ABSTRACT
Small scale
industries have had very difficult time tryi8ng to survive in ever changing
Nigeria economy, their problems rage from the business environment itself to
the operators of these set ups. The harsh nature of the economy makes it very
difficult for their operators to forecast and make long-term plans while the
managers are more interested in making as fast as possible at the expense of
the survival of the business.
This industry had a very fast growth
daring the oil boom period little did the operate of these business know that
things will turn for the worse as kit is in our today Nigeria.
A lot of
mistakes were made these ranges from conservation situation where entrepreneur
were reluctant to changes with their environment by introducing better and
cheaper product that many of course attract less profit but light total
returns, as the economic environment of the people where changing to
proliferation invertors into the industry, where by causing the congestion that
let to it’s final collapse. Some other could not make use of adequate economic
tools, they opened unnecessary branches that competed with one another, and
their agents in these outlets seized the opportunity to do their worst. The
small-scale industry.
Through absolute care was taken
throughout investigation, human errors and omission are abounding.
TABLE
OF CONTENT
TITLE PAGE i
APPROVAL PAGE ii
DEDICATION iii
ACKNOWLEDGMENT
iv
ABSTRACT v
TABLE OF
CONTENT vii
CHAPTER ONE
1.0 Introduction
1.1 Statement of the study
1.2 Statement of problems
1.3 Objective of the study
1.4 Significance of the study
1.5 Definition of terms.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1
The role of small scale industry in Nigeria economy
2.2
Features of small scale industries in Nigeria
2.3
Sources of find/Finance for small scale industry
2.4
The problems of small scale industries as it affects
their debt servicing
CHAPTER THREE
3.0
RESEARCH DESIGN AN METHODOLOGY
3.1 Sources of Data
3.2
Method of Research Investigation
3.3
Location of Data
3.4
Method pf Data analysis
CHAPTER FOUR
4.1
Summary of finings
CHAPTER
FIVE
5.0 Recommendation and conclusions
5.1
Recommendation
5.2
Conclusions
Bibliography
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Management accounting is said to be
the application of professional knowledge in the preparation and presentation
of accounting information in such a way as to assist management in the formulation
of policies an in the lanning an control of the operations of the
hinder-ta-king. Looking at this definition, management of a small -scale
industry in order to make it continue functionality in this country mostly in
small-scale industries, where there is not much business has problem.
The history of many countries have
shown that industrial revolution has been the main cause for their economic
survival, their grate financial strength have come principally through the
acquiring of industrial and technological power. Small-scale industries
undisputedly constitute the bedrock for any management industrial development
an for the acquisition of this industries organization be it multination or
Indigenous, stated in a small way. Small-scale business sets up are nothing but
buying and selling out fit abound. Considering the economical situation in the
country, the entrepreneurs in the state wants to break out into same other
areas out side buying and selling
One would appreciation the fact that
one can make quicker and more money by buying and selling. But this is only for
short term. Investment in the production of physical goods. Though, it has a
longer payback period but ensure a longer an lasting profit. This could not
only be a safer investment for the entrepreneur in the long run, but also a
sure way to providing employment for out young school leavers.
One must appreciate that fact that the
survival of the sole proprietor in this country economy today would depend on
his initiative and selling will soon be permanently over in his country. The
sole proprietor must appreciate this fact and move to study the economy and
develop interest in some manufacting no matter how small a scale so as to be
sure at the survival in today and future Nigeria.
With the decline in oil revenue, it is
become more difficult for importers as many imported goods are either banned or
attracted high tariff to conserve foreign exchange, most of prosperous trade
Especially of small scale industries who are seeing the writing on the wall of
destiny has not yet invested in industries but s till depend on buying an
selling. Equally, there are in this area numerous scientists; engineers,
accountant’s economist and technologist who possess in intellectual ability to
set up an industry but hardly find the necessary fund to do so.
The government is also calling foreign
investors to come in and invest in the country foreign investors to come in and
invest in the country and also experts to come to help in some at the wounded
companies late have in the country. Like in early eighties, government sponsors
all business environments as well as its operation.
On carrying out this, some interview
questions were drawn and administered on the population of same other
institutional lenders in Enugu
State. The government
bothered on the firms acceptability of some crucial problem areas suspected to
have caused and have been influenced by the performance of their inability to
service debt in economic system of the small scale industries as was as identifying
the government efforts towards eradicating this abnormality. Result on this was
analyzed using some statistical chart and chi-square to test the level of
significance of the answer using the instrument of hypothesis.
To this end therefore, it was
concluded among other things that the inability of the small-scale industry to
senseless capital.
It can make them become vulnerable to
the risk of change or innovation in the small business sector.
It can result to employment of mainly
skilled labour for effective performance of the business. Furthermore, they may
have problem in fulfilling the marketing strategies for their finished products
It the light of the foregoing
conclusion the research recommended amongst other that: the federal and state government
should increase their assistance to small-scale enterprises. A special
financial institution charged some proagamme on voluntary services scheme and
also launched the national directorate employment all for financing
entrepreneurs and also train apprentices I every state in general, locally
manufactured machine an equipment therefore tries to find out the extent to
which the ability to service debts has constrained the attitudes of the small
scale enterprises in Enugu State.
