Difference between Small business & Big business sales

A small business takes in small amounts of payments at one given time whereas a big business takes in big amounts of payment. There is less tax for small business but have less sales compared with big business's where they have higher tax rates to pay but have much more sells then small businesses. Small businesses have better quality of products but less variety in their products, where as big businesses have a more select variety in products but which are at a less quality level. Small businesses have higher prices due to them not buying in bulk whereas big business's prices are much lower due to them buying in bulk.

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How to make money in the current Economic climate

The Recession- the effect it has on (smaller) business

The effect that the recession is having on business is that it is producing less revenue as more people have become unemployed, while the rest of the population do not want to be spending in case of losing their job as well. Due to there being less revenue business's have to make cuts which can either involve firing employer or cutting their wages. Larger organisations such as Tesco's for example will attract their customers due to their prices being lower. The business's will have a smaller variety in products due suppliers charging more for those products or having the suppliers who supply the variety of products going bust. Pricing strategies will need to change in order to attract more customers. Acquiring loans from banks will be a lot tougher as there is a higher risk of failure for example due to the countries economic climate 75% of small business fail within their first year. Trade credit (which is when a business doesn't pay for their supplies straight away and pay it within a certain amount of days or weeks) are much lower due to the higher risk of companies not being able to pay their suppliers back.   

UK's current GDP

Market Segments

Market segment is an identifiable group with similar needs and wants within a market.
Firms adjust their market accordingly to these needs and wants of the consumer.
This is a way of dividing up the market.
Examples of different identifiable groups are age, gender, income, usage rate (which is how often you will use products) and socio-economic grouping (which is the method of segmenting people based on their income and job).
This will impact a business as their products may be attracted to only a certain segment which may lower their overall revenue and profit. It may also limit the amount of ideas that they have for a new product as an idea that may develop may not be appropriate or popular with the market segment that the business usually attracts and be unpopular.

Market Growth

If a market is shrinking it will mill make remaining competition very fierce due to less demand for products so less profits to be made and there is pressure to which business will liquidate next. There is little room for new ventures and little space for market growth.
If a market is growing there is a higher chance of success as there is more demand for the products, so more profits to be made. The market state encourages new ventures into products increasing their chance of success.

Market Share

The market share of a firm is the % that it has of the market sales.
It is worked out by sales of total market Divide total market size X 100 =%

Market and Market Analysis

The market analysis is when an entreprenure is researching the market they are planning to enter and if there is a gap in the market.
The market is a place or process that brings together buyers and sellers with a view to agreeing a price.

Introduction

The aim of this blog is to help me and everyone else in the business and economics class, revise and prepare for the business and economics exam in May/June. Also help catch up on lost notes and what is going on in the business and economics market and the current state of the country.