ABSTRACT
This work is set to investigate the causes of failure in small
scale enterprises in Nigeria, with a review to preferring solutions. Every
economy starts from simple system to the complex one. At the simple stage of
organization, ownership of business is not always distinct from management. In
this sense, supervision of the business is in the hand of the owner. When the
scope of business organization increases, it becomes very difficult for one
person to co-ordinate. At this point, that ownership and management become
differentiated. Therefore, it becomes very difficult for the owner to supervise
the business enterprise. It will be easier here for management to pursue goals
that are different from the objectives set by the owner. Conflicting objectives
can result in business failure. In Nigeria it will be difficult to believe that
a small-scale business enterprise that is owned and managed by the owner can
die just like that. Is it as a result of finance, management inefficiency or
government policies? This is what the research work is set to uncover. Based on
the findings, recommendations were made towards success of small scale businesses
in Nigeria and the researcher believes that the recommendations if adequately
used by the government operators of these businesses will definitely facilitate
success of small-scale business in selected companies in Enugu State and in
selected companies in Enugu State and in Nigeria Generally. Also suggestions
for further study were proposed.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgements iv
Abstract v
Table of Contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Research Hypothesis 5
1.6 Scope of the Study 6
1.7 Limitations 6
References
CHAPTER TWO: LITERATURE REVIEW
2.1 Concept of Small-Scale Enterprises 9
2.2 Features of Small-Scale Business 18
2.3 Relevance of Small-Scale Business in the
Socio-Economic Development of the Country 19
2.5 Factors Responsible for the Failure of Small-Scale Business 24
2.6 Solutions to the Identified Problems of Small-Business 29
References
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 33
3.2 Area of Coverage 33
3.3 Research Design 33
3.4 Population of Study 33
3.5 Sampling Procedure 34
3.6 Determination of the Sample Size 34
3.7 Instrumentation 35
3.8 Procedure for Data Analysis 36
3.9 Sampling Units 37
References
CHAPTER FOUR: PRESENTATION ANALYSIS AND INTERPRETATION
4.1 Introduction 40
4.2 Questionnaire Analysis Presentation 40
4.3 Testing of Hypotheses 52
4.4 Conclusion 57
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Overall Summary of the Project Work 58
5.2 Summary of Findings 59
5.3 Conclusions 61
5.4 Recommendations 62
5.5 Suggestion for Future Research 63
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
For many years now, most organizations especially those in Enugu State may have been subjected to incompetence, unprofitability and unproductivity following the inabilities of the managements of such enterprises to determine the causes of the failure of such enterprises.
It was Iwejuo (2002:18) that maintains that it is difficult to define a small business. This is because there is no one definition on what constitute a small business. However, small scale business can be defined by the criteria of project cost capital turnover per employee, asset value and sales volume. Anyanwu (1998:21) “The new industrial policy of Nigeria defined the small scale business as those with total investment of between one hundred thousand naira and two million excluding land but including working capital” Anyanwu reveals that “Small-Scale Industries Scheme” (SSIS) defined small scale business as” one with an initial capital of less than sixty thousand naira and a a work force of fifty working or fewer). Iwu (2004:61) maintains that “there are a lot of constraints to the survival of small scale business in Nigeria. According to him, the constraints include among others the absence or inadequate of credit for working capital; lack of credit for purchase of capital equipment; infrastructure inadequacy and environment; managerial problems, the state of domestic market and the propensity to consume foreign good, adequate information supply and absence of business plan.”
According to him, despite the new initiatives and repeated attempts by both the government and the private sector to promote the activities of small scale enterprise in Nigeria, they continue to be faced with numerous problems, some of which include: policy inconsistency, unstable macro-economic environment, very poor and even non-existent infrastructure, government lawreancracy which increase cost of operation, lack of short term capital, limited and unavailable data and lack of managerial facilities and enterprise support services. It was Nwosu (2003:11) that made constitution as regards the strategic policy measures to solve problem of small scale businesses. He cited the industrial policy in Nigeria (1989:5 – 6) as maintaining that the government should see to it that enabling business environment with all the support services is created not only in urban areas also in rural areas. The administration of the existing macro-credit schemes should be over hauled. There should be a deliberate policy to protect small scale business from extensive completion from foreign firms, among them.
This research work on: The Failure of Small-Scale Business in Nigeria: Its causes and Solutions with a study of selected companies in Enugu State are conducted to prefer solutions by way of recommendations, to the problems of small scale businesses.
STATEMENT OF THE PROBLEM
