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Steps to Establishing Micro and Small Scale Businesses: A Case for Graduates
of Library and Information Science in Nigeria

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Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

Chapter 6
Steps to Establishing Micro and Small Scale Businesses: A Case for Graduates of
Library and Information Science in Nigeria
--------------------------------------------------------------------------
C.P. Uzuegbu
U. Arua

The focus of this chapter is to:

- take a look at micro and small scale businesses,
- define and different micro and small scale businesses,
- examine why prospective entrepreneurs should start small,
- analyse the steps involved in establishing micro and small scale businesses,
- make a case for library and information science graduates in Nigeria vis-à-vis the
establishment of micro and small scale business after graduation.

1. Background
It is no longer news that micro and small scale businesses are key players in the economic
development of nations. Such businesses improve manufacturing output, employment and
export, and in return leads to economic empowerment of the people to the betterment of
the society. In an attempt to define micro and small scale businesses, several definitions,
but interrelated in construct, have been given by different people and organisations. The
various definitions of micro and small scale businesses as upheld by different people in
different places have been based on certain contexts as influencing factors. Such factors
include business environment, people, culture, economy, polity, and general way of life.
Apart from these, some definitions upheld for micro and small scale businesses has also
been based on employee size and sales, assets, or net profits of the business. Meanwhile, it
should be noted that what constitute the words micro and small in terms of government
support and tax policy varies depending on countries (United Nations Industrial
Development Organisation [UNIDO], n.d). Thus, what is assumed “micro” and “small” to
people in Europe is different from what people in Africa see it to be. Likewise, what people
in Ghana perceive to be micro or small may not be same with people in Nigeria. For
instance, the European Union, from the context of size, holds that a micro business is such
that has less than 10 employees while small scale business is a business with less than 50
employees. Yet, people in the United States say a micro business is such that has between
1-6 staff while a small scale business is such that has less than 250 employees. And for
people in the African countries, they believe that a micro business is such that has from 0-4
staff and a small scale business is such that has from 5 to 49 staff. All these size differences
therefore have made it difficult for world economists, information analysts and other
researchers to agree on a common definition for micro and small scale businesses.
Nevertheless, attempt shall be made in this chapter to present a definite definition for micro
and small scale businesses at least for the benefit of Library and Information Science (LIS)
students.

2. Definition of Micro and Small Scale Businesses

Specific to the Nigerian context, various government and non-governmental bodies have
defined micro and small businesses from various contexts. Addressing them as enterprises,
the Federal Ministry of Industries (FMI) defines a micro enterprise as one that has no
defined amount of asset and turnover but must have not more than 10 employees while
small scale enterprise are such that has total assets less than 50 million, with less than 100
employees, at an annual turnover of any amount. Yet, the Central Bank of Nigeria (CBN)
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

defines a micro enterprise as one that can have a zero amount of asset and turnover, and
can be run by one person alone while a small scale enterprise is that which must kick-start
with an asset and turnover values that are not more than 1 million Naira. Also, the National
Economic Reconstruction Fund (NERFUND) has given no specifications for micro enterprises
but defines a small scale enterprise as one whose total assets is less than 10 million, with no
defined annual turnover and number of employees. Other institutions in Nigeria that also
hold different definitions for micro and small scale enterprises, such as the National
Association of Small and Medium Enterprises (NASME) of Nigeria and others, are presented
in Table 1 below. Micro enterprise is abbreviated as ME while small scale enterprise is
shortened to SSE.

Table 1: Definition of Micro and Small Scale Enterprises by Nigerian Institutions

Institution Asset Value („m) Annual Turnover („m) No of Employees
ME SSE ME SSE ME SSE
Fed. Min. of Indust. n. a. >50 n. a. n. a. >10 >100
Central Bank of Nig. n. a. >1 n. a. >1 n. a. >50
NERFUND n. a. >10 n. a. n. a. n. a. n. a.
NASSI >1 >40 n. a. >40 n. a. >3-35
NASME >1 >50 >10 >100 >10 >50
Source: Extracts from World Bank, SME Country Mapping 2001

However, to add to the several definitions of micro and small scale businesses given so far,
it should be noted that the author of this chapter took a careful look at all the various
national and global contexts upon which definitions for micro and small scale businesses are
given as contained in various available business literatures, organizational templates and
government papers. So, for the benefit of library and information professionals, this chapter
therefore represents the definition of the two terms concisely as follows.

