will be part of the research. Moreover, the contribution and affect of the small business enterprises to the economy of a country will be analysed.
Literature review plays an important part in any research based on a particular topic. The main focus of this research is to analyse the small business enterprises and their role in shaping the economy of a country....
The study on small businesses reveals that the owners of such enterprises do not prefer innovation or change in their functioning of business. Most of the small businesses are founded based on the established business models and practices (Stokes & Wilson, 2010, p. 34-35). Small firms are believed to have added large share of employment to a country’s economy. Most of the new jobs are added in services such as leisure and hospitality. In the study of small businesses it has been noted that most of the large enterprises faces stiff competition from the smaller firms. Though the competitions will not be matched in every aspect, still competition helps the small business firms to enhance their efficiency in terms of productivity (Pride, Hughes & Kapoor, 2011, p. 143-144). The small business enterprise is found to have certain important features which make it a different entity. The characteristics can be discussed below: Small businesses are managed in a personalised manner by the owner of the business entity. The market share for such enterprises is small in comparison to the large business enterprises (Needham & Dransfield, 1994, p. 135). The owner holds all the power for making decision and implementing the same. The small business enterprises do not have any specific shape and size as they range from a coffee bar to a retail outlet. The large enterprise has no control over such enterprises which makes them independent in their operations. It has been noted that the number of employees in small business enterprises are significantly less than 500 or even lesser for construction business. The small business enterprises are no more confined to a particular location, but are rather going global. Globalisation has become the need of the hour and with the