Small business is a business that is independently owned and operated. It can be start with little capital. This kind Business organization is not dominant in its field of operation. It has both advantage and disadvantage.
There are a few characteristics of Small Business. These are
It’s not dominant in its Industry.
It can be started with a moderate investment for that industry.
Numbers of employees are little.
Pricing of product and services are mostly reasonable.
Sales are not large enough.
A large business sells a franchise operation to local buyers and franchising is an excellent way to enter the world of small business.
Legal formalities are very least.
According to Small Business Act 1953, Small business can be defined as “one which is independently owned and operated and not dominant in its field of operation”
The enthusiasm for small business and entrepreneurship is at an all time high. This enthusiasm is prerequisite for healthy economy. Many of the most publicized corporate giants began as small businesses and grew large through effective management. For example, three engineers working out of a garage established the fastest growing company in the world, Compaq Computers.
Every Industry has successful small business. Small business owners operate manufacturing Plant, Computer Stores, Fast Food Shop, Bakery, General Store, Grocery Shop, Daycare Center, Furniture Shop, Electronic Gadget Shop, Printing, Music Shop, Barber Shop, and hundreds of other business.
There are a few characteristics of Small Business. These are
It’s not dominant in its Industry.
It can be started with a moderate investment for that industry.
Numbers of employees are little.
Pricing of product and services are mostly reasonable.
Sales are not large enough.
A large business sells a franchise operation to local buyers and franchising is an excellent way to enter the world of small business.
Legal formalities are very least.
According to Small Business Act 1953, Small business can be defined as “one which is independently owned and operated and not dominant in its field of operation”
The enthusiasm for small business and entrepreneurship is at an all time high. This enthusiasm is prerequisite for healthy economy. Many of the most publicized corporate giants began as small businesses and grew large through effective management. For example, three engineers working out of a garage established the fastest growing company in the world, Compaq Computers.
Every Industry has successful small business. Small business owners operate manufacturing Plant, Computer Stores, Fast Food Shop, Bakery, General Store, Grocery Shop, Daycare Center, Furniture Shop, Electronic Gadget Shop, Printing, Music Shop, Barber Shop, and hundreds of other business.
According to Asian Development Bank ADB) report on 2005 in Bangladesh estimated 6.5 million small & micro enterprises-firms less than 50 employees - have a significant role in generating growth and jobs & contribute 20% of the total labor force. As a career in small & micro entrepreneurship business huge possibilities is exist, if we properly arrange the financial & managerial part of business. Small entrepreneurship business helps to:
Provide a lot of employments & labor working force in the country
Better uses of available domestic resources
Fulfilling the local or regional demand of the country
Disseminating technology & research project establishment
Create innovative methodology & operations for adaptation of application
Improving living status of local people with self confidence & achievement.
There are many reasons to failure of small entrepreneur’s success. Most of the cases the lack of financial supports & inadequate managerial activities without proper knowledge is prior. Before going to this small business the person should know the reasons of business failure & how it can be overcome.
The causes of failure of small business are as follows:
Provide a lot of employments & labor working force in the country
Better uses of available domestic resources
Fulfilling the local or regional demand of the country
Disseminating technology & research project establishment
Create innovative methodology & operations for adaptation of application
Improving living status of local people with self confidence & achievement.
There are many reasons to failure of small entrepreneur’s success. Most of the cases the lack of financial supports & inadequate managerial activities without proper knowledge is prior. Before going to this small business the person should know the reasons of business failure & how it can be overcome.
The causes of failure of small business are as follows:
- Starting with too much or too little capital (Lack of adequate investments)
- Under pricing or overpricing goods or services.
- Going into business with little or no experience and without first learning about
- it.
- Borrowing money without planning just how and when to pay it back.
- Buying too much on credit.
- Expanding credit too freely and rapidly.
- Failure to keep complete and accurate records.
- Carrying habits of personal matters into business.
- Lack of modern technology
- Irregular/inadequate supply of power
- High rate of interest on bank loans
- Inadequate availability of raw materials
- Absence of clear-cut government policies
- Fierce competition
- Lack of skilled technicians and workers
- Forgetting about taxes, insurance and other costs of doing business.
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