its bout introductiont to small businesses

1. By Mam Bushra

2.  The term business denotes activities related
to trade, commerce, profession, occupation
and industry carried out to make profit.
 It is engaged in the production and marketing
of products to make profit through customer
satisfaction.
 The primary beneficiaries of a business are its
owners.

3.  Products are the focus of all business
activities.
 A product is anything that satisfies the needs
of customers.

4.  Goods
 Services
 Ideas
 Events
 Information
 Properties

5.  A business represents organized efforts of
enterprises to produce and market products
to make profits through customer need
satisfaction.

6.  Activities
 Profit
 Customers
 Competition
 Diversification
 Change

7.  Profit
 Growth
 Survival
 Leadership
 Efficiency
 Social Responsibility
 Corporate Citizenship

8.  It is just like business discussed earlier.
 The small business owner establishes and
manages the business to attain personal
objectives.
 The business is an extension of the owner’s
needs, objectives and personality.
 More than the growth of the business, the
aim is to continue operations over a period of
time.

9.  Management is independent
 Closely held ownership
 Local operations
 Small size
◦ Number of employees
◦ Fixed assets
◦ Annual sales volume
◦ Capital investment

10.  US definition: “A small business is one that is
independently owned and operated and not
dominant in its field of operation”
 Nicholos Siropolis: “Typically, a small
business is … mom-and-pop stores.
Businesses … may be looked upon as big or
small, depending on the yardstick and cut-off
point used”

11.  Manufacturing
 Wholesaling
 Retailing
 Service
◦ Professional service
◦ Financial service
◦ Transport service
◦ Repair service
◦ Construction service

12.  Goals
 Practices
 Size

13.  Size
 Ownership
 Impact on industry
 Flexibility
 Economies of scale
 Innovation
 Quality
 Customer relationship
 Life

14.  Evolution
◦ Phase one: Owner-Manager
◦ Phase two: Owner-Manager + Employees
◦ Phase three: Owner + Managers + Employees

15.  Classification of Small Business
◦ Manufacturing
◦ Merchandising
◦ Services

16.  Encourages innovation and entrepreneurship
 Complementary to large business
 Flexibility in operations
 Job creation
 Maintains close relation with customers and
community
 Simulates competition
 Higher financial rewards

17.  Independence
 Innovation
 Responsiveness
 Employment creation
 Financial performance

18.  Profit
 Competitive advantage
 Flexibility
 Innovation
 Quality
 Customer relationship

19.  Risk of failure
 Lack of homework
 Financial loss
 Economic downturn
 Inadequate management
 Laws and regulations
 Marketing problems
 Technology
 Poor financial management

20.  Serving a well-defined market
 Acquiring sufficient capital
 Acquiring and using human resources
 Staying informed
 Managerial know-how
 Time management
 Coping with government regulations

21.  Technology
 Knowledge
 Women and ethnic groups
 Occupational and industry shifts