Importance of Business, Advantages of business & more
Small businesses help provide opportunities for growth in the business environment and the local community. They provide instant services in their community, leading to the betterment of the local economy, and prove to be a gathering place for the local people where they forge new rapports.
Advantages of a Small Business
There are various advantages of a business in local communities. Some of them are listed below:
Small business owners have the liberty to choose who they want to do business with, their area of work, and make their own decisions. They are free to take leaves or vacations and potential risks for their self-owned organisations.
In big organisations, it gets difficult to get an idea through higher-level people. In contrast, in small businesses, you are the owner of your organisation. Because you are the decision-maker, you are flexible enough to make necessary changes, innovations, and risks in your business as per the requirements.
3. Personal service and satisfaction:
The big impersonal organisations are insulated from their customers and often are unknown to the problems/defects that the customers/users using their product or service might be facing. As a small business owner, however, you are responsible for every aspect of your business. You would know how to handle grievance complaints. You feel satisfied with your work and take enormous pride and happiness in doing what you do.
The ownership of small businesses helps the business owners to contribute in some or the other way to the local community where they have set up their business. Through their products and services, they contribute to society as a whole, thus helping the local economy.
Significance of Business/Importance of Business
Below are listed some points of importance of business environment and businesses as a whole:
Small businesses are important as they spread homogeneity and cater to the needs of the local people. For example, local restaurants feature regional/local delicacies.
Small businesses adapt to changing economic climates very quickly. It is their customer-oriented approach in that they cater to the local people’s immediate needs, and in turn, during harsh times, the local people stay loyal to the small businesses. It represents relationships built on trust and helps strengthen local economies and stay afloat during economic changes.
3. Small businesses grow into large organisations:
Small businesses, with time, grow into large organisations. Companies like Nike and Microsoft had started a small business and, over time, grew to be highly accomplished and big corporations. They remain in the community they had created and contribute positively to its growth and prosperity. They further help provide employment opportunities to the local people and enhance the local economy, thereby establishing a market favouring more small businesses in the community.
4. Creating jobs:
As mentioned earlier, small businesses help to create employment opportunities in the local community they have established themselves in. It stimulates economic growth for people who might not gain employment in large corporations. The local people also, in turn, assist the small business in curating customer-oriented and specific products and services. Moreover, large business owners tend to outsource their products and services through small businesses since they better know the local community’s needs and wants.
Ideas of small businesses in India
1. Grocery Store
Groceries are the basic needs of people in any community. People need them, plain and simple. A town that can sustain a grocery store but lacks one is an effective option for small businesses. A small town could not possibly sustain a big departmental store. In case you do not plan on opening a franchise store, you are advised to specialise your store so that you do not overspend on inventory.
For trained pharmacists or those involved in a local medical profession, opening a drugstore in a small town would prove beneficial for the local people and the businessperson. However, it might be a lot of work due to the competition with large drug chain stores if you plan to open an independent store. It also is challenging in terms of hiring pharmacists, buying insurance to install security precautions. Still, if the town does not have a local drugstore, it could be an excellent business growth opportunity.
3. Thrift store
A resale shop could prove to be a profitable business idea in areas visited by tourists. They can specialise in antique pieces, artwork from local people, second-hand clothes, and materials. The thrift store does not require regular upkeep, and the inventory would not expire. Plus, it does not need complex supply chains and bull orders since most of the material would be gathered from the local people; therefore, it is a good option for small businesses in a local community.
A restaurant that provides affordable delicacies that are not found nearby seems a good option for small businesses, especially when it provides what the local people need and desire. It might be something simple yet elegant, something that people in the community would like to try, or it might be bringing the costly dishes of the big cities into the small town for a much lesser price. To start a business like this, all you need to figure out is what the local people desire or, better still, their utmost need. It will ensure your business growth.
A contractor is always in demand in every community and town. A trained contractor sufficient to repair leaky pipes and wobbly door hinges is sure to be in demand in every community. You can get in touch with people yourself, make connections or get in touch with a relatively bigger contractor who is likely to give you work on a contract basis which would further aid in developing connections through word-of-mouth.
6. Automotive repairs
Automotive is a basic necessity. People commute every day. Their vehicles break down often. There’s always a need to repair and reconstruct vehicles and places that do not have such facilities to provide, which might prove to be a successful business environment to open a small business. Providing what is needed by the local people is the key to business growth.
7. Computer services and IT
Technology is a new era, and everything is now digitised, but still, many people are not adept in technological skills and software. Therefore, starting a small computer and IT business where needed the most would be a great strategy to grow the business.
8. Clothing store and boutique
Today, online shopping is the trend, but this trend may not prove beneficial for small towns/local communities. Even today, people feel satisfied with buying clothes from the stores, preferably small clothing stores in their community. Local people tend to buy from small clothes shops and boutiques rather than the large retail shops. One can even start a clothes boutique wherein the clothes are stitched and other raw materials are sold. This can help in business growth.
Thus, to conclude, we can say that business in India can be more challenging to start and manage than working at an established organisation because of the potential risks, the highs and lows, and the irregular income. Still, they are essential to establish to create a web of symbiotic relationships. Small businesses help provide employment opportunities to a large population of India. It accelerates the economic growth of the country. Small businesses also help with the betterment of society and the community.
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4) OkCredit: Simple, Paperless & Secure solution for businesses
Q. What business is the most flourishing one?
Ans. The business in which you feel at ease and the field of work you are skilled and trained and interested in business would flourish because you will enjoy doing the most.
Q. How to decide on a location?
Ans. There is only one thing to consider while deciding your small business’s geographical location, that is, where will it grow the most. This is because starting your business at a location where only one or no other similar business is already established will ensure business growth. However, e.g. in case you are thinking of starting a grocery store at a place where already three of them are present then, it would become challenging for you to hold a firm ground.
Q. Why do small businesses fail?
Ans. Small businesses can fail due to various distinctive and specific reasons for the kind of small business. However, the most common errors due to which they could fail are:
- Mismanaged capital and cash flow
- Wrong sales strategy
- A weak business model
- Poor marketing strategy
- Ill-trained and unmotivated staff.