Characteristics of small scale industries

Answer 1

Characteristics of a Small Scale Business

A few examples of small-scale businesses include a flea market or shopping mall booth, a consultancy business, or even a computer repair shop that moves into retail space. Small-scale businesses typically consist of one owner and his shop. The business owner sells products and/or services supplied by a franchise company or created by the owner himself. This type of business is flexible, which means that the owner can generally set hours at any time to accommodate customers.

Startup

The initial start-up costs for a small-scale business are usually pretty low, depending on the specific business model and what products/services are being sold. A small-scale business selling retail goods at flea markets will only need require funds to purchase initial inventory and pay for a spot at the flea market. Likewise, the owner of a small business selling homemade goods only needs to worry about purchasing materials to make the goods. Small-scale businesses that offer consultation services, such as tax preparation or nutritional services, also have very low overhead costs.

Portability

A small-scale business is generally portable, making it easy to set up and tear down. Holiday gift shops that sell candles and novelty items are a perfect example of portability; all that's typically required is empty space at a shopping mall with a small table or booth to display products. Small-scale businesses also need a way to accept payments. Small credit card terminals and portable cash registers are perfect for these needs.

Employees

Usually very few employees, if any, work for a small-scale business. This type of business may have one or two employees for busy times. Typically, however, such businesses cannot afford to pay wages since a majority of the profits goes back into the business or pays for the owner's personal expenses. As such, owners often staff small-scale businesses themselves, allowing them to keep whatever profits they make.