Below are question that you should expect: I will
not answer them all but I will give you a clue: Also, some answers are already
in the blog.
Question:
What are the characteristic of a Small Business?
Answer:
Here are the characteristic, but you will explain –
will only outline them: 1. Simple technology 2. They are not capital intensive
3. It is easy to set them up 4. They require limited financial commitment: You
can remember the rest.
Question:
List and explain the contributions of small
business to the economic development of Nigeria. One guy has asked me this question
and here is the answer:
Answer:
Unique Advantages and contributions of small
business: 1. They originate new products and services 2. They generate
employment opportunities: 3. They enhance local contents:
Other contributions are; Revenue Generation, Innovation,
Industrialization, Allocation of Resources, Poverty Reduction
Question:
Critically discuss the challenges facing small
business;
Answer:
Small businesses are beset with numerous problems in
developing counties. These problems can
be categorized into managerial,
technical, financial and commercial.
Question:
Differentiate Between
A Vision and a Mission
Answer:
Vision points at a
direction where an organization should go, while mission explains how. Vision is about the future, while mission is
about the present (here and now).
Question:
Critically compare
and contrast small and big business
Answer:
Comparison of small
and big business:
In terms of number of
employees: 90% of small business in
Nigeria have less than 20 employees:
In terms of sales:
Large Business Account for most of the sales while small business account for
very little.
In
terms of Origin: Almost all large
business started as small business
Question:
Define
and explain the concept small business management:
Answer:
The
issue of proper definition of small scale business is yet to be resolved due to
variation from country to country, from industry to industry and among
researchers in the field.
Empirical
evident has revealed a general tendency for small-scale enterprises to be
relatively more important in the Less Developed Countries (LDCs) than in the
developed industrials economies. While in
the developed countries large enterprise tend to predominate because of strong
economies large enterprises tend to predominate because of strong economies of
scale, in many developing counties, there is very large number of small scale
enterprises as a result of heir flexibility.
The
American Committee for Economic development defines a small business as one
that has at least two of these features:
(a) Management
is independent
(b) Capital
is supplied and ownership held by an individual or a few individuals;
(c) The
area of operations is primarily local; and
(d) The
firm is small in comparison with competitors.
The
definition is acceptable in the Nigerian context, but however, because of the
dynamic nature of small business the formal definition is very flexible.
In
the United Kingdom, the Economist Advisory classified small business according
to industries in terms of assets and turnover ranging between £20,000 to
£25,000 in net assets and £50,000 to £500,000 in business turnover.
According
to Small Business Association in the United States of America (USA), any
business which has less than 250 employees and whose annual turnover is not
more than $10 million is small scale.
In
the Nigerian context, small business according to the Third National
Development Plan Vol. 1.P.353 is classified thus:
i.
Small scale industries – are
manufacturing establishment employing less than 12 people or whose investment
machinery and equipment do not exceed six hundred thousand (600,000).
ii.
In the credit guidelines of the
Central Bank of Nigeria (CBN), small businesses are classified as those
businesses with an annual turnover of less than half a million Naira (N500,000).
REFERENCE:
M.S
Isyaka and Aina Olalekan Kazeem: Small Business Management (Concept and
Practice) Published and printed by: Chartered Graphics Press, Abuja, Nigeria.
Note:
I will be posting this exam questions bit by bit: But try and read them very well.
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