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Webby Gurru
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Category :  Administering your Small Business


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Article: v2-SSB-ASB-00014

Administrative Pros and Cons


Small businesses are usually conducted with nominal investment, aiming to make profits with a minimum amount of money invested. A small business is best suited for people who want to start a business without taking on much risk by investing heavily in the trade. Small businesses are also well suited for people who are unemployed or disabled and need some form of employment. No matter what the circumstance, people favor a small business setup because:


  • Small businesses offer negligible risk.
  • Small businesses are easier to handle
  • Credit is more easily approved for small-scale businesses
  • It is easier to recover from a small business failure than if your big business fails
The success of a small business greatly depends upon the administration and how the business is managed. The administration of a small business is different from a big business in terms of marketing techniques, staff, work source and other costs associated activities. Some of the major small business administration advantages and disadvantages include the following:

Small Business Administration Advantages
  • Since a small business is run on a low budget and has low expenditure, its administration mechanism is dissimilar to those of any big business. The expansion of any small business is closely tied to the use of high-quality administration skills and proper supervision. An advantage of small business administration is that the task of ensuring proper management is simpler because these businesses have less staff, lesser management implications and a simpler accounting system.

  • Small business administration is timely in the manner in which its responsibilities can be carried out.

  • Small business administration is the easy mechanism in which the staff's expenses and progress is monitored. Since the staff size is small it is relatively easy to carry out the administrative procedures with ease.

  • Small business administration is often used to handle economic management. This involves all the activities that make it possible for a company to obtain capital for growth. This task is cheaper to manage in small business administration, as the resources are limited.
Small Business Administration Disadvantages

  • The administrator can only be offered low remuneration in a small business. As compared to big businesses, the salaries offered to an administrator in a small business are far less and there is plenty of job risk associated, such as business failure, which results in job loss.

  • The risk factors associated with administration tasks can be a huge disadvantage. Since small businesses are run with little investment there is no room for error in administration. The improper handling of loans and investment money can lead to the small business' downfall. Even the slightest unprofessional conduct (often over looked in big businesses) can easily destroy a small business.

  • The lack of mobility for the administrator coupled with the burden of the job can be a disadvantage. Small businesses are often based on new products and experiments leaving only limited resources available to the administrator. Every activity has to be properly planned and initiated, which is burdensome.


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