Description: Critically review the main characteristics of small businesses, challenges and issues. Evaluate how they respond to crisis management based on their strength and weakness.
The greatest struggle for industrialisation globally rose with the end of the first and second world wars to help satisfy the needs and wants of the global population. However, industrialisation was unachievable without the needed expertise and capitalisation. Most resources were channelled to the wars; hence, the world could not meet the demands set by large corporations (Adomako and Mole, 2018). The pressing need for industrialisation to save the world from poverty and lack of critical resources for the human population led to the development of small businesses to act in places where large corporations could not assist. The entrepreneurs who introduce their small business ideas received support from the government and other departments of trade in every country (Baker, Kumar, and Pandey, 2021).
Small businesses are enterprises controlled and managed by one or several persons, with their owners being the sole decision-makers, although they have a small market share in the industry they operate (Rozhkova and Olentsova, 2020). Therefore, these organisations cannot be explained based on the number of employees since the definition will lack universal application as the number of employees varies from one country to another. For example, in the United Kingdom, small businesses comprise one hundred employees, while in the USA, these enterprises have a maximum of four hundred employees (Belas, Gavurova, and Toth, 2018).
Several small businesses struggle and fail in their operation, while others are highly successful. Several reasons define the cause of these failures. The following are the most common characteristics of small businesses. Firstly, these businesses are willing to take risks in the course of operation. Secondly, most successful small business operations owners forgo their well-paying jobs to undertake business operations (Mandhachitara and Allapach, 2017). The above option is an indication of being a risk-taker. Thirdly, these business owners also invest their finances without a guaranteed return from such investments. Generally, a significant difference occurs between spotting a vital opportunity and deciding to take advantage of it in the market (Berry and Berry, 2018).
Small business is also characterised by a motive to succeed in their business operations. Small business owners constantly improve their living aspects, including their business and careers (Rasulova and Obidova, 2019). Being contented and resting on laurels is uncommon among these people. Such businesses are also characterised by goal achievement. They set their goals and work towards achieving them. The goals could be long- and short-term objectives to be met. These business owners also regularly assess the progress and achievement of the set goals. They make recommendations and adjustments in case of need in the process of project implementation (Murphy, Tocher, and Burch, 2019).
Small businesses are also characterised by being focused, confident, passionate, and enthusiastic in their business operation undertakings. The owners of small businesses inspire people around them, including employees, clients, business partners, suppliers, and family members. To inspire others, they should be enthusiastic and passionate about what they undertake (Dobrotvorskiy et al., 2020). Another characteristic of small businesses is self-reliance and self-motivation. Usually, there is no assistance from any third party in the day-to-day operations of the owner of a small business (Schweitzer and Barkley, 2017). Therefore, self-reliance and self-motivation are critical traits for the progress of such entities.
Type Of Service: Academic Paper Writing
Type of Assignment: Critical Essay
Pages / Words: 6/1500
Number of sources: 30
Academic Level: Undergraduate
Paper Format: Harvard
Line Spacing: Double
Language Style: UK English