Biology Forums - Study Force

Identify and discuss challenges faced by local, regional, and national businesses.

The most common challenge for both local and regional businesses is managing money. Poor financial planning, as well as unfavorable economic conditions, can lead to bankruptcy. Undercapitalization occurs when a business owner cannot gain access to adequate funding. The business can then no longer afford to produce goods or provide services, and it goes bankrupt. Even with adequate funding, there is always a chance that the current economy will not support the business. Unlike local businesses, regional businesses that operate in more than one state need to become familiar with the business requirements of each state in which they operate. The need to deal with varying state regulations is something that all regional businesses have in common. However, regional businesses do not have to adapt to as many different states' requirements as national companies do. Also national companies by virtue of their size are likely to have more complex supply chains than those of regional businesses.

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