CHAPTER-2(Characteristics of small business)

Characteristics of small business
1) A small business is usually owned and managed by one or a few persons.
 2) The owners take active participation in day-to-day activities of business.
 3) The participation of owners in the management helps in taking quick decision.
 4) The area of operation of a small business is limited. It generally caters to the need of the
local people.
5) The small business units are generally labour intensive and thus require less capital investment.

6) It generally uses local resources for its operation.

7) The small-scale manufacturing units are

usually located near the source of raw material, labour etc.

8) Gestation period (the period that a business waits to get return on its investment) is short.

Types of small business
 In India we find different types of small business. They may be categorised on the basis of investment in fixed capital in plant and machinery or on the basis of nature or place of operation. Following are some of the main types of small business.
(a) Small-scale industries
 (b) Tiny industries
 (c) Ancillary industrial undertakings
(d) Village industries
 (e) Cottage industries

              (f) Micro Business enterprises
               (g) Small- scale Service and Business (industry related)

         (h) Trading units 

Let us have a brief idea of these small businesses.
 (a) Small-scale Industries: A small-scale industrial unit is one in which fixed capital investment in plant and machinery does not exceed Rs. One crore. In case of certain export promotion units this investment ceiling can be raised upto Rs. 5 crores.
 (b) Tiny Industries: A business unit whose total fixed capital investment in plant and
machinery does not exceed Rs. 25 lakhs is called a tiny industry.

       (c) Ancillary Industrial Undertakings: When a small-scale industry supplies not less than 50% of its production to another industry, it is called as ancillary industrial undertaking. The fixed capital investment limit of Rs. One crore also applies to it. If an ancillary unit is owned by some other business unit, it losses it status of small business.
 (d) Village Industries: A unit that is located in rural area and whose fixed capital investment in plant and machinery does not exceed Rs. 50, 000 per artisan or worker is termed as village industry. 

Avenues of self-employment

Avenues of self-employment
1. Trading 

You know that trade involves buying and selling of goods and services. With small amount of investment one can start and run a small trading unit. You can think of starting a small grocery or stationery shop in your locality
2. Manufacturing 

One can start a small industry of manufacturing bricks, or producing bakery items or confectionery. All these businesses require small amount of capital and simple equipment. Farming is another such area in which a person can work all alone or take the help of one or two persons. This is an age-old area of self-employment. Orchards, dairy, poultry, sericulture, fisheries, horticulture, etc. are good examples of avenues of self-employment.
3. Professionals

 Occupations that require special knowledge and training in a particular field also provide opportunities of self-employment. Lawyers, doctors, chartered accountants, architects and journalists fall in this category. However one has to follow certain code of conduct framed by their association and need specialised knowledge and training

4.Individualised services

 Tailoring, motor repairing, hair cutting, fashion designing, interior decoration etc. are some of the business activities, which provide individualised services to the consumers.
These can be easily started and run by individuals. These activities are based on the personal skills of those who perform them. Blacksmiths, carpenters, goldsmiths are all self-employed persons.

livelihood-1

Define SELF EMPLOYMENT?

Self-employment may be defined as, an economic activity which one may perform on his own as a gainful occupation, and this may consist of producing and selling goods, buying and selling goods, or rendering services for a price


DEFINE Small business?
  A few characteristics of small business include being:
• small in size,
• requires low capital investment,
• employs small number of workers 
 Effective business leaders usually exhibit a combination of some of the following qualities:
1 Integrity,
2. Self-Confidence,
3.Commitment,
4. Enthusiasm,
5. Business understanding and
6. Decisiveness.
 An important aspect of leadership is the ability to effectively delegate tasks
Meaning of self-employment
You know that earning is necessary for a living.  persons are engaged in an economic activity which is termed as wage employment or paid employment.
There are many persons who engage themselves in an occupation or some business which they start and manage on their own. They put in their best effort and take all types of risks to pursue their careers successfully All of us have seen small grocery shops, tailoring shops, medical stores etc. in our locality. These are owned and managed by a person, with or without the help of some assistants. Their economic activities are termed as self-employment
Characteristics of self-employment

1.Self-employment involves doing something on one’s own to earn one’s livelihood.

