Question
Give any four reasons why small scale firms continue to exist in economy dominated by large scale firms.
Answer
- Size of the market served being small
- Nature of the product can only be provided in small scale
- Simplicity of the organization
- Flexibility of small firms
- Quick decision making
- Belief that a small firm is more manageable
- Rising costs of production which sets on too early
- Legal constraints barring growth of firms
- Need for small capital
- Use of simple technology in production
- Nature of the product can only be provided in small scale
- Simplicity of the organization
- Flexibility of small firms
- Quick decision making
- Belief that a small firm is more manageable
- Rising costs of production which sets on too early
- Legal constraints barring growth of firms
- Need for small capital
- Use of simple technology in production
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