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THE PROBLEM OF MANAGING SMALL-SCALE ENTERPRISES IN NIGERIA.

(STUDY OF EBERSON COMPANY NIGERIA LIMITED)

 

ABSTRACT

      There is need to precise information on the study of the problem of managing small scale enterprises in Nigeria.   In other to arrive at the problems the project is divided into chapters.

      in carrying out the study sixty (60) questionnaire was distributed to the staff of Eberson Company Nigeria limited out of the sixty (60) forty (40) was completed and returned and out of the (45) that  was return (5) was rejected by the  researcher due to errors in filling them.

      also, the outcome of this study has made it possible for the researcher to conclude on the problems of managing small scale enterprises and brought possible solutions to the problems.

 

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION                                             1

1. Background of the Study                           1
2. Statement of Problem                               3
3. Purpose of the Study                                4
4. Scope of the Study                                   5
5. Research Questions                                  6
6. Hypothesis                                              6
7. Significant of the Study                             7

CHAPTER TWO  

1. Review of Literature                                 9

2.1  Definition of Small Scale Enterprises            9

2.2  Characteristics of Small Scale Enterprises14

2.3  Forms of Small Scale Enterprises          15

2.4  The role of small scale                 

enterprises in Nigeria economy.            19

2.5  Sources of fund for small-scale

 enterprises                                      22

1. Problems of managing small-scale

enterprises                                       33

CHAPTER THREE     

1. METHODOLOGY                                  40

3.1  Research Design                                40

3.2  Area of study                                    41

3.3  Population for the Study                      41

3.4  Sample and Sampling Procedure            41

3.5  Instrument for data Collection              42

3.6  Validation of Instruments                    42

3.7  Reliability of Instruments                     42

3.8  Method of Data Collection.                   42

3.9  Method of Data Analysis                      43

CHAPTER FOUR

1. DATA PRESENTATION AND RESULT        46

CHAPTER FIVE  

1. Discussion implication and result           57
   1. Discussion of finding                     57
   2. Conclusion                                  59
   3. Implication of the Result               60
   4. Recommendation                         61
   5. Suggestions for further research     63
   6. Limitation                                   63

References                                  65

                                         

CHAPTER ONE

1. INTRODUCTION

BACKGROUND OF STUDY

In recent year, particularly since the  adoption of the economic reform programme in Nigeria in 1986, there has been a decisive switch of emphasis from the grandiose, capital intensive, large-scale  industrial project based on the  philosophy of Impact Substitution to small scale industries with immense potential for developing domestic linkage for rapid, sustainable industrial development.  there can be no gain-saying that Nigeria has long recognize the importance and valuable contribution that small scale enterprises can make to poverty alleviation, wealth creation employment generation and private sector development.  this small-scale enterprises are given the right and opportunity to exist because it is an open  social system where people come in group with the purpose of combining knowledge, techniques, skills and resources to accomplish a goal oriented task by integrating their structural activities.

      The development of small –scale industries is not only an effective way of contributing to the economy and increase standard of living, but also one of the principle means of achieving social and political objectives by stemming the problem of rural-urban migration, increasing the income of low  income earners, all of which are of crucial importance to our societies.

consequently, both the federal and state government and recently, local government have stepped off to promote the development of small scale enterprises through increase incentives schemes, including enhanced budgeting allocation for technical assistance programme.  new leading scheme and credit institution such as the National Economic Reconstruction Fund (NERTUND World Bank Assisted Small Scale War Scheme (SMEX), Nigeria Export and Import Bank (NEXIM), The peoples Bank of Nigeria (PBN) and the Development Bank have also emerged  at both the National and local level to boost the flow of development finance to small scale enterprise.

In trying to promote small scale industry there is need to understand that the entrepreneurs are face with the problem of managing the enterprise and the extend of realization of it contribution to the economy depends on how they are cogently identified and tackled.

The problem of managing the small scale enterprises are caused by both external and internal factors.  the external factors are government policies, lack of infrastructural facilities, raw materials, banks unwillingness to give out loan etc internal factor are lack of managerial skill, lack of planning, market , finance etc.

 

1.   STATEMENT OF PROBLEMS

The various successive government in Nigeria have been making conceited effort through their budgeting provision and other enabling policies to encourage the establishment of small-scale  enterprises in the country, these enterprises are expected to argument landable  government opportunities ensuring efficient productivity as well as  raising the standard of living.

Inspite of all these government  efforts in their direction, the performance of small-scale enterprises operating in due to some teething problem facing them.  these problems are:

1. Problem of capital for the procurement of more efficient machine for effective operation and for the smooth running of the business.
2. Problem of lack of Infrastructural facilities  in the country.
3. Problem of lack of managerial skill
4. Problem of lack of planning
5. The important of small scale enterprises
6. Unfavourable government policies.

 

1. PURPOSE OF THE STUDY

1. To find out how lack of strategic planning contributes to the problem of managing small  scale enterprise.
2. To find out how lack of managerial skill contributes to the problem of small scale enterprises.
3. To find out how easy it is for entrepreneur to raise capital and obtain loan from bank.
4. To find out the extend to which infrastructural facilities affect the management of small scale enterprises.
5. To find out the role of small scale enterprises to the economy development.

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