What are the disadvantages of small business?

[uptrendfinancialsignal]

One of the major disadvantage of small businesses is the limited resources and funding and that is why it is important to ensure to seek for fund if you want to start a small business because that is how the business would grow.

It is also very challenging to invest in the growth opportunities, technology upgrades and some other marketing efforts. Small businesses face competition especially from larger corporations because the larger corporations have greater financial resources and marketing budgets that could be used to enhance brand recognition. This will make it extremely difficult for small businesses to attract and retain customers.

 

[Leah Kelvin]

Small businesses have several drawbacks namely; limited resources, lack of wide market coverage, and susceptibility to economic downturns among others. Nevertheless, small businesses can still flourish in their various markets because they are agile and personalized in service delivery.

 

[btaliat]

Small businesses are faced with different problems. Some of these problems will be highlighted below:

Inability to secure loan: many a time, most commercial banks do not always want to lend money out to the small scale business owners. The reason is not that far fetched. They do fear that they may find it so difficult to repay the money.

Low customers: many people always prefer to patronise the small scale business owners because they do sell at manufacturer or wholesale price compare to the small scale business owner that will sell his goods at some higher price.