Problems And Prospects Of Managing Small Scale Business

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.