SMALL SCALE BUSINESS - IMPORTANCE AND CHALLENGES

IMPORTANCE OF SMALL SCALE BUSINESS

The important of small scale business in the development of an economy is as follows:

1. It will help in producing goods and services that will minimize heavy reliance on input base.

2. Help to provide employment opportunity and stabilized the economic base in the country.

3. It also help in curtaining general crime rate and enhance growth participation in the development of the country’s economy.

4. It promotes the industry, provision of trading ground for entrepreneurship and diffusion of capital ownership.

5. It also helps to remove some constraints confronting the development of general policy by improving the basic economic infrastructure requirement such as electricity, water and road etc.

PROBLEMS OF SMALL SCALE BUSINESS

Some of the problem that hinder successful operation of small scale business in Nigeria include

1. CAPITAL: All business needs capital. In fact the capital requirement of small scale business even extend beyond the business. If a business is Started with two little capital such business may likely fold up.

2. POOR RECORD KEEPING: Record keeping is very vital in any business. Record whether financial or non financial are important for keeping in the business at all times.

3. POOR OR WRONG LOCATION: Before selling up a business in any place, several factors must be consider like availability of market, good transportation, regular supply of electricity, water and security.

4. POOR TIME MANAGEMENT: lack of commitment can affect the efficiency of small scale business.

5. INADEQUACY OF INFRASTRUCTURAL FACILITIES:
Infrastructural facilities such as good road and electricity are necessary for business growth and profitability.