Question

Why is 'managerial skills ' a problem for small business?

• A. Small business is generally promoted and operated by a single person, who may not possess all the managerial skills required to run the business.
• B. Many of the small business entrepreneurs possess sound technical knowledge but are less successful in marketing the output.
• C. They are not in a position to afford professional managers
• D. All of the above

Answer 1

Answer: (D)

All of the above

Small business usually faces many problems with respect to finance, marketing, labour, managerial skills, quality, etc. When it comes to managerial skills small business is not able to fully utilise its managerial skills as it is generally promoted and operated by a single person and that person may not possess all the necessary skills required to run the business efficiently. Many of the small business entrepreneurs do have sound technical knowledge about the latest change in technology but they may not be successful in applying the trend in their business. They don’t have much to take care of all the activities of the business and due to lack of capital, they are also not able to afford the professional managers that could help them run their business effectively and efficiently. Therefore, all of the above options are correct.