Small Business Characteristics

The importance of small and medium-sized enterprises for the country’s economy and the society as a whole has been played down. This underestimation is evident since there is the lack of suitable conditions for developing entrepreneurs. Small and medium-sized entrepreneurial entities are, according to Runge, important in the economic and social (Runge, 2014). The significance is due to the fact that they achieve better results as compared to large enterprises based on certain indicators like productivity, efficiency, and profit, creation of new jobs, ensuring competition on the market, and elimination of monopoly (Bartlett, 2000). They account for the vast majority of the active private businesses in the country and represent large shares of

There are personal characteristics that the owners of successful businesses possess. One such is a positive attitude in the enterprise and life in general. Commitment to the company is yet another trait that will go a long way in ensuring the success of any enterprise. Patience and persistence are also key. In a nutshell, it the general growth of a small or medium sized business is dependent upon the owner.

Successful businesses have developed a business blueprint known as a strategic business plan. This plan clearly describes the business concept of the enterprise, their mission, vision, and core values of the business. A well-functioning organization structure is essential in the success of startups and young firms. Enterprises that have clearly defined structures, policies and procedures perform well as they are expected.

The small and medium-sized businesses are important sources of job creation. However, they are inherently volatile with a high exit rate. There are numerous challenges that startup and young firms face including regulatory challenges and market failures. Other constraints that are common to companies of all sizes include weak economic conditions, low confidence levels, and low-risk tolerance threshold. All in all, small and medium sized businesses are often less resilient than larger companies to economy-wide shocks, and appear to face a range of structural challenges specific

Most of them are not familiar or experienced with handling the various aspects of a business including financial matters, regulations, and business plans. Related to this is also the constraint of access to finance to carry out the routine business tasks and for investment purposes (Hurst & Pugsley, 2011). Should the enterprises succumb to the above challenges, they would inevitably fail.

The challenges that face the small and medium-sized businesses can be overcome through observing some best management practices. An important business aspect includes keeping track of the money or returns that the company makes. As the businesses grow, the managers need to monitor their accounts as opposed to being so much concerned with day-to-day operations of the enterprise. Financial issues can be solved by seeking for investors with the same goals and vision as the enterprises. However, the management of these funds by the owners of the small and medium-sized enterprises will still be crucial to the