General Definition :
Small business means the size of which is not big- the size again depends on the yardstick one uses to measure. What is small to one may be medium or even big to some others. Small business is an integral part of the total business scene in any country. What characterizes small business? * According to Small Business act 1934- A business which is independently owned and operated and not dominant in its field” is a Small Business.
* The small Business Act of 1953 defines small business as “one which is independently owned and operated and not dominant in its field of operation.” Though small in size such business activities cover almost any area of business viz. manufacturing, mining, wholesaling, retailing, service and the like. * According to executive committee for national economic development-A Small Business one of which process 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.] From all of the above definitions we can make a general definition of Small Business- “A business not dominating in its field, does not engage in any new marketing, workers are local, working at a single location, produced units are relatively small in size, and often all organized by the owner or his family members.” 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 work 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.
Definition Stated By The Bangladesh Bank
The central bank of Bangladseh has come up with a new definition for small and medium enterprises in line with the government's industrial policy of 2010. The new definition replaced the previous ones formulated in May 2008, incorporating microenterprise and cottage industries. Under the new definition of Bangladesh Bank, the Bangladesh Bank will deem an individual as an entrepreneur or a small business owner if the person is an owner or proprietor of a privately-run organization, or owns at least 51 percent of share in case of a joint venture or company listed with the Office of the Registrar of Joint Stock Companies and Firms. The central bank also included- microenterprise and cottage industries in all of its SME loan policies and programmes. According to the new definition,
Assets: Worth Tk 10 crore to Tk 30 crore (excluding land and factory building, but including replacement value) Employee No. : 100 to 250 workers.
Assets : Worth Tk 50 lakh to Tk 10 crore (excluding land and factory building, but including replacement value) Employee No. : 25 to 99 workers.
Assets: Worth Tk 5 lakh to Tk 50 lakh (excluding land and factory building, but including replacement value Employee No. : 10 to 24 or less
In both services Industry and Businesses,
The medium-size enterprises
Assets : Worth Tk 1 crore to Tk 15 crore (excluding land and factory building) Employee No. : 50 to 100 workers
The small-size enterprises
Assets : Worth Tk 5 lakh to Tk 1 crore.
Employee No. : 10 to 25 workers
Assets : worth Tk 5 lakh or less(excluding land and factory building, but including replacement value) Employee No . : 10 or less.
Assets : Worth Tk 5 lakh to Tk 50 lakh (excluding land and factory building, but including replacement value) Employee No. : 10 to 24 workers or less
Ref: Tuesday, June 28, 2011...