Small-scale enterprises play important roles in the economic development of any nation especially the developing ones. (Enudu,1999:p.22). The growth of the country depends to an extent, on the standard and development of small-scale business. In revolutionary economy, small-scale enterprises are legitimate and viable component in any strategy for reconstructing the economy. The roles played by small-scale enterprises in economic growth and development are highlighted below.
- EMPLOYMENT GENERATION: Small-scale business has come to be known as a major source of employment. Some as self employed while others as entrepreneurs to create wealth in their own little way. This shows that small-scale plays an important role in reducing the rate of unemployment in our country.
- PROMOTION OF COMPETITION: Small-scale enterprises act as a check against monopoly and encourage competition, through improved prices and services to customers. The small entrepreneur is in intimate contact with market needs. Possessing practical technical competence is very necessary in competition. A small firm cannot compete with large firm across the board, but few small businesses compete in its own particular area, and its own particular way, together have the desired competitive effect.
- WASTE UTILIZATION: small-scale enterprises make use of waste material from big enterprises for further production.
- INTRODUCTION TO BIG BUSINESS: Every business has it starting points, small business serves as a nursery for entrepreneurial talent and they grow, in some cases, into large enterprises. Many large organizations all over the world today started as small business.
- CATERING FOR SMALL DEMAND: Small manufacturing establishments have advantage in meeting highly specialized, individualized demand, one requiring frequent readjustments because of style changes or other reasons. Here the flexibility of the small firm stands it in good stead.
Plan to attend Blogging for Profit and create a niche for yourself
Date: 25th August, 2016
Time: 9am – 4pm