Introduction to Business

Entrepreneurship, Franchising, and Small Business

Chapter # 3 Part-2
Md. Golam Mostofa

SMALL BUSINESS
One kind of business that is independently owned and operated and is not dominant in its field of operation.

Like Retailers, Wholesalers and sometimes Manufacturers.

Advantages of Small Business

Personal Gratification
For many people, one important benefit is personal gratification gained from operating ones own business.

Degree of Independence
Business owners can exercise all their talents and can do so with some degree of independence. Some also obtain power by operating their own business.

Financial Gain
Another benefit of starting a small business is financial gain. The financial return from a successful small business.

Disadvantages of Small Business

Potentiality of Initial Loss
The initial investment may be lost.

Fashion Changes
Government Regulations Competition Labor Problems

Some risks are out of entrepreneurs control--it may threaten the business activities

Irregular Income
Some businesses also tend to produce irregular income.

Less time for recreation and family

Being in business for yourself also means long hours, generally leaving less time for recreation and the family. These important parts of life sometimes must be sacrificed to operate a business successfully.

SMALL BUSINESS OPPORTUNITIES

Many people imagine themselves running their own business, making the key decisions and earning a profit. Becoming a small business owner can provide these opportunities.

Three typical ways to become a small business owner includes:

Take over family business Buying an existing business Starting a new business

SMALL BUSINESS OPPORTUNITIES

Take over family business
Children have often taken over the family business. In most cases, the employees in small bakeries, barbershops, grocery stores, butcher shops were the owners children. They learned the business by working with their parents. Sometimes the children learned well and wanted to continue the business.

Buying an existing business

Some people buy out an established business. The buyer and seller agree on terms involving inventory, equipment and price. The details of this purchase agreement should be spelled out in a legal contract between the buyer and seller.

SMALL BUSINESS OPPORTUNITIES

Starting a new business
Starting a new business requires hard work and careful planning. Without solid planning, a new owner is likely to be filled by lots of problems. Because a new business has no previous customers or business records, as an established business does, getting all the information needed to do a good job will involve hard work.

SERVICE
Intangible products that can not be physically possessed and that involve performance or effort. Types of Service Business:
Business services: Businesses that provide service to other business organizations. E.g. Advertising Agencies, Tax Consultants, Accounting Firms, etc. Personal services: Laundries, barber, beauty shops, etc. Repair services: Automobile repair, Jewellery repair etc. Entertainment and recreation services: Movie Theatres , Amusement parks. Hotels and Motels

Manufacturing
Small Manufacturing businesses number in the thousands. This Category includes printing shops, clothing manufactures, furniture shops, bakeries, etc. The manufacturing business involves converting raw materials into products needed by the society. Therefore the owner must understand production and marketing and how these business functions complement each other.

Wholesaling
Wholesaling involves selling to other sellers, such as retailers, other wholesalers or industrial firms. Wholesale trade consists mainly of small businesses. Small wholesale firms also sell a wide range of products, including groceries, supplies, machinery, fruits and vegetables. These businesses serve as a link between manufacturers and retailers or industrial users.

Example: Grocery Stores in Kawran Bazar

Retailers
Retailers are merchants who sell goods to ultimate consumers. Example: USA Wal-Mart, Sears, Bangladesh- Agora, Nanadan, PQS, etc. Small, local retail businesses sell many of the same products as these large retail corporations. Medicine Stores, Restaurants, Shoe Stores, etc. appear in different parts of Dhaka City.

Home-Based Businesses

Businesses in which an individual works or conducts activities from home.

Example: Pickles (Home Made Aachars), Handicrafts, etc

END OF PART 2