The Small Business Scene

Sidorenko_g_i_tolstouhova_v_f_ Today small businesses are the heart of the market economy. There are a great number and variety of small businesses. People become owners and operators of small business firms in one of three ways: start a new firm, buy a franchise, buy or inherit an existing firm. Small firms have been established to do […]

Selling on Credit

There are few axioms in the world of business, but one of them is "if you sell on credit you will increase sales, even to the same customers to whom you previously sold for cash only". This alluring proposition has great appeal to small business firms. Sales are the foundation of profits, and anything that […]


Small firms actually have advantages over large firms in many cases. One advantage of small firms is that they often grow into large firms. Many of today’s small firms will become giants in tomorrow’s business world. Some of the situations in which small firms have distinct ADVANTAGES are the following: 1. When new products or […]


1) How would you explain the statement "The world operates on credit"? 2) What kind of policy would you establish to handle delinquent accounts’? Why?


1. Match the words with their definitions. EFFICIENCY, FACILITIES, DEMAND, COSTS, EXPANSION, OVERHEADS, CONSUMERISM, REWARD, GOODWILL, TAX 1) A need for or a desire for a commodity, together with the ability to pay for it, as in the law of supply and demand. 2) A consumer protest against the perceived injustices in exchange relationships and […]

Risks and How to Deal with Them

Risk can be defined as the chance of damage, injury, or loss. Every business firm operates with daily risks, and the small firm is no exception. The small firm is characteristically less able to absorb losses from risks. These facts make it very important that every small firm understands the risks to which it is […]

Financial Statements

Good record keeping by a business is not only wise, but is required by many laws. Legal and financial questions may be raised by various agencies, banks, and employees. These questions can be accurately1 answered when written records of business proceedings are kept. By recording daily transactions2, the owner can learn from mistakes and avoid3 […]

Managing people

If the small business entrepreneur is going to have a growing and successful business, that person must understand how to manage one of the business’s most important resources, people. The main objective of the personnel function is to recruit1 and maintain an efficient work force. This calls for the effective management of people, ensuring a […]


4. Complete the following sentences by pulling the bracketed verb into the right tense 1) Inflation (increase) steadily this year. 2) Unemployment (peak) last year and since then (go) down. 3) As the international debt crises (grow), the world economy (become) more unstable. 4) The IMF (carry) out a study last year. In this study […]


Good planning, financing and management are essential to any type of small firm. This is true whether the firm is a franchisee1, a newly created firm, or an established firm under new ownership. That franchisees have a lower failure rate than other new small businesses is due in most cases to the managerial assistance provided […]