COOLBOY
WHATSAPP NUMBER
08035452768
IJMB
*NUMBER 1 SOLUTION*
```CONTRIBUTION OF SMALL BUSINESS TO ECONOMY```
Small scale enterprises are essential agents of economic growth and national development. Their
activities affect the life of the rural and urban dwellers through the employment opportunities
they provide to the generality of the people of Nigeria. More importantly, they are able to
engage large number of applicants because they employ both unskilled and semi-skilled
individuals. .
Increased output of goods and services for the generality of the people of Nigeria.
(2) Helping to solve the daunting unemployment situation in the country by the creation of
jobs and employment of large number of unskilled and semi-skilled people.
(3) The small scale enterprises, in a way, develop a pool of skilled and semi-skilled
manpower. Because people with inadequate skills are engaged by the entrepreneur, they
have the opportunity to develop their skills for future advanced functions in well-
established industries.
(4) Small scale businesses improve backward linkages between them and the agricultural
economy.
(5) The small scale enterprises provide opportunity for developing and adapting appropriate
technology and serve as excellent breeding ground for entrepreneurial and managerial
capacity. They also stimulate indigenous entrepreneurship.
(6) The operation of small scale enterprises makes possible increased utilization of local
resources as inputs for processing and production of goods.
(7) They supply large firms with intermediate materials and help to distribute the products of
large firms on commission basis or serving as sole distributors for the large firms.
(8) The small scale enterprises, especially the ones operating in the rural areas, help to reduce
rural-urban migration (or population movement) by the employment of youths in the rural areas.
*ADVANTAGES ARE:*
1. *Local Jobs*
With the increase in local small businesses comes an increase in the number of available local jobs. Local jobs are ideal because they reduce the amount of traveling and commuting employees need to do to get to work. By opening local jobs, your area’s unemployment rate can start to see a decrease, producing great numbers for your economy.
In addition to adding local jobs within the small businesses, you can also produce an increase in job opportunities at other nearby small businesses. When you have an active community with small businesses placed throughout, townspeople are more likely to shop around from one business to the next, as opposed to only going to one department store for everything they need. The more attention small businesses receive, the more labor they need to stay productive.
2.) *Increase Tax Base*
With the revenue that small businesses generate, this tax money gets fed into the local economy to create a better business within your community. This means your school districts, police forces and other small businesses and organizations will create a support system and reap the benefits of each others’ hard work.
3.) *Less Infrastructure and Low Maintenance*
Small businesses don’t require as much work and maintenance as your standard large corporation. Because they are often placed in the middle of a city or downtown area, these small businesses can be added to already existing buildings. This positively affects the economy because there is less city planning that needs to be done. There is also less labor and work involved than mapping out and building a new mall or department store.
4.) *Product Diversity*
The role of a small business is to be innovative, new and diverse. To stand out from the larger companies, small businesses need inventory and products that are fresh, new and different. An independent retailer will generally provide unique products that are unable to be found at larger retailers.
With small businesses, there is the ability for cooperation with other local businesses. Many products can be made because of the goods and services of other local outfits, allowing the profits to return to the local economy. Technology can also help small businesses thrive, especially regarding online shopping. Providing multiple shipping options can enable community members to be flexible with their shopping, viewing all of the different and innovative products available in a local setting.
5.) *Local Decision-Making and Involvement*
Incorporating small businesses into local government decisions can help ensure the small town culture within the community. By actively producing wealth in the economy, small business owners should be invited to participate in governing meetings and decision-making processes.
*DISADVANTAGES OF SMALL BUSINESS TO ECONOMY*
1.) *Small Businesses Have Less Brand Recognition*
A large business enjoys brand recognition wherever it goes. Think of giants like Coca-Cola and Apple, which are known nearly everywhere in the world. A small company won’t have the brand recognition it requires to easily gain more customers. Larger businesses enjoy this recognition, and can even increase it by promoting their products more widely and opening branches in more locations.
