ABSTRACT
This study is based on the determination of the impact of globalization on the management of business in the rural Communities of Nigeria.
This is against the background of the need for entrepreneurship development propelled by the interdependence of the world economies. The problem of the study is therefore to determine the impact of globalization on management of business in rural Communities of Nigeria. The objective of the study is to determine the impact of globalization on the growth of rural businesses. To this end, data were gathered from both primary and secondary sources. The primary sources comprised of descriptive survey method, while the secondary sources were text books, journals and publications.
The main instrument used in collecting data was questionnaire. The data were then presented in a table as frequency distribution. The technique of frequency and percentage were applied in analyzing the data, and the following were the major findings of the study.
The study revealed that globalization impacts on small and medium enterprises in the areas of production technology, provision of raw materials, marketing, international financial assistance and scale of output. Globalization also affects the performance of small & medium enterprise through the provision of modern production technique, foreign raw material and financial assistance.
Similarly the study revealed that globalization influences growth, and enhances management skills of the SME’s.
Some of the recommendations made by the researcher are that trade should be liberalized and trade barriers removed to allow free global business and national economies unification.
The conclusion drawn is that globalization impact positively
on small and medium enterprises performance, through technological and economic
innovation.
TABLE OF CONTENTS
TITLE PAGE …………………………………………………………….i
CERTIFICATION ……………………………………………………….ii
APPROVAL PAGE …………………………………………………….iii
DEDICATION ………………………………………………………….iv
ACKNOWLEDGEMENT ……………………………………………… v
ABSTRACT …………………………………………………………… vi
TABLE OF CONTENTS ……………………………………………… vii
LIST OF TABLES……………………………………………………… xi
CHAPTER ONE
INTRODUCTION
- Background of study …………………………………………….1
- Statement of problem ……………………………………………2
- Objective of the study ……………………………………………3
- Research Questions ………………………………………………4
- Hypotheses ………………………………………………………5
- Significance of the study …………………………………………6
- Scope of the study ………………………………………………7
- Limitation of the problem ……………………………………….7
CHAPTER TWO
LITERATURE REVIEW
2.1 Definition and meaning of globalization …………………….9
2.2 Agents of globalization ………………………………………11
2.2.1 International Trade ……………………………………………11
2.2.2 International Finance ………………………………………….12
2.2.3 Capitalism …………………………………………………….13
2.2.4 Technological Innovation …………………………………….13
2.2.5 International Regulations ……………………………………..14
2.3 Definition of Small and Medium Scale Enterprise ……………14
2.4 Anatomy of Small and Medium Enterprises ………………….19
2.5 The Role of Small and Medium Enterprises ………………….22
2.6 Problems of Small Scale Industries …………………………….23
2.7 Impact of Globalization on Small and Medium Enterprises…..25
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design ………………………………………………30
3.2 Area of Study ………………………………………………….30
3.3 Source of Data …………………………………………………31
3.3.1 Primary Sources …………………………………………….. 31
3.3.2 Secondary Sources ……………………………………………31
3.4 Population …………………………………………………….31
3.5 Sample and Sampling Techniques ……………………………31
3.6 Instrument for Data Collection ……………………………….32
3.7 Data Analysis …………………………………………………33
CHAPTER FOUR
4.1 Data Presentation and Analysis ……………………………….34
4.2 Test of Hypothesis …………………………………………….50
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Finding …………………………………………57
5.2 Conclusion ……………………………………………………57
5.3 Recommendations …………………………………………….58
Bibliography …………………………………………………..60
Appendix ………………………………………………………64
Questionnaire ………………………………………………….65
LIST OF TABLE
4.1 Administration of questionnaires
4.2 Sex Distribution of Respondents
4.3 Age Distribution of Respondents
4.4 Marital Distribution of Respondents
4.5 Qualification of Respondents
4.6 Size Distribution of Respondents
4.7 Nature of Enterprises by the Respondents.
4.8 Response to whether the Respondents Understand the Concept
Of Globalization
4.9 Response to Whether Globalization Impacts On SME’S
4.10 Areasin Which Globalization Affects SME’
4.11 Responses to whether Globalization Provides Modern Production Technology
4.12 Responses to Whether Globalization Facilitates Financial Assistance From International Agencies to SME’s
4.13 Responses to Whether Globalization Expands Product Markets for SME’s
4.14 Impact-of Globalization on SME’s Outputs
4.15 Responses to whether Globalization Promotes SME’s Growth
Through Production Technique
4.16 Responses to Whether Globalization Positively Affects the
Managerial Skills of SME’s
4.17 Responses to Description of Overall Impact of
Globalization on SME’S as Positive and Significant
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Globalization refers to increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political and ecological spheres. Globalization is an umbrella term and is perhaps best understood as a unitary process inclusive of many sub- processes (such as enhanced economic interdependence, increased cultural influence, rapid advances of information, technology and novel governance and geopolitical challenges) that are increasingly binding people and the biosphere more tightly into one global system.
In economics, globalization is the convergence of prices, products, wages, rates of interest and profits towards developed country norms. Globalization of the economy depends on the role of human migration, international trade, movement of capital and integration of financial markets.
The international monetary funds notes the growing economic interdependence of countries world wide through increasing volume and variety of cross border transactions, free international capital flows and more rapid and widespread diffusion of technology.
Some view it as a “Process by which the experience of everyday life is becoming standardized around the world”. While some scholars and observers of globalization stress convergence of patterns of production and consumption and a resulting homogenization of culture. Others stress that globalization has the potential to take many diverse forms.
Generally, the economists view globalization rather positively. They see globalization as free “the force of competition that help to channel the energies of people and the resources of countries into activities that are likely to be more productive. In a competitive global market, different countries will specialize in the products they can produce best
1.2 STATEMENT OF PROBLEM
Globalization has made significant impact on businesses in the rural areas, but there are some limitations. First trade restriction and restructure of fiscal policies make it difficult for rural business management to have free and unrestricted access to the global market.
This usually affects outsourcing of raw materials and sale of products outside the national boarders. Second, the global economic meltdown adversely affected financial assistance for rural businesses from international agencies
Third, lack of access to international credit facilities makes it difficult for rural business operators to acquire foreign technology needed for rapid entrepreneurship development.
Fourth, many rural business cannot adapt foreign technologies to their pattern of local production because of lack of technological know-how. Finally, differences in political ideologies still exist in the international political sphere. This has its adverse implication for rural business development in opposing nations. The problem of this study is therefore to determine the impact of globalization on management of businesses in rural communities of Nigeria
1.3 OBJECTIVE OF THE STUDY
The major aim of the study is to determine the impact of globalization on the management of business in rural communities. Thus, the specific objectives of the study are;
