3 small cap ASX shares to buy for 2021

There are some small cap ASX shares that may be able to generate good returns in 2021.

Identifying a business that’s earlier on in its growth journey may mean it’s possible to capture more capital growth.

Here are three smaller businesses with growth potential:

City Chic Collective Ltd (ASX: CCX)

City Chic is a retail ASX share that sells plus-size clothing, footwear and accessories to women.

It adapted to COVID-19 conditions by ramping up its online sales, which grew 113.5% in FY20 and represented 65% of total sales. Fund manager Chris Prunty from QVG Capital thinks that the e-commerce theme will continue to grow after COVID-19 has passed. For a business like City Chic, the small cap ASX share’s ability to sell products…