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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.

1.2              STATEMENT OF THE PROBLEM 

It is a known fact that scholars had written books and carried out researches on a similar topic how ever there is need to narrow down the issues of globalization to small scale businesses survival.

1.3              SCOPE OF THE STUDY

The study will deal with the impact of globalization on small business survival as well as general theoretical framework it will explain the relationship between global market and small scale business.

1.4              OBJECTIVE OF THE STUDY

Specially, the objective of this study are:

i.                    To provide and discuss the importance of globalization on small scale business.

ii.                  To highlight the purposes and benefit of globalization on small scale business survival.

iii.                To make necessary suggestions for improving the performance of small scale business.

iv.                Identify and discuss the problem and prospects of small scale business in the world.

v.                  Discuss the importance of small-scale business in the global economic.

1.5              SIGNIFICANCE OF THE STUDY

i.                    The globalization ear present small scale business survival. The world over with both challenge and threat.

ii.                  The globalization also challenge underdeveloped to rise to the challenge before them.

iii.                The globalization also support measures aimed at increasing small scale business competitive capabilities.

iv.                To know the effectiveness of globalization on small scale business survival.

1.6              DEFINITION OF THE KEY TERMS

i.                    Global: It means the world.

ii.                  Globalization: This can be defined as the net work of connection of organisation and people are across national, geographic and cultural borders and boundaries.

iii.                International Economic: This is dedicated to helping economic development, professional improve the quality of life.

iv.                International Marketing: This is a particular application of market concerned with developing and managing trade across international boundaries.

v.                  International Law: This is the law that govern the interaction and relationship between national resulting from official rule treaties, agreement and custom.

vi.                International Trade: This can be defined as the exchange of good and services (trade) between people or firm in different nation.

vii.              International Business: This can be defined as any firm that engage in international trade or investment.

REFERENCES

Lawal A.A. (1998):

Entrepreneurship Development in Small Scale Business.

Brainard Lael (2007):

US Trade Policy and Small Business.

Mamoh Isiaka (2007):

Self Employ Business Day Media Ltd.

Robert S.P. (2007):

Indian Small Scale Industry on Cross Road.

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