Table 2: Definitions of Micro and Small Scale Businesses on Varying Contexts

Micro Businesses (MB) Small Scale Businesses (SSB)
Finance Status
A business that is financed by one person A business that is financed by one or more
persons
A business that require no defined asset A business that require an asset value of up
value to kick-start to 1 million Naira to kick-start
A business that require no exact turnover A business that require a turnover rate of up
rate to 1 million Naira
Employee Size
A business that can staff and pay not more A business that can staff and pay between 5
than 4 persons and 49 staff
Structure
A one-stop location business (no branch(s) A business that may have branch(s) or
other than its usual location) extension offices and units
Professionalism
A business that may not require a combined A business that is most likely to have
skill of various professionals to operate team(s) of various skilled professionals in
order to operate
Source: The Author

Generally, it should be noted that micro and small scale businesses are normally private
owned businesses, partnerships, or sole proprietorships. A business can be defined as
commercial or mercantile activity engaged in as a means of livelihood. Other names for the
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

word business are enterprise, corporation, company, firm, establishment, organisation, and
conglomerate. Thus, some typical examples of non-LIS micro and small scale businesses in
our society today include businesses such as convenience stores, bakery or delicatessen,
hairdressing, trading, private legal practices, chartered accounting services, restaurants,
guest houses, photograph services, online purchasing and supply, web design and
programming, farming, etc. But, some micro and small scale businesses in the LIS
profession include operating business centre and cybercafé, production and sale of library
equipment or tools, owning a bookshop, marketing of library materials and equipment,
information and communication technology enabled information security services, computer
maintenance, bindery services, information brokerage and consultancy such as indexing and
abstracting, current awareness services and selective dissemination of information services
(CAS/SDI), compilation of bibliographies and directories, among other, as have been
itemised in the preceding chapter. Now, if a LIS graduate should choose to become an
entrepreneur in any of the afore-listed businesses, why must he or she start from the micro
or small scale level first?

3. Micro and Small Scale Businesses: Why Prospective Entrepreneurs Must Start
Small
One could wonder why anybody should think of starting a business and starting it small
instead of starting it in „a big way‟. Naturally, most Nigerians believe that nothing starts
except if it begins in a big way. On the contrary, industrialised nations of the world have a
business culture of test-running new ventures before investing more on them. There
investing little in the first instance, before increasing the financial base is not usually
because of limited financial resources. They have the habit of investing small and afterwards
increase the capital base of the business as it succeeds. They do this even when they have
all the finance that it may take to establish a medium and big enterprise. So, they know
what they are avoiding. That which they avoid is a business principle which most Nigerians
also know but have refused to imbibe either because of a societal kind of ego or as a result
of a natural greed. The principle behind starting new businesses at micro or small scale
levels is what we shall examine now. They are as follows:

i. Cost: Financial resources are required to start a new business. Even though cost
is largely dependent upon the type of business, no penny is what wasting or
losing. New businesses are usually prone to closing-up upon any slightest
mistake managerially or otherwise. Mastery of business and predictable success
based on direct or indirect experience is usually essential for new business
entrants if they must invest more into their new business. Hence, taking it small
by way of beginning at micro level is a way of ascertaining the possibility of
success in the given business.

ii. Management: The act of managing - the conducting or supervising of a business

- require judicious use of means to accomplish an end. This is a skill that
develops from theory to practice. Going into a business in a micro or small scale
would allow the new manager, who is also the owner of the business, to learn
the tactics of the business and manage the challenges they may arise from the
micro or small business. Mismanagement has been identified as a major source
of collapse of so many big business empires. Thus, the ability of a new entrant
into a private business to manage the small business well likely predicts the
capabilities of overseeing a big enterprise successfully.

