Abstract
The small-scale business, considered as an important segment of economy across the globe, consists of a heterogeneous group of enterprises, differing in size, organization, inputs, product-line, ownership, technology, etc. Consequently the concept of small-scale industries in different countries and at different times in the same country has been understood, described and interpreted differently. But irrespective of the level of development, due to inherent advantages, all countries have introduced special developmental and protective measures for safeguarding the interests of small business enterprises. As a result of numerous measures, in the form of incentives, subsidies, legislative protection, concessional finance, assistance in procuring inputs, manufacturing/processing, storing, transporting and marketing the output, there is a substantial growth in the number of small units, amount of investment, level of employment and volume of output in small business sector. However, the composition, growth pattern in terms of generation of employment opportunities, distribution of national income, mobilization of capital, development of entrepreneurial skills, utilization of local resources and regional dispersion of industries are still debatable points. Though there is mushroom growth in the literature on small business enterprises but without any unanimously acceptable standard definition. In some countries small business enterprises are defined on the basis of investment, or employment, or turnover while some countries consider more than one or all parameters.
This textbook is an additional number in the literature on small business enterprises. This is a reader-friendly book providing information for managing and keeping the small business beautiful using a number of tables, figures and boxes. It attempts to provide a step-by-step approach for developing competitiveness, understanding domestic and international socio-cultural norms and attaining firm market integration. What qualities and characteristics an entrepreneur must possess, how the need for funds be assessed and fulfilled, and how to operate different activities and manage resources smoothly and automatically have been described in different chapters of the book. It presents a brief overview of international comparison of small and medium industry development along with the role of government.
Organization of the Book
Containing 11 chapters and 15 case studies, spread over three parts, the book covers a gamut of activities starting from planning to developing and sustaining small business enterprises in cross-cultural environment. Part I, the cross-cultural environment, contains five chapters describing briefly the global economic development process, entrepreneurship and role of government. These chapters are characterized by a macro perspective related with development process of small business enterprises under different cultural environments. Part II, consisting of six chapters, presents management techniques. A good point of the book is that each chapter has a list of references given at the end.
The author says rightly that the small business, a universal phenomenon, primarily starts and operates in a family atmosphere of unity, harmony, love and affection. But, subsequently, this very attribute obstructs professionalism. The self-discipline, self-control and high degree of loyalty towards each other, without formal rules, regulations and supervision breed inefficiency. That ultimately makes the SSEs non-competitive and increases death rate. It hardly provides creativity, determination, initiative, self-confidence and trust to ensure success. May be due to this reason, in terms of size and growth, small enterprises grow slowly in comparison to the medium and large enterprises.
Forms of ownership, that is, proprietorship, partnership, private limited, public limited and cooperative, depends upon the objectives, size, resources and the desired control of the business unit. However, he points out that for continuity and growth a cooperative society or a joint stock company is more desirable. Similarly choosing various options, like franchise, acquiring a going business or setting up a new business depend on socio-economic environment and educational background of the promoter.
It is as good as any other textbook on this subject. It may be because it is not a research-based book. It does not present any analytical work based on primary or secondary information. The whole book is dominated by the information collected from here and there. However, almost every chapter has a summary and conclusion reflecting briefly author’s views but with very little critical examination of the information contained in the chapters.
The only unique strength of this book could be the 15 case studies. The other plus point is its simple and well-edited language. Reading this book may be useful to the teachers and students concerned with the development of small business enterprises in different cross-cultural environments.