CQ 3: What types of uncertainty do small businesses face?
15 important questions on CQ 3: What types of uncertainty do small businesses face?
What 5 things do SB owners not know to do?
- They buy less machinery
- They work with temporary workers
- They do not give permanent contracts
- They delay investments
- They make decisions despite 'uncertainty'
What types of uncertainty do small business face? (2)
- External uncertainty: owners of small businesses can limit such uncertainty by 'managing by walking around' but are more likely to face a challenging environment (alignment strategy by involving workforce)
- Internal uncertainty: managers of large businesses more likely to face difficulty of translating their 'vision' of the business to their employees
What are the 3 dimensions of external uncertainty?
- Market uncertainty
- Customer uncertainty
- Aspirational uncertainty
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
What are the 3 factors of market uncertainty?
- A key difference between LB and SB is market power: the small businesses more likely to be a price taker than a price maker
- Concentration in particular (easy to get into) sectors
- Response: cut down costs everywhere and focus on 'niche' advantages
What are 3 expressions of the market power (LB versus SB)?
- Perfect competition versus monopoly
- Price is beyond control
- Usually a limited number of customers
What does 'concentration in particular (easy to get into) sectors' mean?
- Hair dressers
- Window cleaners
- ICT consultancy
What entails the 'response' on market uncertainty?
- Specialist
- Timely or geographical advantages
What are 2 factors of customer uncertainty?
- Entrepreneurs are uncertain about their revenues
- Respons: certainty versus profitability
What does 'entrepreneurs are uncertain about their revenues' mean? (3)
- Compare wages of employees
- Quantity is beyond control
- 1 new/leaving customer usually makes a big difference
What entails the 'response' on customer uncertainty? (2)
- Subcontracting (stability/specificity)
- Analogy: solo self-employment 'own-account worker' (ZZP)
What is the factor of aspirational uncertainty?
- To earn an income, to provide for a family, to grow the business
- No external party that sets the goal for you
- So you can't assume SB is profit maximizer
- Differences in aspirations greater if we include those with more than one business (portfolio entrepreneurs) or business run by a team
What are the 5 approaches SME's take to deal with external uncertainty?
- Focus on niche - to gain local market power
- Focus on short-term survival and growth (not on long-term benefits, training)
- Invest less heavily in equipment, machinery
- Register as a limited company, this may protect the personal assets of the entrepreneur
- Establish a portfolio of businesses, this spreads the risk faced by the small business owner
What are 3 stylised differences between large and small businesses?
- Internal organization
- Market power
- Risk of failure
What entails internal organization? (2)
- Informal versus formal (hierarchy)
- In SME less focus needed on internal uncertainty reduction
What entails risk of failure? (2)
- High versus low
- No news if SME fails or if in trouble
Try our study magic for free
a PDF, study it super fast
- No sign up, email or credit card needed!
- AI makes unlimited flashcards
- Get unlimited quizzes and tests
- Ask AI anything
- No sign up, email or credit card needed!
- Have and keep perfect overview
- Make flashcards, notes and mind maps
- Review, test and score!
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
