Advantage Of Small Business

Small business is owned by a sole-trader or a partner and it is usually in private sector which means it 's not owned by the government. It is really important to understand the external business environment when we are going to start a new business. One of the best ways to understand the business environment is The STEEP model. STEEP is a shortening for Sociological, Technological, Economical, Environmental and Political factors. In this essay I will explain STEEP, Discuss the benefits of small business and talk about the entrepreneurial for Ahmed to manage his business successfully.

Question 1: STEEP analysis provides concentrated information about external factors which include Sociological, Technological, Economical, Environmental, Political

Small business has many benefits and it has a role in general for the growth and development of a nation. Small business plays an important role in creating new jobs and employment on business activities in increase spends power. It can offer special services to the customers that other business may not provide for example there are some services large business can 't regard as cost effective to provide because they have to focus on more things and when it comes to small business they can do it because they are small. It also has a special knowledge of the local business environment so they can offer and can tailor their services and products appropriately because they are small business they can questionnaire their customers and know what exactly they want. Small business also assists in regional and local growth because their output is an input to large business for example small business purchase a lot of things from large business to continue their own business then large business will be benefited also. It can be more innovative than larger business which they find difficult they can be more flexible in their respond to the costumers because they are small and near to the costumers more than larger business they can be innovative in many ways

Entrepreneurs are the people who create new services, products, processes and markets. They usually create a new ways for develop the business market. Entrepreneurship has many qualities some of them that he have his freedom for example there will be no one tells him what he have to make or do. Also make money for example all of the profits will return back to him no one else will get this money. He will be his own boss for example he is the boss in this business no one will be the boss other than his he will tell the people what to do and when to do. He will gain more respect because he is the boss and everyone have to respect him. There will be more challenges for example he will face many risks and he will have many opportunities too. Being at the forefront of technology for example he can use the most new technology in his business like using IPads. It will lead and motivate the others when people see a successful business they will fell like they want to have the same so they will try to start their own businesses. Sometimes it’s a family tradition to own your own business and manage it. He can also use his own ideas that lead to innovation like he has an idea for something new not in the market he will be very unique and everyone will know him for this. (Pande, 2009)(Hall and Keynes,