2.) *Small Businesses Experience Higher Costs*
Small businesses have lower bargaining power than their larger counterparts, and this hampers their ability to lower the unit costs of their products. A large company does not face this problem. It can negotiate large discounts on volume purchases by virtue of the large volumes it purchases. It also enjoys economies of scale, which allow it to produce goods in bulk and reduce the cost of overheads. A small business, on the other hand, simply doesn’t have the same production capacity or buying power, therefore forcing it to bear greater unit costs.
3.) *Small Businesses Have Smaller Budgets*
Small-scale businesses are typically faced by budget hurdles. They can’t afford the levels of research and development, marketing, and technology that large businesses enjoy.
IJMB
*NUMBER 7 SOLUTION*
In addition to the psychological definition of *DECISION* is defined as the process of identifying alternatives courses and choosing an appropriate alternative when faced with decisions. Likewise, the goal of every decision is to obtain a form of reward.
Or
*OBSTACLES TO AN EFFECTIVE DECISION*
1. *CONFLICT*
effective decision-making can be difficult because of conflict. Most individuals dislike conflict and will avoid it when possible. However, the best decision might be one that is going to involve some conflict. Consider a manager who has a subordinate who is often late to work, causing others to have to step away from their responsibilities in order to cover for the late employee. The manager needs to have a conversation with that employee to correct the behavior, but the employee is not going to like the conversation and may react in a negative way. Both of them are going to be uncomfortable. The situation is likely to involve conflict, which most people find stressful. Yet, the correct decision is still to have the conversation even if (or especially if) the employee otherwise is an asset to the department.
2. *Personal Biases*
decision-making is also limited by our own biases. We tend to be more comfortable with ideas, concepts, things, and people that are familiar to us or similar to us. We tend to be less comfortable with that which is unfamiliar, new, and different. One of the most common biases that we have, as humans, is the tendency to like other people who we think are similar to us (because we like ourselves).
on demographic characteristics such as race, gender, and age), they can also be a result of shared experiences (such as attending the same university) or shared interests (such as being in a book club together). This “similar to me” bias and preference for the familiar can lead to a variety of problems for managers: hiring less-qualified applicants because they are similar to the manager in some way, paying more attention to some employees’ opinions and ignoring or discounting others, choosing a familiar technology over a new one that is superior, sticking with a supplier that is known over one that has better quality, and so on.
3.) *Uncertainty*
managers frequently make decisions under conditions of uncertainty—they cannot know the outcome of each alternative until they’ve actually chosen that alternative. Consider, for example, a manager who is trying to decide between one of two possible marketing campaigns. The first is more conservative but is consistent with what the organization has done in the past. The second is more modern and edgier, and might bring much better results . . . or it might be a spectacular failure. The manager making the decision will ultimately have to choose one campaign and see what happens, without ever knowing what the results would have been with the alternate campaign. That uncertainty can make it difficult for some managers to make decisions, because committing to one option means forgoing other options.
4.) *Time Constraints*
Managers often face time constraints that can make effective decision-making a challenge. When there is little time available to collect information and to rationally process it, we are much less likely to make a good nonprogrammed decision. Time pressures can cause us to rely on heuristics rather than engage in deep processing. While heuristics save time, however, they don’t necessarily lead to the best possible solution. The best managers are constantly assessing the risks associated with acting too quickly against those associated with not acting quickly enough.
5.) *Escalation of Commitment*
Given the lack of complete information, managers don’t always make the right decision initially, and it may not be clear that a decision was a bad one until after some time has passed. For example, consider a manager who had to choose between two competing software packages that her organization will use on a daily basis to enhance efficiency. She initially chooses the product that was developed by the larger, more well-established company, reasoning that they will have greater financial resources to invest in ensuring that the technology is good.
CONTACT COOLBOY FOR YOUR SURE WAEC, NECO, NABTEB,NABTEX,BECE,IJMB, JUPEB,AND PRIVATE WASSCE (GCE) QUESTIONS AND ANSWERS BEFORE EXAM
COOLBOY
WHATSAPP NUMBER
08035452768
Post a Comment