Small Business Success

812 Words4 Pages

The literature review was carried out by making use of a range of sources such as books, internet sources and journals. Three questions were answered based on the financial and non-financial factors that influence small business success. Seven sources were used in total to attain information to answer these questions.
2.1.1 THE NATURE OF BUSINESS SUCCESS IN SMALL BUSINESS OWNERSHIP According to Lots and van der Merwe (2013:17-18), business success can be measured by looking at the efficiency and effectiveness of employees producing the business outputs, in other words the monetary value and process it took employees to get there. In a successful business, employees are viewed as the most important business asset. However, because the nature …show more content…

It allows small firms to focus on how they can have a competitive advantage compared to others because they lack strategic planning. This enables the business to concentrate on customer needs rather than what they think would be right for the business. This enables the firm to utilize all resources and prevent wastage hence leading to the success of the business. (Elliott & Boshoff, 2007). According to Lotz and van der Merwe (2013:20), Competitive aggressiveness which involves attempts by businesses to increase and improve on the impact they make on the market and on their competitors has also led to small business success. The businesses are able to do this through scanning the business environment in order to produce high demanded products onto the market, production of high quality products and providing good customer care. Good management has led to business success in a way that it has generated favourable business plans and strategies that have enabled resources to be allocated and utilized effectively to ensure high productivity and output hence leading to the business success. Another factor that has led to the success of small businesses is exposure to different things overseas which involves being able to see and adjust to the latest technology on the market. Overseas exposure has also enabled workers and owners of small businesses to attain training abroad to enable them effectively manage and make the business progress hence this has made the business to obtain success. Support from the government. This has led to business success in a way that the government has carried activities that have developed the industry for example improvement of infrastructure like roads which have enabled small business enterprises to easily carry out their day to day activities that involve transportation. Other activities include: protection from big

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