AN INTRODUCTION TO THE NATURE OF SMALL SCALE ENTERPRISE...PART II

A MARKET SHARE.

Represent the percentage of the total sales that is held by a particular firm e.g.
Assuming total sales = N150 million for the industry and firm x (sales) = N500, 000. Therefore, firm x market share is equal.


            =  N500, 000 x 100
            =  N150, 000,000.
            =  0.03 or 0.33%.

A firm is regarded as small if it markets share is not large enough to influence; The price of goods as well as quantity sold in the market to a Significant effect.


INDEPENDENCE.

An organization is regarded As small if the owners of the business has direct control of the Business in terms of decision making, subordinate or subjected to any Other body in terms of decision-making, they have no subsidiaries.

 

PERSONALIZED MANAGEMENT.

That is, the owners of the business actively participate in all aspects Of management of the business particularly in major decisions and it Has varieties of skills to manage the enterprise and the structure is Not rigidly fixed.
As the author earlier mentioned in Nigeria a A number of different definitions have been adopted by different agencies. Definitions are based on one or a combination of the following capital Base, turnover, number of employees and the market size.

The bank For commerce and industry (NBCI) defined small scale business in 1988 As a firm whose assets (including working capital but excluding land) do Not exceed N750, 000. The national economic reconstruction fund (NERFUND) and world sponsored small scale enterprise scheme define Small business as enterprises whose total fixed assets (excluding land) Plus cost of investment does not exceed N10 million at 1989 prices. (Chima 1993:3).

We observed that the services of small Scale business is mainly for the demand of their immediate locale Environment and that their proprietors are usually conservative and Suspicious, unwilling to release information about their business for Fear of taxation and unwanted competition. Other characteristics of Skill by operators, inadequate marketing information and strategies, low Technological base, strong family ties and mainly owner financed and Managed.

A small-scale business may be characterized as:

a.    A sole trader, partnership or private company.
b.    A business that may operate in a small site with fewer department.
c.    A business that is independently managed.
d.    A business that is relatively small but serves a niche in the market.
e.    Business with small capital outlay.
f.    A business which is priced taker.
g.    Business, which are likely to be in a state of change in their structures.
h.    Business, which are less likely to undertake research and development (R & D).

AN INTRODUCTION TO THE NATURE OF SMALL SCALE ENTERPRISE...PART I