3.2.4

• What is one reason a business wants to stay small?

  Preference
• What is another reason a business wants to stay small?

  Avoid overtrading
• What is a third reason a business wants to stay small?

  Avoidance of diseconomies of scale
• What are the key factors for the survival of a small business?

  • Product differentiation and USPs
  • Flexibility in responding to customers
  • Customer service
  • E-commerce
  • Manageable costs
• What does product differentiation provide for a small business?

  Unique selling propositions (USPs)
• Why is flexibility important for small businesses?

  It allows quick responses to customers
• What is a crucial aspect of customer service for small businesses?

  Personalized attention
• How does e-commerce benefit small businesses?

  It expands their market reach
• Why is manageable costs important for small businesses?

  It helps maintain profitability
• How do product differentiation and USPs contribute to a small business's survival?

  They help attract and retain customers
• In what way does flexibility enhance customer satisfaction for small businesses?

  By allowing tailored responses to needs
• If a small business wants to improve customer service, what should it focus on?

  Providing personalized attention
• What strategy should a small business use to manage costs effectively?

  Regularly review expenses