Business – 1.3 Size of business – Significance of small businesses | e-Consult
1.3 Size of business – Significance of small businesses (1 questions)
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| Factor | Positive Impact on Growth | Negative Impact on Growth |
| Strong family reputation | • Builds customer loyalty • Attracts skilled employees who value stability | • May create complacency if reputation is relied upon instead of innovation |
| Limited access to external finance | • Encourages disciplined cash‑flow management • Reduces risk of over‑leveraging | • Constrains investment in new technology or market expansion • May force reliance on costly internal funding sources |
Overall, while a strong reputation can drive organic growth, restricted financing often caps the scale and speed at which a family business can expand.