Small Business Profile

'How to start a small business', I will try to analyze :

 A small business to be center of attention because a large contribution in the economy riil. Some small business advantage compared to large businesses, among others :

1. Innovations in technology can easily be done in an effort to product development.
2. Human relationships in small business friendly.
3. The ability to create enough employment opportunities or the absorption of labor is high enough.
4. Flexibility and adaptability to changing market conditions quikly compared with large scale companies in general bureaucratic.
5. The existing role of managerial and enterpreneurial dynamism.

Small business have a few flaws, among others ; lack of knowledge of business management, less capital, and weak in the marketing field.
Besides the market conditions faced by small business is a monopolistic market situation is also the problem of its own so hard to develop small businesses. To solve all the problem that small business should have the right business strategy.
Strategies of business to be taken include as follows :

1. To develop a small business need to be studied in advance the characteristics defenition / understanding and weaknesses and pontentials that are available as well as legislation governing.
2. The legislation governing to be managerial assistance efforts are needed in order to grow the innovations to manage small businesses operating side with big business.
3. Vertically, in a cluster system business, small business can make yourself a comlements their efforts for a major produser of industrial companies.
4. Cooperation may take the form of Koperasi (pathnership) and generally go together in certain business operations. In Indonesia, Koperasi form of business partnership is an important business strategy, so the government concider necessary to establish a special department to deal with small businnes 'UKM' and Koperasi.

Small Business profile in terms of management of Indonesia, which is as follows :

1. Owner as operational.
2. Evolving from a small business, because it excessive confidence.
3. No have written plan.
4. Less make records / orderly bookkeeping.
5. Oral delegation of authority.
6. Less able to maintain quality.
7. Highly dependent on its customers and suppliers around.
8. Less foster channels of information.
9. Less able to establish banking relations.

Indonesian small business profile in terms of finance, which is as follows :

1. Starting a small business, little capital and skills of the owners of funds.
2. Limited source of funds from banks.
3. Ability of obtaining bank loans is relatively low / less able to provide assurance, credit proposals, and others.
4. Less accurate cash budget plainning.
5. Have no record of the cost of production; very rough calculation.
6. Lack of understanding about the need for financial records / accounting.
7. Lack of understanding of the principles of financial statment presentation and analysis capabilities.
8. Less able to select useful information for business.