Characteristcs of Small Businesses Visa-a-Vis Well Resourcesd Large Essay

Characteristcs of low-down Businesses Visa-a-Vis Well Resourcesd Large Companies - Essay ExampleSmall businesses lack well record business plans, vision and mission statements which hinders the strategic planning process. Small businesses do not understand the grotesque needs of the customers thereof offer standardized products and services to the target grocery store. Small businesses can achieve prolong growth through merging with other businesses which is critical in resource sharing. Small businesses should implement meshwork technologies in order to overcome their location barrier as well as increase their turnover. The gloomy businesses should also maintain financial statements which argon critical in accessing debt financing. Characteristics of small businesses visa-a-vis well resourced large companies entrance The definition of small business has been controversial if not difficult. Some definitions which get been advanced consider the favorableness of the business , the value of assets, the annual turnover, the number of employees and the branch network (Pride, Hughes & Kapoor 2010, pp. 24). Small businesses can be analyzed from their typical managerial, marketing, organizational and developmental characteristics. Small businesses have certain characteristics which distinguish them from well resourced large businesses. Numerous scholars have used different methods in determining the size of the business. However, most small businesses have less than 10 employees and argon either family business. Unlike well resourced large businesses, the small businesses have limited options in acme expansion capital since they are sole-proprietorships, partnerships or limited liability companies (Storey, 2002, pp. 6). Small businesses are managed by the owners dissimilar well resourced large businesses which are capable of employing professional and expert employees and managers. Unlike the well resourced large firms whose shares are able to be traded i n the stock markets, the small businesses are closely held thusly lack of conclusion in the management of the business (Little, 2005, pp. 42). Small businesses lack professional board of directors whence most of the strategic decisions regarding the objectives and goals of the business are taken by the owners who are still the managers of the business. Small businesses do not sleep with expansive branch network and distribution channels hence most of them have limited chances of market share growth. Well resourced large firms are able to enter in to strategic partnerships and alliances with other firms hence they can easily penetrate in to new markets unlike the small businesses (Little 2005) Distinctive managerial characteristics Small businesses management is different from the management of well resourced large businesses. Most of the small businesses are family businesses which are managed by the owners. Small businesses may not have enough funds to employ qualified managemen t hence the owners of the businesses make all the strategic objective decisions regarding the source of funds and the expansion programs (Little 2005). Well resourced large businesses are able to list in the stock exchange markets and secure financing by offering shares to the normal unlike the small businesses. Well resourced large businesses can afford to hire expert management hence can compete effectively in the business environment. Small businesses employ few employees who may not be qualified in the services which they offer to the business (Lavoie, et al.,