By Jestina Blazi – Art in Tanzania internship

Marketing and Management

Women programs

SMALL SCALE BUSINESS is marked by a limited number of employees and a limited flow of finances and materials.

ENTREPRENEURSHIP is a process of undertaking the risk of starting a new business venture; a person is called an entrepreneur·, and an entrepreneur creates a firm.

An entrepreneur is someone who has the ability and desire to establish, administer and succeed in a startup venture alone.  

Small-scale business revenue 

is generally lower than companies that operate on a larger scale. The Small Business Administration classifies small businesses as companies that bring in less than a specific amount of revenue, depending on the business type. The maximum revenue allowance for the minor business designation is set at $21.5 million annually for service businesses.

Smaller Teams of Employees

Small-scale businesses typically employ smaller teams than companies that operate on a larger scale. The smallest businesses are usually run by a single individual or a small team. Depending on the business type, a smaller-scale business can often get away with employing fewer than 100 employees.

Small Market Area

Small-scale businesses serve a much smaller area than corporations or larger private companies. The smallest-scale businesses serve single communities, such as a convenience store in a rural township. The very definition of a small-scale company prevents it from serving areas that are significantly larger than a local area, as growing beyond that would increase the scale of its operations and push it into a new classification.

BECOMING AN ENTREPRENEUR

To be called an entrepreneur, the general career trajectory usually looks something like this:

Willingness and belief are necessary to initiate and remain confident.

Ability to start with the small thing you possess and expand it.

Innovation skills for better competition.

Develop an idea for a unique or in-demand business.

Learn about and gain experience in various business roles, including finance and accounting, management, and marketing.

Make a business plan and establish a source (or sources) of funding.

Recruit talented workers and managers with the skills to develop, test, implement, support, and maintain the company’s products.

Devise strategies for launching the product or service and for attracting and retaining customers.

Once the company is established, seek ways to grow revenue by expanding into new areas and product lines.

Awareness of what you are doing without caring what others see.

As the business matures, the founder’s role will likely include long-term strategic planning and short-term tactical management and financial decisions. Over the past few years, entrepreneurial opportunities have increased for women seeking to lead and succeed in their own businesses.

After generating more and maximising the business, you have to apply Diversification.

Diversification is a risk management strategy that mixes various investments within a portfolio. A diversified portfolio contains a mix of products.

Most investment professionals agree that, although it does not guarantee against loss, diversification is the most critical component of reaching long-range financial goals while minimizing risk. Here, we examine why this is true and how to diversify your portfolio.

What Happens When You Diversify Your Investments? 

When you diversify your investments, you reduce the risk you’re exposed to, thereby maximising your returns. Although certain risks cannot be avoided, such as systemic risks, you can hedge against unsystematic risks, like business or financial risks.

The most common reason for diversification is the need to survive. Businesses fight for their survival in the market and are willing to expand their production lines to incorporate new products, thereby earning more substantial profits.

In cases where a business produces seasonal products that only generate revenue for a specific time of the year, diversification of products can ensure that revenue flow remains consistent throughout the year.

For instance, the market demand for ice cream, juices, and soft drinks is higher during the summer but lower in the winter season. If companies producing these items diversify their production lines to include winter apparel, they could generate revenue for their business during the winter.

Not every business needs diversification. Some use it purely to expand their business’s reach further into every field of production. Diversification can be a good investment or a waste of precious resources depending on the strategies implemented and the demand for the goods produced.

https://www.shopify.com/encyclopedia/entrepreneurship

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