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    Ma'am Ruth

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    Roel Asdulo
    The document discusses small business and large enterprises. It provides answers to three questions: 1) Small businesses are possible for poor entrepreneurs because they require little capital and workforce. They are also nimble and can adapt more easily than larger businesses. 2) Large enterprises can influence small economies by bringing new technologies and jobs, boosting productivity, and investing in development. However, small businesses also contribute through employment, innovation and competition. 3) Two main causes of small business failure are lack of experience in management and lack of proper financing. Inexperience can hurt productivity and performance, while lack of capital makes it difficult to pay bills and financial obligations.

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    Ma'am Ruth

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    Roel Asdulo
    16 views2 pages
    The document discusses small business and large enterprises. It provides answers to three questions: 1) Small businesses are possible for poor entrepreneurs because they require little capital and workforce. They are also nimble and can adapt more easily than larger businesses. 2) Large enterprises can influence small economies by bringing new technologies and jobs, boosting productivity, and investing in development. However, small businesses also contribute through employment, innovation and competition. 3) Two main causes of small business failure are lack of experience in management and lack of proper financing. Inexperience can hurt productivity and performance, while lack of capital makes it difficult to pay bills and financial obligations.

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    Fundamentals of Business Management

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    Ma'amRuth

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    The document discusses small business and large enterprises. It provides answers to three questions: 1) Small businesses are possible for poor entrepreneurs because they require little capital and workforce. They are also nimble and can adapt more easily than larger businesses. 2) Large enterprises can influence small economies by bringing new technologies and jobs, boosting productivity, and investing in development. However, small businesses also contribute through employment, innovation and competition. 3) Two main causes of small business failure are lack of experience in management and lack of proper financing. Inexperience can hurt productivity and performance, while lack of capital makes it difficult to pay bills and financial obligations.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views2 pages

    Ma'am Ruth

    Uploaded by

    Roel Asdulo
    The document discusses small business and large enterprises. It provides answers to three questions: 1) Small businesses are possible for poor entrepreneurs because they require little capital and workforce. They are also nimble and can adapt more easily than larger businesses. 2) Large enterprises can influence small economies by bringing new technologies and jobs, boosting productivity, and investing in development. However, small businesses also contribute through employment, innovation and competition. 3) Two main causes of small business failure are lack of experience in management and lack of proper financing. Inexperience can hurt productivity and performance, while lack of capital makes it difficult to pay bills and financial obligations.

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    of 2

    Submitted by:Sheilla Mae Demegillo BS Entrep 2D

    FUNDAMENTALS OF BUSINESS MANAGEMENT

    MODULE 3

    1. In 50 words explain Why small business is possible for the poor entrepreneurs?

    Answer: Small business is possible for the poor entrepreneurs because small businesses is manageable,
    easy and it doesn't require billions of capital to start a business. Small business are likely to have less
    equipment, smaller facilities, lower utilities, and less maintenance and small business is less capital and
    less workforce, less or no machinery,and small business require few and simple sets of records. You
    don't need an accountant for such job. Small businesses are possible for poor entrepreneurs because
    they are more nimble than larger businesses, and are better able to adapt as market conditions change.
    Because a small business is closer to its customers, it is in a better position to hear feedback and observe
    changing preferences. But even though small business is possible for poor entrepreneur still, starting a
    small business is no small feat. You must be resilient and dedicated if you want to build a business that
    makes a profit and stands the test of time.

    2. In what way can a giant business enterprise influence the economy and government of a small and
    poor country? (Answer this question in 5 sentences only)

    Answer: Giant business enterprise influence the economy and government of a small and poor country
    by bringing new products, methods, and production processes to the market. Giant business enterprise
    help to boost productivity and competition more broadly. Also giant enterprise provide employment
    opportunities to their citizens. They improve the development of the country through investment. Giant
    enterprise provide solutions to the gaps in the market economy by using organisational skills such as
    planning, coordinating and controlling. The contribution of giant enterprise to the economy needs small
    businesses to contribute to employment, innovations, competition and social and political stability.Giant
    enterprises bring in foreign exchange earning into the country through exportation and enterprises
    contributes through the GDP of our country.

    3. Explain at least two causes why small business fails.

    Answer: The following are the causes why business fail :

    1. Lack of business experience. Lack of experience is one of the causes of business failure. If you are
    inexperienced or your management is made up of novices, then your business is as good as dead. When
    starting a new business, it is advised you get the services of people experienced in that field. They can be
    your partners or your employee. Get experienced marketers and well-trained customer service
    personnel.With a lack of experience and skilled employees, productivity can decline and lead to slower
    production times, increased operation costs, and other performance issues.

    2. Lack of financing. Starting a business will give rise to the need to raise capital, whether it is your own
    money or someone else’s cash. Lack of capital makes it difficult to pay your bills, loans and other
    financial commitments. Many new businesses fail because they lack profitability, run out of money, fail
    to raise the right kind of funding at the right time at the right valuation, miscalculate the amount of
    financing required, or underestimate the cost of borrowing money.

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