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Effect of partnership and joint venture business in small scale business in nigeria

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When starting a business, owners must decide what form of business entity to establish. The type of business structure determines which income tax return form you file, and may impact how you structure health benefits for yourself the owner , your family, and your employees. A sole proprietor "sole-prop" is someone who owns an unincorporated business by himself or herself. A sole proprietorship is the simplest and most common structure chosen to start a business, and there is no distinction between the business and owner. A partnership is a single business where two or more people share ownership. Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business.

SEE VIDEO BY TOPIC: What Is a Joint Venture? Definition & Examples - Joint Venture Marketing Ep. 2

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Forms of Business Organization

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Small and Medium Enterprises SMEs , new or existing, often face certain challenges when they approach products providers for both enterprise fixed capital investment and market standards. The insufficient supply of microloans is a major issue, particularly where business creators are unemployed persons, women or form part of ethnic minorities with different cultural dependencies.

Supporting the supply of microloans is therefore not only an issue of entrepreneurship and economic growth, but also of social inclusion. Further, it was reported that there are more than 1. Deakins agreed that there are quiet numbers of potential reasons why firms and organizations merge together to form a partnership or joint venture businesses. A joint venture is a procedure used to respond to specific business phenomena such as access to new markets, specificgovernment policy, business capacity, technology transfer or economies of scale.

An international joint venture is aseparate legal organisational entity representing the partial holdings of two or more parent firms, in which theheadquarters of at least one is located outside the country of operation of the joint venture. The feasibility and thedesirability of a joint venture must be assembled by careful analysis of the economic, political, social and culturalenvironment within which the venture will be implemented and managed.

A joint venture JV is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets.

There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares. Companies typically pursue joint ventures for one of four reasons: to gain faster entry into a new market; to acquire expertise; to increase production scale, efficiencies, or coverage; or to expand business development by gaining access to distributor networks.

On the other side, A partnership business is an arrangement where parties, known as partners , agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses , interest -based organizations , schools , governments or combinations. It is also an association of two or more persons to carry on as co-owners of a business for profit. Partnerships are sometimes used in small retail, service, or manufacturing companies.

It is fairly easy to form, and they are form simply by a verbal agreement, or more formally, by written agreement. It is against this backdrop that this study seeks to examine and evasluate the problems and prospect of partnership and joint venture business among small scale business in Nigeria.

As any other major sectors, it is exposed to a lot of predictable and unpredictable risks when engaging in a joint venture or partnership businesses. Among the risks faced by the the small scale sector are ownership risk, management and capital funding risk, economic risk, technology risk and social risk.

Even though Risk is inherent in every partnership business and normally assumed by the owners unless it is transferred to or assumed by another party for fair compensation, it is also a challenges which pose a great danger for small scale business owners who may wish to come together to form a joint venture or partnership business if not deal with in the best possible way.

Non-Access to International Marketing:International marketing is a multinational process of planning and executing international marketing standards for pricing, promotion, distribution of ideas, goods and services to create exchange that satisfy individual and organizational on national and international level Kottler, Furthermore, Despite existing policies on financial support for small businesses, very few entrepreneurs receive financial help when they need it. Mambula find that 72 percent of entrepreneurs he studied in Nigeria considered lack of financial support as number one constraint in developing their business.

Although in some African countries banks are by law required to set aside a certain percentage of their profits for small business loans, many banks would rather pay a fine than make what they believe to be a high risk loan to SMEs, this factor also prompt most small scale business owner to pool capital resources together to start up a partnership business.

Lack of Skills for entrepreneurship: The challenges facing entrepreneurs and small medium enterprises in Africa are varied and many; lack of financial support, weak economic infrastructure, and lack of policy coherence, and lack business support. Given the small number of indigenous African small firms compared to firms from other parts of the world, education and training support for entrepreneurs and small-scale enterprises will help establish a good foundation for small business growth Biggs and Shah, The research question provides a framework and guidelines through which substantial knowledge of the research study can be understood.

This studies will also be useful to small scale owner by providing them useful insight on the benefit of engaging in a successful joint venturer business such as, access to new markets and distribution networks, increased capacity, sharing of risks and costs with a partner and access to greater resources, including specialised staff, technology and finance.

Finally, it will also be of use to the student, researchers for further research study, the existing and prospective entrepreneur as well as any interested party. It will assist students in their knowledge build-up and appreciation of the business formation of partnership business among the small scale business owners.

However, the research was limited to small and medium scale enterprises operator in osun metropolis due the schedule of the researcher. As with all studies, limitations exist and must be acknowledged. Moreover, the outcomes were based on the information solicited from the respondents and such might be subjected to human errors, omissions and possible mis-statements. It is defined as any business undertaken, owned, managed and controlled by not more than two entrepreneurs, has no more than twenty employees, has no definite organizational structure i.

This is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. This is an arrangement where parties, known as partners , agree to cooperate to advance their mutual interests.

This is a written and formal document which contains such basic information as the name and principal location of the firm, the purpose of the business, and date of inception. This means that each partner acts on behalf of the partnership when engaging in partnership business. The act of any partner is binding on all other partners. This is a situation whereby each joint venturers participant contributes property, cash, or other assets and organizational capital for the pursuit of a common and specific business purpose.

Thus, an IJV is not merely a contractual relationship, but rather the contributions are made to a newly formed business enterprise, usually a corporation, limited liability company, or partnership.

Due diligence is the investigation of a country, business or person, for the purpose of obtaining useful information on the potential benefits, pitfalls and costs. It helps investors to make better profit and mitigate risk.

Limited liability. Get the Complete Project. Download This Paper. Home for Nigerian Researchers. Ascertained the benefits and importance of setting up a partnership business by small business owners.

