Chapter Three wntreprenur ship business 5.pptx

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1. CHAPTER THREE Small Businesses Khalid Ismail Ali (PhD candidate)

2. Small Businesses

3. Chapter Content Meaning of Small Businesses Nature and Characteristics of Small Businesses Importance of small businesses to National Economy Factors Contributing for the Success of Small Business

4. Meaning of Small Businesses The definition of small business differs from country to country . There may even be different definitions used by different agencies in one country.

5. Cont.. In addition, the definition can vary according to the frame of reference by different business people such as: Financers : in terms of level of fixed assets or value added by the business Traders : use ceiling limits of sale of volume Service personal: use the total number of customers. Manufactures : use maximum level of energy required for production. Labour officers : use the total number of persons employed.

6. Nature and Characteristics of Small Businesses 1. Financing of the business is supplied by one individual or small group. Only in a rare case would the business have more than 15 or 20 owners . 2. Personal character : in most small business the owners themselves are managers and can operate independently which is helpful to give customized service to their clients

7. Cont.. 3.Local area of operation : except for its marketing function, the firm’s operations are geographically localized. Typically its operation is limited to one city or community. 4. Compared to the biggest firms in the industry, the business is small. 5. The number of employees in the business is usually fewer than 100 .

8. Importance of small businesses to National Economy Economic Contribution Social Contribution Technological and political Contribution

9. Establishing Small Businesses Selection of business Detailed Investigation Selection of form of business organization Study of legal requirements Selection of place and staff Management structure

10. Factors Contributing for the Success of Small Business Determination of objectives Planning Sound Organization Adequate capital Efficient management Research Business good will Satisfied customer

11. Reasons for Failure of Small Business Lack of finance Poor availability of infrastructure Obsolete technology Marketing problems Poor managerial and organizational skills

12. What Do you understand this picture

13. Avoiding pitfalls of small businesses 1. Know your business in depth 2. Have a good relation with stake holders 3. Prepare business plan 4. Managing financial resources 5. Understanding financial statement 6. Learn to manage people effectively (HRM) 8. Take up short professional courses in management (entrepreneurship)

14. Important Topics to Cover during Starting Small business small businesses cover a wide range of topics crucial for success. Here are some of the most important ones: Business Planning Marketing and Branding Financial Management Legal and Compliance Customer Service and Relationship Management

15. Business Planning Business Planning : This seminar focuses on creating a solid business plan, including market analysis, financial projections, and operational strategies.

16. Marketing and Branding Marketing and Branding : Understanding how to effectively market your business and build a strong brand presence is crucial. Topics may include social media marketing, content marketing, and branding strategies.

17. Financial Management Financial Management : Small business owners need to understand basic financial principles like budgeting, cash flow management, and financial forecasting. Advanced topics might include accessing capital and managing investments.

18. Legal and Compliance Legal and Compliance : Seminars covering legal and compliance issues help small business owners understand their rights and obligations, including business structures, contracts, intellectual property, and regulatory requirements.

19. Customer Service and Relationship Management Customer Service and Relationship Management : Happy customers are the lifeblood of any business. Seminars in this area cover topics like customer satisfaction, complaint handling, and building long-term customer relationships

20. Technology and Innovation Technology and Innovation : Keeping up with technology trends can give small businesses a competitive edge. Seminars may cover topics like e-commerce, digital transformation, and leveraging technology for efficiency and growth

21. Human Resources and Leadership Human Resources and Leadership : For businesses with employees, seminars on HR and leadership are crucial. Topics may include hiring and onboarding, employee relations, performance management, and leadership development.

22. Networking and Collaboration Networking and Collaboration : Building a strong network can open doors to opportunities and collaborations. Seminars on networking provide tips and strategies for effective networking both online and offline.

23. Sales Strategies Sales Strategies : Sales seminars help small business owners develop effective sales strategies, including prospecting, lead generation, negotiation, and closing techniques

24. END THANKS