Question

Identify the top three reasons YOU think small businesses struggle. • State your reasoning behind your selection of the issues. • Present your ideas for dealing with those issues.

Answer 1

According to me, the top three struggles faced by small businesses along with its reasonings and solutions are as follows:

• High Competition: The small businesses would have to strive really hard to show themselves in the market crossing all competitors including big companies having a huge share in the market economy. The reason why I have selected this issue is that nowadays a lot of young aspirants are wishing to be an entrepreneur and hence they find this competition factor a big negative obstacle to enter into the business. One way to tackle this is to adopt a blue ocean strategy where the small firms can start a small business that's too different and unique from the current market economy. This makes them strive through the market at a faster pace with fewer or no competitors at all. For this, they can also focus more on their USP(Unique Selling Proposition).
• Financial Crisis: Another big issue faced by small businesses are the matter of finance where they are not able to invest a huge amount for expanding their business or update the standard of their daily activities. This is, in fact, one of the barriers that every small business needs to overcome and hence mentioned here. There is no specific method to tackle this issue other than choosing a wise and reliable way to lend a fund for investment. For example, taking a bank loan having a very low-interest rate.
• Marketing and promotional cost: Marketing and advertising are other factors by which the success of every business lies and hence every small business need to make the customers know about their product and service. In today's world, where a lot of advertisements are prevailing(especially that of huge firms whose advertisements are made spending a lot of funds), it is difficult to imitate them. Instead, one way to tackle that is to conduct the advertisement through low-cost methods like notice and small ads in the newspaper and focus more on the word- of- mouth marketing where our social friends and network can be maximum utilized and hence can at least reach the targeted customers within a short span of time (especially through the internet).For this, many social media platfoms like facebook, instagram, etc can be used.

Hence the answer.

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