Concepts and explanation
Small businesses create employment, use local skills, serve niche demand and support regional development. Constraints can include finance, technology, market reach, skilled labour and bargaining power. Government schemes and institutional support have eligibility conditions that should be checked from current official sources. A plan should identify customers, costs, cash flow, compliance and risks before expansion.
Business example
A food maker can test demand locally, calculate unit costs and meet applicable food-safety requirements before scaling online.
Case-based practice
- A local maker has demand but cannot afford a packaging machine. Identify two likely constraints, one support route to investigate and three figures to collect before investing.
- Write a short answer that names the relevant concept and applies it to the facts.
Quick revision
Revision cue: Define the term, distinguish it from a related concept and support the answer with a relevant example.