Help to tap available resources, locally available resources are put to use by these enterprises which reduce resource under – utilization.
These is easy decision making. In small and medium enterprises, decision making is easy since there are few people involved in the business.
They require relatively less capital to start. Most people in rural areas have small amount of money that cannot start large enterprises
They have low operational costs. They don’t spend much money on rent, transport and factor in put thus low costs involved.
They facilitate flexibility in operation. They are easily transferred from one location to another and output is also easy to vary to demand.
Provide employment chances to family members. Most labour employed is family members with few hired experts.
Require small market size. Small and medium enterprises produce on small scale and sell affordable quantities customers.
There is potential contact with customers. Enterprise owners are directly involved in marketing and selling their products which creates personal contact with customers.
