The factors that determine the best size of the business units (the optimum size of the firm) are studied under the following five groups: 1. Technical Factors 2. Managerial Factors 3. Financial Factors 4. Marketing Factors 5. Factors of Risks and Fluctuations. 1. Technical Factors: Technological factors underline the need for enlarging the scale and size of operations of a [...]
This article throws light upon the fourteen main reasons for the survival of small firms. 1. Intense desire of individuals to be their own masters is a significant factor underlining the survival of small firms. The independent small entrepreneur works hard, solicits cooperation of his small labour force, builds up contacts in trade and gets rewards directly related to his [...]
This article throws light upon the financial needs of public sector enterprise. The financial needs are: 1. Equity Capital 2. Loans 3. Internal Resources 4. Capital Market 5. Arranging Working Capital. Public Sector Enterprise: Financial Need # 1. Equity Capital: Public enterprises have large equity base. Since they are owned by the government, the initial capital is also provided by [...]