Small Business Enterprise (SBE)
Small Business Enterprise (SBE)
Small Business Enterprise (SBE)
Factors to be consider
Marketing Action Marketing research and information, demand forecasting and analyzing, pricing policy and strategy, trained sales staff and promoters, and finally market segmentation.
INVESTMENT ANALYSIS Financial Record Keeping, high investment in fix asset, under utilization of company asset and miss perception as turn over of profit.
Working Capital Management Credit Management, Cash flow analysis, inventory management and un planned withdrawal of cash.
Managerial Action Focus on strategy formulation and implementation rather than short-term profits and developing strong interest for nonfinancial benefits such as need for achievement and recognition.
Techno-Regulatory Changes . The researchers perceived the changes in technology to be more critical to SMEs than the other items
Conclusion
FINANACIAL CONSTRAINTS : The major problem in the expansion and growth of small e industry is the shortage of capital PRODUCTION COST IS HIGH : Economies of scale are not available so the production cost is higher.
USE OF OUTDATED MACHINERY AND PRODUCTION MEHTOD : Most of the persons engage in the production of good on small scale use outdated machinery and production methods. LACK OF STANDARDIZATION : In some cases they do not meet the standard of foreign market.
The use of improved machinery for increasing production and reducing cost is beyond their reach to buy. They remain mostly contended with the primitive methods of production. LACK OF CO-ORDINATION : There is lack of co-ordination in standardization and prices among different producers.
LACK OF MARKETING FACILITIES : Due to lack of capital , cannot advertise in the press or on television for the price, quality of product.
INADEQUATE AND IIREGULAR SUPPLY OF ELECTRICITY :
There is number of where electricity has not been provided. In cities too, the supply of Electricity is irregular and fluctuation cause damage to the electric motors.
SHORT SUPPLY OF RAW MATERIAL : The small scale are often faced with short supply of indigenous as well as imported raw material. There is also fluctuations in market prices of raw material.
PROVISION OF TECHNICAL TRAINING : The craftman and artisans learn their skills and method of production from their elders . Provision of technical training limited.
Conclusion.