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IMPORTANCE OF SMALL BUSINESS 2.
The larger society equally benefits from the establishment and existence of small businesses. Such benefits include:
• Employment Generation: Small businesses employ the greater percentage of the working population in any country. These people employed, receive their salaries and wages from these small organizations.
• Reduction of Social ills: Social ills such as prostitution, theft, armed robbery, beggars, hooliganism etc are reduced when most of the citizens in a society are engaged in profitable ventures.
• Utilization of Resources: Natural resources such as farm produce can easily be wasted if there are no businesses that can buy them when they are in abundant supply due to seasonal changes.
Small businesses use such resources as raw material and inputs for the production of other goods. This, in most cases, involves storages to avoid spoilage of such resources.
• Improvement in the Standard of Living: Standard of living is the level of quality people in a particular society or country enjoying their living, which is not only affected by the level of income but the quality and quantity of goods and services made available to them. Small businesses, whether in manufacturing industry or service industry such as retailing, entertainment etc contribute a great deal to the uplift in the standard of living of the people residing in the society where they are found.
• Mobilization of Local Savings: Savings are encouraged through the existence of small businesses. Owners develop a saving culture instead of wasteful spending. Those intending to establish small businesses are equally encouraged to save towards it. This reduces the rate of consumption in a society.
• Stimulation of Indigenous Entrepreneurs: Home entrepreneurs are motivated thus leading to healthy competition. Such competition unarguably leads to improvement in the quality of goods and services produced locally, improvement in local technology, productivity and a fall in prices to the final consumers.
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