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SURVIVALSTRATEGIES IN SMALL BUSINESS

Format: MS WORD  |  Chapter: 1-5  |  Pages: 62  |  1310 Users found this project useful  |  Price NGN5,000

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SURVIVAL STRATEGIES IN SMALL BUSINESS

 

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

The Small and Medium Scale Enterprises have been considered as the engine of economic growth and promoting equitable development. The major advantage of the sector is its employment potential at low capital cost. Since 1960 to date, small scale enterprises have been given due recognition especially in developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies. The role of small and medium enterprises is often driven by individual creativity and innovation. The common examples of small and medium scale enterprises are computer information technology related enterprises, fast-food industries, telecommunication accessories industries, poultry farming, fish-farming, soaps factory and the like (Hallberg, 2000; Olutunla, 2001; Williams, 2006). The wide spread of Small and medium scale Enterprises in Nigeria and the multiplier effects they have on the rest of the economy enables them to be the engine of economic growth and development. They are also noted as the main driving force behind job creation, poverty reduction, wealth creation, income distribution and reduction in income disparities. Most of the government interventions failed to creates a much needed transformation due to poor coordination, monitoring and policy inconsistencies.  According to Kadiri, (2012), Small and Medium Enterprises both in the formal and informal sectors employ over 60% of the labor force in Nigeria. Sule, 1986; World Bank, 1995 went further to posit that 70% to 80% of daily necessities in the country are not high tech products, but basic materials produced with little or no automation. Records have shown that SMEs have in many countries provided the mechanism for stimulating private ownership and entrepreneurial skills, enhancing greater employment opportunities per unit of capital invested and aiding the development of local technology. Therefore, any organization that wants to survive in business would always plan against future problems as well as be ready with strategies that can bring solutions as they show forth in turbulent times. Many organizations have adopted survival strategies that will guide them in their business operations especially in times of difficulties. An organization has to select what products it can produce or deliver best, what set of customers and what the customers’ needs are and how best they can offer their products and services to their customers. Whether a business is big or small, the task of the enterprise management requires the systematic approach and discipline fostered by business strategies. Survival strategies are very important to the growth of any organization that is starting or already in existence. Without strategies laid down as a guideline by the organization, there won’t be actions to be carried out nor targeted goals to attain. Therefore, every business organization, must strive to achieve their target goals by planning ahead of time which is tagged as strategies. 

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SURVIVALSTRATEGIES IN SMALL BUSINESS

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