chapter  5
20 Pages

Competitive forces

Strategic behaviour on the part of the SBE is often fraught with uncertainty and misdirection. Typically, small business is forced to operate in market niches which larger rivals may be inclined to abandon or ignore. These niches are often market segments which are relatively small in size and may be lacking in adequate growth or profitability opportunities, unless skilfully exploited. Limited physical, financial and human resources, a lack of industrial experience and of business acumen on the part of owner-managers of the SBE are frequently to blame for poor exploitation of these fragile niches. Nevertheless, if an SBE is to grow and prosper, rather than simply to survive,1

over a non-trivial period of time (say more than three years), it must properly identify, develop and implement the requisite business strategy.