Small Scale Business Enterprise

Topics: Business, Small business, Management Pages: 11 (3013 words) Published: May 1, 2013
* Meaning
* Background
* Lifeline Healthcare
* Business Pofile
* Business Review
* Analysis of Strengths and Weaknesses
* Business Recommendations
* How to Improve business and provide stability.
* Tie-up benefits.
* The qualities required to handle the business.
* Business current Status
* Productive business.
* Bibliography

Size Hardly matters Small Scale Business Enterprise
A business (also known as enterprise or firm) is an organization involved in the trade of goods, services, or both to consumers.[1] Business plan and Business model determine the outcome of an active business operation. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning. The etymology of "business" relates to the state of being busy either as an individual or society, as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage to mean a particular organization; the generalized usage to refer to a particular market sector, "the music business" and compound forms such as agribusiness; and the broadest meaning, which encompasses all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate and complexity of meaning. - Google Direct

Small Scale Business Enterprise

Small scale industry is ‘ a unit engaged in manufacturing , servicing, repairing, processing, and preservation of goods having investment in plant and machinery, at an original cost not exceeding 60 lakhs ‘ – Textbook definition, Sunny Fernandes.

1.1 Produce a profile of a selected small scale enterprise. Charles Dickens – Lifeline Healthcare
It is a locum agency, currently employing 5 full time employees who take care of the operations. Sales is currently increasing with forecast, cash flow is less than projected. There is a severe strain on the company overdraft. There staff employees by lifeline are currently paid 40000 to 50000 Euros /annum. As a team they specialize in marketing, sales, operations, recruitment, credentialing, scheduling, making presentations and service level presentations, after sales client-management accounts’ site visits etc.

Strengths of a small scale Firm
They create employment opportunities. They are labor intensive. They offer scope for self-employment.
They require less capital. It is a boon to a country like India where capital is deficient.
Close supervision and control is facilitated.
There is a personal touch with the employees. This makes the business smooth and prosperous.
There is close and direct contact with the customers.
SME’s alone can satisfy individual tastes fully and offer personalized service to the customers.
They help to reduce prices.
They help in balanced regional development.
It is possible to make changes as and when required.
They enjoy government support and patronage.
They facilitate equitable distribution of wealth.
They provide opportunities for creativity and experimenting.

Financial weakness is the major hindrance in case small scale business firms. They find it difficult to raise enough money to finance operations. Unlike multinationals they do not get carpet treatment when they go to financial institutions to ask for credit.

Small companies cannot pay fat salaried and big bonuses like MNC’s and they are often left understaffed due to lack of...

Bibliography: * Birch, D. (1979). The job generation process
* American Independent Business Alliance
* Encyclopedia google
* Chitra Vardan – Importance of Small entities.
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