What are some of the major differences between large and small enterprises? Or what are a few of their similarities? Ride along till the end to find out.
So let’s say that the major similarity is that both are businesses. Both provide services to people or products which makes them businesses and that brings us to their major difference. Large enterprises provide goods or services at a scale larger than the smaller enterprises. They may provide similar or the same services but at a different scale and rates.
They both employ other people but large enterprises have a large employee base than small enterprises. What makes smaller enterprises stand out here is their ability to have some proprietorship; something impossible for really large enterprises.
All businesses require capital, whether small or large. It is the amount of capital that differs. Logically, large enterprises require much more capital than smaller enterprises. It is good to mention though that as small businesses grow, their capital increases as well.
Accessibility of these firms is a big difference. Whereas both are accesible to those near them, it is easier to access small scale enterprises than large. We see accessibility in many ways like reaching to the boss, borrowing et al.
Other differences include the industrial type; Small scale enterprises are more labor intensive as large enterprises are more capital intensive. The technology used; indigenous technology for the smaller enterprises verses the state of the art technology for the larger ones. Labour skills required; semi skilled for small firms and skilled for larger firms.