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DIFFICULTIES Confronting Small and Large Organizations in Nigeria

DIFFICULTIES Confronting Small and Large Organizations in Nigeria



This study focused on the difficulties faced by small and large enterprises in Nigeria. Domino meals and pepperoni are the subject of a case study. The overall population for the study consists of 200 employees of specific indomie food and pepperoni manufacturers in Abuja. The researcher utilized questionnaires as the data gathering instrument. Using a descriptive survey research design, this study was conducted. The survey utilized 133 respondents comprised of supervisors, secretaries, sales representatives, and junior staffs. The acquired data were tabulated and evaluated using straightforward percentages and frequencies.



Chapter one


Background of the study
Small and large-scale businesses are often recognized as the engine wire of any nation’s economic progress and as justifiable means that promote global development. Small and large scale businesses are equally labor intensive and capital efficient. They are capable of empowering individuals and creating billions of new employment worldwide (Abeh, 2017a,b; Kadiri, 2012). They are also seen as the primary drivers of economic expansion and poverty eradication (Agwu & Emeti, 2014). Small and big scales are key components that connect, reinforce, and advance the development of nations. Their success and growth in manufacturing, agriculture, and services, among others, have been seen as economic drivers and have contributed to Nigeria’s economic prosperity. Competitiveness is generated by sustainable growth and the improvement of small and large-scale performance, which opens multiple doors for employment possibilities and tangible and intangible assets (investment) in the environment (Eniola & Ektebang, 2014). Historiographically, Nigeria’s independence in 1960 represented a turning point in the growth and development of Small and large scale, which has led to a significant emphasis on Small and large scale as a cure for reducing poverty and unemployment in Nigeria as a whole. Adoption of the Economic Reform Program (ERP) in 1986 marked a pivotal shift from impressive, capital-intensive, large-scale industrial projects based on import substitution to small scale industries with enormous potentials for the development of domestic links for sustainable economic and industrial development (Agwu & Emeti, 2014). Consequently, both small and large scale businesses play a significant role in the Nigerian economy (Eniola & Ektebang, 2014). In spite of its difficulties, Nigeria’s small and large-scale businesses have grown over the years.

Dr. Ade Oyedijo, a financial expert, asserted in a study titled “Nigeria’s Economy and its Career Prospects for the Mature Employee” that the plights of small and big scale businesses in Nigeria are attributable to the fundamental variables and obstacles that characterize the nation’s economy. These include, but are not limited to, a very high unemployment rate, which is likely to rise as a result of the ongoing changes in the public sector, a high unemployment rate, a high level of poverty, disease, hunger, etc. Dr. Oyedijo also mentioned a dramatic shift from the production of non-oil traded goods (mostly agricultural) to traded goods as one of the characteristics of our nation’s economy that exacerbate the problems of Nigerian Small and large scale. Since independence, the main thrust of Nigeria’s development strategies and objectives has been the development of industrialization, education, and a self-reliant economy. However, the human capital that is expected to support the industrialization process and propel other sectors to maturity has not demonstrated the knowledge, attitude, and skills necessary to achieve this goal.

Small and large scale have been recognized as the pillar of job creation and technological advancement in Nigeria, but the sector has been subjected to a fair amount of neglect, which has had unfavorable effects on the economy. In a seminar titled “Career Crisis and Financial Distress- The Way Out,” the General Manager of Enterprise and Financial Support Company Limited, Mr. Oluseyi Oluboba, identified the following as the main problems of Small and large scale, which are however not insurmountable: low level of entrepreneurial skills, poor management practices, restricted access to money and capital markets, and low equity participation from the promoters due to insufficient personal financial resources. Undoubtedly, the issues and obstacles that Small and large scale face are significant, yet it is intriguing that some Small and large scale are able to overcome them. This provides optimism and grounds for hope that there is a solution. There must be certain survival tactics that many little and large-scale promoters are unaware of. This research is also meant to investigate and decipher some of the most effective small- and large-scale business survival techniques. Other small- and large-scale species facing extinction concerns, as well as new and proposed species, may be able to take a page from their playbook.


In running successful Small and big scale in Nigeria, efficient and effective managing abilities are necessary. Many small and large businesses lack the fundamental skills, strategies, and aptitude to run successfully. The managerial skills and abilities required for planning, organizing, directing, and regulating both human and material resources are crucial for running a firm effectively. The study by Ololube and Uzorka (2008) revealed that small- and large-scale businesses are unable to employ and retain highly trained individuals due to their limited capital resources and small size. Due in part to financial difficulties, small and large-scale businesses are unable to hire qualified employees such as accountants and managers. This has led to poor accounting and financial management practices among small and large enterprises in Nigeria. Also, according to Beckman (2008), the majority of the challenges of small and big size businesses are external, including those connected to capital shortage, taxation and regulation, product liability patent and franchising abuses. The internal problems of Small and large scale in Nigeria include insufficient working capital, fierce competition from larger companies, difficulties in sourcing raw materials, low capacity utilization, lack of management strategies, inadequate educational background of operators, and enormous financial problems, while the external problems include policy inconsistencies, multiple taxation, stringent regulatory requirements, and trade groups. This case study examines Indomie foods with pepperoni.


The study’s aims are as follows:

To determine the difficulties faced by indomie foods and pepperoni
Determine the elements that influence the growth of small and large organizations in Nigeria
To examine the impact of obstacles on the expansion of indomie foods and pepperoni
Theoretical theories

The researcher formulated the following research hypotheses for the successful completion of the study:

There are no obstacles confronting indomie foods and pepperoni.

H1: both indomie foods and pepperoni face obstacles.

There are no elements that determine the growth of small and large organizations in Nigeria, according to H02.

H2: There are elements that influence the expansion of small and large organizations in Nigeria.


The study is significant since both small and large firms enjoy a number of benefits. These include the cultivation of an entrepreneurial spirit and the creation of employment opportunities for entrepreneurs, as well as the promotion of savings potential and investment ratio. As more people pursue apprenticeships in preparation for self-employment, the skill culture grows.

The study will assist government small and large size enterprises to develop strategies to enhance the management of small businesses.


The scope of the study encompasses the difficulties faced by small and large enterprises in Nigeria. Domino meals and pepperoni are the subject of a case study. The researcher faces a constraint that restricts the study’s scope;

a) AVAILABILITY OF RESEARCH MATERIAL: The researcher has insufficient research material, consequently limiting the scope of the investigation.
b) TIME: The time allotted for the study does not allow for a broader scope because the researcher must mix it with other academic activities and examinations.

A challenge is something that tests you, such as completing your first marathon or reading War and Peace. The verb challenge is derived from a Latin term that means “to unjustly accuse,” and it is now used in the same way as it was in the 13th century: to question if something is true or right.

Large-scale enterprises have more personnel and a more sophisticated management structure than their medium-sized counterparts. They conduct numerous business operations each day. Such firms are typically characterized by a huge number of customers, business relationships, and business communication.

SMALL-SCALE Firm: A small-scale business is typically characterized by a small number of employees, a modest sales volume, and private ownership, with the majority of profits accruing to the owner. Additionally, these firms often service a small community and have little staff turnover.


DIFFICULTIES Confronting Small and Large Organizations in Nigeria



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