Problems And Prospects Of Managing Small Scale Business
(A Case Study Of Agbazugbu Garri Processing Industry In Enugu East Local Government Area)
Managing a small-scale business poses a myriad of challenges and opportunities. On one hand, limited resources, including capital, manpower, and technology, often hinder smooth operations, making it difficult to compete with larger enterprises. Moreover, navigating regulatory compliance, fluctuating market conditions, and intense competition adds layers of complexity. However, small businesses also have inherent advantages such as agility, flexibility, and closer customer relationships, which can be leveraged for growth. Effective management strategies, including prudent financial management, innovative marketing approaches, and fostering a supportive organizational culture, can mitigate challenges and capitalize on opportunities, paving the way for sustainable success in the dynamic small business landscape.
Problem and prospect of managing small scale business in Nigeria. Small scale business contribute to a large extent to the growth of the economy of any nation, but now they are been faced with a lot of problems and challenges. When the researchers examine the records of National association of small-scale industries the researchers discovered that not all the small-scale industries that registered are in operation today. The purpose of this study is to identify the problems facing small-scale business in Nigeria, also to reveal the importance of small-scale business in a developing economy. The view of other related literature was also reviewed in this work. During the course of writing the project the survey research method was the research method used. Simple random sample technique was the sampling technique used, thirty five out of forty of the staff were randomly selected. However, personal observation, close ended questionnaire and oral interview are the techniques the researchers used to collect data the data was analysed using table and simple percentage. After the analysis of the data collected the researchers found out that some of the problems that small-scale business in the country are facing are lack of fund, inadequate infrastructural facilities, poor management personal etc. Finally, summary, conclusion and recommendations were made for the completion of this work. Some of the recommendations are appropriate credit guarantee scheme should be established and the support from credit Burean development, establishment of training center or institution for the training of personal etc.
Title page
Approval page
Certification page
Acknowledgement
Dedication
Table of contents
List of tables-
Abstract
CHAPTER ONE
(INTRODUCTION)
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Significance of the study
1.5 Scope of the study
1.6 Delimitation of the study
1.7 Research Question
1.8 Hypothesis
1.9 Definition of terms
CHAPTER TWO
(LITERATURE REVIEW)
2.1 Meaning of small scale enterprise
2.2 Importance of small scale business
2.3 Problems of small scale business
2.4 Prospects of small scale business
CHAPTER THREE
(RESEARCH METHOD)
3.1 Research Design
3.2 Area of Study
3.3 Population of the study
3.4 Sample and sampling technique
3.5 Instrument for data collection
3.6 Validity
3.7 Reliability-
3.8 Procedure for data collection
3.9 Method of data analysis
CHAPTER FOUR
(DATA ANALYSIS AND RESULTS)
4.1 Data presentation and analysis
4.2 Allocation and return of questionnaire-
CHAPTER FIVE
(SUMMARY, CONCLUSION AND RECOMMENDATION)
5.1 Summary of the finding
5.2 Conclusion
5.3 Recommendation
5.4 Limitation of the Study
5.5 Suggestion for further research
References
Appendix A
Appendix B
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The concept of small scale business has been generally acknowledged to have a strong relationship with economic development. The development of small scale business in Nigeria is a programme embarked upon by developing countries as one of the measures of economic growth of the nation. The people of Nigeria before the full development of small scale business were practicing subsistence agriculture, were by they cultivate only for the benefit of their family.
However, the coming of the white men in the country impart a great change to the nation. It bring about the introduction of commerce and many other business in the country people were employed in white kolar Job. Most economic activities were controlled by the foreigners. The raw-materials, importation of goods and their distribution throughout the country were dominated by only a few trading foreign enterprise.
Hence after the independence, the government of General Ibrahaim Badamasi Babangida in July 1986 introduced structural Adjustment program (SAP) this programme help to deregulate the Nigeria economy and also encourage private individuals to participate in the ownership of their own companies. As a result of this most people decides to get a self employed business some went into craft and art work and this bring about the development of small scale in business in the country.
CRODE (1998) in this opinion said that both federal state and local government have given to priority to small scale business enterprises in their development programme. The importance of small scale business such as selling of goods and rendering services for satisfying the needs and desire of our country has helped in the development of our economy. It has given rise to large allocation of funds in the federal budget. This situation could be seen in the Nigeria budget allocation of 1986.
The government of the state has contributed immensely to the development of the small scale business through the provision of soft loan and giving business advice. But however as time went on the small scale business could no longer meet up with what is required from them as a result of lack infrastructure, finance, inexperience management etc.
Therefore, the researchers wish to embark on this study in order to find out more of problems and prospect of managing small scale business in Nigeria with particular reference in Enugu East.
1.2 STATEMENT OF THE PROBLEM
In order to improve small scale business enterprise the Federal Government Constitution as stated in the first second and third of national development plan (N.D.P.S) from 1962-1985 the Enugu East local government provide some incentives which includes Agbazogbu Garri processing industry, Nchanawa beans mill industry, pipe borne water good access road, electricity supply and machineries.
