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Exercise 9. Answer the questions.
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1. How does the Committee for Economic Development measure a small business?
2. Does the US government support small business firms? How?
3. Can you name an example of a manufacturing firm? A wholesaling firm? A retailing firm? A firm in the field of finance?
4. Prepare a list of 5 different business firms. Explain how you would classify each of these firms as small, medium, or large according to the size measurement of the Small Business Administration.
TEXT 15. ADVENTAGES AND DISADVENTAGES OF RUNNING A SMALL FIRM
1. become giants A. становиться гигантами
2. distinct advantage B. отчетливое (заметное) преимущество
3. have much flexibility C. иметь гибкость
4. make decisions D. принимать решения
5. daily operations E. ежедневное ведение хозяйственной деятельности
6. supervise F. контролировать, наблюдать; инспектировать
7. beauty parlor G. косметический салон
8. real estate H. недвижимость
9. interior-decorating firms I. фирмы по внутреннему оформлению интерьера
10. daily operations J. ежедневное ведение хозяйственной деятельности
11. render K. оказывать (помощь)
12. offset L. возмещать (компенсировать)
13. overheads M. накладные расходы
14. less efficiently on the job N. менее эффективны на работе
15. a scale of operations O. масштаб операций
16. exceed the local market demand P. превышать спрос местного рынка
17. transportation costs Q. транспортные расходы
18. adjust to smth R. приспосабливаться к чему-либо
19. maintain better morale S. поддерживать лучший моральный климат
20. secure T. сохранить, обеспечить, гарантировать
21. cope with monopolistic U. справиться с.монополистической практикой
Practices
22. finance expansion V. финансировать расширение
23. tax burdens W. бремя налогового обложения
24. good will X. гудвилл, престиж фирмы (условная стоимость репутации и деловых связей)
25. lack of time Y. нехватка времени
26. handle multiple assignment Z. управлять (осуществлять контроль за) многочисленными заданиями
27. lack of research facilities AA. нехватка средств на исследование
28. overcome with positive BB. преодолеть путем позитивного планирования
Planning
29. Reveal opportunities for success CC. раскрыть возможности для успеха
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30. be contemplated DD. быть задуманным
31. be undertaken EE. быть предпринятым
32. reward FF. поощрение, вознаграждение
33. an outlet for one's creativity GG. выход для чьего-либо творчества
34. guarantee HH. гарантировать
35. consumerism II. консьюмеризм {движение в защиту интересов потребителей)
36. causes of failure JJ. причины провала
37. rely on the inherent KK. полагаться на свойственные
38. advantages LL. преимущества
39. competent management MM. компетентное управление
40. achieve success NN. достичь успеха
41. decrease employment OO. уменьшить безработицу
42. insurance company PP. страховая компания
43. license QQ. лицензия, официальное разрешение
44. facilities RR. денежные средства; возможности
45. law of supply and demand SS. закон спроса и предложения
46. expenses incurred TT. понесенные расходы
47. vendor UU. продавец
48. distribution VV. распределение
49. supply a retailer WW. снабжать розничного торговца
50. suffer from the recession XX. страдать от спада
Small firms actually have advantages over large firms in many cases. One advantage of small firms is that they often grow into large firms. Many of today's small firms will become giants in tomorrow's business world. Some of the situations in which small firms have distinct advantages are the following:
1. When new products or ideas are being tried. Small firms have much flexibility. Decisions can be made and implemented quickly.
2. When the personal attention of the owner is essential to daily operations. If the owner's presence is important to the growth of the business, it will be more successful if the business is small enough for one person to supervise.
3. Where personal services, either professional or skilled, are dominant. Examples of this include beauty parlors, real estate offices, interior-decorating firms, TV repair shops. Medical and dental services are also usually rendered by small firms. Any possible advantages of large size in these areas are usually offset by greatly enlarged overheads less efficiency on the job, and the loss of the personal touch of the smaller firm.
When the market for the product or service is mainly local. In some types of firms, it just is not economical to attempt a scale of operations that exceeds the local market demand. The making of bricks or concrete blocks for the construction industry is an example. Transportation costs are prohibitive for moving such products.
When the industry is characterized by wide variations in demand or in styles. Examples of these include ladies' dress line, ornamental candles, and custom-made chandeliers and lamp shades. These types of products just do not invite large firm development in most cases. The small, flexible firm usually can adjust to the necessary variations of specialized products more easily.
When close rapport with personnel is essential. Small firm owners usually have the advantage of being close to employees. They know problems from daily conversations and can adjust employment to a person's abilities better because of this close association. As a result, they are usually able to maintain better morale and efficiency in the firm, which is important in any business.
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Disadvantages of small firms:
Small firms are often said to labor under such disadvantages as the inability to secure competent employees, the inability to cope with monopolistic practices, the inability to finance expansion when it has been proved to be practicable, tax burdens, limited vendor goodwill, discriminatory pratices by large shopping-center developers, lack of time for the small proprietor to handle multiple assignment, lack of research facilities, and the problems of making a new firm or product known in its market.
Many of the disadvantages of small firms could be overcome with positive planning. An ill-conceived business, whether large or small, has little chance of success if its operation has not been properly planned. Good research in the planning stage can reveal opportunities for success. It can also indicate when a business that is contemplated should not be undertaken.
The rewards for successful small firm ownership can be significant. The personal satisfaction will vary with the individual owner. Good profits, satisfying employment, being one's own boss, community status, family pride and tradition, and having an outlet for one's creativity are some of them.
But these rewards are never automatic or guaranteed. Success makes many demands upon the operator of the firm. The requirements for successful ownership of small business firms can be summarized as follows: personal characteristics, good customer relations and knowledge of consumerism, good community relations, business ethics and social responsibility, compliance with government regulations. But sound business knowledge and willingness to work hard stand at the head of any list. Knowing the causes of failure can protect the owner against them.
The individual firm has benefited from having these and other advantages. In addition to the types of firms cited, small firms in such fields as construction, wholesaling, retailing, and the service industries have faced up well to their larger firm competition. Insurance and small finance firms have also been very successful. The profitable firms have not relied on the inherent advantages of small firms as such, but have combined these advantages with alert and competent management to achieve their success.
EXERCISES
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