20-04-2012, 01:00 PM
small business
INTRODUCTION
Background of the study
The world "small business" refers those types of business, which is carrying on by small investment and small workers. Generally, the business is carrying on by small investment called "small business". In broad sense, all types of business like industries, trading institutions, serves oriented institution; firm is small business if the investment is low.
In the context of Nepal, all types industries, trading institutions, service oriented institutions; firms are small business if the investment is not more than 30 millions and the employees are not 100 persons. The investment is more than 30 millions and the employees are more than 100 persons in any business or any firms or companies are not falls small category but falls middle category in Nepal. The divisions of the categories of the type of business depend of the state policy. By this reason it is different country to country. For example, in USA the business having 600 workers if fall under small business.
In India, small scale industry has been defined by the government of India from time to be made in the plant and machinery.
However, ‘small scale industry’ is a stabiles having in plant and machinery whether held on ownership basis by base or by hire-purchase, not exceeding Rs 60 lakh (extendable to Rs 75 lakh in certain case)
According to A.H Cole (1982), “one of the prominent scholars, entrepreneurship is the purposeful activities of an individual or a group of associated individuals, undertaken to initiate maintain of aggrandize to initiate maintain or aggrandize (to make larger) profit by production of distribution of economic good and services.”
GROWTH OF ENTREPRENEURSHIP IN NEPAL
It may be worthwhile remembering that industrialization in Nepal had stared very late. The udyog parished (industrial development boards) was established in 1934 AD after which industrialization in Nepal started Pashupati sugar works Limited was established in 1937 while Buddha match factory was established in 1938. After 1940 various industries were established at different times i.e. Morang cotton mills in 1942 AD. Morang sugar Mill in 1944 AD. Reghupati jute mill in 1946 AD., etc.
Development of industries may be explained as follows.
First five-year plan (1956-61)
The first plan was introduced in 1956. The process of industrial planning started with the introduction of the first plan. The aim of the plan was encourage private investment by providing facilities to expand various industries development center was established in 1957. It was later converted in to Nepal industrial development corporation (NIDC) in 1959. The objective of the NIDC was to provide financial and technical support to private sector industries. The industrial policy was announced in the same year, which was revised in 1961 AD., to private additional facilities to encourage the private sector. The first five-year plan could not bring substantial development in industrial sector. Few industries were expanded and modernized i.e. jute mill sugar mill match and cigarette factory.
Second five-year plan (1962-65)
It was announced in 1962 AD. This plan give priory to those industries which produced raw materials, mining and export oriented import substitution industries. It gives priority to the private sector to establish new industries. Some industries were established in the private sector i.e. taxtile, sugar confectioneries hotels metal crafts etc. in the public sector Janakpur cigarette factory Bansbari Leather and shoes factory Birjunj sugar factory were established. Similarly Ratna Electricity Corporation, Rastrya Banijya Bank etc. were also established during the period. Despite various efforts not much success was accomplished during the second five-year plan period.
Third five-year plan (1965-70)
During the period industrial development was taken as an essential component for economic development priority was given to local materials export prompting industries fertilizer and agricultural tools: the forget of this plan was to established five industrial estates but only two were established in Dharan and Nepalgunj. In the duties producing metal utensils matches and textiles and the first mill rolling were established during the plan period. Nepal Telecommunication Corporation and Agricultural Development Bank were also established during the period.
Forth five-year plan (1970-75)
This plan give priority to the private sector for established industries using local material and were agro based export-oriented forest based and mineral based. The industrial service center was established to support the industrial sector. It also intended to established paper and fertilizer industries in the public sector in collaboration with national and foreign investment. The new industrial policies formulate made provision for tax holiday to cottage export oriented and tourism industries.
Fifth five-year plan (1975-80)
The objective of this plan was to provide employment opportunities thorough industrial development priority were given to the private sector. Budged was allocated for both the private and public sector. Rs.400 to 500 million was allocated for the private sector whereas Rs.531 million for the public sector. Hetauda Textile mill, Bhaktapur Brick Factory and Agricultural lime industry were established in the public sector during the plan period. Similarly factories producing biscuit insecticides and gas were establishes together with flout mill, rolling mill and soap factory in the private sector. To improve the quality of products a quality of products a quality control committee was established and to develop capital market, security marketing center were established in 1980 the new industrial policy was implemented. To promote industrialization industrial promotion board was also established during the period.
Sixth five-year plan (1980-85)
The objectives of the sixth plan were to provide employment to create atmosphere conducive to encourage private sector. The government was thinking of privatization but there were financial problems the plan emphasized on increasing the production of the agricultural and industrial sector. There was increment in export of woolen carpets readymade garments and leather.