This document discusses small businesses and outlines the author's plans to start a small handloom business with a friend. It provides background on small businesses, noting that they are major employers and play an important role in economic development. The author then lists characteristics of small businesses, such as being managed by the owner and having little delegation of authority. The document concludes by discussing some legal forms the proposed handloom business could take, such as a general partnership or limited partnership.

1. Name: Mahamid Rahman
ID: 15264031
The Entrepreneurial Spirit
Small business
Small business is an integral part of the total business scene in any country. Though small in
size such business activities cover almost any area of business via manufacturing, mining,
wholesaling, retailing service and the like. It is now well recognized that small businesses are
the largest employers with lower investment per job. That apart, the growth & development of
medium & large industries is mostly dependent on the small business. Small business
occupies a vital place in the national country.
Small business means the size of which is not big- the size again depends on the yardstick one
uses to measure. Small business has been defined by various authors in various ways. Some
definitions are given below:
Characteristics of small business
There are various essential characteristics of small business .By characteristics small business
are different form of medium and larger business organizations. The widely identified
characteristics of small business may be seen as under:
 Managed by the owner
 Decisions are taken at one point
 Little or no delegation of authority
 Verbal communication
 Independently run/managed
 All risks borne by the owner
 Extension of the entrepreneurs’ personality
 No separate entity
I have decided to do a small business on handloom project with my friend with the given
fund. So, these are my following plannings:
Role of my Small Business(handloom):
Small businesses play a significant role in the socioeconomic development of a country
.Irrespective of the systems of the economy, growth stage of the economy, place of industry
in the economy, use of skills &technology in any country small business play an important
role which none of the concerned people dare to undermine. Important ones of such roles of
indicated hereunder:

2.  Large industry wastage/by –product can be put to use
 Desired industrial spread &Decentralization is facilitated
 Business/industry diversification is made easier
 Innovation for new products / services are made
 Development of new technologies with regard to methods, inputs &skills are silently
undertaken
 Ensures wide competition &thereby provides reasonable price advantage to customers
 Promotion & development of entrepreneurship are facilitated
 Contribute in raising the GDP of the country
 Enable equitable distribution of income among persons & reasons
 Make better use locally available skill, expertise & technical know-how
 More personalized contacts possible with all customers, suppliers, employees & others
interested in the business.
 Explore innovative marketing at home &abroad
 Act as seed bed for new venture
 Help in foreign currency earning personalized push exports
 Help in correcting some of the problems created by unplanned urbanization
 Provide an honorable alternative livelihood in a land starved/scarce country.
 Keys to Success & Factors Responsible for failure
Small business grows in large number but these businesses also fail in large number. If
the secrets of their success are known to the concerned people including the responsible
government officials, these can be nursed and strengthened in order to reduce the
number of small business failure. Secrets of small business success and the factors
responsible for small business failures may be seen as under.
 Knowledge of customer and Market
The bureaucratic structure of a large cooperation tends to isolate its management from
customers and markets. Salespeople have regular contact with the marketplace but their
thinking is several steps removed from the influential decision –making levels of the
corporation.
 Flexibility in Management:
Big business is often pictured as being uniformly more efficient than small business.
Some people believe that small business exists because it is protected through
government aid on one form or another or because high business has not yet entered a
particular field.
Problems we can face in developing small scale enterprise (handloom project) in
Bangladesh

3. There are a huge number of problems in the question of developing small scale enterprises in
Bangladesh. Maximum small scale enterprises are owned by the individuals and an individual
has obviously some limitation. Per capita income of our people is low and for this reason our
people are not being able to generate adequate capital to run the business efficiently.
Human resources of our country are not skilled this is a problem with developing small scale
enterprises in Bangladesh. The economic environment of our country is not hundred percent
suitable for operating the business another cause of the restrictions.
Excessive import of foreign product in our country is another reason cause when the people of
the country will be mainly dependent on the imported product then the entrepreneurs will
loose their interest to develop small scale enterprises.
Political instability of our country is another reason for developing the small scale enterprises
rate slow. Political environment of our country is not suitable enough to run the efficient
business in our society.
Legal forms that the proposed enterprise could take
General partnership (S.E.N.C.)
A general partnership is a group of persons, called "partners," who, in a spirit of cooperation,
agree to carry on a common activity. The partners of a general partnership operate an enterprise,
contribute to it by sharing property, knowledge or activities and share any resulting pecuniary
profits or losses.
Such a partnership is created through a partnership agreement and must be designated by a single
name for all the partners, who are solidarily liable for the enterprise’s obligations and certain of
its debts, independently of the respective shares of each partner in the partnership.
A general partnership may consist, for example, of professional offices (lawyers, notaries,
dentists, etc.).
A general partnership has a head office (principal establishment) and its own name. It may sue
and be sued in a civil action.
Limited partnership (S.E.C.)
A limited partnership is a partnership consisting of one or more general partners and one or more
limited partners. It is created through a partnership agreement and must be designated by a single
name for all the partners.
General partners contribute, above all, their work, experience and expertise. They are the sole
persons authorized to administer and represent the partnership. They are solidarily liable for the
partnership’s debts.

4. Limited partners must furnish a contribution to the common stock of the partnership. They
supply money or property to the partnership and their liability with regard to the debts of the
partnership is up to the amount of their contribution to the latter.
A limited partnership has a head office (principal establishment) and its own name. It may sue
and be sued in a civil action.
Joint venture (or undeclared partnership)
A joint venture is a partnership that is not a legal person and does not have a juridical
personality, and whose partners act in their own name on behalf of all partners. All Québec
general and limited partnerships that are not registered are considered joint ventures.
The contract by which a joint venture is established may be written or verbal or may arise from
facts indicating the intention to form a joint venture.
Non-profit legal person
A non-profit legal person is a group of individuals who engages in non-profit activities that are
cultural, social, philanthropic, national, patriotic, religious, charitable, scientific, artistic,
professional, athletic, sporting, educational or other in nature, with no intention of generating
profits for its members.
A non-profit legal person:
 has an existence separate from that of its members;
 has its own name, domicile and property;
 acquires rights and assumes obligations and liabilities;
 signs contracts through its directors;
 may sue or be sued in the same way as a natural person;
 does not have any share in capital and its members are not liable in its regard.
Syndicate of co-ownership
A syndicate of co-ownership is a legal person governed by the civil code and made up of all the
co-owners of a divided co-ownership. It is constituted by publication of a declaration of co-
ownership in the land register Its purpose is to preserve the immovable, to maintain and manage
the common portions, to protect the rights appurtenant to the immovable or to the co-ownership
and to take all measures of common interest.