11-01-2014, 11:23 AM
SUCCESS FACTOR OF SMALL BUSINESS
SUCCESS FACTOR OF SMALL.pptx (Size: 47.23 KB / Downloads: 12)
Firms of a certain size which fall below certain criteria (that varies from country to country) in terms of annual turnover, number of employees, total value of assets
Small business are normally privately owned corporations, partnerships, or sole proprietorships.
A small business typically has a small number of employees.
A successful business is one that is based on: A product or service that customers want. A product or service you can sell at a price customers can afford and which make profit. The knowledge and skill have or can get. The resources and money are able to invest.
1. Flexibility
One main reason for the success of small companies
Possibility to adapt rapidly to new circumstances and opportunities
Identifying new opportunities and market
When focusing on market one has to be able to change the direction of the company when things go wrong
2. leadership
small firms core employees consists of managers that usually own the company
Low hierarchies between employees
Important characteristics of business leaders
previous experience on technology
knowledge of the industry
experience on entrepreneurship
Successful leaders identify opportunities that others can consider as too high risks or do not believe in them
developing new innovative ideas one must take risks
Downside of taking risks are mistakes
mistakes can be corrected and they need to be corrected fast to steer the company in more successful direction
3. Networking
The most important challenge for SMEs’ is their lack of resources
Resources can be gained through networking and partnering
Previous working relationships, families, friends and acquaintances are important sources of advice and information
There is great number of mechanisms of how to relate to external organizations
Other key success factors
Importance of customer relations
Frequently satisfying customer needs (identifying and meeting)
Alliances and concentrating on few customers for better communication
Operational efficiency
The resources that small software businesses have offer the opportunity to grow and perform well, but they have to be exploited thoroughly in order to achieve good results