Final answer:
Small 'Mom and Pop' firms survive through niche markets, personalized service, and committed ownership. They often receive support from investors and maintain strong community ties that help sustain the business despite slimmer profit margins.
Step-by-step explanation:
Explaining the Existence of Small 'Mom and Pop' Firms
Small 'Mom and Pop' firms, such as inner city grocery stores, can exist even without earning significant economic profits due to various factors that contribute to their survival and success. These firms might succeed by filling a niche market, providing personalized services, or having committed owners who are willing to work hard and sacrifice higher personal earnings for the independence and fulfillment of running their own business. Moreover, they benefit from having deep knowledge of their market and customers, and sometimes receive support from angel investors or venture capitalists who provide not only funding but also valuable advice and personal networks to ensure the business's longevity.
Entrepreneurial agencies with slimmer profit margins can also tap into the high level of commitment from their founders and the local community's support, which helps them survive despite economic pressures. Strong community ties and customer loyalty often act as a buffer against the competitive pressures that might otherwise force a business to close.