Small-scale Business And Development Of Society

Small-scale Business And Development Of Society

Chapter One

General Introduction

Preface

The significance of small- scale business especially to a developing country like Nigeria can noway be overemphasized. Small- scale businesses are accredited the world over as machines of socio- profitable development of fostering invention, entrepreneurship and easing the use of raw accoutrements and other coffers. They also help in balancing artificial development and socio- profitable structure of the pastoral and civic areas.

likewise, it’s fairly labour ferocious, small- scale business produce substantial employment openings at low capital cost and being flexible and flexible, can more acclimatize to unanticipated changes if the profitable and fiscal surroundings.

In agreeing with the below position, Okonkwo( 1983) contended that the artificial future of Nigeria depends critically on the binary pillar of a stable macro profitable, vibrant and dynamic small- scale business sector grounded on a foundation of visionary cooperation between government and the private sector. But the power of small- scale enterprises of diligence to make these noble benefactions has been frustrated by enormous problems. Some of them are egregious while some others are too idle as to be conspicuous. Like cankerworms, they steadily eat into the very foundation of small- scale diligence causing ineluctable crash.

Onuoha( 1994) described small- scale business to be any manufacturing, processing or service assiduity with capital investment not exceeding N 150,000.00( one hundred and fifty thousand naira only) in making any outfit alone.

Obi( 1998) in his opinion described small- scale business as singly possessed and operated and not dominant in its field of operations.

A lot of small- scale businesses drivers are so important in a hurry that they ignore some of the directorial functions similar as planning, organizing, controlling, staffing and coordinating.

Okechukwu( 1987), in his view maintained that a person managing business, on his own has a better chance of success if he understood problems and prospects involved.

still, a lot of small- scale businesses drivers dabble into business because of the bare fact that some other person has succeeded on the line of operation.

Indeed though Redibough and New Dyde( 1980) refocused out that every new business adventure begins with the idea to produce a product( s), perform a service or vend being products or services.

Drucker( 1964) contributed that, for directors of small- scale business, strategies business planning is a nexus of operation process and the key to growth, success and survival. A business plan states what’s to be done, how it should be done, by whom it should be done and what coffers available or not that are demanded; it also streamlines business conduct.

In view of the strategy significance of this order of business, this work sets to probe the part of small businesses in the development of the society. Using named business in Abak Local Government as a case study.

The work has five chapters. Chapter one with the content “ general preface ” deals with the preface, statement of the problem, objects. Chapter two with the title “ literature review ”, review related literature.

Statement Of Problem

Events for the once decades have shown that small- scale businesses which suppose to give a logical starting point for big business, and as a spring board or training ground, and suffered a great set- reverse, due to inexperience and inconsistence of some entrepreneur, carrying out their businesses. This is the problem. It has come imperative to address and handed answers in this direction.

Ideal Of The Study

To assess the benefactions of small- scale business in the development of societies in Abak Local Government Area.

To assess the factors that affects the growth of small- scale business in Abak Government Area.

To identify the major problems encountered by small- scale business in Abak Local Government Area.

To make recommendations on how to promote favourable investment climate and break the problems of small- scale business in Abak Local Government Area.

Significance Of The Study

This exploration study is considered significance in view of the fact it brought out certain problems encountered in the establishment of small- scale businesses in Abak Local Government Area of Akwa Ibom State. also, making of applicable recommendations toward perfecting the sector. This exploration work will go a long way in attracting government at action in looking into donation and problems militating against smooth handling of small- scale business which if duly attended to will help in reducing the current severance problem being endured in the state.

Exploration Questions

What are the benefactions of small- scale business to the development of Abak Local Government Area?

What are the factors which impact growth of small- scale diligence in Abak Local Government Area?

What are the problem associated with small- scale diligence in Abak Local Government Area?

What are the ways of working the problems?

Thesis Of The Study

Hi There’s no significant relationship between influence growth to small- scale businesses and development of Abak Local Government Area.

Hi There’s no significant relationship between working problems of small- scale businesses and development of Abak Local Government Area.

Limitation Of The Study

The study had cardinal concentrated of Abak Local Government Area. There was fiscal constraint because of the area of content, as transportation to the entire Original Government Area entails high cost. Also there were moral problems as canvassed repliers parade reticent station and dissimulation in answering question.

Another serious problems was time constraint as the exploration carried out this exploration work in the amidst of tight academic schedules.

Description Of Terms

Small- scale business Small- scale business is any manufacturing processing or services assiduity with a capital investment onto exceeding N 150,000.00 in ministry and outfit alone.

Feasibility Studies Feasibility studies are the disquisition and analysis of a new business to determine the viability of a proposed business.

request Analysis request analysis is the process of determining what the consumers really need, their position, their perception, preference and demographic characteristics.

Training Training is the process by which a trainee acquires knowledge and skill both practical and specialized necessary for the effective prosecution of the function for which he or she was desire.

Working Capital Working capital is the capital demanded by a business to finance the day to day operation of the business.

Business Failure Business failure is assumed to be a situation where a establishment constantly performed low, in term of growth, net profit, request share and volume of deals in financial value.

Bank Overdraft This refers to a authorization given to an enterprise or a person to overdraft his/ her account up to an agreed limit.

Trade Bill This is and unconditional order in jotting, addressed to a person taking the person to whom it’s addressed to pay on the demand or at a fixed determinable unborn time.

Factoring This refers to transferring of goods from the directors to an agents for guardianship and trade on his behalf.

Trade Credit This is a situation where by goods are transferred to the buyers by a formal or informal agreement to be paid for in future.