A particular business may be looked upon either as a small scale or a large scale depending on its criteria that are used for the measurement of its size.

Such criteria include the annual sales volume, number of employees, total assets, and others u can think of. And with the criterion that was known, the majority of the enterprises in Papua New Guinea fall under the category of small scale. Many small businesses in the country aredescribed as the informal businesses with a single owner managing and running the business. Such enterprises provide goods or services for local demand and consumption. For most of these small scale businesses, they only sell, which is the leading management activity they do.The production, accounting, market and distribution are necessary however, they lack. Small trade stores and small businesses do require management skills with greater attention to goods and raw materials supplies. Book keeping and accounting functions and the management of the work force are very demanding on management resources. There are management skills required and management capabilities that need to evolve as business activities start to increase and change in nature. In the article ‘’Entrepreneurial and financial resources use in small scale businesses in Papua New Guinea’’, in a recent edition of the Catalyst (Volume 24), author Dr Ali Farbood explains that Papua New Guinean entrepreneurs particularly suffer from a few of the  following weaknesses and they are:

• An ‘’urge for spending’’ the money when it is at hand and the general feeling that they should enjoy the luxury of life today with less regard to what might happen in the future. This attitude is against the ‘urge for saving’ which is the most basic trait needed for success.
• A lack of interest in things that don’t work out as quickly as well as the entrepreneurs expectations. This situation results in both the result inadequate preparation for running the business as well as the excessive optimism that the business will be successful.
• The failure to project the business financing needs, including the lack of cash flow forecast and inadequate and inaccurate financial records. The projection of financing the needs of the business provide an estimate of how much money the business needs to get started and survive.
• Though the syndrome of seeing several business opportunities is a major reason why people in PNG start businesses. It is also a major cause of business failures because it is important that small business operators should set a limit to the expansion and growth of their business, compatible with their experience as well as financial and managerial capabilities.

PNG has a very few part-time training facilities in management and financial areas that are available. Over the last few decades, there is a growth in the number of private and public institutions that offer such part time training by means of conducting short courses. Marketing in its broad sense and the financial areas should be given priority in entrepreneurship development programs. Training programs aimed at improving basic accounting skills have proved to be in high demand and will be very helpful. New approaches should be taken into considerations on how to go about creating ways for a good entrepreneurial business.

Flora Kageni