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What are the advantages and disadvantages of opening a small business?

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Advantages:

1.Directly connected with the market- Small businesses are in direct contact with the customers.They can easily respond to market changes and the changing consumer behaviour.

2.Independent-  Small business owner are their own bosses.They are responsible for each decision concerning their operations.They decide what work to do, when to do it, with whom they should make a deal, how much to pay etc. They are their own decision makers.

3.Capital105-  Small enterprises require little capital to start as they are small in size.They finance capital or have their own which later, depends on them whether to sell it, keep it, or pass to next generation.Owner gets all the financial benefits.

4.Control-  Small business owners have direct control over all the operations of the business whether it is design creation, concept, business operations , sales etc. They are involved in all operations and if anything goes wrong they have to control those deviations.

Disadvantages:

1.Risk- Big opportunities come with greater risk. So if one has to grab the opportunity, they must have to take that risk associated with it also. One can minimize the risk but totally eliminate it.

2. Uncertainty- Business is uncertain and there is no surety that the business which was good at the start will grow in the long run. There are external factors which has a greater influence over the future of the business.Sometimes it happens that after a lot of planning there are deviations.

3. Time consuming - In the beginning, owners have to start with few employees as they have less capital or its just a start. Duties and responsibilities of the owner increase and he has to work for long hours to identify the opportunities or competitive advantage.