Question

Describe and discuss the dangers of small businesses. • 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

1 Ans: Mostly, small business is owned by an individual or a group of people to be independent. Small business is easy to start, but risky to sustain. Revenue is completely depends on the industry, we are in.

Following are the dangers of small business:

· Competition: There are many people who are running the business in the same industry or similar industry so it is really a big task for a small business operation to convenience their customers with regards to the products they launch.

· Financial Stability: There is no proper financial stability for small organizations, it is risky for an individual to take a decision with their gut feeling and start working on their idea.

· Job Security: If the business is running well, there is a job security and if the business is not moving as expected then there is no job security.

· Funding: Investors will not trust easily, should work hard to convenience them for investing and once the funding is generated, then only we can work on to bring out the fine product.

· Recognition: Small organizations should work hard for recognitions, because customers will not accept the change easily and they are little rigid to try something new, so continuous promotional activities should be conducted in order to gain some recognition.

· Stress: Stress is like a free gift for every small business. It will not allow an individual to think out of the box. In simple term stress just destroys the efforts.

2 Ans: Following are the top three reasons that I think small businesses struggle:

· Competition

· Recognition

· Funding

3 Ans: Below are the reasons behind selecting those issues:

· Competition: In the market, there are many organizations that provide the same product with different prices, sizes, quality, etc., so for us launching the similar product will be a great competition because people are not interested in the concept of change. So, if the competition is very high and if we don’t have the proper resources, then it is considered as a damage for any small business.

· Recognition: Gaining recognition in the market is not easy, people will not consider new products that often because they are happy in their comfort zone. If people don’t recognize the product, the company will not get profits and then it will turn as a big damage.

· Funding: If Funding is not there, we cannot run a business. Funding is like a heart of a business. So, if we don’t get investors, business will face many damages and it will be difficult to recover from those losses.

4 Ans: Following are the ideas for dealing with those issues:

· Quality: Provide the best quality to customers to maintain a good will in the market and if it is gained, then competitors will be defeated easily.

· Presentations: Numeric and lively presentations attract investors for better funding.

· Promotional activities: Promote your product in all the possible ways to get better recognition and if possible, release some sample products with best quality and send to people as a token of love. This will help an individual to change their perceptions.