Why Do Some Businesses Remain Small?

Question

Why Do Some Businesses Remain Small?

4 Answers

Answer Question

Answer 1

Some businesses remain small: -to know the employees well and how efficient they are -as some fields require the personal communication with the customers as it is demanded. Eg: Hairdresser. -as the owner would not want to be stressed out -as the market size is small i.e the product being sold is only demanded by a few people in the market

Answer 2

Having to spend extra money on insurance for extra employees, too little capital / overhead. This is the reason so many companies were hiring illegal immigrants to get the work done. Many business situations Americans will not work as hard with physical labor to produce a companies product as illegal immigrants will work as hard unless you pay Americans like twice as much to do it. On top of that we demand paid dental , vacation time, and possible bonuses.. This can be do much for an owner of a small / smaller business and is forced to stay small from going bankrupt.

Answer 3

Some business owners lack the drive and motivation to take their business to the next level. Some people get comfortable and are scared to take risks.

Answer 4

Small businesses remain small for different
reasons. They are almost always privately owned, some by couples,
brothers, father and son, etc "ma and pa" organizations as they used to
be called, where the owners own and operate the business and are not
interested in expanding beyond the limits that they are comfortable
with.

Keeping a business in the hands of one or two
owners/administrators and maintaining a work-load that can be handled by
a few people and that generates enough income to pay the bills and
insure the survival of your small business is not easy to do. If small
businesses survive and remain small it is usually because the owner
wants it that way and wouldn't have it any other way at all.