Question

A friend of yours has recently received his MBA. He wants to open his own business but feels that it might be too risky at this point in his career. As an SBA counselor, you are able to advise him and explain more clearly to him some of the advantages and disadvantages of starting a small business. Which of the following statements best represents something you might tell him?A) Although opening a small business is risky, there is practically unlimited potential.
B) The cost of opening a small business is relatively low, and financing is easily obtained.
C) Record keeping will be complicated, and public disclosure of most transactions is required.
D) Small businesses foster personal relationships and offer flexibility and independence.
E) Opening a small business is especially difficult because there is little help available for those desiring to do so.

Answer 1

Answer:

D) Small businesses foster personal relationships and offer flexibility and independence.

Explanation:

As an SBA counselor you need to motivate your friend and outline the advantages of starting a small business. The advantage that should be most emphasised is that small businesses foster personal relationships. Most business fail as start-ups because they do not buy into their clients emotions. By building a personal relationship with clients the business has high chance of success.

Also mention personal perks of flexibility and independence he will enjoy when starting a small business.