1.1 DEFINITION OF SMALL BUSINESS:
There is no precise definition of a small business. Some would consider a business as small if it has no more than a specified number of employees. Other would like to believe a business as small that limits its scope of operation to the local market area. Yet others may prefer to classify a business as small on the basis of nature of firm, such as the local medical store, clothing store, service station or a jewelry store. WRITERS’ DEFINITION:
“A small business is defined as a business (corporation, Limited Liability Company or proprietorship) with 500 employees or less.”- U.S. Govt. * According to Small Business act 1934,” A business which is independently owned and operated and not dominant in its field” is a Small Business.
* According to executive committee for national economic development, “A Small Business one of which processes at least two of the following characteristics:
* -Managers are the owners,
* -Capital supplier and the owner is individual or a small group, * -Worker and the owners are local, market may not be so.
* -Relatively smaller compared with the biggest unit of the industry [Sales, employees etc.]
DEFINITIONS IN THE CONTEXT OF BANGLADESH:
“Small industry means an industrial establishment or unit which is rum mainly by hired labor and not using mechanical motive power but does not normally employ more than 50 workmen and whose land, building and machinery does not exceed Tk.150, 00,000 in value in either case.” – E. Pakistan Small Industries Corporation Act of 1957.
GRAPH: Product/ service
Exhibit: Small Business procedure
1.2 TYPES OF SMALL BUSINESS:
Food, Appliance, Clothing etc.
Service station, Auto repair, Plumber etc.
Financial consultation agency.
Land use & development.
Jobbers, Brokers etc.
Metals, Plastics etc.
1.3 STRUCTURAL FEATURES OF SMALL BUSINESS:
1.4 STAGES OF SMALL BUSINESS DEVELOPMENT:
ROLE OF SMALL BUSINESS IN THE CONTEXT OF WORLD & BANGLADESH
2.1 ROLE OF SMALL BUSINESS:
Small businesses play a significant role in the socioeconomic development of a country. Important ones of such roles are indicated hereunder: Large industry wastage can be put to use;
Desired industrial spread & decentralization is facilitated; Business diversification is made easier;
Innovations for new products/ services are made;
Development of new technologies with regard to methods, inputs, & skills are silently undertaken ; Ensures wide competition & thereby provides reasonable price advantage to consumers; Promotion & development of entrepreneurship are facilitated; Contribute in raising the GDP of the country;
Enable equitable distribution of income among persons & regions; Make better use locally available skill, expertise & technical know- how; More personalized contacts possible with all customers, suppliers, employees & others interested in the business; Explore innovative marketing at home & abroad;
Act as seed bad for new venture;
Help in foreign currency earnings through personalized push exports; Help in correcting some of the problems created by unplanned urbanization; Provide an honourable alternative livelihood in a land starved / scarce country; Traditional indigenous technologies are kept alive through adaptation; A controlling factor over big business’ tendency toward monopoly; Greater community life;
Development of leaderships in the fields of business, society & otherwise; Large number of small investors can become owner of such businesses; Large number of low cost job...
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