Wednesday, January 1, 2020

Can small businesses reduce unemployment?

  No comments

an
Can small businesses reduce unemployment?

A firm that is separately owned and running and not ruling in its field and meets industry specific size stander for income number of firm.
A business is independent not port of large business and that has relatively little influence in market.

Any enterprise which employees not more than 50 persons when using power and 100 person when not using power with capital assets not exceeding RS 500000.
A small business is one which possesses at least two of the following four characteristics Managers are the owner Capital supplier and the owner individual or a small group Worker and the owner are local, market may not be so Relatively smaller compared with biggest unit in the industry (sales, employee etc).

Characteristics of small business

·         Most small firms have a narrow focus
·         Small business have to get by with limited resources
·         Management is independent
·         Closely held ownership
·         Local operations
·         Small size  number of employees ,fixed assets, annual sales volume, capital investment
·         Concentration of decision making power
·         Non-complex organization 
·         Lack of formal system and authorization procedure
·         Limited segregation of duties
·         Management override
·         Limited accounted knowledge

Advantages of small business

·         Personal relationships with customers and employees.
·         Ability to adopt to change
·         Simplified record keeping
·         Independence
·         Being the boss
·         Opportunity to offer services that large companies can not
·         Ease of formation.
·         Eliminate boredom
·         Encourages development
·         Give employees a break from strenuous job duties
·         Helps you identify where employees work best

Disadvantages of small business

·         Can be costly and time consuming
·         Could end up with disgruntled employees
·         It want fix your problems
·         Might not be feasible for some industries
·         Your business could suffer
·         Risk of failure
·         Limited potential
·         Limited ability to raise capital


Economic contributions of small business

Small business and entrepreneurs contribute to the larger economy in four very distinct way
·         Job creation
·         Innovation
·         Opportunities for individuals to achieve financial success and independence
·         Support large business by providing component parts, services, and products distribution

Job creation

Small business make and opportunity for young generation to become creative and innovated own money own management everything in the own hand just been focus and time the issues of earning money particular source that would be in your own mind sets how much expended you want is in your hand some businesses are self-created in easily been handled and some business are potable means you can shift your business form one place to another place and these need less capital so been easy to be handled

Conclusion

Small business are very important for economy and poor people which do not have skills to go for the large business and have less money for open a business and get profit form it 
·         Less unemployment
·         More ideas
·         Less money spend
·         Management skills been understand
·         product been supplies easily  


Authors:

Students of BBA 2K19 Batch, Shaheed Benazir Bhutto University, Shaheed Benazirabad, Sindh.

  1. Sheeraz 102
  2. Mahesh Das 103
  3. Sabtain Haider 113

No comments :

Post a Comment