The advantages of small businesses in Vietnam
In Vietnam, most of today's businesses are small businesses. Besides existing difficulties, small businesses also have certain advantages compared to large enterprises in Vietnam. So what are those advantages? Let's find out with Tasco the information below!
1. What is a small business?
🔅Small enterprises are understood as enterprises established, organized, and operating in accordance with the law on enterprises, with low operating scale, a number of employees, and sales volume.
🔅 Among the enterprises that contribute to the national economy of our country, the majority of enterprises exist on a small and medium scale.
2. The advantages of small business
2.1. Flexible, easy to change to suit the environment
🔗 Small businesses are often flexible, agile, and adaptable to market changes. When there are market fluctuations, large enterprises need a lot of time to adapt and solve because the nature of large enterprises is a large scale, large workload, and complex apparatus system. Meanwhile, with a simpler apparatus, small businesses are more flexible and able to adapt quite quickly when market fluctuations occur.
2.2. Easier HR management
🔗 Small businesses also have the advantage of being simple in structure, with few employees, and easy to manage, so when problems arise, it is easier to come up with solutions.
🔗 At the same time, small companies also have more advantages in connecting members in the company together. The organizational structure is less hierarchical, the working environment is close, harmonious, and easy to integrate, which also helps the spirit to be more comfortable in the working process, thereby increasing work efficiency.
2.3. Small business, low risk
🔗 Having to take risks in financial investments is unavoidable, no matter how big or small. However, small businesses will face less financial risk than large enterprises, small scale, growing slowly and sustainably with a moderate amount of capital is the way that businesses can stand up, and rarely take heavy risks.
🔗 In particular, another small business advantage is that it is easier to identify and minimize hidden disbursements because a small business's balance sheet is usually quite simple, thereby reducing the possibility of embezzlement or loss of company funds.
2.4. Better Small Business Concentration
🔗 The development focus of small businesses is relatively narrow compared to large enterprises. While large enterprises are always looking for ways to expand their markets, market share, and development opportunities, small businesses often focus on developing a single field. And if there is a change in their business field, they are also easily recognized because of their high concentration and focus on developing their abilities in that area.
2.5. Received many support policies from the State
🔗 Currently, the State has promulgated a legal system to support small and medium enterprises, creating momentum for their development. First is the Law on Supporting Small and Medium Enterprises in 2017, then Decree 80/2021/ND-CP guiding the Law on Supporting Small and Medium Enterprises, and a series of other related documents.
🔗 Accordingly, small businesses enjoy many support policies of the State such as:
◾ Tech support
◾ Support human resource development
◾ Support for creative startups
◾ Support participation in industry linkages, production, and processing value chains
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