A small business is closer to the market place. Not a few small business conduct their operations right inside the market place. Being closer to the buyers, compared with corporations, they get first hand information about consumer tastes and preferences. Such advantage enables the small business to respond quickly to the needs of consumers. It is not possible for big business to act as a quickly to satisfynew demand.

Generally, the owner of small businesses are also the managers. Most of the  small enterprise in different countries are like these. The owner-manager employs his wife and children. If the busiess grows, the owner hires more employees, usually relatives and towmates.

Capital comes from the owner or small group. In some places a small business is usually finance by the family through its own savings and/ or loans. if ever the business is funded by a small group, it comes from relaties and close friends.

The area of operations is small. This means the business is community based. The owner and the employees live in the community where the enterprise is located.

The size of the enterprise is small in relation to the industry. For example the shoe industry is a large one. But there are very many shoe stores. Clearly, one shoe store cannot dominate the market for shoes.