Small Scale Enterprises And Socio-economic Development In Nigeria

Small Scale Enterprises And Socio-economic Development In Nigeria

Chapter One

Preface

Background Of The Study

Small scale enterprises constitute the fabric of public frugality( Onuaha, 1998 1). The Nigerian frugality has been in a process of nearly transition both economically as regards the frugality. Obi( 19984) start from primitive to ultramodern and form a mixed frugality to a request driven one. In all these stages, he noted Small Scale businesses and entrepreneurs are known to have taken active part while government plays the factual nonsupervisory and easing rules.

numerous studies have indicated that the expansion of the small scale sector has significant donation to employment generation pastoral industrialization optimal, are of mortal and material coffers and has considerable multiplier effect on the frugality through backward and forward liaison( Attah and Chuta 1984).

The issue of promoting entrepreneurship and small scale business in our public development has been ongoing.

The idea in all ramifications has enthralled our government, itineraries and director in different spheres, once and present government since 1999 have embarked on programs that would insure a stable Nigeria and her public frugality. in the same tone, Okonkwo( 1986), a former minister of budget and planning editorialized that he’d like to see thousand of small scale diligence and business throughout the country employing five, ten, twenty, workmen. Some measures taken by the government included, Apex Loan Scheme( ALS), structural Adjustment Programme( SAP), National Directorate for employment( NDE) etc. In a forward to the public policy on micro, small and medium enterprises, the Directorate GeneralMrs. Modupe Adelege had this to stay

The significance of micro, small and medium enterprises( MSMES) in employment generation, Economic commission, poverty relief and indeed distribution of development had long been honored. The major challenge has been how to make this be in the frame of robust policy platform.( Ekpenyong, 1988).

This goes on to show the significance that once and present government have shown in developing the factor. each over the world, Small scale enterprises and their drivers play pivotal places in the development process and constitute the fabric of public economics. They’re keys to the creation of indigenous products, machine, technology and entrepreneurial capacity at every stage of profitable advancement, from feudal system to the request led frugality, small scale enterprises are known to have taken a centre stage in employment creation and development with government playing the part of a facilitator and controller in terms of number and geographical spread, small scale businesses units have proved to be effective and vital machine for furnishing perpendicular and vertical liaison in productive conditioning and in propelling forces of profitable growth and development.

According to Osaze( 2005) small scale business in Nigeria formed and important sector for employment. It’s known to employ over 45 of the labour force in Nigeria.

Small establishment offers productive outlets for enterprising and interdependent inclined people. This according to him, will continue to increase with advancement in technology and the desire of numerous youthful people adventure into their own edeavours.

Obanla( 1987), the Federal Government of Nigeria in consummation of the tremendous donation of small scale business has encouraged the establishment and operation of similar businesses by direct fiscal backing through the National Directorate of Employment( NDE) government regulation on assiduity, its financial policy and backing of Development Banks( NIDB) and the Nigerian Bank for Commerce and Industry( NBCI) and others.

The elaboration of SMEs and entrepreneurship dated back to numerous centuries agone , starting with the early period to middle periods, 17th, 18th, 19th and 20th centuries, a long the time, business was perceived negatively starting with the disparaging reflections about business which Napoleon castigated England as a nation of shopkeepers.

Indeed in the once century business was frequently regarded as elite inglorious occupation( Koontz et al 198030- 32).

Statement Of The Problem

Political economists have preoccupied themselves with political frugality and thenon-managerial aspect of business therefore, early political proponents have been slow in turning their attention to the problem of administration despite the fact that no organisation( including business organisation) can serve effectively or efficiently without good administration.

Early proponents didn’t see the need to categorize the business discipline within the broad field of social lores for numerous times, there was a wide spread belief among directors and directors in the private and public sectors and other associations, that operation or the study of business isn’t susceptible to proposition that operation is completely an art and not to any extent a wisdom.

