Question

What are micro establishments constrained to take advantage of in contrast to large scale of establishment?

Answer 1

Micro-establishments or micro-business may be started with a very small capital and minimal infrastructure, unlike large scale establishments. They can take advantage of the local market and local tastes, for growing their business. The government procedure for setting up such business is also fairly simple, which can be completed quickly.

Micro-business are the ones which often grow into successful, large scale business.

Answer 2

The micro establishments are constrained to take advantage in contrast to large scale establishment is because large scale companies are well recognised and they can increase their brand recognition by promoting their products.  

Explanation:

• On the other hand, smaller companies are lesser-known and are unable to expand their operations. There are higher costs involved in small business and they have smaller budgets.  

• The large business establishments have the capital and investments to expand and promote their products.  

• The smaller business organisations cannot compete on prices in comparison to the larger firms.  

• They have smaller budgets and they are not able to compete with large firms in regards to the research and development and the capacity of producing large quantities of goods.