INVESTING IN SMALL SCALE BUSINESS PROBLEMS AND PROSPECT (A CASE STUDY OF GARRI PROCESSING INDUSTRY ABAKPA NIKE, ENUGU.)

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ABSTRACT

Since independent Nigeria the giant of Africa has spent much time and
resources both human and material trying to convince the developed countries
and indeed the whole world that she (Nigeria) is capable of developing her
industrial capabilities.

Much of the efforts made in this direction have found expression mostly in
international conference and seminars, newspapers reports, radio
announcements and various national development plans.

Industries have actually increased since after the independence, but the
disappointing record of economic performance in the last decade has led to the
re-opening of the debate on strategy of industrialization.

Nigeria is still a net import of all sorts of goods from needless to heavy
machinery, simple because most of the Industries were established for their
immediate lucrative such as beer, soft drink and other consumer goods industries
without the consideration to nation’s industrial needs or for the utilization of local
materials.

Besides most of the large scale industries before the industrialization
decree were foreign owned and were associated with significant possibilities of
income leakages. This in spite of the rapid increases in the Gross National
Productivity (GNP) in last decade, the poorest segment of the population
peculiarity those in the rural areas has received relatively little benefit.

Unfortunately the bulk of Nigeria businesses are small-scale industries of
the number of business establishments, they account for about 80% or above of
the total number of enterprises in the country.

The important role they play in the development process was observed by
the first progress report of the second National development plan “In spite of the
anticipated rapid growth of the wage sector, the major solution to the nations
unemployment problem will have to be found in other areas like agriculture small
scale industries development.

In spite of all these, the small scale industries sub-sector has continued to
suffer from lack of credit most all the government financial programmes for the
small industries credit scheme, fund for small scale industries has remained
largely inadequate and of little effect.

The banks and other financial houses cannot help matters either despite
the central bank credit scheme to industries. It would be noted in this regard
that majority of the small scale industries would not be able to meet the
requirement of the bank and other financial institution lending policies, therefore
giving these financial constraints.

TABLE OF CONTENTS

Cover page i
Title page ii
Approval/ Certification page iii
Dedication iv
Acknowledgement v-vi
Abstract vii-ix
Table of content x-xii

CHAPTER ONE:
1.0 Introduction 1
1.1 Background of the study 1-3
1.2 Statement of the problem 3-4
1.3 Objective of the study 4-5
1.4 Research questions 5-6
1.5 Significance of the study 6
1.6 Scope of the study 6-7
1.7 Limitation of the study 7

CHAPTER TWO

11
2.0 Review of the related Literature 8
2.1 Theoretical review 8-14
2.2 Small-scale Business defined 14-17
2.3 Management and organization of small scale business
problems and prospects 17-23
2.4 Sources of fund to small scale business
Problems and prospects 23-26
2.5 Problems of small scale business. 26-29

CHAPTER THREE
3.0 Research Design and Methods 30
3.1 Research Design 30
3.2 Area of study 30
3.3 Population of study 31
3.4 Sampling method 31-32
3.5 Instrument for data collection 32
3.6 Methods of data collection 32-33
3.7 Methods of data analysis 33

CHAPTER FOUR
4.0 Presentation and analysis of data 34
4.1 Presentation and analysis of results 34-40
4.2 Summary of the Results 41-42

CHAPTER FIVE
5.0 Summary of Findings, Conclusion and Recommendations. 43
5.1 Discussion of Findings 43-45
5.2 Conclusion 45-46
5.3 Recommendations 46-50
5.4 Suggestions for further research 50-
51Bibliography 52-53

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It is necessary to stress the point that to succeed in business require some
measure of discipline. Most industrialist expect to make a reasonable profit from
the investment of time and resources, that the have to make in other to bring a
project to fruition.

While this may sound simple enough, the bother line is the fact in an
economy wide context, the rate or level of reward that can accrue to various
level of effort, discipline and productivity should never be allowed to get out of
proportion in relation to effort put in.

Experience has shown that industrial pursuits have been found to yield for
the patient and disciplined industrialist rather than stand for business concern
with all kinds of effort mostly unproductive and require no legitimate effort to
reap profits in multiple fields.

After considering the above mentioned statement of fact about industry.
The question is how far are we from being industrialized bearing in mind that it
yields for disciplined and patient industrialist, all things being equal.

Taking cognizance of the fact that a step forward is the beginning of a
mile. Some therefore Nigeria’s business industrial evolution will only start when
positive steps are taken towards adequate financing of small scale business. The
experience of newly industrialized countries has been eye an opener.

Finance is the greatest problem we are likely to face whenever we talk of
establishing a small scale industry. This is the most crucial aspect of business
enterprise and a lot of controversy surrounding the problem of inadequate
finance. A close look on the small scale industries/ Business, all over the country
would help to throw further light on the effect of lack of fund on growing
business. The drastic effect is mostly felt when one tries to study the fate at
which our young industries are gradually collapsing. Even surviving ones are
terribly looking for assistance that they are not sure of.

Funds are scarce, hence the growing industries are regarded in this part of
the world as never do-well especially Nigeria. When an economy is shaky,
growing industries in that economy tend to suffer most and usually stand the
taste of time. Hence, an increase in the number of casualties in this regard.

The researcher aimed at exploiting the possibilities, problems investing in
small scale business problems and prospect. The project centers on management
and finance problems.