Small Business means a Business that anybody can start with a low budget. Only one person can start it initially or it may be partnership-based. There is no need for hiring larger staff. But it doesn’t mean it is restricted only low amounts with medium amounts. We also can start it and approximately there would be 50 workers in it. Most favorable thing is that there is no need for any specific place or workshop. There is no need for any specific degree, diploma, or experience. Small businesses might be services and retail operations. We can look at small businesses surround us in daily life on every street and in every corner, like; grocery and medical stores, bakeries, small manufacturing units, and tradespeople. Small Businesses serve local areas and communities while company owners gain profits.
-Types of Small Business
There are many types of Small Business and some of them are described below!
- Tuition Centers
- Small scale manufacturing industries
- Agro-based industries
- Handloom and power loom
-Nature of Small Businesses
1- Sole Entrepreneur
The advantage of these types of businesses is that only one person can start it easily. For example, if one person wants to start a grocery store, he can start it without anybody’s help.
2- Less Budget Friendly
Small Businesses can start with a low budget. People who don’t have a big amount of money they can start it without any difficulty. There is also no need to take a huge loan and pay the interest year after year because Small Businesses function on a very low budget so we can say budget-friendly business.
3- Labour Intensive
These types of businesses are labor-intensive. Mostly they use labor for their functioning because they need more physical work as compare to intellectual work. Less availability of machinery makes the employers manage their work manually.
Small businesses always deal with or satisfy the local area and community like grocery stores, medical stores, beauty parlors, saloon, tuition centers, etc.
5- Native Methods of Operations
Small Businesses focused on local areas and depend on labor so they use often native methods of operations. This is very good and satisfying for Small Businesses that we don’t need the very bid amount of money to invest or a very high level of education and experiences. But it is a fact that we have to do very hard work to run these types of businesses because they are time-consuming and need a lot of hard work, attention, consistency, and patience.
By Uzma Saleem