iii. Commitment: One of the difficulties that can be a disadvantage to lesser

motivated people is commitment. Although running your own business means
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

that you will be your own boss, many people often make the mistake of
assuming that they will be working fewer hours. On the contrary, many business
owners work far more hours as a trade-off for the benefits that a business can
provide. Without adequate motivation and time-commitment, running a business
can be difficult. Hence, at micro and small scale levels, the entrepreneur decides
on his or her readiness to plunge deep into the business. It will be heart-breaking
to observe an entrepreneur who has invested heavily into a business to opt out
after a couple of months. You can imagine the resources that will be wasted.
Even if it is handed over to another person to manage, is that person prepared
for it? Would the person not play with it and abandon it too? So, it is important
for new entrants to only commit themselves to a small business after examining
their interest and readiness to continue and manage the business in the nearest
future.

iv. Risk: Running a business - especially if it is a sole proprietorship or partnership -

can be extremely risky, depending upon the circumstances. Although initial start-
up cost is a factor in starting a business, there are other factors that increase risk
as well. Sole proprietorships (micro businesses) and other similar business types -
such as partnerships (usually flourishing small scale businesses) - place all
liabilities upon the owner. This means that if the business is held liable, personal
assets can be at jeopardy as well. This is why one should not even start big in
the first place until he or she has understood the ups and downs of the business
and potential ways of maneuvering. I recall the case of one retiree in Nigeria who
got 2 million Naira as retirement benefit and invested the whole of it into a
cement business (medium scale business, as per the mount involved). Six
months later he was caught up with high blood pressure because a trailer filled
with his cements worth 2.3 million capsized into a valley along Calabar road in
Cross River State. That same day it was raining heavily and thus that whole
cements got spoilt before the trailer was towed out of the valley after four days.
As a matter of fact the risks involved in businesses are what studying, in practice
and not in theory. And, starting small gives the new entrant the opportunity to
understand the risks involved and how to avoid or overcome them.

v. Profitability: Another double-edged sword of starting a business is profitability.

Although many profitable businesses have been created and go on to make
millions of Nigerian Naira, the majority of these businesses were not initially
successful. Delayed profitability is an issue that plagues businesses. With many
start-up costs and the time it takes for popularity, marketing, and client bases to
develop, business can sometimes take several years to become profitable. Hence,
putting in every available finance into a new business can weaken the
entrepreneur – affect his lifestyle, feeding, family upkeep, etc. - and sometimes
cause him to become impatient with the business as such that he gives up.
Whereas, if the business is started small, a proper study on its turnovers and
profits can be undertaken and subsequent decisions made thereon. It is
important to note that for the fact that somebody you know very well is
financially well-off through his business does not mean that if enter into that
business the following day you make it too. Profitability timeframe must be
understudied through micro and small scale businesses before starting it big.

All these are vital principles that inform the starting of micro and small scale businesses
instead of medium and large-scale enterprises. Now, let us examine the various steps
involved in establishing micro and small scale businesses.
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

4. Steps to Establishing Micro and Small Scale Businesses

It has been observed that a lot of people that wants to start a private business usually do
not know how to go about the starting. Naturally, in the world of business, there are basic
steps to be followed when anyone wants to start or own a business. Here, the steps are
examined from the perspective of micro and small scale businesses and are presented as
follows:

Step 1: Evaluate Yourself: Do You Have What it takes?

