Which of the following is a general factor that contributes to the success of small businesses?

• A. High levels of government regulation
• B. Limited access to markets
• C. Effective management and leadership
• D. Lack of innovation

Answer: (C)

Verified step by step guidance

1. Understand the question is asking for a general factor that contributes positively to the success of small businesses.
2. Review each option and analyze its typical impact on small businesses: high levels of government regulation often create barriers, limited access to markets restricts growth, lack of innovation hinders competitiveness.
3. Recognize that effective management and leadership are internal factors that help small businesses navigate challenges, make strategic decisions, and adapt to market conditions.
4. Conclude that among the options, effective management and leadership is the factor that generally contributes to the success of small businesses.
5. Remember that in microeconomics, internal capabilities like management are crucial for firm performance, while external constraints like regulation and market access often pose challenges.