Which Firms Are Important to a Society and Its Economy? Large Firms or Small Firms.

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SUBJECT: CORPORATE ENVIROMENT

PROJECT REPORT

ON

WHICH FIRMS ARE IMPORTANT TO A SOCIETY AND ITS ECONOMY? LARGE FIRMS OR SMALL FIRMS.

WORD COUNT: 2602.

BY

STUDENT ID: 094005

STUDENT ID: 094011

STUDENT ID: 094057

STUDENT ID: 094031

INDEX

1. INTRODUCTION (3)

1.1. COMPARISON BETWEEN THE SMALL FIRMS AND THE LARGE FIRMS (3).

2. SMALL FIRMS OVER THE LARGE FIRMS (4).

2.1 ADVANTAGE OF THE SMALL FIRMS (5).

2.2 SMALL FIRMS ACT AS A BACKBONE EXAMPLE (6).

3. CONCLUSION (7).

4. BIBLIOGRAPHY (8).

( ) Indicate page number.

1. INTRODUCTION

Which firms are more important to a society and its economy: Large firms or Small firms? Large firms refer to those which require huge infrastructure, man power and a more capital assets. Small firms refer to those which require small infrastructure, less man power and fewer capital assets.

1.1 Comparison between the large firms and Small firms.

Both firms are important to a society and its economy. Large firms gain more advantage because of large economy of scale. Over small firms large firms have more advantage like bulk buying. Because of large turnover of large firms they can sell and buy more good in the society. They can buy more goods from the society so they can also spend money in packaging and shipping the goods to a society which is also tax beneficial to economy of society, large firms require more man power so they provide more employment which is also useful to the economy of society. Large firms in a location will help to development of a nation. if the large firms are started in a village, naturally the surroundings will get a the village will see the path of development in education, health, employment, secondary sectors of that surrounding area will also be taken care.

Small Firms are also Important same as like large firms. Small firm Role and Impact supports the claim that small firms make two useful contributions to the economy of society. First, they are an integral part of the renewal process that pervades market economies. New and small firms play a crucial role in experimentation and innovation that leads to technological change, productivity and economic growth. Second, small firms are the essential mechanism by which millions enter the economic and social mainstream of society. The public policy implications for sustained economic growth and social well-being are the continued high-level creation of new and small firms by all segments of society. It should be the role of government policy to facilitate that process by eliminating entry barriers, lowering transaction costs, and minimizing regulation.

2. Small business over the large business.

From our point of view small firms are more important to a society and its economy over the large firms. Because small firms are more creative over the large firms, small firms are also more innovative than larger firms. Small firms can identify problems whatever if it is internal or external than large firms because large firms have may department and many product they produce so they cannot identify problems easily. Because of they can solve the problems easily so they can generate more ideas creatively. And small firms are handled by less number of people so they can select from that idea and able to commercialize speedily than large firms. so as small firms commercialize greater degree of ideas than large firms so it is useful to the society and its economy as well.

An engineering firm which is small has both advantages and disadvantages compared to large firms. The owners can more easily respond to the needs of clients through their direct contact with them and their knowledge of local situations. Small firms can be more flexible, both in their employment terms and in their market responses and they can take on work which does not interest larger firms. However, small firms may have trouble retaining staff, and owners...
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