The concepts of small scale businesses has been an issue for debate as
different individuals, nation and groups define it to suit their own systems
and purposes. Some authors define small
scale business from the stand point of its relevance in the development of any
economy.
However, The Central Bank of Nigeria Magazine defines small scale business
enterprise in terms of the business annual turnover, which accordingly, must be
less than N 500,000, the small scale
industries established with capital investment totaling N 250,000, and staffed with between 50 and 150 employees qualify as
small scale industries. Interestingly, the Nigeria Companies and Allied Matters
Decree 1990 Section 376 characterized
small companies with the following:
1. A
private company limited by shares should be the business turnover for the year.
2. The
net assets value of the company is not more than N1 million or such amount as may be fixed by the commission.
3. None
of the members is an alien.
4. None
of its members of the company is a government agent and nominee.
5. The
directors of the company hold not less than 50% of the equity share capital of
the company.
The confusion associated with the definition of small scale business can
be reduced by de-emphasizing factors associated with monetary terms and
speaking on general criteria. Thus small scale business can be summarized as
having the following characteristics:
(i)
Likely to be a sole trader, partnership
or print company.
(ii)
Likely to operate on only a single
local site with a very few member of departments.
(iii)
Having independent management who are
chief executives of the enterprise.
(iv)
Having small capital outlay and mainly
furnished by the owners of the business.
(v)
The size is small relatively and
services as a niche in the market.
Economic development of any nation is improved largely by its enterprising
spirit. The characteristic emerges forth interplay of behavior and activity of
entrepreneurs who with their small scale businesses constitute a vital sector
in the economy of any nation (Okon, 2003).
A lot of small scale businesses and programmes were put together in other
to promote the standard of living of a common man in our societies. The small
scale business is one way through which an average Nigerian can be made self
reliant. The importance of small scale
businesses in their potential for creating employment most of the businesses in
this sector are labour intensive and collectively serve as a major source of
employment opportunities.
Encouragement of small scale businesses can also help to correct the
unhealthy in-balance in the rate of economic growth between the rural and urban
areas which will mean an integrated rural development. This most certainly will
aid in checking rural-urban migration.
The pioneering spirit that underlines our success as a nation will
continue to flourish as long as the small business man remains the main stay of
our economy and our society (Young, 1977).
This work will be better appreciated as we shall attempt an appraisal of
the adoption of marketing and the indices of market performance of small scale
enterprises in Abia State.
Market performance is the term used to measure the performance of an
enterprise in relation to other enterprises in a particular industry or market.
It is through market performance that we can be able to ascertain the growth
rate, profitability, sales volume, market share, number of customers etc
(Roger, 2004)
Market performance has always been of concern to small scale business in
Nigeria in particular and the entire world at large. In recent times, lack of
proper adoption of marketing and marketing concept has led to business
failures. In Abia state, it has assumed greater dimension. Consequently, quite
a lot of small scale enterprises have been forced out of business.
The analysis of strategic factors affecting market performance small scale
businesses enterprises in Abia State in essence, the areas of the operation of
this work are considered through some selected retailing and wholesaling
business in relation to theme of this study in anticipation that this work will
contribute towards locating the market performance metrics and tools; as well
as problems of market performance of small scale businesses and providing
possible solution to them.
OGUIKE, C (2021). The Determinant Of Performance Efficiency In Selected Small Scale Enterprise In Umuahia, Abia State. Mouau.afribary.org: Retrieved Nov 17, 2024, from https://repository.mouau.edu.ng/work/view/the-determinant-of-performance-efficiency-in-selected-small-scale-enterprise-in-umuahia-abia-state-7-2
CLINTON, OGUIKE. "The Determinant Of Performance Efficiency In Selected Small Scale Enterprise In Umuahia, Abia State" Mouau.afribary.org. Mouau.afribary.org, 03 Jun. 2021, https://repository.mouau.edu.ng/work/view/the-determinant-of-performance-efficiency-in-selected-small-scale-enterprise-in-umuahia-abia-state-7-2. Accessed 17 Nov. 2024.
CLINTON, OGUIKE. "The Determinant Of Performance Efficiency In Selected Small Scale Enterprise In Umuahia, Abia State". Mouau.afribary.org, Mouau.afribary.org, 03 Jun. 2021. Web. 17 Nov. 2024. < https://repository.mouau.edu.ng/work/view/the-determinant-of-performance-efficiency-in-selected-small-scale-enterprise-in-umuahia-abia-state-7-2 >.
CLINTON, OGUIKE. "The Determinant Of Performance Efficiency In Selected Small Scale Enterprise In Umuahia, Abia State" Mouau.afribary.org (2021). Accessed 17 Nov. 2024. https://repository.mouau.edu.ng/work/view/the-determinant-of-performance-efficiency-in-selected-small-scale-enterprise-in-umuahia-abia-state-7-2