Small Business Enterprise Essay Example | Topics and Well Written Essays - 2500 words

Small Business Enterprise - Essay Example The next part describes the strategies of the business, like the pull and push factors used. Then the project tries to explore the future prospects of the business. It identifies the areas in which the small business could venture and provides reasons for its success in those areas. It tries to identify the market that should be the main target of the business. Lastly, the project makes an analysis of the managerial strategy that should be employed for the success of the business Small Businesses Small businesses are essentially required in an economy as they support and enhance industrialisation of the nation. They help to acquire competitive gains and catalyse the process of development. These organisations primarily focus on research and development which results in the production of new and innovative products and the use of new and superior technologies (Berte, Rodrigues & Almeida, 2010, p.1). The workforce remains low as compared to the large enterprises. These businesses gener ally employ less than 500 employees (Headd, 2000, p.1). However, these firms are characterised by shortage of resources. Resource shortage influences their strategy formulation, especially the marketing and positioning strategies. Small businesses are often the young firms and are likely to be located in the rural areas. They are predominantly present in industries â€Å"with lower economies of scale† (Headd, 2000, p.1). The educational requirement for such firms remains different from the large ones. A large percentage of the employees have degrees below the level of graduation. Very few of them are said to have reached beyond the graduation level. These businesses are generally risk averters and their possibilities if failures due to taking risks also remain high. They also tend to be short sighted and aim to gain in the short term (Trevisan, 2009, p.3). History and Background of the Business The wood processing enterprise was set up in the Ondo state which is a place where a number of small enterprises have been established. The wood based small enterprises accounts for 44% of the total labour force in this rural region. The common characteristics of these enterprises are that they are extremely small and heavily reliant on the entrepreneurs and family labour. The operations are also carried out using simple and common technology. Logging, furniture and carpentry were among the predominant and commonest professions in the place. This provided the basis on which the wood processing enterprise was set up (Adedokun, Oyun & Adetogun, 2005, p.2). The place is also characterised by the presence of a large market where the large scale forest industries are unable to reach. This increases the requirement of the small businesses and consequently creates a large market for them. For a long time the small industries in the region were neglected. The world was undergoing industrialisation aggressively and the major focus was on the large enterprises. However, no w the situation has changed. The attention has now shifted towards the wood based enterprises in the rural regions. This is the reason why this particular enterprise was chosen to be established in the area. Brief Information about the Business Because of the increase in