PROBLEMS AND PROSPCTS OF SMALL SCALE BUSINESS IN NIGERIA
(A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT AREA)
ABSTRACT
Abstract is a précised summary of what is actually done in a project; it means that the following information should be there. The topic under the study and the location, the statement of the problem. The research hypothesis also carried out, relevant literature reviewers of the study must be identified. A questionnaire was design with concrete validity and reliability. Relevant data will be collected from the respondents and analyzed accordingly. This research work is a very crucial study for the managers and prospectivess owners of small scale business operator. The study has motivated by the diminishing state of the Enugu south and also the prospects. To solve the research problem, both the primary and secondary data were collected. The research instrument used in collecting the data were questionnaire, oral interview and field visits. The respondents comprises of the owners, managers and workers of small scale business in Enugu south. In organizing and presenting data collected, tables and percentages were used. The various hypothesis were tested using the chi-square.Most of the respondents rated the performance of Ennugu south as being below standard easily sheet down. Most of the respondents rated the Enugu south yielding profits with bright future. Most of the respondents between most operators of the Enugu south are illiterates, has little money and keep no records of business.  Base on findings, the researcher recommend that: All Enugu south residents are prospects ones should study the proposed sight of their business before location. i.e proper financial records should be kept e.g the cash book.
 TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1        Background of the study                                               
1.2        Statement of the Problem                                     
1.3        Purpose of the Study                                           
1.4        Scope of the study                                                      
1.5        Research Hypothesis                                            
1.6        Significance of the study                                               
1.7        Limitation of the study                                          
1.8        Definition of Terms                                                      
CHAPTER TWO
LITERATURE REVIEW
2.0    Literature   Review                                                      
2.1    Definition of Small Scale Business                          
2.2    Why People want to go into Business Ownership       
2.3    Scope of the Scale Business                                  
2.4    Roles of Small Scale Business in National Economy   
2.5    Sources of Fund for Small Scale Business                
2.6    Government Commitment to Encourage                  
2.7    Feasibility Study                                                  
2.8    Problems of Small Scale Enterprises                       
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1    Research Design                                          
3.2    Area of the Study                                                
3.3    Population of the study                                 
3.4    Sample and Sampling procedure                    
3.5    Instruments of Data Collection                               
3.6    Validity of Instrument                                   
3.7    Reliability of Instrument                                        
3.8    Method of Data Collection                             
3.9    Method of Data Analysis                                       
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1    Presentation and Analysis                                     
4.2    Testing of Hypothesis                                           
4.3    Summary of Findings (Result)                                        
CHAPTER FIVE
DISCUSSIONS, RECOMMENDATIONS AND CONCLUSIONS
5.1    Discussion of Findings (Results)                              
5.2    Implications of the Research Findings                     
5.3    Conclusions                                                        
5.4    Recommendations                                                       
5.5    Suggestions for Further Research                           
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1       BACKGROUND OF THE STUDY
Small scale business has been the main trust of Nigeria’s development programmed over time. However, it is being widely acknowledged that rural development should be the centre piece for effective short and long run development of any nation such as Niger. Both the federal and state governments on one hand and general public on the other hand attest to the fact through their efforts towards the development of the countryside of Nigeria.
        In realization of this and in pursuance of its attainment the federal government created the directorate for Foods, Roads, Rural Infrastructure (FRRI) to work in partnership with the rural communities towards the provision of Amenities such as rural roads, water bore holes and production of more foods. As well several states, which Anambra is one of them, have adopted rural developmental programme which is charged with the responsibility of developing and coordinating rural development activities in the state.
        From the on-going, therefore, it is dear that the governments and people of the country now attach much importance to rural development. It is therefore, the need to achieve integrated rural development vis-a vis national development that prompted this study with the objective of determining the role of the establishment of small scale industries in Nigeria can play in this regard. The Enugu south business of what could be described as small scale Enugu south business started as a result of movement of people from one place or town to another. These movements are categorized in:
a.   Movement which one locality or town for example going to work from one’s house within the same city or from one’s city to another.
b.   Movement from one town to another like in the case Ogui migration where there is an exodus of the people from rural area to the developed ogui area. In this case, people concerned to go out for greener pasture like looking for better jobs and business.
c.    Movement from one country to another for withers business, study or search for better jobs.
d.   Movement to places of interest like-the Olumo Rocks in Abeokuta or Yoruba game reserve.
In course of these movements, it has not required quantity of food and drinks that would last them the length of time they would stay outside their homes. The instructive desire to help in feeding of these groups of travelers brought about the business of Enugu south. Before the 15th century, what used to be called inns existed in Europe. These were place where travelers called spend a night or two even more and were served food and drinks at a cost. The inns were merely remedy by inn-keepers between 1750-1850, the year of industrial revolution; the business of Enuge south became a common thing all over Europe.
In Nigeria, the business is beleected to have started with the arrival of Europeans into the country. Before the Europeans, all travelers’ woe only catered for by their hoppetabeo nature. Travelers who come to peace mission were virtually carried for by their hosts. These Europeans or their guide had to make do with the local food which brought about some kind of exchange process. As this process continued, it dawned on the local people that food could be prepared and sold to these travelers who moved from one place to another. This was the early shape of Enugu south unfit it grew to its present standard which was made possible by the attendant development of the country by the presence of the Europeans.
