A Complete Beginner’s Guide to Small Scale Businesses
For both developing and developed countries, small and medium scales industries play important roles in the process of industrialization and economic growth. Apart from increasing per capital income and output, small scale business (SMEs) create employment opportunities, enhance regional economic balance through industries dispersal, and promote effective resources utilisation which are considered critical to the economic development and growth of any nation.
Despite the contributions of these SMEs, they are still not without challenges. These challenges range from poor management, inadequate capital to lack of infrastructural facilities. Therefore, there is the need to make them more effective, efficient and competitive.
Small Scale businesses covers an important position in the world of business. This topic is just a guide on how you can get the best business ideas to start your own small scale business with low investment. It’s quite noticed that the greatest challenge faced by many business owners is getting a very good business idea. And here are some basics steps to help you out!
A large number of businesses that we see today started as a small business. Small businesses
serve as feeders to large businesses, especially in the area of supply of raw
Also, for financial and other reasons, most would be entrepreneurs or small business owners who desire to go into a business of their own end up starting a small business. Thus, the importance of
small business cannot be overemphasized.
Definition of a Small Scale Business
Small scale business defies a universally acceptable definition. This is because the word “small” is a relative term. Small scale business varies from one author to another, from one institution to another, from one government to another and from one country to another.
For example, business that are described in as small scale business in developed countries like Japan or China given the capital employed and technology adopted, in developing countries like Nigeria such businesses are described as large scale businesses.
Small scale business is, therefore, defined as any business that is independently owned and managed
in a modify or personalized way, which does not dominate its market. This is also known as medium scale business.
Features or Characteristics of a small scale business (Advantages Of Entrepreneurship)
- It operates mainly within its locality.
- Most small-scale businesses have limited
- Its structure is not clearly defined.
All employees report to the owner – managers.
Disadvantages of Small- Scale Business
- Financial Problem: One
fundamental problem that an entrepreneur or small business owner faces is
getting adequate capital to start a business.
- Problem of Building Goodwill: Goodwill is an asset to a business.
- Location problem: The location where a business is sited
is vital to the success of the business. Below is a small business in nigeria with low capital in 2018.
of Businesses that could be run on a small – scale are as follows:
- Poultry business
- Tailoring business
- Laundry service
- Raising of flowers
- Fruit Juice
- Writing of books for publication
- Driving School
- Consultancy business
- Organizing workshops for various people
- Electrical installation
- Canteen services
- Rental service: Chairs, Canopies, Plates, etc.
Small and medium scale enterprises play the following roles:
√ Creation of job opportunities
√ Raising standard of living
√ Mitigate of rural-urban migration
√ Economic growth and development
√ Providing an effective
The above listed business ideas is a mixed list of manufacturing business ideas and other lucrative business ideas to start a successful online businesses.