On this first rung, the prospective entrepreneur should be able to ask him or herself some
questions. By answering the questions, insights will be gained on what it takes to start and
operate a business. The questions to ask and answer are:
- Have you tried owning or operating a small business before? If you had, was your
experience encouraging or discouraging?
- Does your educational background prepare you for your chosen field of business?
- Has your work experience exposed you to the type of business you wish to start?
- Can you demonstrate the experience above to potential sponsors?
- Are you ready for long hours of research, planning and hard work?
- Do you have the ability to identify and solve problems?
- Do you see problems as opportunities?
- Can you set reasonable short and long-term goals and then follow through?
- As a person, do you often set objectives for yourself and then evaluate and adjust to
meet them?
- Can you identify, assess, and manage financial and other risks involved in operating
a business?
- Can identify and determine the effect of various risks in your business?
- Are you willing to take risks?
- Can you differentiate acceptable risk form outright gambling?
- Can you accept failure as part of learning process?
- Will you be objective about other people‟s ideas concerning your business proposal?
- Can you identify and use all of the resources at your disposal judiciously?
- Are you a self-starter? Will you be able to display initiative and accept responsibility
for the affairs of your business?
- Will you deal effectively with competition?
- As success attracts competitors to your business, how will you deal with them?
- Can you handle uncertainty and a constantly changing business climate?
- Can talk the right people into your business?
- Are you optimistic and positive to yourself?
- Are you willing to prepare or assist in preparing a business plan which details every
aspect of your proposed enterprise?
- Do you have general business skills such as financing, buying, purchasing, selling,
pricing, advertising, customer relation, etc.?
- Do you understand the various laws and regulations that govern your business?
- Are you aware of the legal aspects of business in your environment such as business
permits, licenses, employee deductions, labour relations, taxes, record keeping,
shareholder agreements and others?
If answers to all these questions are positive, the candidate thus has all the qualities needed
to start and operate a business.

Step 2: Identify a Business

Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

Every successful business starts with a good idea. The idea may be conceived by the owner
or drawn from a number of available resources. In and for the library and information
profession, the followings may be potential resources for drawing business ideas:
- Business contacts.
- Business magazines and newspapers which usually contain business success stories,
how-to-start business details, among others.
- Industry publications that inform on trends and developments. For instance, one may
not know that office shredded papers are bought and recycled by a given company
in the town not until he stumbles on the company‟s annual business publication.
- Trade shows
- Radio, television and the Internet
- Research centres
- National and State Chambers of Commerce
- Lecturer, teacher and school colleagues

Step 3: Prepare a Business Plan

For the fact that starting a business is like a journey into the unknown, the prospective
entrepreneurs must evaluate the business he or she wants to enter into. Recall that in Step
1 above, the skills, abilities and drives to start a business were examined. Now, the
possibility of undertaking the business as may have been identified in Step 2 depends on
assessing certain factors that may surround the business such as its marketability,
profitability, continuity and others. These factors are determined in what is called business
plan. A business plan can be defined as a written document that informs about all possible
aspects of the business, which essentially discusses the business opportunity, market,
management, manufacturing, finance and required investment. Each of these essential
parts of a business plan is discussed below.
- Opportunity. This starts with a brief description of the business. It should be able
to show the potential investors and others the kind of opportunity the business
represents. In writing this section, attempts must be made to avoid technical terms
and jargon. It will be important also to highlight the competitive advantages of the
business over others in the field. If the plan concerns an existing business (its
modernisation or expansion), give a brief history including successes and failures.
- Market. This constitutes the second section of the business plan and must describe
the market the business is or is to engaged in and also describe who will buy the
business‟ product or service and why. It should be noted that a great idea for a new
product is of little use if there is no market for it. Hence, this section should describe
the proposed product or service of the business. Avoidance of technical terms is also
important. The writing should highlight the key features that will distinguish the
product or service from competitors. Products may be described as a collection of
attributes (size, colour, shape, materials, etc.) which produce various benefits.
- Management. Proposed management techniques, methods or systems for a
business is vital and as such attracts investor‟s interest. Thus, at this section of the
business plan, the entrepreneur must describe his own background and that of key
employees and managers with individual resumes where possible. Good skills
possessed can also be articulated in this section.
- Manufacturing. Here, it is expected to show the plans to manufacture the business‟
product or how the business‟ services shall be delivered to the users. Descriptions
are to be made of any important equipment and processes to be involved. Items
such as facilities, equipment, labour, materials, sources of supply, materials handling
and storage should be covered descriptively. More so, highlight should be made on
the various stages of the production or delivery process.
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

- Financial Projection. This has to do with the financial statements; projected for, at
least, the first three years (it can be more). Areas of financial statements include
balance sheet, income statement and cash flow statement. Usually, the projected
statements for the first year should be broken down in months. It should be noted
that every financial assumption should be included in the financial statements.
- Required Investment. At this juncture, the actual amount required for the
business is described. Here, the plan details the amount and form of investment
required and the timing of cash requirements. More so, details of the sources of
funding and the purpose thereof are outlined, alongside the repayment terms of
borrowed funds. Adams (2002) suggests that attention should be given to long-term
capital costs versus operating costs (working capital).
In the summary of this Step, it should be noted that a business plan is important as it
benefits the entrepreneur. Business planning helps the entrepreneur to determine accurately
the cost of doing the chosen business, which is derived from estimating sales, setting
product/service prices and tentative costs of production.

