ACTIVITIES OF SMALL SCALE BUSINESS IN NIGERIA
ABSTRACT
Recently, the small and medium scale enterprises (SMEs) has been a vehicle for development across countries following the recent downturn in the global economy. It is believed to enhance economic growth and development in a country as it has been a major contributor to the overall economy of some countries especially the United States of America (USA). Following the recent rise in unemployment SMEs have been a gateway for curbing of its excesses. Government across various level in turn has established various programmes, schemes and institutions to improve the activities of small scale business in Nigeria. Consequently, small scale business have also improve the use of locally made resources in its operation as well as create credible employment for the youths.
However, Small scale business are faced with their own challenges and constraint which limit their activities as this includes lack of finance, resources, access to credit facilities, enabling environment etc. This research study being aimed at the activities of small and medium enterprise (SMEs) explore the various strategy of SMEs and its role as an agent of economic growth and development in Nigeria.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION    
1.1    Background of the Study    -    -    -    -    -    
1.2    Statement of Research Problem    -    -    -    -
1.3    Research Question    -    -    -    -    -    -
1.4    Objective of the Study    -    -    -    -    
1.5    Significance of the Study    -    -    -    
1.6    Scope of the Study    -    -    -    -    -
1.7    Research Hypothesis    -    -    -    -    -
1.8    Limitation of the Study    -    -    -    -
CHAPTER TWO: LITERATURE REVIEW    
2.1    Introduction    -    -    -    -    -    -
2.2    Concept of small and medium scale enterprises (SMEs)    -
2.2.1     Definition and meaning of small-scale Enterprises    -
2.2.2     Characteristics of small scale business    -    -    
2.2.3     Types of small scale business in Nigeria-    -    -    
2.2.4     Advantages of small scale business    -    -    -    
2.2.5    Challenges of small scale business in Nigeria     -    -
2.2.6     Effect of problems of small scale business in Nigeria     -
2.3     Role of small scale business in economic development of Nigeria     
2.4     Factors determining the performance of SMEs    -    -    
2.5     Causes of failure in small-scale business in Nigeria    -    -    
2.6     Contribution of various schemes to SMEs in Nigeria
2.6.1     Government and Small and Medium scale Enterprise (SMEs)     
2.7     Empirical Review    -    -    -    -    -    -
CHAPTER THREE: METHODOLOGY    
3.1    Introduction    -    -    -    -    -    -    
3.2    Research Design    -    -    -    -    -    -
3.3     Population and sample    -    -    -    -
3.4     Sources of data    -    -    -    -    -    
3.5    Operationalization of variables    -    -    -    -    
3.6    Research Instrument -        -    -    -    -    
3.7    Model Specification and Data analysis    -    -    
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION    
4.1 Introduction    -    -    -    -    -    -    
4.2 Data Presentation and Analysis    -    -    -    -    
4.3 Hypothesis Testing    -    -    -    -    -    
4.4 Discussion of Findings    -    -    -    -    
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION        
5.1    Introduction    -    -    -    -    -    -    -
5.2    Summary of Findings    -    -    -    -    -    -    
5.3    Conclusion    -    -    -    -    -    -    -    
5.4    Recommendations    -    -    -    -    -    
5.5    Suggestion for Further Studies    -    -    -    -
References    -    -    -    -    -    -    -    -
Appendices    -    -    -    -    -    -    -    -
LIST OF TABLES
Table 1: Distribution of questionnaires    -    -    -    -    
Table 2: Gender Distribution    -    -    -    -    -    
Table 3: Length in Business    -    -    -    -    -    
Table 4: Need for Expansion Distribution    -    -    -    
Table 5: Need for Loan    -    -    -    -    -    
Table 6: Received Loans    -    -    -    -    -    -
Table 7: Level of Raw materials    -    -    -    -    -        
Table 8: Source of Raw materials    -    -    -    -    -    
Table 9: Economic growth and Development Distribution    -    -    
Table 10: Availability of Finance    -    -    -    -    -
Table 11: Use of locally-supplied equipment    -    -    -
Table 12: Use of local resources    -    -    -    
CHAPTER ONE
INTRODUCTION
Background to the study
Small-scale business occupies a place of pride in virtually every country because of the role it plays in the growth and development of various economics. Small-scale business industry has aptly been referred to as “the engine of growth” and catalysts for socio economic transformation of any country. Small-scale business represent a veritable vehicle for the achievement of national economic objectives of employment generation and poverty reduction at low investment cost as well as the development of entrepreneurial capabilities including indigenous technology. Small scale business checks the effect of polarization by a planned and systematic development of the rural areas. The much talked about urban migration is reduced with the introduction of small scale business in rural areas. The activities of small scale business have resulted in the mobilization of the resources of the environment and thereby improving on the standard of living of the population.
