examine whether external influences are the major factors in determining small business success
- This is a preview of the essay.
To view the full text you must login!
ENTREPRENEURSHIP & SMALL BUSINESS
INDIVIDUAL ASSIGNMENT FOR GEOFF JONES
In this assignment I will be looking at whether or not external influences are the major factors in determining small business success. To do this I will have to look at things outside the business that it has no control over, like such things as government intervention, the economy, the market and the environment. It is also important to compare these external factors to internal factors (within the business) like quality of entrepreneurship and how the business is managed to come to a final conclusion, which have an influence on business success.
The markets in which the business sells its products are part of the external environment in which the business operates. In a market you can look at competition and the way it may affect a small business. If the market is big then there will be lots of competition, which may have a big influence on the performance of a small business. Take for example local corners. They are small businesses that are in competition with such firms as Tesco, ASDA and Marks & Spenser, and the behaviour of these very large businesses affect corner shops in a big way. Look at Tesco, they have the advantage of buying their products in bulk charging low prices and benefit from economies of scale while local corner shops may have to buy their products and sell them at a higher price. Small businesses therefore may have less influence in the market because of the lack of differentiation and large number of competitors...