PROBLEMS AND PROSPECTS OF ESTABLISHING SMALL SCALE ENTERPRISES IN NIGERIA

ABSTRACT

It also paid attention to the foundling of the small scale business in Nigeria. Whereas failure of the largescale import department assembly to propel the country into a satisfactory course of industrialization necessitate the demagnification of strategy to embrace the promotion of small scale enterprises achievement under the new strategy has not been adequate with expectations of the stated objectives which were economic growth and development through the mobilization of available local resources, employment generation and industrial dispersal as well as mitigation of rural urban migration. Out of a population of eighty drawn from the selected bakeries, sixty seven were selected as the sample size using statistical sample tools Taro Yamani. A questionnaire was designed and distributed to elicit information from the sample population; also data was sourced through primary and secondary sources. These data collected were presented and analyzed by means of tables and percentages.

CHAPTER ONE

INTRODUCITION

1.1 BACKGROUND OF THE STUDY

The contribution of small scale business in fostering economic growth and development has been well articulated in different areas of this study .the specific attention on them based on their expected impact and potential contribution on broad and diversified production base, as well as their accelerative effect in achieving macro objectives pertaining to full employment, income distribution and the development of local technology. They are particularly most conducive for diffusion of management skills and emulation of indigenous entrepreneurship overtime.

Small business provides financial opportunity and a chance to develop wealth. It is a place where creative, motivated individuals can use their talents and expertise to the fullest, because it provides satisfying careers and job opportunities and its also the back bone of the market economy of the word. Every big business starts as a small business, and it started with an entrepreneur small business, who at first, earns little or no profit. It was the new ideas of small business that brought about Ekene Dili Chukwu Transport, the FAN Milk, Nnewi Tokumbo parts, and even the many commercial banks in Nigeria. Untried ideas become annulations that become concepts that changed the business world. And so it goes. Small business is the basis for the economic well being many developed nations including USA/Japan.

1.2 STATEMENT OF THE PROBLEM

Bakery is in the production industry the quality of products rendered by our Bakeries have been attracting criticisms from people in all works of life. The civil servants, business men and the general public are all very critical of production of cookies like bread, chichin, cake, meat pie, boons etc. The complaints ranges from those of poor quality of products, poor packages, high prices, poor delivery, shortage of skilled manpower which affects productivity and restrain expansive the use of potassium bromated which National Agency for food and Drug Administration Commission NAFDAC banned for health purpose.

1.3 OBJECTIVE OF THE STUDY

Based on the fact that one cannot build a house on a platter of gold without encountering one or two hassles here and there, so in the genesis and revelation of this work as the researcher encountered several problems the course of writing, which ranges from lack of time, financial and material constraints to the inability of reaching all members of the sample due to transport problems and even those reached tend not to render full cooperation thus the total number of people interviewed became smaller.

1.4 RESEARCH QUESTIONS

The importance of small scale business in the promotion of economic growth and development has always been at the forefront of development strategies. However, many developing countries have failed to adopt this strategy owing to their belief that it is a relatively show process of industrialization which may not be very compatible with their desire to catch up with the industrial countries.

1.5 RESEARCH HYPOTHESES

To guide the investigation of the issue raise in the problem definition. It is hypothesized that:

HYPOTHESIS 1

H0: Smallscale industry does not contribute to economic growth amp; Development

H1: Smallscale industry contributes to economic growth development.

HYPOTHESIS 2

Ho: Lack of finance is the major problem facing smallscale business

Hi: Smallscale business does not have any problem in terms of Finance.

1.6 SIGNIFICANCE OF THE STUDY

This study is very timely, especially today that all hand is on desk to enhance the development and growth of the Nigerias economy through the small scale enterprises. This study will be of immense benefits to cottage enterprises as well as other small and medium scale enterprise.

Furthermore, the research work will serve as a secondary data to future researches on small and medium scale enterprises.

1.7 SCOPE OF THE STUDY

The scope of this study i.e. small scale enterprise is very wide it had to be carried out in all smallscale industries in Nigeria.

1.8 LIMITATION OF THE STUDY

The study is therefore limited to bakeries industries in Enugu Urban because of time and material resources to see to the whole nation.

1.9 DEFINITION OF TERMS

NAFDAC: National Agency for Food and Drug Administration Commission

SAP: Structural Adjustment Programmed