State the factors of small organisations, Financial Management

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State the factors of Small organisations

- More creative and dynamic

- More flexible to adapt to environmental changes

- More informal and small for example some people like this as more relaxed rules

- More varied tasks for the workers as less specialisation

 

-  Problems of competing with larger companies because of less brand recognition or higher costs

-  Higher risk therefore problems in raising finance

-  Lack of economies of scale

-  More reliance on key personnel

-  Often-poor financial controls and expertise leading to high failure rates

 


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