NATURE OF SMALL BUSINESS.doc(1).docx - SMALL BUSINESS MANAGEMENT MGT 202 MGT 202:SMALL BUSINESS MANAGEMENT I THE NATURE OF SMALL BUSINESS I.1 CHALLENGES

NATURE OF SMALL BUSINESS.doc(1).docx - SMALL BUSINESS...

This preview shows page 1 - 3 out of 6 pages.

SMALL BUSINESS MANAGEMENT MGT 202 MGT 202 :SMALL BUSINESS MANAGEMENT I. THE NATURE OF SMALL BUSINESS I.1 CHALLENGES - No/ low starting capital or funds - Staff - Building/ machinery - No goodwill/ reference/ history - Sceptical customers - Low competition capacity (insufficient experience) - Product pricing (high or premium coz not enjoy economies of scale) - Product quality vs Product quantity trade off - Hard to compete w3ith established companies on all fronts I.2 WHAT IS A SMALL BUSNESS Small businesses generate a great deal of energy Innovation Profit in the U.S. In Botswana there are greater challenges due to the small consumer and producer market (Diamond and beef reliant vs Manufacturing economy) In the U.S small businesses: - Represent about 99 percent of all businesses - Employ about 52 % of all non Govt employees - Essentially create all new jobs - Employee 38 % of people; in eth high tech industry - Represent 96 % of exports of goods - Receive 30 % of federal contract jobs 1
Image of page 1
SMALL BUSINESS MANAGEMENT MGT 202 QUESTION: WHY THE MPERTUS FOR BOTSWANA TO SIMULATE U.S. ECONOMY? Is this a realistic expectation for development in Botswana? OBSTACLES AND REALITY - Govt still the biggest employer in Bots, followed by the mining industry - Bots imports exceed exports - Significant Govt tenders still awarded to foreigner-controlled companies. However, PPADB efforts bearing fruit (North East District showing improvement by awarding more jobs to citizen controlled companies) SMALL BUSINESS DEFINED A business is generally considered small when it is independently owned,
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 6 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes