Traits and Objectives of Small Business

1.      

t 

      Traits of business

      Activities: A business consists of various activities basically economical and non-economical.

2.       Profit: The primary goal of business is to make profit for its owners. It is the main incentive for starting a business. Other goals of business can be growth, survival, market leadership, efficiency, innovation, social responsibility and corporate citizenship.

3.       Customers: Customers occupy a central place in business. Customer need satisfaction is the key to profit generation. Business exists to serve customers.

4.        Competition: Competition is an important characteristic of a modern business. Globalization and liberalization has brought competition everywhere in business. The world is becoming one big market.

5.       Diversification: Mechanization, automation and computerization have led to increase in the size of business enterprises. This has resulted in diversified product portfolio.

6.       Change: business is constantly undergoing change due to technological advances, information technology revolution and changing environment. It needs to manage change.

Objectives of Business

Business organizations can have multiple goals.

1.       Profit: Profit is excess of income over expenditure. It is the primary goal of a business. It is the main incentive of a starting a business.

2.       Growth: business should grow over a period of time in terms of sales, market share, product diversification and profits. Stagnant businesses tend to die in the long-run.

3.       Survival: Business should stay alive to thrive. Carpet business in Nepal is pursuing survival goal in the hope of seeing better days in the coming years.

4.       Leadership: Business should strive for market leadership through continuous technological innovation and quality improvements.

5.       Efficiency: Business should aim for higher productivity through reduced cost of operation.

6.       Social responsibility: Business should safeguard the interests of its stakeholders including employees, customers and the society. It should use power for the good of society and remain a part of society.

7.       Corporate citizenship: Business should comply with the laws of the land and develop good government-business relations for the corporate citizenship.