Small Business Management

                       

     The term business denotes activities related to trade,commerce,profession,occupation, and industry carried out to make profit.A business is an organization.It engaged in the production and marketing of products to make profit through customer satisfaction.Products are the focus of all business activities. A product is anything that satisfies the needs of customers.

      A business represents organized efforts of enterprises  produce and market products to make profits through customer need satisfaction.Small business is an organization it engaged in production and marketing.The various activities are manufacturing,services,construction,transport and trade.The small business owners establishes and manages the business to attain personal objectives.The business is an extension of the owner's needs,objectives and personality.The business growth is not a primary objective.The aim is to continue operations over a long period of time.

Importance of small business:-

• Encourage innovation and enterpreneurship- Small business are an important source of innovation.They convert invention into innovation.They generates new ideas.It innovates product,service and processes.They provides new products to customers.
• Complementary to Large Business- Small business are complementary to large businesses.They have backward linkage with large business to supply inputs.
• Flexibility- Small business provides flexibility.They have independence and freedom to do things their own way.They can easily adapt to changing environmental forces.
• Job creation and satisfaction- Small business create more new jobs compared to large businesses.It create job opportunities for self and others.Family members can be employed.
• Close relations- Small business maintain close relationship with customers and their community.They can do individualized jobs.
• Competition- Small firms keep the big firms on their toes by stimulating competition.They introduce new products and services to keep large firms competitive.
• Higher financial rewards- They are efficient in production.Earning per rupee of assests tend to be high in small business.Small business owners make more money by running their own business than working as salaried employees.