Question

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·         Why a small business startup gets caught in the dilemma of “to grow or not to grow”?

Answer 1

A small business is always setup by a person who can work on a small level or a person who is having a little amount of capital with him. As with little capital a person is always in fear that whether his business will succeed or not? For setup of small business a small busiessman often takes loan from the banks to run the business and they always remain in fear that if their businees will not run smoothly then how can they make payments of their loans.

Often some small businessman do not get loans from the bank as bank deny to pay them the required amount due to some security reasons and therefore they take loans from the local financers on high interest rates or with some of their property mortgage. Due to these reasons they always live in fear that the business will run or not. And if they got fail in their business then how they will do their repayments.

Also there is fear of big businesses running. Now a days there are large groups in the market who are running their businesses in fmcg sector. Due to which in most cities the local business person had got failed in running bthe business. People like to visit the malls and all for shopping, eating and watching movie. This has also created a dilemma to smart business "to grow or not to grow".

These are some of the reasons which can easily describe it.