current research study attempts to identify performance measure of small
business ventures by focusing on the role of entrepreneurship in management
practices to explain the performance of small business enterprises in Lagos
State, and by doing so develops conceptual models of small venture performance
in manufacturing industry within its unique conditions. After reviewing theory
and research on small venture performance measures in general and in
manufacturing industries in particular, we propose that performance measures of
small business ventures constitute a combination of short-term and long-term
measures. Furthermore, both types of measures include both subjective and
objectives dimension. Using data from a survey of 55 workers from an enterprise
in Lagos State, we found out that the characteristics of entrepreneurs have a
strong impact on the performance of small business enterprises in Lagos State
as the majority of the respondents generally supported the research
proposition. The study emphasizes the importance of mapping the ventures
achievements, allocating resources, and developing managerial skill to improve
its performance and ability to survive in the long run.
TABLE OF CONTENT
1.1 Background to the study
1.2 Statement of the problem
1.3 Objectives of study
1.4 Research Question
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Limitation of Study
1.8 Definitions of Terms
2.2 Conceptual classification of Definition of Small business
2.3 Theory of Research on small Business Performance measure
2.3.1 Objectives Vs. objective performance
2.3.2 Short-terms Long-term performance Consideration
2.4 Small Business Enterprises and Management
2.4.1 Advertisement Management
2.5 Promoting for Global Competitiveness through Best Practices
2.6 Entrepreneurship and small Business Enterprises in Lagos State
2.7 Financing the Small Business Enterprises
2.8 Development programmes to Assisting the Development of Small
2.9 Limitation & Shortcoming of Small Business
3.2 Research Design
3.3 Study Population
3.4 Sample & Sampling Techniques
3.5 Sources of Data
3.6 Nature of Data
3.7 Statement of Hypothesis
3.8 Method of Data Analysis
ANALYSIS & INTERPRETATION
4.2 Respondent’ Socio-Demographic Characteristics
4.3 Respondent’s Response to The Research Questions
4.4 Test of Hypothesis
4.5 Decision of Result
CONCLUSION & RECOMMENDATION
5.1 Summary of Major Findings
5.4 Suggestion for Further Study
TO THE STUDY
project takes a broad look on the small business enterprises and their effect
employment generation in Lagos State
performance, evidence from Charles Isimeme and Son Nigeria Limited,
Sharon House, Plot 6, Bisi Oluwole Crescent, Agbado Lagos. Management practices
of small business enterprises is a type of business which does not require any
legal procedures and can be owned and managed by one man or by group of friends
as the case may be. In Nigeria, the Third National Development Plan (1975-1980)
Defines a small business enterprise as a manufacturing or service organization
which employs not more than 10 people.
addition, the individual research unit of the Obafemi Awolowo University (1987)
defines it as “One whose total assets or capital is less than 50,000 Naira and
employing fewer than 50 fulltime workers”. Glosetal (1976) referred to it.
of motivating employees that will enable the employees work towards achieving
to tackle problem before they arise i.e a good sales manager should have the
foresight to see problems that can arise in the future and should take
management skills which involves manager working under tight schedule and has
to keep up to the deadlines fixed by the clients, he has to have exceptional
time management skills.
sales manager has to be diplomatic and tactful so that he can easily mediate
the internal conflict that arises time to time in every company.
skills which involve a sales manager properly negotiating with the customers as
well as with the employees.
contributes immensely in promoting the total sales of the business. Earlier
advertisements used to appear in print media or electronic medical that is in
the newspaper or in TV, radio and cinema. But nowadays, advertisements are
being displayed on vehicle like buses, taxis and in public place like shopping
mail and streets.
of advertisements has further been widened by arising of TV commercial and by
advertising in company webs and other websites. Advertising creates public
awareness about the particular product, which results in increase in sales and
in turn increases profits. So, advertisement management plays a vital role in
the success of a small business.
