Ma And Pa Shop

AAA

DEFINITION of 'Ma And Pa Shop'

A colloquial term for a small, independent, family-owned business. Unlike franchises and large corporations, which have multiple operations in various locations, ma and pa shops usually have a single location that often occupies a physically small space. The "shop" could be any type of business, from an auto repair shop to a bookstore to a restaurant.

INVESTOPEDIA EXPLAINS 'Ma And Pa Shop'

Ma and pa shops may have difficulty competing with larger businesses. Because they cannot take advantage of the same economies of scale, their prices are often higher. Ma and pa shops are able to stay competitive when they differentiate themselves from their large-scale competitors by offering a unique product, exceptional service or a more personalized feel.

RELATED TERMS
  1. Corporation

    A legal entity that is separate and distinct from its owners. ...
  2. Business To Business - B To B

    A type of commerce transaction that exists between businesses, ...
  3. Business

    1. An organization or enterprising entity engaged in commercial, ...
  4. Sole Proprietorship

    The sole proprietor is an unincorporated business with one owner ...
  5. Entrepreneur

    An individual who, rather than working as an employee, runs a ...
  6. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
Related Articles
  1. Are You An Entrepreneur?
    Entrepreneurship

    Are You An Entrepreneur?

  2. Can You Handle A Home-Based Business?
    Entrepreneurship

    Can You Handle A Home-Based Business?

  3. Top 5 Incentives For Student Startups
    Professionals

    Top 5 Incentives For Student Startups

  4. The 10 Greatest Entrepreneurs
    Entrepreneurship

    The 10 Greatest Entrepreneurs

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center