SMALL SCALE INDUSTRY: PROBLEMS OF ESTABLISHING SMALL BUSINESS ENTERPRISE IN NIGERIA

Project Abstract

<p>                    <b>ABSTRACT&nbsp;</b></p><p> This thesis examined and analyzed the problems of establishing a small business enterprise in Nigeria, the western part of Africa. The first part of the research was the theoretical parts where the topic introduced and information that are neglected by many small business owners. I further explained the importance of small business enterprises and their contribution to the economy of different countries, also the rigors they go through in realizing their goals. Small and medium sized enterprises have shown their vitality in the west, they are recognized by policy makers as an important reservoir for growth. Additionally, I identified what the small business enterprises lack and what these businesses need from the government, the financial institutions and its immediate environment for it to survive. In the Empirical study I examined the different forms of small business enterprises in the SME sector ranging from small shops to small manufacturing companies to examining the problems each is going through. <br></p>

Project Overview

<p> <b>1 INTRODUCTION&nbsp;</b></p><p>There exist lots and lots of business ventures that are being engaged by individuals, group of people or association, firms, industries and government with the main aim of maximizing profits. They range from small scale to medium and large scale. In the Nigerian economy, the small scale enterprises are the most common form of business. The aim of any economy (either industrialized or non industrialized) depends largely on how well organized the small industries are, for instance if we look at the standard of practice of small scale industries in economically developed countries. The small scale enterprise in Nigeria seems too stagnant, less adventurous than developed countries. Meanwhile in economically developed countries small scale business are better organized and coordinated than in the developing countries because the governments appreciate their significance to the national economy. Firstly, most of the small businesses are essentially one person‟s operation which makes such companies sole proprietorship business ventures. The profit of the business is reaped solely by the owner; this includes people or an individual who wants to invest in that type of business. It is also the easiest form of business ownership to organize because there is relatively small capital to use for its establishment. The owner also has managerial freedom and this will help the owner employing his incentive to the maximum. Entrepreneurs are risk avoiders, not necessarily risk takers; they appear to be risk takers because they see market differently than the other forms of businesses. They can be referred to as risk eliminators because they seem to methodically eliminate all the factors that might prevent them from getting into a particular market (Thomas W. &amp; Norman M. 2001). <br></p>