Factors Affecting the Success of a Small Business for SS 3

Class: SS 3
Term: First Term
Week: 11
Age: 16 years
Duration: 45 minutes
Subject: Garment Making
Topic: FACTORS AFFECTING SMALL BUSINESS
Subject Matter: Factors that contribute to the success of small business

Specific Objectives

By the end of the lesson, pupils/students should be able to:

Cognitive Domain

• Identify at least five factors that contribute to the success of a small business.
• Explain how each identified factor influences business success.
• Discuss the importance of profit determination in a small business.

Affective Domain

• Appreciate the role of careful planning and management in business success.
• Value the need for good customer service and quality products.

Psychomotor Domain

• Demonstrate an understanding of how pricing considerations affect business viability.
• Participate actively in discussions about business success factors.

Reference Materials

The following resources were used in planning this lesson:

• 2025 Revised 9 Years Basic Education Curriculum
• Relevant State Unified Scheme of Work
• The HeadTeacher Scheme of work

Instructional Materials

The teacher will teach this lesson with the aid of:

• Charts showing factors to consider in determining prices.
• Whiteboard and markers.
• Textbooks on entrepreneurship and garment making.

Rationale for the Lesson

Understanding the factors affecting small business success is crucial for students aspiring to establish their own garment-making ventures. This lesson provides foundational knowledge that will help them plan, manage, and sustain their businesses effectively. It connects theoretical concepts to practical applications in the real world of entrepreneurship.

Prerequisite/Previous Knowledge

Students should have basic knowledge of what a business is, the concept of buying and selling, and some understanding of basic financial terms like cost and revenue.

Lesson Content/Board Summary

FACTORS AFFECTING SMALL BUSINESS

The success of a small business, including a garment-making enterprise, depends on several critical factors. Understanding and effectively managing these factors can significantly increase the chances of business growth and profitability.

Key Factors Contributing to Small Business Success

The following are essential factors that contribute to the success of a small business:

1. Effective Business Planning: This involves creating a clear business plan that outlines objectives, strategies, target market, financial projections, and operational details. A well-thought-out plan provides direction and helps in anticipating challenges.
2. Strong Financial Management: Proper management of finances is vital. This includes budgeting, managing cash flow, controlling expenses, and accurately determining profit. Understanding how to price products competitively while ensuring profitability is key.
3. Quality Products and Services: Offering high-quality garments that meet customer needs and expectations is fundamental. Quality builds reputation, fosters customer loyalty, and attracts new clients through word-of-mouth.
4. Effective Marketing and Sales: Promoting the business and its products to the target audience is essential. This involves identifying the right marketing channels (e.g., social media, local markets, fashion shows) and developing effective sales strategies to attract and retain customers.
5. Excellent Customer Service: Providing exceptional service ensures customer satisfaction and repeat business. This includes being responsive to customer inquiries, handling complaints professionally, and building positive relationships.
6. Strategic Location: For businesses with a physical presence, choosing an accessible and visible location can impact customer traffic. For online businesses, having a strong online presence and efficient delivery logistics is equivalent.
7. Adaptability and Innovation: The business environment is constantly changing. Successful small businesses are able to adapt to new trends, technologies, and market demands. Innovation in design, production methods, or service delivery can provide a competitive edge.
8. Skilled Management and Staff: Having a knowledgeable and competent management team, along with skilled and motivated employees, is crucial. Their expertise, dedication, and efficiency directly impact productivity and product quality.

Determination of Profit

Profit is the financial gain made in a transaction or business activity, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. It is determined by subtracting the total costs (fixed and variable) from the total revenue (sales).

Formula for Profit:

Profit = Total Revenue – Total Costs

Factors to consider in determining prices:

1. Cost of Production: This includes raw materials, labour, overheads (rent, utilities). Prices must cover all costs to avoid losses.
2. Competitor Pricing: Researching what competitors charge helps in setting competitive prices.
3. Target Market: Understanding what customers are willing to pay and their perceived value of the product.
4. Desired Profit Margin: The percentage of revenue a business aims to keep as profit.
5. Market Demand: High demand may allow for higher prices, while low demand might require lower prices.
6. Brand Positioning: Premium brands can command higher prices, while value brands focus on affordability.

Teaching Methods/Instructional Techniques

Discussion, Explanation, Question and Answer, Demonstration, Guided Practice

Instructional Procedures

Step 1: Introduction

Time: 5 minutes

Teaching Skill: Activating Prior Knowledge

Teacher’s Activity: The teacher greets the students and asks them to recall what they understand by the term “business” and “profit”. The teacher then introduces the topic: “Factors Affecting Small Business Success”.

Pupils’ Activity: Students respond to the questions and listen attentively to the introduction.