Provide useful insight on the concept of partnership business, it merit and demerit, as well as importance to the growth of the business. Identify the key actors key actors and facilitators for establishment of new partnership business in Nigeria. What are the benefits and importance of setting up a partnership business by small business owners? Are there any useful insight on the concept of partnership business, it merit and demerit, as well as importance to the growth of the business?

Who are the key actors key actors and facilitators for establishment of new partnership business in Nigeria? The limitations of the study are as given below: also the difficulty of timely availability of published data from various government and other agencies doing this job in our country.

Researcher also faces the problem on account of the fact that the published data vary quite significantly because of differences in coverage by the concerning agencies.

The study could not show the whole scenario of the all small scale business in Nigeria. The questionnaire was not understood by some respondent. Some respondent did not give enough concentration to understand the significant of analysis.

The time was not enough to collect the data from the respondent. Partnership Agreement: This is a written and formal document which contains such basic information as the name and principal location of the firm, the purpose of the business, and date of inception. Mutual agency This means that each partner acts on behalf of the partnership when engaging in partnership business. Joint Property Interest This is a situation whereby each joint venturers participant contributes property, cash, or other assets and organizational capital for the pursuit of a common and specific business purpose.

Due diligence Due diligence is the investigation of a country, business or person, for the purpose of obtaining useful information on the potential benefits, pitfalls and costs. Co-venturers co-venturers": this is a situation when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-venturers".

Search search engine by freefind advanced Paper Information Cite this Paper. Developing Outstanding Research Topics. Challenges of Personal Income Taxation in Ghana. Effect of Employee Benefits on Organizational Performance.

The Difference Between Big Businesses & Small Business

The most common forms of business enterprises in use in the United States are the sole proprietorship, general partnership, limited liability company LLC , and corporation. Each form has advantages and disadvantages in complexity, ease of setup, cost, liability protection, periodic reporting requirements, operating complexity, and taxation. Also, some business forms have subclasses, such as the C corporation, S corporation, and professional corporation. Choosing the right business form requires a delicate balancing of competing considerations. Learn how to select, plan, and organize the business form that is a perfect fit for you.

Click to Check. Project and Seminar Material for Entrepreneurship. Small and Medium Enterprises SMEs , new or existing, often face certain challenges when they approach products providers for both enterprise fixed capital investment and market standards.

You need to know the advantages and disadvantages of each of the different forms of business organization to make sure you make the right decision for your new business. Luckily, there are several business counselors and centers across Kansas City offering free assistance in forming a business that are knowledgeable and ready to help. Bonus: Our services are always free. The vast majority of small businesses start out as sole proprietorships. These businesses usually are owned by one person, aka the individual who has day-to-day responsibility for running the business.

Effect Of Partnership And Joint Venture Business In Small Scale Business In Nigeria

Hence, forming a joint venture with another company is seen as a plausible solution. It is not like a partnership agreement because this has a definite end to it as it focuses on a single project or undertaking. It does pose a great sense of benefit for both companies, but it also comes with its share of side effects as well. That is what we are hoping to bring to light in this article. Starting a joint venture provides the opportunity to gain new insights and expertise. Think about it; the market is now way easier for you to understand given the short-term partnership that you have forged. Forming a joint venture will give you access to better resources, such as specialized staff and technology. All the equipment and capital that you needed for your project can now be used. A joint venture is only a temporary arrangement between your company and another. In case the joint-group project fails, you are not alone when bearing the costs of its failure.

The Five Small Business Owner Structures

Small and Medium Enterprises SMEs , new or existing, often face certain challenges when they approach products providers for both enterprise fixed capital investment and market standards. The insufficient supply of microloans is a major issue, particularly where business creators are unemployed persons, women or form part of ethnic minorities with different cultural dependencies. Supporting the supply of microloans is therefore not only an issue of entrepreneurship and economic growth, but also of social inclusion. Further, it was reported that there are more than 1. Deakins agreed that there are quiet numbers of potential reasons why firms and organizations merge together to form a partnership or joint venture businesses.

Creating a successful new business is a tough job, especially when a new company has to compete against large, well-established businesses. While small businesses and large businesses might operate in the same market, they have significant differences that can have a large effect on business operations.

Small and Medium Enterprises SMEs , new or existing, often face certain challenges when they approach products providers for both enterprise fixed capital investment and market standards. The insufficient supply of microloans is a major issue, particularly where business creators are unemployed persons, women or form part of ethnic minorities with different cultural dependencies. Supporting the supply of microloans is therefore not only an issue of entrepreneurship and economic growth , but also of social inclusion.

The Basics of Business Structure

Small and Medium Enterprises SMEs , new or existing, often face certain challenges when they approach products providers for both enterprise fixed capital investment and market standards. The insufficient supply of microloans is a major issue, particularly where business creators are unemployed persons, women or form part of ethnic minorities with different cultural dependencies. Supporting the supply of microloans is therefore not only an issue of entrepreneurship and economic growth, but also of social inclusion. Further, it was reported that there are more than 1.

They have become an important strategic option for many companies, particularly in a cross-border context. It describes a commercial arrangement for partial cooperation between two or more economically independent entities. Characteristic of the joint venture partners is that, in addition to the joint venture business, they independent of each other engage in other activities. The joint venture partners may even be competitors outside the scope of their joint venture. Recently there has been an increasing preference for joint ventures as a mode of market entry.

EFFECT OF PARTNERSHIP AND JOINT VENTURE BUSINESS IN SMALL SCALE BUSINESS IN NIGERIA

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Construction projects in Nigeria established that, the following factors of communication, Factors Affecting the Success of Joint Ventures in Indian Construction Firms to evaluate the critical factors that impact PSOs' performance in concession policy, business capacity, technology transfer or economies of scale (Adnan.

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