role of small business in economic development
CHAPTER 01
INTRODUCTION
1.1 DEFINITION OF SMALL BUSINESS:
There is no precise definition of a small business. Some would consider a business as small if it has no more than a specified number of employees. Other would like to believe a business as small that limits its scope of operation to the local market area. Yet others may prefer to classify a business as small on the basis of nature of firm, such as the local medical store, clothing store, service station or a jewelry store.
WRITERS’ DEFINITION:
“A small business is defined as a business (corporation, Limited Liability Company or proprietorship) with 500 employees or less.”- U.S. Govt.
* According to Small Business act 1934,” A business which is independently owned and operated and not dominant in its field” is a Small Business.
* According to executive committee for national economic development, “A Small Business one of which processes at least two of the following characteristics:
* -Managers are the owners,
* -Capital supplier and the owner is individual or a small group,
* -Worker and the owners are local, market may not be so.
* -Relatively smaller compared with the biggest unit of the industry [Sales, employees etc.]
DEFINITIONS IN THE CONTEXT OF BANGLADESH:
“Small industry means an industrial establishment or unit which is rum mainly by hired labor and not using mechanical motive power but does not normally employ more than 50 workmen and whose land, building and machinery does not exceed Tk.150, 00,000 in value in either case.” – E. Pakistan Small Industries Corporation Act of 1957.
GRAPH: Product/ service
Financial Plan Operations
Exhibit: Small Business procedure
1.2 TYPES OF SMALL BUSINESS:
NAME
EXAMPLE
1.Retail sales
Food, Appliance,
INTRODUCTION
1.1 DEFINITION OF SMALL BUSINESS:
There is no precise definition of a small business. Some would consider a business as small if it has no more than a specified number of employees. Other would like to believe a business as small that limits its scope of operation to the local market area. Yet others may prefer to classify a business as small on the basis of nature of firm, such as the local medical store, clothing store, service station or a jewelry store.
WRITERS’ DEFINITION:
“A small business is defined as a business (corporation, Limited Liability Company or proprietorship) with 500 employees or less.”- U.S. Govt.
* According to Small Business act 1934,” A business which is independently owned and operated and not dominant in its field” is a Small Business.
* According to executive committee for national economic development, “A Small Business one of which processes at least two of the following characteristics:
* -Managers are the owners,
* -Capital supplier and the owner is individual or a small group,
* -Worker and the owners are local, market may not be so.
* -Relatively smaller compared with the biggest unit of the industry [Sales, employees etc.]
DEFINITIONS IN THE CONTEXT OF BANGLADESH:
“Small industry means an industrial establishment or unit which is rum mainly by hired labor and not using mechanical motive power but does not normally employ more than 50 workmen and whose land, building and machinery does not exceed Tk.150, 00,000 in value in either case.” – E. Pakistan Small Industries Corporation Act of 1957.
GRAPH: Product/ service
Financial Plan Operations
Exhibit: Small Business procedure
1.2 TYPES OF SMALL BUSINESS:
NAME
EXAMPLE
1.Retail sales
Food, Appliance,
References: 1) 'A Study on East Asian Economy '; by World Bank; page: 31 - 407; Publisher: University Press Limited; 1981. 2) 'Developing Careers on Small Business '; by Monjurul Akhter; page: 1 - 34, 67-286; Publisher: Maola Brothers; 1998. 3) 'Entrepreneurship and Lives of Successful Entrepreneur '; by Dr. A. R. Khan; page: 2 - 165; Publisher: University Press Limited; 1986. 4) Www. Reportbd.com 5) www. Google.com 6)Jahur M Saleh and Azad A.S.M. Sohel(2004),”A study on small enterprises in bangladesh searching for growth factors & obstacles.” Journal of the institute of bankers Bangladesh, volume 51, no-1 7) Rahman, A.H.M. Habibur(1985), “Entrepreneurship and small enterprise develpoment in Bangladesh,” in Abdul Mannan (Eds). Entrepreneurship and management in Bangladesh, Chittagong University Business Research Bureau, p.104. ***********************************************************************