2.It involves ownership and management of activities by a person although he/she may take the help of one or two persons to assist him/her. Thus, self-employment may provide employment to other persons as well

3.The earning from self-employment is not fixed.

4. The earning from self-employment is not fixed. It depends on the income one can earn by
producing or buying and selling goods or providing services to others at a price

Importance of self-employment

1. Advantage of small business:
 Small-scale business has several advantages over large- scale business. It can be easily started, and requires small amount of capital investment. The self-employment involving activities on a small-scale is a good alternative to large scale business which has brought various evils like environmental pollution, development of slums, exploitation of workers, and so on
 2. Preference over wage employment
: In self-employment there is no limit of earnings as is the case with wage employment. In self-employment one can use one’s talent for own benefit. 

3. Developing the spirit of entrepreneurship: Entrepreneurship involves taking risks because the entrepreneur tries to innovate new products, new methods of production and marketing. Self-employment, on the other hand, involves either no risk or very little risk.
 4. Promotion of individualised services: Self-employment may also take the form of providing individualised services like tailoring, repair work, dispensing of medicines etc. Such services are helpful in providing better consumer satisfaction.
 5. Scope for creativity: It provides opportunity for development of creativity and skills in art and crafts, leading to preservation of the cultural heritage of India. For example, we can see creative ideas reflected in handicrafts, handloom products, etc

Note-taking and Note-making

Note-taking and Note-making

We distinguish between note-taking and note-making. Note-taking is a passive process which is done at lectures whereas note-making is more active and focused activity where you assimilate all information and make sense of it for yourself.

Note-taking

Taking notes is an important process. It allows you to have a written record of the lecture which may not be in your textbook. It also ensures that you become an active and involved listener and learner

A more important reason for taking notes is that there is a direct relationship between what happens in lectures and what comes up in the exam. If the lecturer does not personally set the exam, it is likely that he/she will still submit a number of questions.

When thinking about note-taking it is important to consider the lecturing style adopted by different lecturers. Some will prefer dictating, others will provide printed notes. If you are a Wits student you will also have the lecture slides posted on SAKAI.

The following areas are covered below:

• Setting the stage
• Listening actively
• Formatting and structuring notes
• General note-taking tips
• If the lecturer talks too fast
• Note-taking abbreviations
• The note-making process

Setting the stage

• Complete outside assignments: Lecturers assume that students have completed assignments or done the recommended reading and will construct their lecture accordingly. The more familiar you are with the topic, the better your note-taking will be and the more active the process will be. It is also a good idea to reiew your assignments/readings just before the lecture.
• Bring the right materials:
• Always have an adequate supply of A4 note paper /exam pads, pens, pencils and highlighters.
• Use paper that can be filed easily. It is probably a good idea to only use one side of a sheet of paper - this allows you to review your notes by spreading them side to side - usually the benefit outweighs the cost of the paper.
• Keep a spare pen don t use pencil to write as this tends to fade with time.
• Use colour for emphasis; to highlight and to separate different sections or ideas.
• Sit front and centre - sit in a position where you can hear and see clearly without straining.

Listening actively

This involves actively concentrating and paying attention to what is being said and how it is being said. Listen beyond words to the lecturers body language.

1. Listening for repetition: When a lecturer repeats a phrase or idea, this is a signal that it is important and you should take note of it.
2. Watch the board or overhead projector: If the lecturer takes time to write something down, consider that as another sign that the material is important.
3. Listen for introductory, concluding and transition words and phrases. For example:

1. "The following three factors"
2. "In conclusion"
3. "The most important consideration"
4. "In addition to"
3. Highlight obvious clues: Often your lecturer will blatantly point out what information is likely to appear in the exam - make a note of this - don't rely on memory.
4. Notice the lecturer's interest level: When the lecturer seems excited about something, make a note as it is more likely to appear in the exam.
5. Use pictures and diagrams - This makes the notes more visual and assists in recall. What you need to do is try to find a note-taking format and system that works for you.