1.2       STATEMENT OF THE PROBLEM
Government of federal state and local levels has set agencies that are specifically changed with providing funds and other services for the small scale business people. The purpose of establishing these support agencies by government is to encourage the rapid development of small or medium scale industries in the country for government want to encourage school levels to establish their own small business or unemployment and for economic development. These support agencies are National Directorate of Employment (NDE), Funds for small scale industries (FSSI) and National Economic Reconstruction Funds (NER FUND) have their various functions. Some are established to provide loans, render advisory services, identify source of raw materials, structure their organization which could be managerial or technical/structuring.
        But inspite of all efforts being made, the performance expectation. Especially in the small scale Enugu south business today, these are relatively high rate of business failure, low productivity, managerial management, financial strigency, and of good human relations under capitalization etc. Small scale Enugu south still performs below expectation? What are the courses of small scale Enugu south business failure?
1.3       PURPOSE OF THE STUDY
The study will address the following purpose:
1.    To find out why small scale Enugu south still perform below standard.             
2.    To find out why there is high rate of business failure in small scale Enugu south.
3.    To determine the extent of managenal incompetence of owners of small scale Enugu south in the management of their business.
4.    To determine why there is poor human relations with small scale Enugu south.
5.    To find out the causes of low productivity in small scale Enugu south.
6.    To determine the extent of financial stringency in the operations of some small scale Enugu south.
7.    To recommend what should be done to improve standard of small scale Enugu south.
1.4       SCOPE OF THE STUDY
This work covers a selected Enugu south in Enugu south. The Grand Metropolist in the Eastern part of Nigeria. I strongly believe that carefully analysis of fault obtained will enable me to make general observations regarding Enugu south business in the other cities of Nigeria. This study tries to identify areas of problem such as financial, marketing, advertising, expansion and other meaningful suggestion that will help managers in this sector to surmount them.
1.5       RESEARCH QUESTIONS
To solve the research problem, I have asked the following research questions.
1.    Are small scales Enugu south performing below standard?
2.    Are there high rate of business failure in small scale Enugu south?
3.    What is the extent of managenal incompetence of owners of small scale Enugu south?
4.    Are there low productivity in small scale Enugu south?
5.    Does poor human relations have negative effect on the turnover of small scale business?
6.    What is the effect of financial stringency on the operation of small scale Enugu south?
1.6       RESEARCH HYPOTHESIS
The following hypothesis will be used in the study
1.    HO: Most small scale Enugu south do not perform below standard.
Hi: Most small scale Enugu south perform below standard.
2.    HO: Owners of small scale Enugu south do not make good profits.
Hi: Owners of small scale Enugu south make good profits.
3.    HO: There is no financial stringency in small scale Enugu south business.
Hi:  There is financial stringency in small Enugu south business.
4.    HO: There is no good human relation in small Enugu South business.
Hi: There is a good human relation in small Enugu South business.
5.    HO: Most operations of small Enugu south are not illiterate.
Hi: Most operators of small Enugu south are illiterate.
1.7       SIGNIFICANCE OF THE STUDY
The study is very timely, especially today that the nation is striving towards better economics development and growth. This study will be of immense benefits to both the operating and potential Enugu south business because it will give a thorough insight into Enugu south operations. This is aimed at patting Enugu south in trace operative so that those concerned will get to know what the business is about. In the same vein, different categories of Enugu south customers will be put in a position where they can appreciate Enugu south business and probably adjust their irrational behaviors. The work unravels the technicians of the game to ensure success of the operation by discussing things like customers-workers relationship, marketing strategies, behavior in the restaurants.
        The study should create the long required awareness in the Enugu south business. It will help the Enugu south business and also emigration the Enugu south on its potentials and how best to top them optionally and also appreciate the important role it plays in the society and national economy.
1.8       DEFINITION OF TERMS
Enugu south means a place or building where foods and drinks are served. Bedrooms are provided for accommodation, there are other facilities provided, such as cusmo, swimming pool, playing grounds like femiscourt, and others. There are other pab house such as guest house, inn, resort and hotel.
i.       Foo-Foo: This means pounded yam or cassava that of the southern part of Nigeria.
ii.    Amala: Food prepared in solid form like pounded yam and eaten with draw soup. It is usually common on the Yoruba speaking area of Nigeria.
iii.    Draw Soup: This is like stew and is usually prepared with okro or ogbono cut in pieces. It is very delicious and makes the eating of solid food more pleasurable.
iv.          Peper soup: This is a traditional Nigeria food prepared with meat, and salt to taste. It also usually taken in relaxation time.
v.           Eba or Garri: It is usually inform of pounded yam but it made with boiled water.
vi.          Moi-moi: This is a land of food made from grounded beans.
         According to Kotler Lawrence (1973), small scale industry is any industry which is in dependently owned and operated and not dominant in its area of operation. Drucker, P.F. (1974), maintains that there is only one criteria which with a fair degree of reliability, indicates whether a  business is small, fair sized or big. He says that “a small business requires at most one man who is not engaged in any other functional work required. The man at top knows who the few people are in the organization in whom responsisibility for key results without having to consult his records or associates. Drucker summed it up by asserting that regardless of titles and position, it can hardly exceed twelve to fifteen men which is about the number one man can really know and can really be familiar with.
        The committee for Economic Development (C.E.D) of the united state has given a valuable list of characteristics of the small business which states that a small business will have at least two of the following characteristics:
a)    Management are also owners
b)    Area of operation are mainly local
c)    Owners supplied capital, and
d)    Small in size within the industry
According to Small Business Administration (SBA), U.S Federal Government agency established in 1953 to advice, assist and protect small business, definition of small scale business is not rigidly fixed, but can be relaxed to exceptional cases so far as the particular firm is not dominant.