Small business

Small business is an integral part of the total business scene in any country. Though small in
size such business activities cover almost any area of business via manufacturing, mining,
wholesaling, retailing service and the like. It is now well recognized that small businesses are
the largest employers with lower investment per job. That apart, the growth & development of
medium & large industries is mostly dependent on the small business. Small business occupies
a vital place in the national country.

Small businesses are privately owned corporations, partnerships, or sole proprietorships that
have fewer employees and/or less annual revenue than a regular-sized business or corporation. It
is a privately-owned and operated business with relatively small turnover and staff numbers,
typically seen as constituting part of a specific commercial or economic sector.
According to Small Business act 1934, A business which is independently owned and operated
and not dominant in its field is a Small Business.
According to Executive Committee for National Economic Development, A Small Business
one of which processes at least two of the following characteristics:

Managers are the owners,

Capital supplier and the owner is individual or a small group,

Worker and the owners are local; market may not be so.

Relatively smaller compared with the biggest unit of the industry.

Small business is an independently owned and operated business, whose owner(s) exercises
close control over operations and decisions. The equity is not publicly traded and business
financing is personally guaranteed by the owner(s). Typically, a small business employs fewer
than 100 workers and has revenues of less than $25 million.

Types of small business

There are six different types of businesses into which most small businesses fall. A given
business may be active in more than one type simultaneously, although one type will usually
predominate. The six types are

Retail sales

Services

Finance

Agriculture

Wholesale

Manufacturing

Forms of the small business

There are three basic forms of business organization methods:
i.
ii.
iii.

The sole proprietorship

The partnership and
The corporation.

With only a few limited exceptions, any type of business venture can use any form of
organization. The factors that will affect the business form chosen are:

Easy of formation.

Exposure to financial risk.

Tax treatment of income.

Flexibility- possible to accommodate change.

Simple in arranging capital depending the size & nature of business.

o Nature of liability- Limited\ unlimited.
o Legal formalities required- simplest- sole-trader ship.

o Maintain business schedule.

o Profit earning projected for self.
o Tax consideration.

Which form of SB suited for Bangladesh?

In Bangladesh we can observe a vast number of small scale enterprises. We can see it from
the nearer road to the highway. But what are the real conditions of them. Most of them are
building up in personal initiatives. Government has no specific policy to help those peoples
and for these short of sector.
There are lots of problem in the small scale enterprises but there is no one who can help this
sector. All the possible efforts are taking by the individuals. In Bangladesh the small scale
enterprises has great performance in our total economy. Some supply of our total
government revenues comes from this sector. A specific amount of our food, clothing,
housing and this short of basic needs are filled up by the directly and indirectly by the small
scale enterprises.
So as an entrepreneur Ill chose Grocery Business which is a sole proprietorship business.
The reason of choosing grocery is we can easily fulfill the needs of our local customers day
to day life. The maintenance cost of a grocery is more suitable than the other business as the
number of employee is very low. Besides these reason the following advantages is also the
reason for choosing grocery business. These are
1.
2.
3.
4.
5.

Easy and inexpensive to register

Regulatory burden is generally light.
You have direct control of decision making
Minimal working capital required for start-up
Some tax advantages if your business is not doing well (for example, deducting your

losses from your personal income, and a lower tax bracket when profits are low)
6. All profits go to you directly

So these are the only reason for choosing grocery for the context of Bangladesh. Besides this
there are also some other popular small business in Bangladesh. These are

Wholesale
Hospitals
Fisheries
Food processing
Consulting business
Rent-a-Car
Different showrooms of different brand product.
Franchised business
Ad firms
Picture studios
Computer firms