Small Businesses- Between the Development Intensification and Their Problems

Small businesses operate in the same environment and the same dramatic changes as well as those for the large enterprises influence on them: the great global competition, rapid technological changes, unstable environment, the need to achieve more with less input, providing funds on the financial markets under the same conditions as for the large businesses, changes in the demographic structure of the population and labor force, etc. Smaller firms are even better in their effort to cope with changes in the environment because of the velocity and flexibility provided by small dimensions. However, many entrepreneurs at the same time are business owners and managers, they do not have enough knowledge and experience to maintain and develop the business, just intuitively know the management processes (from planning to control), do not know the financial indicators and because of that they intuitively and by hazard make financial decisions, they are focused on daily activities, so that they miss long-term activities and plans for continued growth of the company. At a time of dramatic changes in all spheres of life, small businesses also must focus on the future and the changes that it brings. * Corresponding author