Truemomentum

Chances in small business as a group is through births and deaths while change in big business as a group is through contraction or expansion: small business has tremendeous economic influenced in the economy, small business serves markets which big business does no like to serve or cannot serve effectively; and the responsibility is assumed by employee-managers. However, in case of losses, the managers risk on;y their employment.

The advantages of a small business are personalized relationship with customers and employees, flexibility in management, government incentives, simple record keeping and independence.

The disadvantage of a small business are difficulty in raising capital, risk of failure, limited management skil, and lack of opportunities for employees.

Small business fail because of lack of money, lack of experience, wrong location, poor credit practices, mismanagement of inventories.

Economic contributions of small businesses are, introduce, innovation, create employment, provide competitionm, and fill needs of society and big businesses.