A small-scale business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. In addition to number of employees, other methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed definition. The smallest businesses, often located in private homes, are called micro businesses (term used by international organizations such as the World Bank and the IFC) or SoHos. The term “mom and pop business” is a common colloquial expression for a single-family operated business with few (or no) employees other than the owners. Small-scale businesses are in an enviable position because they have the ability to be agile and fluid in their procedures and practices, compared to larger businesses that have many layers of bureaucracy. However, small-scale businesses face many challenges due to their size, and owners need to address these problems and come up with unique solutions for their small business to survive and prosper. 2.
PROBLEMS AND SOLUTIONS
(i) Difficult to Attract Customers: Small-scale businesses typically have a more difficult time attracting customers than larger companies. They have smaller marketing and advertising budgets. Also, some potential customers are reluctant to do business with small businesses, especially new businesses without a loyal following, since they believe that these businesses may not be around for a long time or that they will not be able to provide the appropriate level of service. Solution: A challenge for small-scale businesses is to make sure that they provide excellent customer service and instill confidence in their customers. (ii) Hard to Attract Employees: Small-scale businesses also face challenges when hiring employees. It is difficult for many small businesses to compete with the salaries and benefits that larger corporations provide. Many potential employees are also...
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