Thesis Abstract

Abstract
Small scale businesses play a crucial role in the economic development of Nigeria. The Federal Government's involvement in promoting and supporting these businesses is essential for sustainable growth and job creation. This research aims to explore the various ways in which the Federal Government of Nigeria can enhance the growth of small scale businesses in the country. Through a thorough review of existing literature, government policies, and case studies, this study seeks to provide insights into the role of the Federal Government in promoting small scale businesses in Nigeria. The research focuses on analyzing the current state of small scale businesses in Nigeria, identifying the challenges they face, and evaluating the effectiveness of government interventions. By examining the policies, programs, and initiatives implemented by the Federal Government, this study aims to highlight successful strategies and areas for improvement. Additionally, the research assesses the impact of government support on the growth and sustainability of small scale businesses, as well as the overall contribution of these businesses to the Nigerian economy. Furthermore, the study explores the role of the Federal Government in providing access to finance, infrastructure, training, and market opportunities for small scale businesses. It investigates the effectiveness of government agencies and programs such as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in facilitating the growth of small scale businesses. The research also considers the regulatory environment and ease of doing business for small enterprises, emphasizing the importance of policy consistency and transparency in promoting entrepreneurship. In conclusion, this research underscores the significance of the Federal Government's role in creating an enabling environment for small scale businesses to thrive in Nigeria. By implementing supportive policies, improving access to resources, and enhancing coordination among relevant stakeholders, the government can foster entrepreneurship, innovation, and job creation in the small business sector. The findings of this study can inform policymakers, business owners, and other stakeholders on effective strategies for promoting the growth and sustainability of small scale businesses in Nigeria, ultimately contributing to economic development and poverty reduction.

Thesis Overview

1.0      INTRODUCTION

Small scale business constitute an important component of the Nigerian industrial sector. The importance of this sector cannot be over emphasized, especially in a typical developing country like ours where the level of youth unemployment is rising beyond control. Hence small scale industries generate employment opportunities per unit of capital investment because they are generally more labour intensive which are more capital in nature. A large scale industry that cost N20million for instance, may employ a mere 70 (seventy) workers or less. Where as a small scale industry that cost just N150,000 (one hundred and fifty thousand naira) may employ about 20-30 workers.

Small scale business specialized in the production and marketing of various products and services ranging from food, beverages, drinks/sachet water, cosmetics, spare parts and many others.

Kilby (1969) acknowledge the diversity of terms of the degree of specialization and division of labour and the quantity of raw materials and output and the character of markets being served by small scale businesses. As a result the bulk of Nigerian business falls within the small scale business which account for over 80% of the number of enterprises in the country. (Ekunna 1992 Pg.160)

Several number of small scale business are successful while other fail or are staggering for survival due to poor background management, lack of qualified manpower, poor capital base, lack of marketing research and appropriate technology and credit rating among banks and other lenders. These problems continue to militate against the establishment, survival and growth of small scale business in Nigeria. Although successful government in Nigeria have been emphasizing on the importance of small scale business and have established institutional support agencies to facilitate industrialization.

However, small scale business still operate in uncertainty and are faced with serious obstacles, this raises the questions of whether the federal government is actually up to the responsibility in the promotion of small scale business in Nigeria.  

1.1      OBJECTIVE OF THE ESSAY

The main objectives of this study is to evaluate the impact of federal government in the promotion of small scale business in Nigeria. This study will specially seek to achieve the following:

a.   To evaluate the marketing challenges facing small scale businesses.

b. To identify the sources of funds to the activities of the industry.

c.   To find out the extent of government involvement in promoting the activities of the business.

d. To bring to light the contribution of the industry to the development of national diploma in marketing.

Finally, it is my hope that the students of marketing and others in related discipline will find this study very informative and useful tool in their respective studies.

1.2      SCOPE OF THE STUDY

As the title of this essay indicates, the study focuses its attention to federal government support to small scale business enterprises in Nigeria, it causes various policy, guidelines, direct and indirect financial assistance and other programs and initiatives designed to promote this vital sector of the country.

1.3      SIGNIFICANCE OF THE ESSAY

The significance of this study lies basically on its contribution to knowledge and its benefits to individual and organization. The current economic crises in Nigeria has deciminated the growth of infant industries and encourages the establishment of similar business venture in both small and large scale proportions.

Although successful governments have vowed to support individuals and group initiatives in the establishment of small scale businesses.

The current state of most small scale business in Nigeria is a far cry particularly when structural adjustment programme (SAP) was introduced, which brought about the problem of devaluation of the naira and the scarcity of foreign exchange of raw materials from abroad which has adversely affected production unit especially under a depressed economy.

This study is an attempt to evaluate the role of government in the promotion of small scale business in Nigeria as a country.

1.4      DEFINITION OF TERMS

The following terms and abbreviations used in the extended essay are defined below:

a)   (SSICS) Small Scale Industries Credit Scheme

(SME) Small and Medium Enterprises

(NIDB) Nigerian Industrial Development Bank

(NERFUND) National Economic Reconstruction Fund

(NDE) National Directorate of Employment

b)   Small scale enterprise: Apart from size, it is a type of business that is self initiated, largely self financial, closely self managed and is of relatively small in size when considered as part of the industry.

c)   Management: Is the part of loaning organizing, directing and motivating others so as to enhance productivity with maximum utilization of available resources and achieving the organizational goals or objectives.

d)   Resources: These are the primary inputs that needs to be put together into function before the proper management activities really take place. These activities include; men, materials , money and machines.

Enterprises: This is one of the fundamental principles of management that is concerned with the division of labour and assigning of responsibilities with authority for the well being of business unit.