 Small-scale serve as a good agent for disposal of industrial product and some services and have contributed immensely to the production of raw materials in form of semi-processed goods for use by bigger industries. The small scale business is the most critical factor in the economic development of any nation (Marshall, 1990; Cole, 1959; Cantilim & Schmpter, 1934). Entrepreneur organizes and utilizes the various factors of production and finally set productive machinery in action toward overall economic development. Industrial sector which plays important roles in industrial development (Ahmed S. 2006).
The process of industrialization is fundamental to the existence and further development of any nation (Allah, 1998). As attaining economic growth and development is beneficial to the general economy hence the establishment of vibrant business becomes an issue of major consideration. Oyeyide (1973) observed that the vehicle of industrialization seems easier to be directed when the vibrancy of the business is maintained.
    Small scale enterprises are privately owned and operated business characterized by a small number of employees and low turnover. The small scale enterprises only possess a tiny segment of the overall market share. According to National Council of Industries, Small and Medium Enterprises (SMEs) are business enterprise whose total cost excluding land does not exceeds two hundred million naira (N200, 000,000). Overtime, the SMEs has been a major course of discussion across every sector of life as government across all levels (local, state, and federal) has developed various programs and policies that will facilitate and empower the growth and performance of the SMEs.
    Consequently, SMEs have proven to be essential to the economy for industrial growth and diversification; though the definition varies across different economies of the world, yet the underlying concept is the same. However, the various measures used to define the small scale enterprise include; annual sales, asset valuation, net profit, head count and balance sheet totals.
    Perhaps the most important measures in defining small scale enterprise is the number of people employed by the business. In African nations, a business is considered small scale if it employs 5 to 50 persons. In Asian countries, it is between 30 and 100, while in the United States it is any number below 500. Micro-businesses are the smallest entity under small scale business. These enterprises typically employ less than 10 people and they make up 95% of the American economy. Small scale enterprises operate in diverse industries. The common forms of small business include bakeries, convenience stores, law firms, guest houses and small scale manufacturing facilities.
STATEMENT OF THE RESEARCH PROBLEM
Several studies have identified financial constraint as the major obstacles to small scale business development in the country. For instance Adelaja (2003) argued that the non-access to institutional finance has always constituted problems for small scale development in Nigeria. He recalled that overtime, a number of schemes have been put in place to provide special credit line for small scale business which achieved very limited impact.
    Owners of small scale business do not have sufficient finance to carry on due to low saving culture of the people in this part of the world. The reason for this is not far-fetched but due to low level of income basically
RESEARCH QUESTION
This study sets to answer the following research questions:
Do small-scale industries contribute to economic growth?
Is inadequate finance the major problem of small-scale business in Nigeria?
Do small-scale industries encourage the use of locally made resources?
OBJECTIVE OF THE STUDY
The objective of the study is as follows:
To determine if small-scale industries contribute to economic growth and development.
To investigate whether lack of finance was the major challenges facing small-scale business.
To find out if bakeries encourage the use of local resources from large scale enterprises within Nigeria.
SIGNIFICANCE OF THE STUDY
This study is a timely one as hands are on deck to enhance the development and growth of the Nigeria’s economy through the small scale enterprises. This study will be of great benefit to cottage industries as well as other small and medium scale enterprise.
Furthermore, the research work will serve as a secondary data to future researchers on small and medium scale enterprises. Finally, to the researcher this study is important in the following ways:
It will equip the researcher with knowledge about the prospect race by the SMEs
It will expose and enable him to know more about the organization/enterprise under study.
It will provide more knowledge about the role small and medium scale enterprise play in Nigeria.
It will also enable one know the different meaning/definition and classification of small and medium scale enterprise.
Finally, it will enable one know the challenges and threats faced by SMEs.
SCOPE OF THE STUDY
This research will focus on the activities of small scale enterprise in Nigeria. This study will be limited to bakeries companies located around Benin-City as they form a proper sample for a small business. However, this research will be constrained to respondents who own and manage bakery businesses in Benin-City.
RESEARCH HYPOTHESIS
The following are the hypotheses for the study which are stated in the null form:
H1: small-scale industry does not contribute to economic growth and development.
H2: lack of finance is the major problem facing small-scale business.
H3: bakeries do not encourage the use of local resources from large scale enterprise in Nigeria.
LIMITATION OF THE STUDY
In the course of undertaking this study, certain hindrances were encountered. This includes limited time frame, financial and material constraint, inability of reaching every members of the sample even as some respondent were reluctant to fully divulge information.
Other limitation encountered include the inability to retrieve some questionnaire as some were not properly filled, nonetheless, strenuous efforts were made to overcome this limitation so as to make meaningful and accurate contribution to existing knowledge on the subject matter.