3.2.4 Reasons for staying small

• Reasons for staying small

  • More personalised service & focus on building relationships with their customers = excellent customer service.
  • Unable to access finance for expansion.
  • High ability to respond to change in consumer demand.
  • Avoid problems caused by rapid growth
  • Satisficing = goal is not profit maximisation.
• With effective use of technology to cater for the precise needs of small market niches, small firms can thrive
• • modern technology can work in favour of the small-scale and personalised rather than the mass produced and impersonal.
• • Niche markets can be targeted profitably by small firms that have relatively small overheads & don't need to achieve volume of sales required by larger competitors