Functions of a Small Business

Supplying goods and services that satisfy demand

Identifying a particular need in a market and developing a product that will supply that market need improves standard of living and increases the overall revenue (GNP) earned in a country. Small businesses have the advantage over large businesses to identify changing market trends as they are closer to the customers. They are also able to produce unique products to suit the needs of each customer.

Creating employment

Small businesses account for a large percentage of total employment in Caribbean economies.

Making profits

The main purpose of starting and operating a business is to make profits.  Profit makes it worthwhile for the entrepreneur to continue business. Profit earned may be reinvested to expand the business.

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