What are the factors that determine the size that a business would operate in?

[King Belieal]

There are some businesses that are big and some are small. Of a certainty, there are factors that make those businesses operate in the size and scale that it is operating in. What are the factors that determine the size of a business?

 

[eLdavis]

I think for most people, one major factor that determines this is the capital. For most of them they lack the capital to build the business in the scale they want it.

 

[kit_hung]

The size of a business is determined by several key factors. First, capital—a business with more capital can invest more and expand faster. Second, the type of product or service—some industries require large infrastructure, others do not.

Third, the target market—a business that serves a large number of customers grows faster. Fourth, the knowledge and experience of the owners—knowledge increases efficiency. Finally, modern technology and methods enable growth. Every business has its own journey, and with hard work and knowledge, even small ones can become big. Keep moving forward!

 

[Augusta]

I think it is the money or the capital that will determine the size of the business. You need to have the right capital to expand.

 

[Springtime]

I think the capital the owner prepares to put in determines the size of the business. If the capital is small, you cannot operate a big business.

 

[Kross]

The funds available might determine the size that the business operates in the short run but the vision determines it in the long run.

 

[kit_hung]

The funds available might determine the size that the business operates in the short run but the vision determines it in the long run.

You have said a very wise thing. Capital may be small now, but big dreams create a future direction.

A strong idea and a far-sighted vision lead even when resources are limited. Keep believing in your dream.

 

[Augusta]

Opportunities for Economies of Scale. Efficiency and Productivity of Labor. Number of Employees.

 

[Min George]

One factor that would determine the size that a business typically operates in is the size of the industry itself.

 

[Augusta]

Number of Employees.
Availability of Raw Materials.
Availability and Impact of Machines/Automation.