Small Scale Retailing

There are two main categories of retail outlets based on size: Small scale and Large scale retailing.   Types of Small-Scale Retailing: Itinerant Traders: Itinerant traders, such as hawkers, peddlers, and gipsies, move from place to place to sell goods, bringing them directly to consumers.   Features of Hawking/Itinerant Trading: Small-scale retail business. Provides door-to-door […]

There are two main categories of retail outlets based on size: Small scale and Large scale retailing.

 

Types of Small-Scale Retailing:

  1. Itinerant Traders: Itinerant traders, such as hawkers, peddlers, and gipsies, move from place to place to sell goods, bringing them directly to consumers.

 

Features of Hawking/Itinerant Trading:

  1. Small-scale retail business.
  2. Provides door-to-door selling.
  3. Requires minimal capital investment.
  4. Involves the movement of goods using carts, canoes, wheelbarrows, etc.
  5. Hawkers do not pay rent.
  6. Goods are advertised through vocal announcements, bells, horns, trumpets, or loudspeakers.

 

Advantages of Hawking:

  1. Requires a small amount of capital.
  2. Provides door-to-door selling.
  3. Easy to start.
  4. Acts as a form of advertising.
  5. Low running expenses for operators.
  6. Offers flexibility in operations.
  7. Goods sold at affordable prices.
  8. Creates employment opportunities.

 

Disadvantages of Hawking:

  1. Exposure to road mishaps.
  2. Disruption of traffic flow.
  3. Potential negative impact on children’s education.
  4. Encouragement of child labour.
  5. Contributes to street littering.
  6. Health hazards for exposed food items.
  7. Exposure to negative influences and criminal activities.
  8. Stressful working conditions.
  9. Facilitates the sale of fake or sub-standard goods.
  10. Non-payment of taxes deprives the government of revenue.

 

Other Types of Small-Scale Retailing:

  1. Street Retailing or Roadside Traders: Traders displaying wares along streets, roads, or outside schools, companies, or offices.
  2. Market Traders or Stall Holders: Traders in established markets, operating without fixed shops.
  3. Kiosks: Retail outlets offering a limited range of consumer items, often located at places with high customer traffic.
  4. Small Store or Single Shops: Small stores found in residential areas or shopping complexes.
  5. Tied Shops: Shops specializing in a single commodity, supplied directly by the manufacturer.
  6. Mobile Shops: Motor vans or lorries used as shops, often in remote areas, with goods well arranged and advertised through music or public announcements.

 

Reasons for the Existence of Many Small Scale Retail Businesses in Nigeria/West Africa:

  1. Lack of sufficient capital for large retail businesses.
  2. Low savings due to low per capita income.
  3. High unemployment rates and difficulty in securing white-collar jobs.
  4. Absence of developed markets.
  5. Small-scale businesses require manageable capital.
  6. Attractive due to low running expenses and operational flexibility.

 

Problems Encountered by Small-Scale Retailers:

  1. Competition from larger businesses, leading to price wars.
  2. Insufficient capital for investment and expansion.
  3. Difficulty in securing ideal locations, especially in congested urban areas.
  4. Challenges in debt collection.
  5. Unlimited liability for sole proprietorships or partnerships.
  6. Disturbances from government agencies such as urban planning, revenue officials, and environmental protection agencies.

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