Small and Medium Scale Businesses

These flashcards focus on the vocabulary related to small and medium scale businesses, their definitions, characteristics, and government support.

Small Scale Business

A small business is one that is independently owned and operated but not gained authority in the field.

Quantitative Factors

Factors that can be measured numerically, such as capital invested, number of employees, and annual sales turnover.

Qualitative Factors

Factors that cannot be measured numerically, including the type of business organization and technology used.

Advantages of Small Businesses

Includes flexibility, minimal capital requirements, higher owner's satisfaction, and government support.

Disadvantages of Small Businesses

Includes lack of capital for technology, less competitive products, and higher employee turnover.

Role of Small Businesses in Economic Development

They provide employment, contribute to GDP, utilize local resources, and stimulate regional development.

Government Support for Small Businesses

Incentives such as financial assistance, advisory services, technical training, and infrastructure support.

Characteristics of Small Scale Businesses

Invested capital being low, few employees, targeting local markets, and decision making based on personal information.

SMEs vs Large Scale Businesses

SMEs have lower capital requirements, can be more flexible, and are supported by various government initiatives.

Small Industries Department of Sri Lanka

An institution that defines small businesses based on criteria like capital investment and number of employees.