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Monday, 3 October 2016

14 reasons why private enterprises tend to be generally more efficient than public enterprises in west Africa

14 reasons why private enterprises tend to be generally more efficient than public enterprises in west Africa
It is amazing to see small business organizations like sole proprietorship and partnership in continual existence in spite of ferocious competitions and vitriolic attacks from large business organizations like limited liability companies, public cooperations and cooperative societies, some of the reasons for the survival of these small business
organizations are as fellows.
  1. Their small capital requirement: no matter how small their capital is to by losses, they continue waxing stronger with the hope of making profit in future
  2. pride of ownership: this makes their owners carry out their job with zeal because they are aware that independence has no alternative
  3. personal attention: their owners show personal interest and attention to the business and their customers
  4. lack of strict policy: their polices rules and regulations are so flexible that they are easy to change with the changing conditions in order to suit their customers
  5. High respect for their customers: they adhere to the dictum which says that the customer is the king and does no wrong by respecting them no matter their attitude and behavior towards the business
  6. Government assistance: these may come in form of loans aids, provision of raw materials, infrastructure social amenities etc. to private enterprises.
  7. Hours of business: some of them open from morning till late in the day, on saturday, sunday and even public holidays
  8. Their small profit belief: their low prices in order to make small profit results in quick turn over and make them to continue being in business
  9. Absence of government interference: absence of government interference in private enterprises as it happens in public enterprises
  10. less bureaucracy: there is less bureaucracy in private enterprises compared to public enterprises
  11. Fear of taking greater risk: in west Africa many business people run away from large scale production because of greater risk such as losing their property and capital invested in the business. they rather prefer little profits accruing to their small business
  12. Provision of direct services: the nature of the service provided by many firms in west africa makes them to be small in nature. e.g services rendered by doctor, solicitor, electrician, barber , carpenter etc.
  13. Inadequate managerial skills: large scale production requires technical and managerial skills and all these are lacking in most of the indigenous entrepreneurship, therefore small firms remain to exist.
  14. Lack of trust: small business organizations are more efficient than public enterprises in west africa because of mistrust among businessmen. people have negative impressions about others such as laziness, siphoning of profits, sending of hire killer to their partners when it comes to profits sharing. all these prevent many people from coming together for business.

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