Practise explaining why firms remain small or become large through market size, niche demand, personal control, finance, entry conditions and economies or diseconomies of scale.
Firms often remain small even when growth could result in technical economies of scale.
What is not a likely reason for this?
Demand for the product tends to change often and rapidly.
Individual entrepreneurs wish to keep a tight personal control over their own firm.
The entrepreneurs who establish the firms tend to be ambitious risk-takers.
The market in which they operate is very specialised in nature, often selling unique products.
C