Diverfsity in Small Business Research Paper Example | Topics and Well Written Essays - 1000 words

Diverfsity in Small Business - Research Paper Example One of the main reasons why people start small businesses and their advantages over large business is the fact that their start up requires lower capital than a large business; it can also function on a part time basis than a full time basis. Also small business can cater to niches more than large businesses and without being tied down to any beauracratic hierarchy. Lastly, independence is a factor that appeals to many; the ability to make their own decisions and be flexible in the workplace without looking up to anyone and relying on their decision making. However, small business do lag in some areas; such as the fact that their size makes it difficult for them to obtain loans and other means of capital as well, so there is a chance of bankruptcy or undercapitalization especially on the grounds against large business, small business lose out. Therefore, they need to sharpen their competitive edge in other areas, so that they can remain active and flourish even in competition with la rge businesses as well as small businesses such as them (Fox, 2004). Diversifying is one of the ways in which small business can get an edge over other businesses. Diversity can be taken in the context of workers being from different cultures, religions etc. however, broadly defined as differences between people, be it according to gender, culture, race etc. It brings greater perspective to an organization and fresher ideas to the table, and teaming up and working with different members of the society is beneficial for the organization as they learn to understand and be creative. Diversity is more than a social phenomenon to make an organization have a good feel and a more humane approach to it. It is a crucial aspect of a globalized world, where the world is becoming more and more interconnected every single day with speedier internet and other resources at the disposal of mankind. And since larger organizations can take better benefit of these resources considering their budgets a re usually much larger than those of smaller organizations, smaller organizations can at least become more adept at making themselves as diverse as possible. Consumers are also extremely diverse; and if the company is diverse, they can relate better and consume more consequentially than someone who feels disconnected with a company. Products are now made by a range of people; a product raw material could be bought from a person with a different background, made by someone else, and sold by someone else; and these are just a few basic functions managed by different people, whereas there a million process that go on in making a product. The world of organizations is also becoming more and more consumer oriented than before. Consumers possibly call most of the shots in the making and selling of products; companies cannot force them to buy their products, and they will not make something that doesn’t sell. One of the things that consumers will notice is the reputation of the comp any, what it believes in and projects. And if a company fails that test with consumers; then they have plenty of other companies at their disposal. Which also highlights another fact that consumers are not short of choices; so a company has to work hard and long to keep attracting them in the way that they would like to be wooed, and diversification is a key factor in attracting customers and making your products or services their preferences, over other companies. A big