Types of Businesses
Small Businesses
Large Businesses
Advantages
Disadvantages
Management:
Owners can easily run and control these businesses.
Customers:
They can give personal services to customers and can quickly change to meet what they want.
Communication:
It’s easier for them to communicate with their workers and customers.
Costs:
Small businesses usually have lower costs because they don’t have problems from being too large and have fewer expenses.
Management:
Communication:
Small businesses may not be able to financially afford promotion. They also do not have many connections.
Customers:
They suffer from limited customer diversity
Income Instability
Potential Financial Risk
Decision-making Uncertainty
Longer Working hours
Lack of Guidance
Costs:
They would usually have limited sources of finance and be subject to higher interest rates.
Advantages
Disadvantages
Management:
Can allocate resources for hiring specialized managers.
Customers:
They operate across diverse markets and product lines. They continue to build a strong reputation in the marketplace.
Communication:
They have good marketing opportunities and larger outreach to resources.
Costs:
Enjoy cost advantages linked to extensive production. They can also establish pricing benchmarks that competitors need to comply with.
Management:
Loss of quality control when business has franchises, especially if they are global.
Customers:
Less personalized services since as a large business, you must appeal to a larger demographic which limits your range of products/services.
Communication:
Communication can be difficult as a large company as there are many employees and it can feel overwhelming for them to reach out to other people in the business.
Costs:
Costs can increase due to diseconomies of scale