Why small entrepreneurs lose more than corporate?

Operations and financial management are two pillars of a business. If one pillar gets disturbed, the whole business will suffer. There are very serious repercussions of even a single small negligence. Before we start our venture, it is important to consult a right person for both aspects. If we are operations’ experts, we should consult a financial advisor and if we are a finance expert than an operations expert should be consulted. For a successful business, a big role is played by experts as consultants. We should hire them at the right time to track and plan business growth.

Why are all medium class entrepreneurs not able to grow with the same pace as big corporate? Because when a corporate entity starts its venture, the first investment is in research and development. It hires a team of experts to evaluate a business idea — if it will succeed or not. A small amount paid on evaluation saves a huge possible loss to it. On the basis of that research, it either starts a project or dumps the idea. If the report predicts a good business, it enjoys profits for the whole business cycle of that business line. On the other hand, a small business entrepreneur tries to become an expert himself or seek an unprofessional free advice. if the business does not survive, it loses both money and time. If it succeeds, then it keeps on facing challenges of long term survival. Crises can derail small businesses any time. Challenges like the recession are just too much for them.

A right decision at the right time is the key to the success of a business. Experts only help control these factors to a large extent, obviously at a price.