Types of Small Businesses

By: Ejaz Alam | Topic: Business

There are number of small business opportunities around you. It all depends upon your interest and investments to decide about them. Small businesses are so important that they are the units that perform most of the economic activity in our economy.

Every small business aim is to generate a profit. There are some businesses that exist to perform a function other than profit, such as cooperatives and non-profit organizations.

There are many different ways of classifying businesses but here are the main types:

Manufacturer. Manufacturing business take raw materials and develop them into finished products, which they then sell. They make a physical good such as plastic toys or a sofa etc.

Service Businesses. This business do not produce a physical product but offer a service to consumers. They make a profit by charging for their skills and labor. Real estate advisor, visa consultancy and stock brokers etc fall in this category

Retailers and Distributors. These businesses facilitate the chain of supply. They buy goods from the producers or wholesalers and sell them on to consumers at a higher price. Shop keepers, general stores, distribution and marketing companies are included in this category.

Agriculture and Mining. These businesses are also known as extraction industries as they make their profit by taking raw materials out of the ground. Agricultural farms, nurseries, forestry, fishing and coal mining can be included in this group.

Financial Businesses. These include banks, insurance companies and investment funds. They offer financial services to consumers and other businesses and generate a profit by managing capital for others.

Transportation Businesses. Main aim of transport business is to move people and goods around the cities. These would include taxi and bus companies, freight companies, shipping companies etc.

Whatever sector you go in, you definitely need somehow and sufficient working capital in order to make your small business a success. Selecting a sector for business is solely at your choice. Profit potential is immense in all sorts of business. What all it takes is a vision, dedication, hard work and honest to succeed in business. Good Luck

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