Question

Discuss why growth and sustainability of a small business is important to both the local and global economy. Provide 5 obstacles that a small business must overcome to survive and thrive in today's global economy.

Answer 1

It is believed that Employment opportunities is one of the most lucrative offer for the people to resort to an industry or business arena. In this regard, in spite of Small businesses attempting to create job opportunities for the candidates but the options are relatively lesser owing to the limited operational scope of such businesses and the lesser requirement of workforce strength corresponding to the same. While on the other side, since Larger Corporations have created opportunities for Jobs and operate on a wider operational strength, small businesses seem to be still not regaining their place from the past century. This calls for a sustainable growth of employment opportunities which is directly related to the success of a small business. Moreover, when the small businesses attempt to step out of the Conventional wisdom, their vision is to look beyond the growth and are hence committed to an identity. These businesses follow an untrodden path. They commit to focus on such value proposition that helps them build such capabilities that are distinct in nature. The survival of these Companies in the long-run is, although challenging, a sustainable one. They include dynamism in their operations and plans and hence they can keep pace with the changing environment. It also provides a distinct way to these businesses to survive in the global or local competition effectively.

However, for small businesses, here are some general obstacles that they have to deal with:

• Open Market
• Cut throat competition
• Informed customer
• Price sensitivity
• Availability of options
• Decreasing concept of “Customer loyalty” (lowering brand “recall”)
• Entry of foreign “brands”