PROMOTING SMALL BUSINESS FOR
GLOBAL COMPETITIVENESS THROUGH BEST PRACTICES
ultimate in competitiveness through best practices is the ability of the firm
to gain and sustain competitive advantages over its rival at least in some
areas of its operations so as to succeed in today’s highly competitive business
world. This advantage may derive from a lowest cost position, which a firm
enjoys in the industry while realizing better-than average returns on its
investments. On the other hand, a firm may gain a competitive advantage by
offering products or services with greater differentiation, which customers
perceive as unique and attractive and are, therefore, willing to pay premium
prices for them.
two broad – based options (low cost strategy and product differentiation
strategy) for achieving strategic advantage dominated the scene for decades
before the recent emergence of speed or quick response as an important form of
competitive edge. This is the ability of a firm to respond to customer needs faster
than competition. A firm must hold at least one of these options in order to
succeed and earn above average returns on its investments. A firm that earns
more than one of them is in a particularly strong competitive advantage when
customers perceive that its products or
services are better than those of its rivals. An enterprises can, however,
create this perception in numerous ways, including those mentioned briefly
above. Studies have shown that in the long run, an enterprise that is unable to
have one or more of these competitive advantages most probably cannot earn
above normal or average profit (Dess and Miller, 1993). This is so because
performance that results in only normal profits is not particularly noteworthy
or attractive since normal profits are just average. It is necessary for
enterprise, large or small, to strive to perform and earn above normal profits
through “pursuit of advantage that is now the central theme of strategic
management at the business level”. He further emphasized this point in his
article “competitive advantage: The cornerstone of strategic thinking”, where
process of strategic management is
coming to be defined, in fact, as the management of competitive advantage i.e
as a process of identifying, developing and taking advantage of enclaves in
which a tangible and perceivable business advantage can be achieved.
SMEs compete in the same markets with their large rivals offering the lowest
prices can be successful in some instances, but it can be a dangerous approach
to building a competitive advantage. By their nature, SMEs have special
advantages over their large rivals that enhance their creating competitive
advantages using factors other than low cost.
existing firms, whether small or large, typically do not welcome new
competitors and may adopt various tactics to discourage new entrants to the
market, the entrepreneur who wants to break into an existing market requires to
fortify himself with some strategy advantage or ‘entry wedge’ to do successfully.
Before selecting such a strategy, it is necessary for the entrepreneur to
recognize and understand the underlying forces of competitive pressure so that
he or she best position his or her enterprise to cope with the industry
environment, otherwise, he or she would find it very difficult to create a
competitive advantage. A renowned marketing and strategic management expert,
Michael Porter, in his work competitive advantage, presents five marketing
forces that collectively determine the nature and degree of competitive in the
Bargaining power of buyers
Threat of substitutes
Bargaining power of suppliers
Rivalry among existing competitors
Threat of new competitors
on the circumstances in a given industry, the power of buyers and the threat of
substitutes influence the prices that competing firms charge. The bargaining
ability of powerful suppliers’ impacts on the cost of raw materials and other
inputs just as the intensity of competition influences prices as well as cost
of doing business in areas such as product development, sales force,
advertising, plant and so forth. The threat of entry puts a limit on prices and
shapes the required investment in order toward off new entrants (Moore and
“A wholesales whose annual sales do not exceed 9.5 million dollars is a small
business”. A manufacturing company that does not have more that 250 employees
is ordinarily classified as a small scale enterprise and under some circumstances
it remains in that classification even though it employs up to 1000 workers.
practices of small scale enterprises are however very important in the Nigerian
economy and it would not be overstatement to say that are the foundations upon
which the large business are built.
of the importances are listed below:
They constitute the very basis of the
They initiate the development of local
They provide an effective means of
stimulating indigenous entrepreneurship.
They foster greater employment creation per
unit capital invested.
They help to mitigate rural-urban migration.
defined small scale enterprises, emphasis will now be placed on sourcing of
funds, promotional mix and marketing. The situation quite easy to state but the
task of accomplishing it requires the combination of many resources of the
organization which would be communicated in form of messages to the consumer
and Nigeria as a country. This will lead to increase in the business profit.
Small scale enterprises sources for funds from friends, relatives and personal
income but sometimes find it difficult to secure loans from banks they have no
Promotional Mix: Is
made up of advertising, personal selling, publicity and sales promotion. It is
obvious that a business cannot exist in isolation of the society in which it
operates. Therefore, promotional activities and source of fund should view with
all seriousness and its importance is immeasurable and unlimited in the
processing and marketing of goods and services.
OF THE PROBLEM
practices of small scale enterprises has a lot of positive impact on
performance and such impact includes processing, distribution and marketing of
products to the consumers in the desired quantity through middlemen or directly
to the consumers. However, this service could be hindered by the following
Shortage: Capital is in short because the business lacks the collateral
security to enable it secure loans for expansion and this impose a serious
constraints on the aspirants of the entrepreneurs and business ventures.
