Question

Discuss whether small firms can compete successfully against large firms igcse answer

Answer 1

Answer:

small firms in the business situation refers to those firms which can be easily managed in the business since the premises are smaller than the large firms.

Explanation:

small firms refers to those businesses which has been established by an individual and the management of the firm is easy and can be in a position to compete easily like any other businesses. Small firms can be in able to do very well compared to the large farms because of the following reasons;

(a) small firms occupies less space and therefore requires less number of employees hence they can compete fairly with the big firms.

(b) small firms is easily manageable compared to the large firms hence can compete fairly with the large firms.

(c) small firms have the good access to the number of esteemed customers and therefore can give out their goods on credit hence compete well with the big firms.

(d) small firms requires less amount of capital to start compared to the large firms which requires more capital.

(e) small firms are very flexible and therefore it can make more profit because of their flexibility compared top the large firms and can compete successfully than the large firms.