Learning Point: Business and profit recall

Step 2: Identifying Factors for Success

Time: 8 minutes

Teaching Skill: Brainstorming/Explanation

Teacher’s Activity: The teacher asks students to brainstorm what they think makes a small business successful, especially considering a garment-making business. The teacher lists their suggestions on the board and begins to explain the first few factors, such as effective business planning and strong financial management.

Pupils’ Activity: Students offer their ideas and listen to the teacher’s explanations.

Learning Point: Initial success factors

Step 3: Discussing Financial Management and Profit

Time: 8 minutes

Teaching Skill: Discussion/Demonstration

Teacher’s Activity: The teacher focuses on “Strong Financial Management”. The teacher leads a discussion on how profit is determined in a business, using simple examples related to garment production (cost of fabric, labour, selling price). The teacher explains the formula for profit.

Pupils’ Activity: Students participate in the discussion and ask questions about profit determination.

Learning Point: Profit determination explained

Step 4: Pricing Considerations

Time: 7 minutes

Teaching Skill: Visual Aid/Explanation

Teacher’s Activity: The teacher displays charts showing factors to consider in determining prices for products. The teacher explains each factor (cost of production, competitor pricing, target market, desired profit margin, market demand, brand positioning) and relates them to pricing garments.

Pupils’ Activity: Students observe the charts, listen to explanations, and contribute examples.

Learning Point: Pricing factors understood

Step 5: Other Critical Factors

Time: 6 minutes

Teaching Skill: Explanation/Elaboration

Teacher’s Activity: The teacher continues to explain other crucial factors like quality products/services, effective marketing and sales, excellent customer service, strategic location, and adaptability/innovation, giving relevant examples for a garment business.

Pupils’ Activity: Students listen and take mental notes, asking clarifying questions where necessary.

Learning Point: Remaining success factors

Step 6: Management and Staff

Time: 3 minutes

Teaching Skill: Reinforcement

Teacher’s Activity: The teacher reinforces the importance of skilled management and staff, highlighting how their expertise and motivation contribute to overall business success and product quality in garment making.

Pupils’ Activity: Students acknowledge the importance of human resources in business.

Learning Point: Management and staff role

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. Mention three factors that contribute to the success of a small business.
2. How is profit determined in a business?
3. State two factors to consider when setting prices for garments.
4. Why is good customer service important for a garment business?

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Factors affecting business success

Step 8: Note-Taking

Time: 4 minutes

Teaching Skill: Guided Writing

Teacher’s Activity: The teacher guides pupils/students to copy the essential Board Summary notes on factors affecting small business success into their notebooks.

Pupils’ Activity: Pupils/students copy the notes carefully into their notebooks.

Learning Point: Recording lesson notes

Step 9: Conclusion

Time: 1 minute

Teaching Skill: Consolidation

Teacher’s Activity: The teacher summarises the lesson by reiterating that understanding and applying these factors are crucial for anyone planning to start or manage a small business, especially in garment making. The teacher encourages students to think critically about these factors in their future ventures.

Pupils’ Activity: Students listen and reflect on the lesson.

Learning Point: Lesson summary reinforced

Continuous Assessment/Further Study

Type: Homework

Instruction: Answer the following questions in your notebook.

1. Explain in your own words how “effective business planning” can lead to the success of a small garment business.
2. List and briefly explain three ways a garment maker can ensure “excellent customer service”.
3. Research and write down two examples of local small businesses that you think are successful, and identify one key factor contributing to their success.

Lesson Keywords

• Business Planning – A written document describing a business’s future.
• Financial Management – The planning, organizing, directing, and controlling of financial activities.
• Profit – The money left after all expenses have been paid.
• Pricing – The process of determining what a company will receive in exchange for its products or services.
• Customer Service – The assistance and advice provided by a company to those who buy or use its products or services.
• Marketing – The action or business of promoting and selling products or services.
• Adaptability – The ability to adjust to new conditions.

Differentiation

For weaker learners, the teacher will provide simplified explanations and focus on identifying just three key factors with practical examples. Stronger learners will be encouraged to research real-life examples of successful small businesses and analyze which factors were most critical to their success, presenting their findings to the class.

Suggested Lesson Videos

Search on YouTube for: “Factors affecting small business success Nigeria”

Teacher Guide for Using This Lesson Plan

Before the lesson, ensure you have prepared the charts illustrating pricing considerations and have some simple examples ready for the discussion on profit determination. Begin by engaging students with their existing knowledge of business. Guide the discussion on each factor, linking it directly to the context of a garment-making business to make the concepts concrete and relevant. Encourage active participation throughout the lesson. During Step 7, use the evaluation questions to check for understanding of the core concepts. Remind students to copy the Board Summary notes carefully during Step 8. For students who struggle, provide additional verbal cues and simpler examples. For those who grasp concepts quickly, challenge them to think about how these factors might interact or how a business might overcome a weakness in one area.