Growing small scale business is very imperative in an ideal society. It is a programme that any nation must not put behind the back burner, or to be exhausted on the conference table. This is so, because the relationship between small scale enterprises and economy is interwoven, and a strong competitive market economy exists, when both the producers/manufacturers and the users/consumers/customers of the products and services can make independent buying and selling decisions.
This competition helps preserve a market driven capitalist society and promotes vitality with the small business community, by preventing monopolistic control or the economy by dominant companies.
Thus, in any society, incentives are produced by responsible government at every level to render financial support to small businesses . These include lower interest and tax rates. In some cases, special forms of organization for small business insistence that large government contracts provide for small business, some contracts to help business for exportation . In fact, government agencies are required to make purchase from smaller firms when possible.
A special aid to small business, that is why the American government created the Small Business Administration (SBA) in 1953 to provide financial, managerial and procurement assistance and to be an overall advocate for small scale business. The same is being emulated by other developed countries of the world.
Albeit, Nigerian government also emulates USA in this regard that is why, there is a financial institution called Bank of Industry (BOI) and other relevant financial institutions.
It is apparent that encouraging small business has a lot of benefits to any nation’s economy. There is more small size than ever, and competition is in reality in the market place. This competition comes to play when there is financial support from the government to small scale businesses. Consumers definitely have option, and thus a higher standard of living, because of competition for their resources.
DOES SMALL BUINESS ENTERPRISES HAVE MORE SIGNIFICANCE ON ECONOMY?
The simple answer to this sensitive question is absolutely yes! The reason is not far fetch, because as it was mentioned earlier small businesses add value to any nation’s economy. So their significant role cannot be ruled out in a society.
The continuing growth in the economy depend to large extents on the start ups and the development of a small business. Even in the reversionary economy, small scale enterprises are legitimate, viable and competent in any strategy for reconstructing the economy.
It is also emphasized that small scale enterprises make the possibility of the equitable distribution of national income more realistic by providing employments on a large scale enterprises, which help in mobilizing capital and human resources.
Innovation no doubt is another important way of growing small business enterprise. One of the essential attributes of entrepreneur, is the ability to perceive profitable business opportunity, and a willingness to act on what is perceived. In most cases new services often are introduced by small business owners who perceived the need for such services.
Small business enterprises are platforms, which also serve as training schools for the indigenous entrepreneurs, and provide ground for the acquisition of skill, for large number of workers.
Coherent national policy on the importance of growing small business in any nation’s economy is very vital, most especially when the economy is bad shape. Giving enough financial support by the federal government to small business owners is a way of diversifying economy.