MANAGEMENT OF SMALL SCALE BUSINESS IN NIGERIA
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MANAGEMENT OF SMALL SCALE BUSINESS IN NIGERIA
Chapter One
1.0 Introduction
An overview of a tiny firm.
Advanced countries have discovered that industrialization through extremely complicated and advanced technology does not have the desired impact; rather, it is recognised that small and medium-sized companies offer the primary push for national accelerated economic development.
In Japan, for example, almost every home is theoretically considered a factory. While small-scale industries employ approximately 60% of the labour force in the United States (NBC1 1995 managing directors address to the Lagos Chamber of Commerce and Industry), small and medium-sized businesses have become important ingredients for economic development worldwide.
In recent years, the federal government of Nigeria has emphasised the establishment of small-scale businesses by private individuals as well as the expansion of existing ones. To that goal, the government founded the Peoples Bank.
Industrial development centres (IDC) are established by the Nigerian Bank for Commerce and Industry (SSICS). National Economic Reconstruction Fund (NER FUND), and so forth. All of these initiatives are aimed at boosting the growth of small enterprises.
1.1 Background of The Study
The main point of this article is the sociopolitical growth of the Aku community. This btoad issue necessitates a thorough understanding of the social, economic, and political dynamics in Ikolo. To allow for a scholarly discussion, I would rather particularise than generalise the topic.
In other words, I would reflect more on the political growth in Ikolo, with significant focus on the governance of the Ikolo Community. Examining the decision-making processes of the Ikolo community.
The descendent of Okpara, Umuasi’s husband and the founder of the Ikolo community. The Ikolo people place a high value on age, hence age has a holy significance in the community.
Axiomatically, the Ikolo government wields enormous authority and, like the parliament in the presidential system, is capable of doing everything except biologically transforming a woman into a man. The Oha is more than just a legislative body; it also has executive and judicial powers. It suggests that Ikolo’s governorship centres around the Oha Aku.
Oha Ikolo: The Oha is the community’s highest legislative and adjudicating body. Oha Ikolo is a collection/committee of the most senior men from each of the 10 villages that comprise the Ikolo community.
However, Ikolo-Ani and Amauwani villages. In other words, Ikolo-ani and Amauwani communities use distinct methods to select an Oha to represent them. As opposed to the automatic membership of the oldest amn as an Oha belongs to a deity known as the Agbuiyi:
it is therefore, the chief priest of the Agbuiyi deity which is from (as the deity is of Ikolo-ani) that become Oha in the same vein Amauwani village produces two members of the council of elders, one being automatic at the incidence of being the chief priest of Iyi-uzu, the stream god of Ikolo and the second being a member as a result of his being the eldest and in the
However, the two Ohas of Amauwani are almost unknown because they own only one part of Ikolo and are not even represented on the council of elders. The Oha title-taking ceremony has two shares since each of them must have executed the event.
1.2 Statement of the Problem
This study investigates the evaluation of management in small-scale firms in Nigeria. It is worth noting that the number of small-scale firms in Nigeria has recently increased. This series of events indicates that the rate of entrepreneurship will skyrocket in the coming years. The issues that prompted the study are:
1. Small-scale businesses struggle to attract talented and competent management.
2. The challenges that small business owners have in obtaining loans from financial organisations.
3. Inability to take use of government aid schemes. The purpose of this research is to look at the management of these small businesses, with a focus on chosen enterprises in Enugu, in order to identify the unique issues that are preventing them from succeeding and to make relevant suggestions and recommendations for their remedies. This, in turn, will help entrepreneurs run their enterprises.
1.3 STUDY PURPOSES.
The study is based on four primary objectives:
1. There are no big issues confronting small businesses in Nigeria.
2. The most common obstacles that entrepreneurs confront are financial and managerial issues.
3. Entrepreneurs’ incapacity to use government programmes for help has an impact on the growth of small-scale businesses in Nigeria.