Despite the effort of the federal and local government to help in the development and expansion of small scale business, some of these small scale business are still facing some problems which resulted to the closure of some of the industries. The existing ones do not seem to be functioning well and moreover some business enterprise are not being established as many as should have been. It is this issue of the problem of small-scale business enterprises that motivated the researchers to undertake this study with particular reference in Enugu East.
1.3 PURPOSE OF THE STUDY
The researchers purposely embark on this study in order to
a. Identify the problems facing small scale business and the possible solution.
b. Reveal the importance or small scale business in a developing economy.
c. Determine the infrastructural problem of small scale business.
d. Find out management problems encountered in small scale business.
1.4 SIGNIFICANCE OF THE STUDY
This study will go along way to sensitize the researchers and the nation at large on the need to develop and encourage small scale business in some part of the nation especially in Enugu East it will help the researchers to find out the possible solution to the problems of small scale business in order to help the future investors to invest wisely.
The success of this study will enhance the standard living of the people through self reliance and also aid industrialization. This study when fully utilized and action been taken by the Government of the Nation will create job opportunities.
1.5 SCOPE OF THE STUDY
There are many small scale business in our country Nigeria but this research work covered only the small scale business in Enugu East with particular reference to Agbazogbu garri processing industry.
1.8 RESEARCH QUESTION
(1) What are the problems of small scale business?
(2) Of what benefit will the reveal of lts important be?
(3) Can there be solution to the problems they are facing?
(4) What are the possible solution to the problems?
1.10 DEFINITION OF TERMS
BUSINESS: business can be defined as all economic activities directly or indirectly concerned with production or distribution of goods and services armed at satisfying the need of the people.
SAP- It means Structural Adjustment program it is a comprehensive economic package designed by a country to achieve both internal and external balance in its economic.
PROSPECT – A job plan etc that has a good chance of success in the future or something that is likely to happen in the near future.
PROBLEMS: A situation or something that causes difficulties or that hinders a person’s progress.
ENTERPRISE: This can be defined as the ability to think of new projects and make them successful. Also it is the development of business by the people of a country ratter than Government.
ECONOMY: This means the relationship between production trade and the supply of money in a particular country or region.
SMALL SCALE BUSINESS: A small scale business is one which is independently owned and operated and not dominant in its field of operation.
Problems And Prospects Of Managing Small Scale Business:
Managing a small-scale business comes with its own set of challenges and opportunities. Here, I’ll discuss some of the common problems and prospects associated with managing small-scale businesses:
Problems:
- Limited Resources: Small businesses often have limited financial resources, which can make it challenging to invest in necessary equipment, technology, and talent.
- Market Competition: Smaller businesses often have to compete with larger, more established companies. This can make it difficult to gain market share and establish a solid customer base.
- Cash Flow Management: Managing cash flow is crucial for small businesses. Uneven revenue streams and unexpected expenses can lead to financial instability.
- Access to Financing: Obtaining financing can be difficult for small businesses, especially if they lack a track record or collateral.
- Talent Acquisition and Retention: Attracting and retaining skilled employees can be challenging for small businesses that can’t always offer the same salary and benefits as larger companies.
- Regulatory Compliance: Navigating complex regulations and compliance requirements can be a burden for small business owners who may not have dedicated legal or regulatory departments.
- Marketing and Branding: Small businesses often struggle with marketing and branding efforts due to limited budgets. Building brand recognition can take time and effort.
- Technology Adoption: Staying up-to-date with technology is essential for competitiveness, but small businesses may find it challenging to invest in and implement new technologies.
- Scaling Issues: Scaling a small business while maintaining quality and customer satisfaction can be tricky. Rapid growth can strain resources and processes.
Prospects:
- Flexibility and Agility: Small businesses are often more nimble and can quickly adapt to market changes and customer demands.
- Personalized Service: Smaller businesses can provide a more personalized and customer-focused experience, which can be a competitive advantage.
- Local Impact: Small businesses often have a strong local presence, contributing to the community and building a loyal customer base.
- Innovation: Smaller companies are often more open to innovation and experimentation, which can lead to unique products or services.
- Cost Efficiency: Small businesses can keep overhead costs low by avoiding the bureaucracy and infrastructure of larger corporations.
- Entrepreneurial Spirit: Owners of small businesses are often highly motivated and passionate about their work, driving them to overcome challenges and find creative solutions.
- Ownership and Control: Small business owners have more control over decision-making and the direction of their company.
- Potential for Growth: With the right strategies and management, small businesses can grow and expand over time, becoming larger enterprises.
- Collaboration Opportunities: Small businesses can collaborate with other local businesses, creating mutually beneficial partnerships.
In conclusion, managing a small-scale business presents both challenges and opportunities. Success often depends on the ability to address the problems effectively while leveraging the prospects to create a competitive advantage. Adaptability, innovation, and a customer-centric approach are key factors in managing a successful small business.