CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The small scale business is passing through the worst ever phase that ever could ever happen to business in the old days. People in the business and academic may term this as an inherent stage in he process of globalization and integration of our domestic economy but unfortunately it effect are form are than though of and perceive even today.
If one look back tot eh small scale business industry in last fifty years then one wonders what made a sudden change to ideal of small scale business. The planner of yesterday dear had completely rejected a purely capitalistic model of business from the day of maturity stage because they looked into the inherent problems of illiteracy, population explosion, quality of work life, financial problem, capital intensive and otehrkey indicators like average life cycle the small scale business was playing a major role in strengthening the whole social fabric of a civilization which talk about survival. Small scale business can be defined as the practice of starting new organisation particularly new business generally response to identified opportunities. Another definition say it as a person who is willing and able to convert a new idea invention into successful innovation. Also globalization on small scale business can be define as the practice of starting new organisation particularly new business generally response to identified opportunities. Another definition say it as a person who is willing and able to convert a new ideal invention into successful innovation. Also globalization on small scale business was well practice in Japan, Taiwan and American for example, the recognition for small scale business as a vital sector in development of Japanese economy could be traced to 1920’s prior to this period, Japanese government emphasised on large scale industry was neglected. Although this strategy improved industrialization in Japan but a number of construction problem were created henced the need for integrating small scale business industrial into the national industrial policy become apparent (Owuala 1992). Institutional supports for the growth of small scale business in Japan started after the second world war II. Prior to the emergence of formal source of finance, informal source such a trade credit constituted reliable means of financial. In recognition of the important role of small scale business in Japanese economy the financial institution for small scale such as medium business finance corporation.
As the most dynamic and flexible stratum of the economy, small scale business on the front lines of this new wave of globalization as a microcosm of the overall economy there is enormous diversity within the group of business. Many small scale business are encountering unprecedented growth opportunities associated with the new wave of globalization and are sappily integrating into global supply chain mean while other as struggling to compete with low wage foreign competitor for the first time.