Small scale businesses have serious problems and prospects faced worldwide, analogous problems and prospect are faced by people( businessmen) in Uyo megalopolis and these problems are still enormous.

still, lack of operation skill in area of finance is a serious intractable reversal to small scale business, possessors of utmost small- scale in Uyo at large are simply ignorant of what’s passing to their coffers, generally as a result of poor secretary or sketch account system.

As Olasore,( 1987) put it “ account is the set of rules and styles by fiscal and profitable data are collected, reused and epitomized into report that can be used in making opinions. Weak account system is linked as one of the introductory problems of small scale business. This problem generally affect in incapability for a establishment to produce accurate numbers to project the true position of the business.

product problem frustrate the effectiveness of small scale business which effective planning by directors should enable the establishment to make a five time character for excellence which can enable a establishment to produce a demand for its products. Small business fail because of inadequacy in marketing strategies, possessors warrant these strategies because they can not elect the applicable mix of marketing and can not also identify the target request and specific groups of guests. New technological developments affect the effectiveness with which products can be manufactured and vended. Some of the socio-artistic factors like, station, values and customs affect small scale business in Uyo megalopolis.

still, in utmost third world nations, including Nigeria, SMEs failure rate remains veritably high. This exploration systems is an attempt to concentrate on small scale enterprises and socio- profitable development in Nigeria.

Objects Of The Study

Lack of operation skill in the areas of finance affects the effectiveness of small scale enterprise.

Lack of planning affects the effectiveness of small scale enterprise.

Lack of marketing strategies affects small scale enterprises.

Socio-artistic crunches affects the success of small scale enterprises.

Exploration Questions

i) Does lack of operation chops in the area of finance affect the effectiveness of small scale enterprises?

ii) To what extent does lack of planning affect the effectiveness of small scale enterprises?

What are the marketing strategies which could be employed to prop small scale business?

What are the crunches of socio-artistic rudiments that baffle the success of small scale enterprise?

Exploration Propositions

Lack of operation chops in the area of finance affects the effectiveness of Small Scale enterprises.

Lack of planning affects the effectiveness of Small Scale enterprises.

Lack of marketing strategy affect small scale enterprises.

Socio-artistic crunches on the success of small scale enterprises.

Significance Of The Study

Inspite of the egregious significance of effective and good operation in all business conditioning, numerous small businesses still suffer from poor operation styles and ways.

This exploration is an attempt to unveil the entrepreneurial failure and attack it exactly so as to recommend to the leaders and drivers of the frugality what they should do to sustained the dream of 2020 profitable barracuda.

The study will also reveal the profitable set reverse of SMEs in Uyo megalopolis and the advisability and styles of installing an effective operation system and approaches.

In an frugality situation like ours where severance too is replete, this study will make precious benefactions, suggestions and findings that will be of stimulant to intending investors, small business directors possessors and indigenous industrialist, exposing them to the profitable and socio-artistic realities of the society.

farther, it’ll be of great applicability to the government profitable itineraries during allocation and distribution of coffers, scholars and enterprises who want to conduct farther exploration in the area of small business enterprises.

Compass And Limitations Of The Study

The study was conducted rigorously to estimate small scale enterprises and socio- profitable development in Nigeria. The compass is Uyo Local Government Area. The experimenter encountered some difficulties in the course of this study. This manifested in the form of dearth of literature on the subject matter of the exploration as well as lack of time and finance.

Description Of Terms

i) Small Business is defined as a business which is singly possessed and operated.

ii) Small scale enterprises These are typically intimately possessed pots, cooperation or vended procurement. What small scale enterprises are generally not dominant in their field of operation.

iii) Development Is a process by which a high degree of tone reliant profitable growth in a society sustained over a long time, is associated with substantial reduction in poverty, severance, inequality and external dependence.

iv) Entrepreneurship This is the development of a business from the ground up, coming up with an idea and turning it into a profitable business.