STEEP Analysis: What Is A Small Business

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According to Longenecker, Petty, Palich, & Hoy (2013) STEEP analysis has five elements each one represent one letter of acronym 1) S stands for Social: Social represents element of external environment business operate in and the society as a whole. For example when opening a retail store, Ahmed has to keep in mind the demographics, lifestyles, religion and the level of education of society. For example, considering that the majority of population in gulf region are Muslims, Ahmed has to ensure that items sold through his stores respect local and Islamic customs. Also, there is a large expatriate population from many countries from Arab world, India and Philippines living in the gulf region. Ahmed stores should offer items that cater to the…show more content…
Ahmed should ensure he complies and respects all laws that relate to opening shops. He should obtain the correct license, pay all license fees, follow import laws. Also, all workers in his stores should be employed legally and he should respect nationalization laws and recruit local staff if possible. Question two (350 words, 35 marks) There are many ways to define what is a small business. According to Bartlett, Doz, & Hedlund (2013), a small business is run and operated independently, has small influence on the sector in which operates and the number of employees is less than 500. Small businesses are important, and in the United States alone there are more than 27 million companies which make up more than half of American economy, Many of the companies that we all know such as Dell, Apple, eBay and Microsoft started as small businesses. Small businesses are important they: 1) Generate jobs 2) Encourage innovation 3) Support big companies Small businesses create since the majority of workers have their first jobs with small businesses before progressing to large companies. Overall in most developed economies such as USA and Britain half of all workers are employed by small businesses (Nickels, McHugh, & McHugh, 2011). At any time, there are many small companies starting and expanding which means that they need…show more content…
These characteristics include the following: 1) Being passionate: At the beginning of business there are many tasks to be done. These tasks vary from applying to license, contacting suppliers, and hiring workers. Most of the time, the team involved in starting is very small or maybe even only one person. Therefore, those starting a business should have the passion and the commitment to handle all the challenges that come part of starting a business 2) Being persistent: those starting a new business must learn how to deal with challenges. Those starting new business have to deal with having limited cash, and may experience slow business, and changes in the economy that may hamper their business. Entrepreneurs have to ensure they follow-up with government agencies, municipal offices, and suppliers. The application for government licenses and permits also takes persistence and the ability to preserve to achieve business

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