Ø To determine if advertising is effective in
the promotion of sales in small business enterprises.
ascertain whether sales will improve in future if there is further improvement
know the extent to which SBEs have contributed to improvement on the industrial
productivity in Nigeria.
the course of this study, the researcher recognized the hostile economic
climate of the country as a result of the government economic policy and its
effect on the business. The report will focus mainly on the following:
impact of unstable policies introduced by the government and its effect on
process and fund management. This impact of the unstable exchange rate on the economy
causing inflation and loss in money value.
distribution policy of the economy and its effect on the business. The effect
of some government agencies on management practices of small scale enterprises.
To offer advise on how management practices of small scale enterprises could
increase its profit and also how it can survive by procuring enough funds,
through marketing activities necessitate this study.
Do small and Medium scale enterprise create
more employment opportunities for the citizenry?
Do small and medium scale enterprises
generate more income for the government?
Small and medium scale enterprises do not create more employment opportunities
for the citizenry.
and medium scale enterprises creates more employment opportunities for the
and medium scale enterprises do not generate more income for the government.
Small and Medium Scale Enterprises generate more income for the government.
OF THE STUDY
organization regularly spend huge sum of money and other resources on
processing and promotional strategies. The study of the effective processing
and promotion strategies for product is to identify the areas that can be
improved upon and maximize the returns on promotional activities. This study is
aimed at encouraging management practices of small scale enterprises to look
into future rather than limiting its ideas on the present happening in the
is viewed that most management practices of small scale enterprises in the next
few years find it difficult to replace their machinery and equipment because of
high replacement cost even though they have been making profit in the past, it
could lead to the fold up of many business and as such the consumer will suffer
because small scaling distribution of resources and products is even.
study covers areas of Ogun State and will be restricted to Charles Isimeme and
Sons Nigeria Limited, Sharon House, Plot 6, Bisi Oluwole Crescent Richard
Olagoke Street, Alli-Ishiba Igbala, Sango- Otta, Ogun State.
management practices of small scale enterprises is a business that can be set
up with some amount of capital which is relatively scarce and difficult to
raise. Also, there is limited time available for this study coupled with
academic work. It cannot be studied in a single study, however the availability
of raw materials and human resources and types of funds are relevant to this
type of business.
scale enterprises serve as a good starting point for young entrepreneurs. They
have some special characteristics that distinguish them from large ones. People
go into such business to make money or as a result of inheritance, others find
themselves in small businesses due to job dissatisfaction or desire for
independence. For the purpose of this research work, there will be need to
defines the following terms as they will be used interchangeably.
There is the sum total of the organized efforts by which people engaged in
commerce and industry provides the goods and services needed to maintain and
improve the standard of living and quality of life to which each of us may
This is the individual or group who engages in business under capitalistic
system to earn to a profit anticipating and satisfying the needs and wants of
This consists of those efforts which affect transfer in ownership of goods and
care for their physical distribution.
This refers to the combination of decision elements in a company’s programmes.
This refers to the functions and activities undertaken to secure the ‘scale’ or
distribution of the quality and design of the products manufactured by a firm
Promotion: This includes “those marketing activities and publicity,
that stimulate consumer purchasing and dealer effectiveness, such as displays,
shows and expositions, demonstration, and various non recurrent selling effort
not in the ordinary routine”.
Selling: This is defined as the sellers promotional presentation
conducted on a person-to-person basis with the buyer i.e. a direct face-to-face
form of promotion.
This is a non-personal sales presentation usually directed to a large number of
potential customers with identified sponsor. It involves the mass media such as
newspaper, television, radio, magazine etc.
This is defined as a bundle of physical, service and symbolic characteristics
designed to produce consumer want satisfaction.
This refers to the volume, value or quantity of goods and services produced in
a given period by a worker, plant, firm or economy. It is the sum total of the
results achieved by the various factors used together.
This is concerned merely with the total value or volume of output or
This is the creation of new ideas to keep an organization healthy or the
introduction of something new like product, policy or procedure.
This is defined as an exchange value of a good or service. The value of an
item, then, is what it can be exchange for the market place.
This is a specific plan diverse to meet a particular situation. It is a
combination of policies, procedures, rules, budget, task, assignment etc. for
the specific purpose of carrying out a particular course of actions.
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