MERITS IN VENTURING INTO SMALL SCALE BUSINESSES.

 

MERITS IN VENTURING INTO SMALL SCALE BUSINESSES : 

Hello reader, today I’ll be taking you through some of the major advantages in starting and operating small scale businesses . These kinds of businesses are many and easy to start. Many people fall under this category of business. They may generate little in come but they are very beneficial in the long run. Therefore starting this small scale businesses as the main business or as a side hustle may be an added advantage to you as an entrepreneur. You’ll be able to generate your income hence sustain you daily needs more effectively. Some of the major advantages accompanied by starting or engaging yourself in these small scale businesses are elaborated below:

. Limited capital required to start and run your business.

 Starting small scale businesses is way much easier as the money needed to start and run the business is minimal. Therefore any person can engage in this type of business hence be able to generate his/her living and sustain his/her needs more effectively and efficiently. So many of the unemployed people can opt to engage in these businesses and make a living out of it. Majorly most of the youth are unemployed therefore if each one of them were to save little money daily , most will eventually be able to start their own businesses and generate income to sustain their daily needs effectively. Hence even the dependency rates will decline.

. Few legal formalities required.

 Acquisition of licenses is way much better as the costs incurred are minimal. In terms of taxes too, most of these businesses are lowly taxed hence the entrepreneur ends up remaining with the greater benefits. Minimal cost incurred too in acquisition of licenses has motivated more people into starting these businesses. Thus the unemployment rates too have declined greatly. Many people have now been able to generate their income and sustain their daily needs more effectively and efficiently. The government too has benefited as more revenue have been generated due to the increased number of these small scale businesses. There are many tax collection points since these businesses are every where. Thus even if the tax levied isn’t that intense, the government has been able to generate more revenue . 

. No level of expertise required.

 There are no professional skills and knowledge required to start this small scale businesses. Any person provided that he/she is able to read and write , know the basic calculations while dealing with money, he/she can operate these businesses. Hence running these businesses has been more rampant and beneficial due to high number of people who lack professional skills. As compared to other major businesses which require high level of expertise in operating them, these businesses do not require any professional expertise to start and operate. Thus the common mwananchi has benefited out of this businesses greatly as most of them are illiterate or lack professional skills, knowledge and abilities. 

. Not labor intensive.

 Majorly small scale businesses are managed by single business men and women hence the cost incurred in hiring and maintaining additional labor is less . This businesses are mostly not that that big hence do not require too many people working in these businesses as compared to maybe large scale businesses which require additional labor to run the business effectively. Therefore these entrepreneurs who venture into small scale businesses maximize their profits due to decrease in labor costs. Therefore the small scale businesses ends up being more productive than even most large-scale businesses. 

. Wider market .

 Most of these small scale business owners deal with fast moving goods and services. Goods sold are majorly consumed directly hence they have a wider range of customers. Therefore these entrepreneurs will be able to market their goods and services more easily hence generate more income to cater for their daily needs as well as improving their standards of living. This is a major merit to small scale businesses as compared to large scale businesses who’s goods mainly aren’t consumed directly hence goods and services the large scale businesses produced aren’t as marketable as those produced by small scale businesses.

In a nutshell, venturing into small scale businesses is more helpful and advantageous therefore entrepreneurs should invest in them to maximize their profits effectively.

Thanks for reading, hope you’ve been enlightened . Follow for more…