Question

There are many differences among small businesses. Discuss some of the differences we might expect to see among VSEs, SEs and MSEs.

Answer 1

BASIS OF DIFFERENCE	VERY SMALL ENTERPRISES	SMALL ENTERPRISES	MEDIUM AND SMALL ENTERPRISE
CAPITAL REQUIREMENT	the capital requirement is very less in this kind of business concern	capital requirement is greater that very small enterprises but at a mediocre level.	capital requirement is quite high in this kind of business unit.
RESOURCE	labor is generally the main source of production with a little requirement of capital,generally majority of work is executed manually.	labor and capital are the main resources of this kind of business concern.	labor capital and innovative technology these all are the main resources of business concern.
MARKETING LEVEL	product are sold at local level markets.	products are sold at local level to state level,wholesalers etc	product is sold generally in different part of region of the country
ADVERTISEMENT	these kind of firms couldn't sustain with the expenses of advertisement,this means that VSE doesn't advertise generally.	this kind of firm advertise at local level.	this kind of firms spend a huge amount on the promotion of their products.
REQUIREMENT OF FUNDS	they fulfill their needs by personal saving,borrowing from friends	they fulfill their needs from local sources and personal finance.	MSE rely on banks,public issues,debentures etc for their fund requirements.