A business which is independently owned and operated and not in its field is called small business. A small business is one with few Manufacturing than 500 employees. A business which is usually organized and managed by the owner and or his family members.
Small business has some advantages that other businesses don’t have. This is why; significance and popularity of small business are increasing day by day. The advantages are as follows:
(1) Easy formation: The formation of a small business is so easy. Anybody can start a small business anytime. No legal formalities are needed to start it.
(2) Easy management: The management of a small business is also easy. Because the owner himself is the manager. So, planning, organizing, staffing, directing, leading, motivating coordinating and controlling of small business become so easy.
(3) Minimization of costs and wastages: Small business is conducted under the strict supervision of the owner. It is very helpful for minimizing costs and wastages of small business.
(4) Prompt decision: In a small business, the owner himself is the manager. As a result, any decision can be taken quickly.
(5) Personal relationship: In a small business, the owner is closely related to his business. It is very helpful for the betterment of his business.
(6) Independence of the owner: Another important reason for increasing the demand for small business is tilted the independence of the owner. The owner of a small business does not like to b( controlled by someone else.
(7) Maintenance of secrecy: In a small business, the owner himself is the manager. As a result, he can easily maintain the secrecy of his business.
(8) More employment: The small business plays a vital role in the employment of people. Many people are engaged in such business.
(9) Tax facility: In small business, the owner himself is the manager. The owner does not need to pay taxes separately for his business. He only pays his personal taxes.
(10) Easy dissolution: The small business can be stopped easily. No legal formalities are required to dismiss such business. As a result, the owner can anytime dismiss his business without any complexities.
So, these are the various benefits or causes of success for small business.