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Difference between small scale business and large scale business ?
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Difference between small scale business and large scale business ?
1) Capital: small scale business requires low capital while large scale business requires high capital for starting it .

2) Establishment: small scale business are easy to established than large scale business .

3) Manpower: small scale business requires a low number of workers but large scale business requires many workers.
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Difference between small scale business and large scale business ?
Small Scale Business vs Large Scale Business


Small Scale Business:



  • Small scale businesses are usually owned and operated by individual or family members.

  • They have limited capital and resources.

  • Employees are usually less than 50.

  • They operate in a small market and have a limited customer base.

  • They focus on providing personalized services to their customers.

  • They have a flat organizational structure and decision-making is centralized.

  • They are flexible and can adapt to changes quickly.

  • They may have low profits but can sustain the business in the long run.

  • Examples of small scale businesses include grocery stores, bakeries, and local restaurants.



Large Scale Business:



  • Large scale businesses are usually owned by corporations or shareholders.

  • They have significant capital and resources.

  • They may have thousands of employees.

  • They operate in a global market and have a large customer base.

  • They focus on mass production and providing standardized products or services.

  • They have a hierarchical organizational structure with multiple layers of management.

  • They are rigid and may take longer to adapt to changes.

  • They may have high profits but also face higher risks.

  • Examples of large scale businesses include multinational corporations, banks, and airlines.



In summary, small scale businesses are characterized by limited resources, personalized services, and flexibility, while large scale businesses are characterized by significant resources, standardized products, and a hierarchical organizational structure. Both types of businesses have their advantages and disadvantages and can succeed if managed properly.
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Mr. Gul Muhammed set up a factory for manufacturing parts of washing machines in his village after completing his education of MBA. This gave employment to about 50 people of his village. The scale of Gul Muhammad’s business was small. He had kept all the decision taking rights  with himself so far as the different business activities are concerned. Mr.Akbar Shah, the Sarpanch of the village, had helped him a lot in setting up the factory. He often happened to meet Mr.Shah. Many a time he saw Mr.Shah working as the Sarpach. During this course the special thing that e observed was that all the rights of spending the grant given by the government fr the welfare of the village were with the Panchayath only. Mr.Gul compared this situation with his own business and concluded, “The government has given all the decision taking rights to its subordinate ie village panchayath, whereas all the decision taking rights he has kept with himself instead of giving them to his subordinates.”Mr Gul thought deeply over this situation and arrived at this conclusion, “Because the Government is a very bg organization, it is imperative that the decision taking rights be given up to the lower level. On the other hand, the scale of his business is very small, hence he can easily take all the decisions himself. And as the scale of his business grows, he too will hand over the rights f decisions to his subordinates.”Identify and explain the principles of management described in the paragraph given above.Identify any one value in the paragraphs given above which through business has influenced the society. Related: Chapter Notes - Principles Of Management?

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