SMALL BUSINESS MANAGEMENT (TREATED QUESTIONS AND ANSWERS)

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1a. Define the term Small Business and explain clearly the criteria used for defining what exactly a “small Business” is in different countries

b.  What are the rationales for studying Small Business in Nigeria?

2.  How can prospective small businesses owner/manager go about evaluating the financial picture of a new business? Consider the following financial terms in your discussion.

[a] Sources of funds

[b] Use of funds

[c] Cash flows

3.  Develop a comprehensive essay entitled: “The impact of Small Businesses on the Economic Activities of Federal Capital Territory, [FCT]”.

4.  Write explanatory notes on each of the followings:

[a] Planning as Tools for Decision making in Small Business

[b] Small Business and Big Business [comparative analysis]

[c] Scientific methods of market analysis for Small Business.

5.  How would you evaluate the potentials and performance of the current Federal Government Subsidy Reinvestment Programmed [SURE-P] with regards to Small Businesses in Nigeria?

6.  Budgets are plans as well as Control. Discuss this statement with regards to sales and cash budgets for Small Business.

QUESTION 3 [2014/2015]

Develop a comprehensive essay entitled; “The impact of small Business on the Economic Activities of Federal capital Territory [FCT].

ANSWER

IMPACT OF SMALL BUSINESS ON THE ECONOMIC ACTIVITIES OF FEDERAL CAPITAL TERRITORY [FCT]

      The historical experience of economic development in FCT is with success stories of the role of Small Business in industrial development, technological innovation and export promotion.

The Small Business has impacted on the economic activities in FCT in the following areas

1.    Employment Generation: The FCT is an administrative city hosting the Federal Offices and state liaison offices. An assessment of the population shows that 60% are engaged in Small Business. This includes artisans, commercial activities, academics and other service business.

2.    Utilization of local resources: A visit to Giri a settlement in Abuja will reveal the craft of making clay pots and vase. Also settlers in FCT have learnt the making of soap and detergent. These were previously imported into the country. Most farm produce are being processed into flour which can be preserved for future use.

3.    Technological innovation: The young men in FCT who are quick to learn the act of electronics repairs including the mobile phone pair. The trade is a common place popularly referred to as “Telephone Village”. Maintenance of mobile phone current carried out there without the government assistance.

4.    Production of intermediate goods: Small business in FCT provide spare parts for the efficient functioning of the larger enterprises. Example of this is the spare parts market at Apo, Kugbo and Zuba. Most vehicle risers patronize these places for replacement of spare parts and maintenance of their vehicles.

5.    Income generation: The government of FCT, rely on the Small Businesses to raise revenue for both recurrent and capital project. In the period of declining revenue from the federal allocation, the FCT take solace on the internally generated revenue raised from the various taxes paid by the small business.

6.    Provide centres for Academic Development. In addition to the Federal Schools in FCT, there are private, primary and secondary schools. One and provide opportunities for the admission of children who cannot be admitted into the government schools due to limited facilities. Examples includes capital school, Aunty Alice schools, White plains Poritish schools, etc.

QUESTION 5 [2014/15 SESSION]

THE POTENTIALS AND PERFORMANCE OF SUBSIDY

REINVESTMENT EMPLOYMENT PROGRAMME [SURE-P]

The Sure-P was established in January 2012. The decision was made by President Goodluck Jonathan. The aim was to make fund available for the programmes and projects that were relevant to the upliftment of our living standard.

POTENTIALS: THE AIM OF SURE-P WAS TO ACHIEVE THE FOLLOWING GOALS

1.    To serve as a cushioning effect of the pains occasioned by the partial removal of subsidy in the downstream sector of the petroleum sub-sector, with a view to transferring the proceeds to move critical needs of Nigerians, especially the infrastructural needs.

2.    It was equally proposed that the local refineries will be refurbished to enable them perform to optimum capacity.

3.    Small and medium scale enterprises will be encouraged to thrive in the country.

4.    The ailing industries such as the Textile industries will be revived.

5.    The major infrastructure that needed urgent attention such as electric supply and road maintenance will be given priority.

6.    The project was expected to create 50,000 skilled jobs and 320,000 unskilled job opportunities and would be implemented in partnership with states, local government and private organizations.

PERFORMANCE OF SURE-P

1.    The Youth Enterprise with innovation in Nigeria [YOU WIN] programme has been successful in supporting young entrepreneurs to create jobs through a completive business plan programme that awards grants to the winners to expand their businesses and create employment for them.

2.    The programme has assisted 50,000 graduates in receiving training from private companies under graduate internship programme.

3.    In the area of road construction and rehabilitation, the programme assisted in the construction of the Abuja-Lokoja road. The rehabilitation of Benin Ore Express road was completed within 12 months.

4.    The second Onitsha Bridge in the South Eastern part of the country being constructed.

5.    Through the programme, the Almajiri primary school was implemented. Various blocks of classrooms were constructed in Kano, Kaduna, Borno states to integrate the beggars on the street in the above state into the western Education system.