Here is why you should prefer a small sized company to a big corporate company:

1. Fewer risks

In running a small sized business one faces fewer risks, and in case the business happens to fall apart recovery of loses may not be too costly. Starting a small sized business is indeed a risk worth taking.

2. Manageable capital requirement

Capital required to start and run a small sized business is relatively low. Little amount of capital is required to buy equipment for the business. The cost of labor is as well minimal because some or most of the tasks can be done by the CEO him/herself instead of having to employ people to do the tasks.

3. High quality output

Since the business is small, the size of the output also tends to be small. This gives the employer and employees of such business to give maximum concentration on the quality of output. Unlike in big companies where the output may be of a larger size but poor quality.

4. Little competition

Because small businesses operate in niche markets with minimal competition, it is more likely that they will be having higher sales and more profits from their businesses. So if you want minimal competition you may decide to venture in a small sized business with a specific target market. Still in the case of emergence of new competitors in the market, the business’ line of production can easily be changed.

5. Customer knowledge

In small sized business, the entrepreneur has a perfect knowledge about the customers. The entrepreneur as well understands customers’ demands and is able to meet their demands due to the close interaction with customers. In case of any complaints on goods and services offered the business can easily make the required adjustments on goods and services to suit customer’s demands and expectations.