CHAPTER ONE

1.1             Background To The Study

Small and Medium Scale Enterprises (SMEs) as defined by the National Council of Industries (2009) refer to business enterprises whose total costs excluding land is not more than two hundred million naira (N200,000,000.00) only. Small scale businesses are those businesses which are independently owned and operated requiring limited capital with few employee and non-sophisticated technology and which is not dominant in its field of operation. Small businesses constitute those sole proprietorships, privately owned corporations, partnerships with fewer employees and less annual revenue than a regular-sized business or corporation. Types of small business include those engaged in trade and commercial activities, services, and small scale manufacturing .Examples  include service or retail operations such as delicatessens, hairdressers or convenience stores, small grocery stores, bakeries tradespeople (e.g., carpenters, electricians), very small-scale manufacturing, and Internet-related businesses. Small business can be started with very minimal capital  and without any formality .many small business are operated as family business and can be combined with regular employment. Personal selling is part of the promotional mix, and the role which it plays in a firm can easily be seen from its importance. Personal selling is an aspect of salesmanship, in which there is a direct face to face interaction between a seller and the buyer to effect exchange of facts for making buying decision.
It is through sales representatives that firms know the needs and wants of buyers in order to know what to produce. But it is not enough to produce goods and service that satisfy human wants but also the goods and services must be passed to the user for production to complete. This is where the personal selling strategies come in. The salesperson has to communicate to the buyer by persuading and creating awareness for the product to be desired. The product so advertised has all the potential to satisfy the need of the prospect more than competitive product in the market .This is because, personal selling is a face-to-face communication, which has the potential to convince the buyer and demonstrate the workability of the product in terms of its quality and features..
Personal selling enables marketers to make their presentation to fit the needs, wants, motives and behavior of individual customer. Personal selling is an effective tool used by organizations to receive the desired response from its customers and prospects. Effective personal selling includes effective communication, education of customers on product usage, problem solving stimulating and motivating and ultimately soliciting for favorable response. Most SMES must adopt personal selling as its number one promotional tool.
 due to its traditional nature and cost effectiveness. The selling of  products through personal selling enable the salesperson to convince the potential customer through face-to-face interaction and ensure that the potential customer like the company’s products and preference to other competing products and parts with his her money for the product.  Håkan Håkansson & IMP Group. (1982).The research therefore seek to investigate Medium scale enterprises and salesmanship behavioral characteristics influence on business performance.

1.2 Statement of the Problem

The management and operations of small business is confronted with some challenges which constitute the limitations hindering the growth of small business in Nigeria. Small business can be started with very minimal capital and without any formality .many small business are operated as family business and can be combined with regular employment. Some of that problem includes lack of huge capital to expand or take advantage of business opportunities .This also affect the salary of the salemen who may not be motivated to perform ultimately. Also the lack of managerial skill also affects the smooth and successful operation of small businesses. Lack of planning skill often leads many small businesses into failure. Poor decision making and improper accounting also constitute the problem confronted by   Small businesses among other things.This combined together impedes on the performance of the salemen.The problem confronting the research is to determine. Medium scale enteprises and salemanship behavioural characteristics influence on business performance.

 1.3 Objectives of the Study

To determine salesmanship behavioral characteristics influence on business performance of  Medium scale enterprises

1.4 Research Questions

What is SMES and Salesmanship?

What is the effect of salesmanship behavioral characteristic on SMES business performance?

1.5 Significance of the Study

That study shall be used to appraise Medium scale enterprises and salesmanship behavioral characteristics influence on business performance.

 1.6 Research Hypothesis

Ho   Salesmanship behavioral characteristics influence on SMES business performance.is low

 Hi    Salesmanship behavioral characteristics influence on SMES business performance.is high

1.7 limitation of the study

The study was confronted by logistics and geographical constraints.

1.8  Definition of terms

SME DEFINED

Small and Medium Scale Enterprises (SMEs) as defined by the National Council of Industries (2009) refer to business enterprises whose total costs excluding land is not more than two hundred million naira (N200,000,000.00) only

 SALESMANSHIP DEFINED

 Salesmanship is seller-initiated effort that provides prospective buyers with information and motivates or persuades them to make favorable buying decisions concerning the seller’s products or service.

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