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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| Advantage | Disadvantage |
|---|---|
| Flexibility in operations | Limited financial resources |
| Close customer relationships | Higher unit costs (lack of economies of scale) |
| Quick decision‑making | Restricted market reach |
| Ability to innovate niche products | Vulnerability to economic downturns |
Evaluation: While flexibility and close customer ties drive short‑term competitiveness, the limited financial resources disadvantage is most likely to affect long‑term sustainability because it restricts investment in technology, talent, and market expansion, which are essential for growth and resilience.