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It has a strong influence of owner-manager which means that most of the decisions made are from the owner of the firm, who also manages the business. Small businesses and owner- managers are often treated as a homogenous group, particularly for policy purposes, this is however a gross-over implication.
There are a couple of features that are conventional to small firms and highlight their approach to management and business, which are:
• Short-term horizons
• Short of cash
• Raising finance
• Local orientation
• Little influence on the market
• Scope of activity limited
• Over reliance on small number of customers
Section 248 of the companies Act of 1985 confirms that small firms should have the following criteria:-
• A turnover of no more than ?2...
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