The Impact of Small Business Marketing On Economic Development for 2023 and 2024
Abstract
Small Scale Industries all over the world have been the engine room for viable economic growth and development. In light of the above, this paper identifies the role of small-scale industries (SSI) in the growth of the nation’s economy. Various related kinds of literature were reviewed from which it was noticed that Small scale Industries are central to the growth of the nation’s economy. This is evident in the policies created by the government to accelerate the development of small-scale industries through the establishment of agencies like DFRRI, NDE, NAPEP, etc.
The researchers thus concluded that SSIs are a sine qua non for economic growth. From the conclusion made above, the researchers wish to recommend that government should create the enabling environment for the growth of small-scale industries such as macroeconomic stability, reduction in fiscal imbalances, stability in the exchange rate, increasing small-scale industries’ access to credit facilities, etc
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
INTRODUCTION
The dynamic role of Small business marketing in developing countries as engines through which the growth and development objectives of developing countries can be achieved has long been recognized. The term ‘small-scale industries’ can be seen as a business organization whereby production is in the hand of the producer or individual who attempts to anticipate consumers’ want. According to Aderinto (2002), Small scale industries control the economy of a nation. The industrial revolution changed the status quo and introduced mass production. The various roles that small-scale industries have played in the economic growth of a country have triggered the unexpected re-appraisal of the role of small-scale industries in the global economy.
Small-scale industries form the bedrock of economic growth in every nation; they have always been at the forefront of developmental strategies. This is because of the great role industries play in terms of production, employment generation, and overall improvement in the quality of life. Industrial development involves the development of a technical arrangement that moves an economy from a traditional method of production to a more complex system of mass manufacture of a variety of goods and services involving technology and management techniques (Kasimu, 2008).
Small Scale Industries have been acknowledged to have huge potential for Sustainable Development. Yet in Nigeria, the Small scale industries sub-sector has stagnated and remains relatively small in terms of its contribution to the Gross Domestic Product (GDP). Industrialization propels growth and quickens the achievement of structural transformation and diversification of economies. It enables a country to utilize fully its factor endowments and depend less on the external sector for its growth and sustenance.
Conceptual Clarification
Generally speaking, the definition of small-scale business varies from country to country, from industry to industry, and from one financial institution to another. If the project cost is used as the criteria for measuring the size of a business, price inflation may render the definition meaningless over time. If the number of employees engaged in a business forms the yardstick for measurement, it may not be realistic bearing in mind that some firms are capital-intensive needing only very few employees.
Other firms are labour intensive employing a large number of people but utilizing only small capital funds (Osadi, 2007). The Federal Ministry of Industries (2001) defined a small-scale enterprise as an enterprise whose total cost including working capital but excluding the cost of land, does not fall below One Million Naira and does not exceed Forty Million Naira, and has a number of employees between 11 to 35 workers.
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
- Promoting Growth: In like manner, small-scale industries by their nature are such that they are involved in primary and secondary economic activities that depend heavily on locally sourced materials. As such, they achieve high value-added operations which is a key role in the growth and development of any economy.
- Technological Acquisition: Small-scale enterprises provide vast opportunities for the development of indigenous skills and technology acquisition through education. The “Ibo-made product’ a concept widely adopted by the part of Nigeria is glaring evidence of such technological acquisition and this has given impetus to rapid economic development (Odubanjo, 2000).
- Poverty Alleviation: Small-scale enterprises play a significant role in combating poverty and economic inequality among the citizenry. This scenario is not unconnected to the affordable and relatively low capital requirement to float such businesses. It also engages skilled, semi-skilled, and unskilled workforce thereby creating an avenue of improved livelihood. This is an important role in any economic development process of any nation.
- Personal Attention to Customers
There are lines of business, where personal attention to customers is a must for securing business. In such lines, big businesses are a flop because they cannot pay personal attention to customers. Small businesses are most suitable in such cases. Examples of lines, where personal attention to customers is needed are usually these: hair-cutting saloons, beauty parlors, interior decorators, tailoring shops, etc.
Supplying Needs of Big Corporations: Small businesses support big corporations in many ways such as:
(a) They manufacture tools, accessories, spare parts, components, etc. required by the big business.
(b) Small businesses distribute goods produced by their bigger counterparts.
(c) Big businesses outsource many services from small businesses.
- Service-Sector
There are many services that are not provided on a large scale. For providing such services, small-scale business is the only option e.g. repairs of electronic goods, repair of TV and fridge, dry cleaning, etc.
- Source of Foreign Exchange Earnings
Items produced by the small business sector find a market abroad. Small businesses thus contribute to foreign exchange earnings. The small sector generally accounts for 35% of the country’s total exports.
- Individual Temperament
There are many persons in society, who cannot tolerate orders from others. They are men of imagination and independent nature. For such persons, small businesses are the best; they provide them with immediate self-employment.
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
Conclusion
In conclusion, small business marketing is an essential agent of economic growth and national development. Their activities affect the life of the rural and urban dwellers through the employment opportunities they provide to the generality of the people of Nigeria. More importantly, they are able to engage a large number of applicants because they employ both unskilled and semi-skilled individuals.
Because people engaged in working earn money, they can acquire goods and services to better their lives and thus there is a general rise in the standard of living. There is a common saying that “The idle mind is the Devil’s Workshop”. The presence of small-scale enterprises and the provision of jobs to unemployed people keep the idle mind busy thinking and doing the job assigned to the individual.
References
Onuoha, B.C. (1994). Entrepreneurial Development in Nigeria.
Osadi, B.E. (2007). Small Business Management, Warri: Onas Publishing Ltd.
Oshagbemi, T.A. (1983). Small Business Management in Nigeria. London: Longman.
Aderson, R.G. (1990): Principles and Practice of Data Processing (volume 1) Ibadan: Pitman Publishers. Adidu, F.A. (2006). Basic Small Business Entrepreneurship. Agbor: Royal Pace Publishers.
Ajagu, A. (2005). The Entrepreneur, Lagos. Batcy Media. Akinboye, J.O. (1983). Simple Research Methods for Dissertation. Projects and Term Papers. Ibadan: University of Ibadan
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
The Impact of Small Business Marketing On Economic Development for 2023 and 2024
