Talking Business – Understanding Petty Businesses
In the business world, the concept of Petty Business needs no introduction. It is the most common brand of business people engage in all over the world and the last survival means to many who opt for it. Most often, it is populated by people of low business acumen and absolutely meagre funds. By extension, it is a business embarked on by the poor or struggling strata of human population.
These petty businesses are done in small or make shift areas. The outlook of such outlets spells lack – in funding, growth, organization and management. In most cases, they lack substantial credit facilities while their periodic profits seems not to be at par with the expenditure. A good number of them do not expand in their life span neither do they move from the originator to their offspring. However, they are part and parcel of any kind of business there is.
In the major cities across the globe, Petty Businesses are seen and experienced in diverse dimensions, serving every need known to man. One thing is key about these businesses, they are responsible for the mind blowing revenue commanded by the big companies especially the multinationals. They pay cash for their purchases outright while their position in the distribution chain is the most important as they provide the goods to the end users while helping to empty the numerous warehouses. Their repeat purchases makes it easy for manufacturers to remain in business.
The tag Petty Business seems to be a minus for those in this category. It suggests cheap investment. One thing is peculiar with the Petty Businesses, they deal on daily need – the Fast Moving Consumer Goods [FMCGs]. As petty as their investments are, they command a tangible percentage of income when compared to salary earners. Unknown to many, Petty Businesses are the backbone of innumerable families. It has helped them provide the basic human needs of food, shelter and clothing even more.
Few families has taken their inherited Petty Businesses to conglomerates. Today we see them as big retail outlets where all daily needs are stacked on their counters.