With the increasing nature of competitiveness of today’s businesses, the small businesses are finding it difficult to sustain themselves. This slit throat nature of the competition has given rise to many strategies that have been adopted by today’s businesses. Hence, it is vital that the small firms that are in existence nowadays take notice of the business environment around them. Business environment refers to the internal and external factors that play a crucial role in influencing the nature of the discussions of a small business. It is interesting to note that both these internal and external factors affect each other and affects the sustainability of a business. The Internal factors refer to various organizational factors in the form of shortage of employees that affects the way in which a business is conducted. The external factors are the total of economic, social and political factors. Small business organizations are the profit motive and are connected directly to the external environment. There exist business organizations that are of varied types in its nature.
The extent to which small businesses achieve the objectives of several stakeholders
A stakeholder is an individual or a business entity that has a direct or indirect interest in the proceedings and processes of business. Stakeholders of a business entity are mainly divided into two parts such as internal and external. The list of speakers also comprises of trade unions and employees of a business organization. Small businesses also have various stakeholders who play a vital role in helping it to achieve several business objectives in the global competitive market. The key players of the small businesses include its customers.
Like other business organizations, the small business customers from the central core of its business activities. The business strategies of the small businesses are based on the preferences of its clients. The communities are in the shape of the employees and consumers of the small businesses. The small businesses should be able to facilitate the several needs of its employees by addressing them in a proper manner.