Small Business Management Scholarship Essay Example | Topics and Well Written Essays - 2000 words

Small Business Management - Scholarship Essay Example † Before embarking on the study’s specifics, it is essential to have a look at the overall advantage of owning and starting a business in New Zealand. Recent surveys have been carried out globally and these have come up with various findings and conclusions. As per the World Bank’s survey of 2006 where around 150 economies were focused on, New Zealand took the number one spot in terms of ease of carrying out business. The World Economic Forum put New Zealand in the 16th ranking out of 100 economies in terms of competitiveness and besides that, public institutions of New Zealand ranked top in judicial independence, tax collection, corruption absence, organised crime and property rights. Ethically, New Zealand’s situation put it among the most ethical areas of doing business in the world and this considered the corruption undertakings. Transparency International rated it second together with Finland after Iceland. This is as per 2005’s study of 159 cou ntries using CPI- Corruption Perceptions Index. New Zealand was also considered stable, open as well as competitive economically, has a business oriented governance, and cost competitive structures with low policy in inflation, flexible labour market and low rates of corporate tax. (wellington.govt.nz, 2011) According to Oliver and English, in their book, a small business refers to a business that is personally owned or managed. It may also be taken to be that entity which is void of managerial staffs that are specialists or does not form part of a bigger entity. Also, the definition says that such a business should be employing a maximum of 50 workers in manufacturing, a maximum of 10 employees in services and not exceeding 25 workers in the remaining sectors. If this definition is something to go by, then the sector of small businesses in New Zealand consisted of approximately 297,000 firms as at 2007. Of the 297,000, about 280,000 businesses are often known as ‘microâ€℠¢ enterprises since their employees are less than 5 persons. The ‘micro’ enterprises are usually common in retail trade, construction, property, finance as well as business services industrial sectors. Setting up a small business in New Zealand is not without merits. Among the merits of starting such a business are; one can become his or her own boss, exercise own talents, be in state of independence; remove dependence upon a fixed salary or wage; one has a chance to make his/her own money; one is at a vantage point in realising accomplishment, recognition and personal worth; one can come up and implement own products, services and ideas; and one is given a chance at enjoying work than he/she finds satisfying and successful. Having a sole proprietorship can make a person attain a level of family economic security as well as self and lastly, one may be in a position to provide valuable things to the community. Disadvantages of setting up a small business are that one may fail in business and lose all the borrowed and own capital. One may also be forced to work hard, sometimes up to 15 hours in any given day which results to lesser time spent with friends and family. Income may vary and behave in a volatile manner due to factors beyond oneself control. Also there is the very huge pressure arising especially while making decisions and solving problems of the business and these may call for