Role Of Government Agencies In Promoting Small Scale Business

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Small scale business constitutes an important component of the Nigeria industrial sector. The importance of this sector cannot be over emphasized, especially in a typical development country like ours where the level of youth unemployment is rising beyond control. Hence small scale industries generates employment opportunities per unit of capital investment because they are generally more labour intensive which is more capital in nature. A large scale industries the cost N20 million for instance, may employ a mere 70 (seventy) workers or less where as a small industry that cost just N150,000 (one hundred and fifty thousand naira) may employ about 20-30 workers. Small scale businesses specialized in the production and marketing of various product and services ranging from food, beverages, drink/sachet water, cosmetics, spare parts and many others, Killby (1969) acknowledge the diversity of terms of the degree of specialization and division of labour and the quantity of raw materials and output and the character of markets being served by small scale businesses. As a result the bulks of Nigeria business fall within the small scale business which account for over 80% of the number of enterprise in the country (Ekunna 1992:160). Several number of small scale businesses are successful while other fall or are staggering too survival due to poor background management, lack of qualified man power, poor capital base, lack of marketing research and appropriate technology and credit rating among bank and other lender. These problems continues to militate against the establishment, survival and growth of small scale business have been emphasizing on the importance of small scale business and have established institutional support agencies to facilitate industrialization. However, small scale business still operate in uncertainly and are faced with serious obstacle, this raises the questions of whether the federal government is actually up to the responsibility in the promotion of small scale business in Nigeria.

1.2 STATEMENT OF THE PROBLEM
In spite of the recognition of the small scale enterprises in fostering economic development through the promotion of indigenous technology, employment generating activity and bordering the production base of the economy, the impact has not been given adequate recognition.
They have been restricted access to institutionalized credit because bank sees them as high risk ventures (Orji 1996) with the introduction of enterprise found. It is very difficult to cope with the attendant high production cost as a result of high cost of imported input and high interest rates. Therefore, to bridge this observed gap in gap in bank lending to small scale enterprises, the federal government set up the national economic Reconstruction Fund (NERFUND) in 1989 with aim of providing soft loans on medium and long term basis to small scale enterprises wholly owned by Nigerians.
The question now is can it be said that the same has made desired impact on the development of small scale enterprises in Enugu State. Since there are agencies set up to prove incentives and grants to small scale enterprises.
Therefore the researcher intends to find out why small scale business does not thieve in Enugu State. Also to investigate whether the growth of the economic activity in the state where these agencies actually providing it only in paper work and not practically. There are some of the critical issues, which this research work intends to evaluate hence the topic evaluation of government incentives schemes towards small scale enterprises is given.

1.3 OBJECTIVE OF THE STUDY
The main objectives of this study are to evaluate the impact of federal government in the promotion of small scale business in Nigeria. This study will specially seek to achieve the following:
1. To evaluate the marketing challenges facing small business.
2. To identify the sources of funds to the activities of the industry.
3. To find out the extent of government involvement in promoting the activities of the businesses.
4. To bring the light contribution of the industry to the development of national in marketing.
Finally, it is my hope that the students of marketing and others in related discipline will find this study very informative and useful tool in their respective studies.

1.4 RESEARCH QUESTIONS
The research is translated into question of which when answered will provide the detail solution of the problem of study for this purpose of this research work, the following questions will be asked on answered.
1. What are the problem encountered by small scale enterprise in an attempt to recover loan and incentives in Enugu State?
2. What modalities of receiving grants and incentives by small scale enterprises and are the grants put into other uses?
3. Is government incentives scheme set up to help small scale enterprises?
4. What are the roles of small scale enterprises towards the development of the state economy?

1.5 SCOPE OF THE STUDY
As the title of this essay indicates the study focuses its attention to federal government support of small scale business enterprises in Nigeria. It causes various policy guidelines, direct and indirect financial assistance and other programs and initiatives designed to promote this vital sector of the country.

1.6 SIGNIFICANCE OF THE STUDY
1. The significance of this study is basically on its contribution to knowledge and its benefits to individuals and organization.
2. The current economic crises in Nigeria have disseminated the growth of infant industries and encourage the establishment of similar business ventures in both small and large scale proportions. Although successful government have rowed to support individuals and group initiatives in the establishment of small scale businesses.
3. The current state of most small scale business in Nigeria is a far cry particularly when Structural Adjustment Programme (SAP) was introduced which brought about the problem of devaluation of the naira and the scarcity of foreign exchange of raw materials from abroad which has adversely affected product unit especially under a depressed economy.
4. This study in an attempt to evaluate to role of government in the promotion of small scale business in Nigeria as a country.

1.7 LIMITATIONS OF THE STUDY
A good research work is normally carried out with some attendant limitation, in this particular study under review, the under mentioned problem were encountered.
1. The study is limited to the assessment of promotion strategy on Small and Medium Enterprises (SMEs) and then measures of development in the rural communities, there are no much record made available to its researcher on the operators to quantify the efforts of the funding institutions.
2. To collect scientific data in the production of quality reports some sampling techniques were employed. These techniques like questionnaires were displayed or not correctly answered by the respondents.
3. Time Constraints: Time of survey was limited in terms of data collection. All sampled population could not meet all needed information within the stipulated period.
4. During the survey periods, the level of cooperation varied from one entrepreneur/industrialist to another.
5. Inaccessibility of records from the funding institution, like banks and government agencies. The desired records to ascertain the quantum of grants or subvention or loan guarantee offered to the operations of the SMEs were not made available by the relevant stakeholders.
6. The methods of data analysis were some formulars involved may be for technical to the understanding of a layman.
7. The test of the hypothesis may be cleared to individual that is not mathematically inclined.

1.8 DEFINITIONS OF TERMS
Small Scale Business: This is a business that is produced in small scale owned, managed and controlled by one or two persons with staff strength less than 50 and control a small share of the market.
The definitions of small scale business vary from one country to another even within the same country. They also vary in terms of time from one period to the others, such that the definition acceptable in 1980 will no longer be acceptable in 1989. It varies from sector to sector e.g. manufacturing to another say service sector the definition of small business also varies from one institution to another.
However, no matter the kind of definition given for small scale business, the criteria are usually.
a. Size of paid employees.
b. Size of capital invested including money excluding the value of land.
c. Sales turnover usually annually.
d. Employment of machines power extended to your power driven engines are used.
e. Combination of any of the above. The general practice is to specify the upper limit for example
f. Any business that employs 50m people or persons is regarded as small scale business.
g. Those business with capital investment not more than N2 million etc.

ROLES OF GOVERNMENT AGENCY
1. Establishes public policy and develops legislations and regulations relating to electricity.
2. Legislative responsibilities for the Independent Electricity System Operator (IESO) the Ontario Power Authority (OPA), Energy Board (OEB) and other agencies.
3. Significant legislation electricity Act 1998 and regulations Ontario Energy Board. Act, 1998 electricity restructuring act 2004, green energy and green economy Act 2009.
4. Approves the roles charged by transmitter and distributor.
5. Creates codes and regulations for criteria aspects of how transmitters and distributors.
6. Responsible for promoting economic efficiency of generation transmission and distribution.
7. Supplies Local Distribution Companies (LDC’s) like horizon utilities from transformers stations and distribution station.