Step 4: Prepare a Marketing Plan

A marketing plan is an action plan for moving a product or service to consumers and
essentially includes:
i. a description the product or service, highlighting its benefits to the buyer and its
unique or innovative features;
ii. a comprehensive analysis of the business environment, with special attention to
the market (the potential customers), the competitive environment (the
competitors), the technological environment (the role of technology in the
business), the socio-political environment (the business response to changing
customer attitudes and government legislations) and the economic environment
(the purchasing power of potential customers at the present and in future);
iii. a SWOT analysis of the environment and its problems and prospects for the
business;
iv. a précised quantifiable and realistic objective, identifying, in simple statistics,
what the business can achieve (quantifiably) within given periods like monthly,
quarterly, yearly, etc.;
v. a mapped out marking strategies to employ, taking the result of the SWOT
analysis into consideration; and
vi. the action plan, which describes how to manipulate each of the four marketing
mix (product, price, place, promotion) to implement the marketing strategy.

Step 5: Finance the Business

The prepared business plan (see Step 3) must have identified the amount of capital required
for to establish the business. Hence, a start-up capital is required to kick-start the business.
This finance needed should be defined: is it for a building and/or leasehold improvements?
Is it for acquiring equipment? Is it for undertaking legal and incorporation matters? Is it for
the operating capital such as rent, utilities, wages and salaries, benefits, telephone and
transports? – What is the finance for? It could be to meet all of them and even more, as
may be articulated by the entrepreneur. The services of a bank may be needed to provide
for cheques and deposits and to keep a separate record of the business‟ transactions. The
various types, sources and platforms for financing a micro, small and medium business in
Nigeria have been presented in Chapter 7.

Step 6: Choose Ownership Type of the Business

At this juncture, the entrepreneur decides on what business type the venture takes: is it a
sole proprietorship type of business or is it a partnership, corporation or co-operative
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

business? For purpose of guide, the brief definition of each of the business type is as
follows:
i. Sole Proprietor is a business type wherein one man is fully responsible for all the
debts and obligations related to his business.

Table 3: Sole Proprietorship Advantages and Disadvantages Respectively

Advantages Disadvantages
Low start-up cost Unlimited liability
Enjoy greatest freedom form regulation Lacks continuity if owner is absent
Decision making freedom No check and balances on decisions taken
Minimal working capital required Difficulty raisin capital
Tax advantage to owner Limited to bank and franchise dealings
All profits to owner Profits can be shared

ii. A partnership is an agreement in which two or more people combine their

resources in a business. In order to establish the terms of the relationship and to
protect partners in the event of disagreement or dissolution of the business, a
partnership agreement is usually written with the assistance of Lawyer. The
partners share in the profit according to the terms of agreement. Two types are
usually involved: general and limited partnership. In a general partnership, two
or more owners share in the management of the business each is personally
liable for all the debts and liabilities of the business. This means that each
partner is responsible and must assume the consequences of the actions of the
other partner(s). Whereas, in a limited partnership may involve limited partners
who contribute capital only. Thus, do not contribute to the management of the
business but are personally responsible for the amount of capital they have
contributed. Yet, sometimes, limited partnership may involve general partners.

Table 4: Partnership Advantages and Disadvantages Respectively

Advantages Disadvantages
Ease of information Unlimited liability
Low start-up cost Lack of continuity
Possible tax advantage Divided authority
Additional source of investment Difficult to raise new capital
Limited regulation Difficulty of finding partners
Broader management base Possible conflict among partners

iii. A Corporation is legal entity that is separate from its owners–the shareholders of
the company. Each shareholder has limited liability meaning that a creditor with
claims against the assets of the company would normally have no rights against
its shareholders.