4. The difficulty of small-scale business owners to obtain loans from financial institutions is a key impediment to the expansion of small-scale businesses in Nigeria.
1.4 Objectives of The Study
The study has the following objectives:
1. Investigate the management of small size businesses in Nigeria.
2. To learn about the objectives, strategies, and responsibilities of small businesses in Nigeria.
3. To give practical suggestions and recommendations targeted at delivering long-term solutions to their problems.
1.5 RESEARCH QUESTIONS
When conducting this type of study, certain questions are typically raised to assist the researcher in gathering the essential information or data for the research. In this case, too, the researcher believes it is critical to ask the following questions:
A. Does a lack of money impede the successful functioning of small-scale businesses?
B. How do managerial skills affect small-business management?
C. Does low product demand pose an issue for small-scale businesses?
D. How does lack of access to credit facilities affect small-scale businesses?
1.6 The Study’s Significance.
The study’s significance stems from its objectives, which analyse the management of small-scale businesses in Nigeria. The study is noteworthy because it indicates how far small-scale enterprises in Nigeria have progressed since its inception, as well as analysing and identifying issue areas in small-scale firms and providing pertinent suggestions and recommendations for correcting them.
Furthermore, the findings of this study will serve as a guide for entrepreneurs, investors, and potential investors in the field of small scale business, demonstrating how to avoid or overcome the challenges identified in the study in order to develop indigenous small scale business.
Finally, it will provide financial institutions with the opportunity to self-assess if and how they meet the needs of the nation’s small-scale business sector. Small-scale company is the lifeblood of every nation’s economy.
However, if carried out, this research endeavour will be extremely significant in the following respects. First and foremost, the effort will be essential and relevant to the federal, state, and local governments since it wants to reveal the problem and opportunities for financing small businesses.
Second, this will help the government develop effective and efficient policy decisions for small businesses that will stand the test of time. The research will also aid the government’s efforts to industrialise through small-scale businesses, resulting in increased income.
Third, the work income will persuade institutions that previously saw small-scale businesses as high-risk and hence unworthy of receiving loans from them to do so without fear. Fourth, it will assist individuals in pooling their resources through cooperatives to invest in small businesses as a means of achieving self-employment.
Finally, small scale businesses appear to be indispensable, particularly in rural areas, because they provide the necessary goods and services to rural dwellers. As a result, this study will encourage rural dwellers to invest in small scale businesses in order to reduce their reliance on the government for employment.
1.7 COVERAGE OF THE STUDY.
This study looks at the activities of small businesses in Enugu state, with a focus on the Aku local government. The many programmes put in place by the government since independence to sustain the growth and survival of small-scale businesses will be studied. The problem of unsatisfactory performance of the subsector will also be addressed.
1.8 Define the Terms.
The definition of terms is one of the most important aspects of research because without a clear and common understanding of the essential terms, the value of the research may be lost due to misunderstanding or confusion caused by their use. Therefore, it would not be out of place to define some of the terms used in this study.
1. Small-scale business: According to Baumback (1992:4), a small business is
i. Actively managed by their proprietors.
ii. Very personalised.
iii. Its operations are primarily local in nature.
iv. The company is quite modest in the industry and
v. Rely heavily on internal sources of funds to fund its expansion.
According to the Small enterprise Administration (SBA), a small-scale enterprise must meet the following criteria:
Retail or services- yearly sales or receipts ranging from one million to five million depending on the industry. Construction- annual sales or receipts averaging more than 85 million over a three-year period. Manufacturing- 250 to 1,5000 personnel based on industry.
2. Management: According to Stoner Etal (1999:9), management is a systematic way of doing things; hence, management is the act of planning, organising, leading, and supervising the work of organisation members while utilising all available organisational resources to achieve standard organisation goals.
In other terms, according to Ivancevich Lorenzi and Skinneer (1994:9), management is a process that involves specific functions and work activities in order for management to fulfil company goals.
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