Small Business Vs Big Business

Creating and establishing a new start-up or a business is an extraordinary tough job to accomplish for an individual, especially when a new company compete against to large, well-established business. Although the well-known businessman and the founder of IBM corporation said that “There is no difference between a successful big business and a successful small business” but more detailed information it would be a better option to take a deeper look at their benefits and liabilities. Most significantly, big organization and smaller business start-ups differ in how they run their company management, how they would be establishing and developing the risk taking habitant, and what are the rules and politics of the two different organization.

Having dissimilarity in attitudes, values and perspectives, disagreement about demands, goals, priorities and interests can raise the conflict and misunderstandings between the company members. Sizani(2010) stated, “conflicts and disputes occur more frequently in large organizations than in the small ones” as the decision being made by more than one owner, it would take more time than smaller businesses. Another aspect can be narrowed to Dlabaye, Burrow and Kleindl’s citation (2009: p,134), “big businesses can not serve or satisfy the specific customers where the amount of products and service designed for small business companies”. On contrast, in a small business organization, cause of minor operating nature of the management team, it is more convenient to attract the specific customers with their certain requirements for goods or services. Moreover, it is also easier to come up with swift and reactive decisions, usually in response to the consumer requests and demands that can give small business an advantage for edging over their big competitors. Finally, the atmosphere within different sized organizations can also be unquestionably dissimilar. The structure and management in large corporations should be depended on policy manuals, HR inductions, job descriptions, handbooks, and endless lines of meetings. In the smaller business this tends to be more

For new start-ups or for any small business owners, every decision taken can be a critical one, as the result they ought to be a less risk taker than larger well-established organizations. For enormous businesses, making a slight percentage of expansion on the existing widget when they formerly have a turnover $600-700mln can make all difference, and they ought to be avoided from risky decisions. Generally, risk taking for the small business organizations can be represented as; “planning for potential deviation from expected business results” (Reiss and Arm, 2004). For the comparison, big organizations are keen in risk taking because larger business enterprises due to their substantial recourses availability, are able to acquire possible risks more efficiently and effectively as compare to small firms. Mainly, big companies tend to overcome big variety of risks with the help of research, increased and concentrated communication, make up special risk management teams, and investing business