Small Business Success and Challenges

Small Business Success and Challenges

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Small Business Success and Challenges

Small businesses are unquestionably critical to the growth of the economy of any nation, since they are good source of generating employment, assisting in local technology development, and improve indigenous entrepreneurs. Small businesses create a tempestuous section of the national economy due to the large-scale in and out movements in the sector. A number of novel ventures are developed each year though about equally huge number of small businesses shut down for different reasons (Adisa et al., 2014). Small businesses are associated with a number of challenges which limit their rate of survival compared to the rate in which they are created. Small businesses experience challenges which are combination of external and internal less controllable factors, originating from management competencies, technical skills, personal attributes, as well as owner-entrepreneur behavior which impact the entrepreneurship growth chances. They also experience challenges particularly in people management, marketing, finance, and accounting (Karanja et al., 2013).

The motives of establishing a small business differ from aspects which initiate a person in establishing personal business, for instance need for independence, to aspects that force a person into self-employment that include unemployment. After a small business is established, the management behavior and personal skills of the founder greatly govern how the business is managed in vital functional areas. Thus to successful enhance the running of a small business, good management skills that include suitable time management, leadership, and operating strategies are needed. Strategic planning is also said to play a great part in enhancing small business success. Other aspects contributing to small business success include employees’ empowerment, quality goods or services, flexibility, customer focus, and innovative marketing practices (Karanja et al., 2013).

References

Adisa, T. A., Abdulraheem, I., & Mordi, C. (2014).The characteristics and challenges of small business in Africa: an exploratory study of Nigerian business owners. Economic Insights – Trends and Challenges, 3(66), 1-14.

Karanja, T., Muturi, P., Mukabi, M., Kabata, D., Wahome, S., & Kayogo, M. (2013). Small business management. International Journal of Business Management, 4(16), 114-142.