HOME TRUTHS ABOUT LECTURERS:

• Establish lecturer's interests:  Try to establish what topics of research or advanced study your lecturers are part of, especially if these also relate to your syllabus. Also be aware of any articles or books written by your lecturers and their areas of specialisation.
• ATTEND ALL LECTURES:  Try to attend all lectures - apart from the obvious academic advantage, it also creates an impression of you as a dilligent student which may be to your advantage at some point in the course.
• THE LAST LECTURE:  Make a special effort not to miss the last lecture of every course - information about the format of the exam is usually covered and the lecturer may also provide information about sections of the syllabus that need special attention or sections that can be excluded. 

FORMATTING AND STRUCTURING NOTES:

Some methods will work better for some individuals than others.  See what works best for you.

1.  General note-taking tips

1. Give yourself plenty of space.
2. Label, number and date all your notes.
3. Develop your own system of shorthand and abbreviations
4. Use colour, pictures or diagrams to make notes more visual.
5. Keep your own thoughts separate - this ensures that you don t mistake your own idea for that of the lecturer's.
6. Use a lost signal - when you find yourself lost in a lecture, make a note of it using a specific symbol and leave space to fill in this later.
7. Write legibly: Many people feel that they have no control over their handwriting and resign themselves to writing illegibly for the rest of their lives. However, if you put your mind to it and make it a point to write more legibly, your handwriting will improve. This has implications not only for note-taking but for writing exams as well.

2. Mind-Maps

This can be used in conjunction with the Cornell system of note-taking or you might want to use mind maps exclusively.

Advantages: Visual; contains lists and sequences and shows causes, is often easier to recall; uses both left and right brain functioning; helps one think from general to specific and puts subjects in perspective.

Click to explore more about Mind Maps

3. the Outline System

You can use a standard Roman numeral outline or free-form, indented outline to organise the information from a lecture. The outline form illustrates major points and supporting ideas. It has the major advantage of being an active process of organising incoming information.

 Click for more information on the Outline System

4. The Cornell Format

On each page of your notes, draw a vertical line, top to bottom, 5cm from the left side of the paper. Write your notes on the right of this line and leave the area to the left of the line for key word clues and sample questions.

Click for more information on the Cornell Format

If the lecturer talks too fast

1. Try to be extra prepared for the lecture before class: Familiarity with the subject makes it easier to pick out key points.
2. Exchange notes with classmates
3. Leave large empty spaces in your notes - for filling in information you missed.
4. See the lecturer after the lecture and show the lecturer what you missed.
5. Consider using a voice/sound recorder.
6. Go to the lecture again - if it is offered at a different time.
7. Use your shorthand.
8. Ask questions.
9. Ask the lecturer to slow down.
10. Remember, you don t have to take down everything the lecturer says verbatim.

Note-taking abbreviations

Thus / Therefore                                                ∴		Between                                                  betw
Because                                                            ∵		or                                                                   /
Equals/same as                                                 =		Definition                                                     def
Does not equal / not the same as                        ≠		Conclusion                                                 conc
Greater than / more than                                   >		Regarding / with regard to                               re
Less than                                                          <		As against / contrast with                                vs
And                                                                   &		Before                                                          B4
Important / importance of                                 NB		Especially                                                    esp
Example / for example                                      eg		Namely / that is to say                                    ie
However                                                         but		-ment (e.g. agreement becomes agreem't)     m't
Compare/contrast with                                       cf		It is/ that is                                                    ie
Without                                                         w/o		Transfer                                                       t/f
-ion  (e.g. proposition becomes proposit'n)           'n
Usually                                                          usu

THE NOTE-MAKING PROCESS

Once you have taken down notes in lectures, the learning process is not complete. The next step is the note-making process.

Reviewing lecture notes:

Your lecture notes form the basis of your final consolidated notes and your entire examination preparation is based on these. The following should be done on a daily basis:

1. Read through your lecture notes.
2. Underline headings and subheadings.
3. Correct spelling mistakes and rewrite illegible portions.
4. Fill in any gaps.
5. Underline or highlight important sentences or paragraphs.
6. Make sure you understand the concepts.
7. If you use the Cornell system, fill in the key words in the left-hand column.

Integrating lecture notes and readings

1. The main aim is to integrate your lecture notes with reading from articles, prescribed and recommended books or tutorials.
2. It is best to use your lecture notes as the basis of your integration and not rewrite these unless your handwriting is extremely poor.
3. Mind-map summaries can be made to give you an overall picture of the topic.