CONSTRAINT OF SMALL SCALE BUSINESS IN NIGERIA

Description

This research work is on CONSTRAINT OF SMALL SCALE BUSINESS IN NIGERIA.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Proper management of small scale rise mills in rural area can contribute significantly to the successes of larger organization.

Nigeria government jointly established so many institutions like CMD,

NDE, NBCl, and NERFUND etc

So as to assist small, medium and larger scale businesses in accomplishing their aims and objectives.

In addition, numerous programs have been designed in the past to ensure the success and perpetuality of business especially the small business, since they contribute primarily to the growth of our nation.

In the light of this failure, it is worthy to note that there were numbers of constraints encountered by small-scale businesses especially the small rice mills enterprises in lbaji local government area of Kogi state.

The problems or threats that confronted small rice mills business in ibaji could be enumerated as follows; problems of financial insecurity, lack of manpower resources, frequent change in production technologies, absence of market/raw materials, power instability.

And many others to mention but too numerous. The researchers thus, attempted to highlight these macro constraints that drawback the performance of small Scale rice mills in lbaji and also postulate useful suggestion on how to solve the problems.

It is a clear fact that these constraints, if prior attention is not designed will definitely lumped our national, and individual dreams of industrialization.

Since the contributions of small businesses to the developing of large businesses enterprise in Nigeria are not only indelible but equally enormous and tremendous.

1.2 STATEMENT OF PROBLEM

The existing of small scale rice mills in Ojila ward, Akpano ward, Ejule ward, Unale ward, Aya ward, iyano ward, Uje ward, Analo ward, Odeke ward and Onyedega ward which make up lbaji local government area are not performing effectively due to some associated constraints, the constraints emanated as a result of the following:

i. Lack of finance

ii. Absence of managerial competence

iii. Lack of manpower planning

iv. Presence of technical and production hurdles Seasonality in the production of raw materials and absence of market.

VI. Power supply

1.3 OBJECTIVES OF OBJECTIVE

The main objective of this research is to identity the constraints encountered by rice mills in ibaji and suggest possible solution to the problems. In essence, The objective of this research are as follows:

i. To determine if finances affects the establishment and running of small scale rice mills.

ii. To determine the mode of selection and training of manpower

iii. Identification of whether managerial constraints hamper the success of rice mills

iv. To determine the extent to which technical / productions hurdles constituted to constraints.

v. To verify the availability of market and consequences of marketing mix.

1.4 RESEARCH QUESTION

In the course of this study, the researchers have the following questions drawn to the appropriate standards;

1. What are the financial constraints in establishing and running of small-Scale rice mills?

2. What are the managerial constraints hindering the success of rice mills?

3. Do the mode of selection and training of manpower constitutes a bottleneck to the progress of rice milling?

4 Are there technical production constraints on rice milling?

5. How do availability of market and the consequence of marketing mix affect rice milling?

1.5 SIGNIFICANT OF THE STUDY

This research shall be of immense benefit to students and researchers who might be willing to test their investigation or carryout specific projects and need information that have been presented with the blue print of the solutions to some of the constraints hindering the effective operation of those whose key interest is the industrialization of our rural areas can now go ahead to promote, encourage and implement the establishment of the forms.

On the other hand investors and the general public who have been missing the opportunity of investing in these types of industries before you can now go ahead and establish, one having been aimed with the solutions to the constraints that militate against the smooth operation of these industries. The researcher believed that this study will surly serve in the area of provision of necessary to such users.

1.6 SCOPE OF THE STUDY

This research work concentrated mainly on the constraints, problems and all other micro-environmental threats that restricted or hindered the fast and accelerative success of small scale rice mills in lbaji local government area of Kogi state.

The area under studies in lbaji consists of ten ward names: Ejule, Uje, Aya, Iyano, Onyedega, Unale, Odeke, Ojila, Analo, Ekpany wards.

1.7 LIMITATION OF THE STUDY

In the course of this research a lot of problems were encountered by the researcher they include problems of administration retrieval of research materials owing to ignorance ones of the farmers. Lack of co-operation and misunderstanding of the activities of researcher by the influential people of the society, inaccessibility to the area and above all, the bureaucracy demonstrated by our various information keepers.

1.8 DEFINITION OF TERMS

Milling: is a process of removing husks from the edible grain therein

Hand milling: is the crude method of milling of rice by the use of mortar and pestle.

CMD: Center Management Development

NDE: National Directorate of Employment

NBC1: Nigeria Benue for Commerce and Industry

NERFUND: National Economic Reconstruction Fund

Small scale rice mills: these rice mills being established by private entrepreneurs.