Question

Larger or established businesses tend to leave gaps in the market for numerous reasons. Once these gaps (however small) are left open, it makes it very easy for smaller ventures to spot the opportunity and make the most of it. Spinelli and Adams (2016) state that a good opportunity may sometimes not look too attractive at first but has the potential to blossom into one that is bigger than the venture itself, even after the venture has grown to a substantial size. In light of the abstract discuss and explain those gaps that business tend to leave in the marketplace, provide the possible reasons for these businesses to leave the gaps.

Answer 1

Larger or established businesses may leave gaps in the market, which smaller ventures can take advantage of. Possible reasons for these gaps include poor management, unproductive workers, tough competition, shifts in demand and supply, and changes in prices.

Step-by-step explanation:

In the model of perfectly competitive firms, businesses may leave gaps in the market for various reasons. These gaps can then be identified and exploited by smaller ventures. Some possible reasons for larger or established businesses to leave gaps in the market include poor management, unproductive workers, tough competition, shifts in demand and supply, or changes in prices for inputs and outputs.