Table 5: Corporation Advantages and Disadvantages Respectively

Advantages Disadvantages
Limited liability Closely regulated
Specialised management The most expensive to organize
Owner is transferable Restricted to charter
Continuous existence Requires extensive record keeping
Separate legal entity Diluted ownership
Possible tax advantage Double taxation of dividends
Easier to raise capital Nil
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

iv. The co-operative is another form of business organisation. Co-operatives are

incorporated provincially under state‟s or country‟s Co-operatives Act. Co-
operatives are financed by the purchase of shares by members who receive a
vote on the operation of the co-operative and a limited return on their shares.
Profits are returned to members in proportion to the use the member makes of
the cooperative through products or services sold or purchased.

Step 7: Register the Business Name

After determining the ownership type for the business, the next step is to register the
business with the appropriate authorities. Before registering the business name, the
Entrepreneur and registering authority must ensure that no other firm or individual has prior
rights to the name. Name clearance is conducted by the State‟s Ministry of Commerce and
Industry while the Corporate Affairs Commission (CAC) of Nigeria (in the Nigerian Scene)
does the registration. In addition, where the given business is based on invention and
innovation, it must be backed up with a patent. Patentable subject matter includes products,
compositions, apparatuses and processes. The subject matter must be useful, not obvious to
someone in the field or a collection of other known devices. However, alternatives to
patenting include obtaining a trademark on the name or copyrighting the rules or
instructions involved in the production of the business‟ goods and service. For example, the
continued success of Coca Cola is not based on patenting the formula but rather on the
exclusive rights to the words Coca Cola and Coke. In the Nigeria domain, for information on
patent, trademarks and copyright, contact the Trademarks, Patents and Designs Registry,
Commercial Law Department, Federal Ministry of Industry, Trade and Investment; and the
Nigerian Copyright Commission respectively.

Step 8: Start the Business; the Production of its Goods and Services
At this rung of the steps to starting business ladder, the Entrepreneur can open up the
doors and dust the tables of the firm to its market. Production of goods and services
commence right away. With the business running, the Entrepreneur further stabilizer the
operations and legalities as may be involved on daily basis. Such issues can include:
i. setting up of standard bookkeeping system which aids transacting with banks,
government institutions and other related establishment that usually demand
financial statements before taking up deals with entrepreneurial businesses. That
aside, the bookkeeping system will also lead to keeping track of commitments,
income and expenses, and thus, there is a good chance that money can
disappear or be wasted on needless penalties or foregone discounts, which an
effective record keeping will always trace and the hence helps the business keeps
going.
ii. Paying of tax and all relevant permit fees accordingly.
iii. Insurance, if necessary, and/or contact with Workplace Health, Safety and
Compensation Commission (WHSCC).
iv. Identifying and belonging to relevant trade or business unions

So far, this section has shown descriptively the eight (8) vital steps to be taken by
prospective Entrepreneurs in order to establish or open-up a business. The Figure 1 below
serves as a quick look to the 8 steps.
Arua, U & Uzuegbu, C.P. (2014). Steps to establishing micro and small scale businesses: A case for graduates of library and information
science in Nigeria. In A.O. Issa, C.P. Uzuegbu & M.C. Nwosu (Eds.), Entrepreneurship studies and practices in library and information
science (pp. 109-124). Umuahia, Nigeria: Zeh Communications

Figure 1: Steps to Establishing Micro and Small Scale Businesses

Step 8
Step 7
Step 6
Step 5
Step 4
Step 3
Step 2
Step 1

Source: The Author

5. Conclusion
This chapter has analytically shown the procedural steps every aspiring entrepreneur or the
new entrant into business, such as may come from fresh graduates of library and
information science or the unemployed librarians can undertake, can take to make a living.
The difference between micro and small scale businesses has been uncovered, taking into
consideration some various perspectives, determinants and variables. It has also been
argued out, didactically, why a prospective entrepreneur should start at micro or small scale
level first before advancing to medium or large scale levels, where possible. Crucially, this
chapter, like a script that can be acted, has also outlined extensively the indisputable logical
steps prospective entrepreneurs, in this case the graduates of library and information
science, can take towards establishing a new micro or small scale business in Nigeria.

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