Small Business Benefits and Disadvantages

One benefit to a small business from having a unique selling point is:

• Increased competition

• Give the business a competitive advantage

• Reduced market share

• Lower brand recognition

One disadvantage to a small business of manufacturing a high quality product is:

• Increased production costs

• Lower customer satisfaction

• Reduced product lifespan

• Decreased brand reputation

One reason why new business ideas come about.

• Changes in technology

• To increase competition

• To reduce market share

• To complicate processes

One risk for an entrepreneur when starting a new business.

• Financial loss

• Guaranteed success

• No competition

• Unlimited resources

One way a small business could add value to a product.

• Improving product quality

• Reducing production costs

• Increasing advertising budget

• Expanding product line

One way an entrepreneur can reduce the risk of failure when starting a new business is:

• Conducting thorough market research

• Ignoring customer feedback

• Investing all capital in one area

• Avoiding any form of marketing

One reason why an entrepreneur may adapt an existing product to come up with a new business idea.

• To increase marketing costs

• The business already understands the market

• To reduce product quality

• To decrease brand loyalty

One way an entrepreneur might identify a new business idea is by:

• Adapting an original product

• Ignoring customer feedback

• Copying competitors

• Avoiding innovation