Again the assessment ground or
criterion of every business entity cannot b e counted without including its
ability to meet the financial obligation. And I t will also not be argued if
debt servicing is rated first in financial will service its debt without sound
capital mix.
The power of business entity to
services debt is not only in the interests of creditors and the debtor but has
spread its long time or tentacles touching investors, shareholders (where necessary) employee and government.
1.2 STATEMENT OF THE PROBLEM
To considerable extent, the mean of
the economic growth of any developing
or undeveloped nation lies in the development of small-scale industries. And
for a vibrant small scale enterprise to exist their is the need for the
establishment of a strong finical base for the business to guarantee and
effective operation. Some scale industries have had difficulties and different
time trying to survive in every changing economy, their problem range from
financial draw back, high borrowing interest rate, with the responsibility or
granting direct credit to the investors at very low interest rate and without
interest rate and without the collateral requirement condition to be
established. Established of a special institution to give advice of fanatical
matters mainly as it bothers on debt servicing.
Government should re-organize existing
financial institution in the bid to fracturing lending capacity to small
industry.
1.3 OBJECTIVE OF THE STUDY
The main purposes of this study
are:
1. To find
out why there are only few small scale industries in the local government area
2. To
determine the major problem confronting
small-scale industries
3. To
determine the few industries existing are not making progress and also why
there is a high rate of infant mortality of such industries in the local
government area.
4. To
determine the extent to which poor financial records has brandied in the
small-scale industries.
5. To make
possible recommendation aimed of ameliorating against the establishment and
development of small-scale industries.
6. To
determine the role of small scale intrudes and their possible contribution
towards economic development.
7. To find
out want roles the government and the financial institution should play towards
alleviating the suffering of small-scale industries in the local government
area.
1.4 SIGNIFICANCE
OF THE STUDY
It felt
that this study would be of immense benefit to a number of individual and firm
in the following ways:
1. This
study is going to provide its reader a clear insight into the development of
small-scale industries especially in rural area.
2. It would
equally provide a basis for further studies into other aspect of problems at
industrialization in the state.
3. The study
would also benefit the business man and the industries in the local government
area in question.
4. It also
felt this since scale establishment and the possible solution, to such
problems.
5. Student
of business studies In general, would find this study very interesting since it
cuts across all aspects of business establishment.
6. Finally,
it is also significant to the planning authorities since it would provide them
with the necessary information needed in articulation of economic.
1.5 DEFINITION
OF TERMS
One of the most difficult definitions
in the field of business is that of the small-scale business. This is so
because what may appear to be small business to one person may be large to
another for one person could easily consider a firm with loo employee as being
small. Actually both may be right. There is no simple definition.
The controversy over the precise
meaning of the small-scale industries among scholars, government, students,
economic and financial analyst, has been for a long time up till now, no
compromise seems to have settled the argument. Different people an institutions
therefore, have employed different criteria, such as total assets size of the
firm in industry, number of employees or any for the above.
Encylopcidia American small business
as broadly defined by department of commerce is any manufacturing plant that
employees loo person s or fewer, a wholesale establishment with annual sales of
less than 50,000 a year. Made Nwagwuigwu and Ohiri (1988:2223), according to
small business administration, (SBA) of the Untied States of America (USA) defines
a small business as one that meets the following standards:
Wholesales
annual Scaulle from &5 million to 15 million depending on the industry,
retail an service, average over a three-year periods manufacturing from 250 to
1,500 employees depending on the industry.
The Classical economist according to
Ademewo 1988 defines the term as any organization of production whose main
objectives is to produce goods and services in order to meet and satisfy human
wants in not large or medium scale on a continuous basis for the primary aim of
earning profit as a reward for the risk undertaking in the business.
In Nigeria uniformity in the
definition and classification of small-scale enterprises has not been achieved,
According to Ola 1983 the central Bank of Nigeria credit guideline for 1988
with annual turnover from (N1.00) one
Naira to (N150,000) one hundred and fifty thousand Naira
Arthur David John Williams (1985: 746)
defined small- scale enterprises as one that is growth oriented and does not
have easy access to the capital and money market, the third national
development 1975 – 1980 also defined small scale as any manufacturing
establishment employing not less than (10) ten employees or investment
machinery and equipment do not exceed N500, 00 (Ibid).
According to
Onosode (2003) defined small scale as any enterprise with a maximum asset base
of N20 million excluding land of self employed by the enterprise not less than
10 and not ore then 300
However, for tending purpose of the
commercial an merchant banks, the central Bank of Nigeria (CBN) monetary policy
circular No 29 (1995) as small scale enterprises was defined as any enterprise
whose total cost of land but including working capital does not exceed N10
million.
According to Enugwu (1999) government
and scholars have continued to move value of small-scale enterprises upwards.
This is as a result made the Nigeria Council of industrialists (Umeabli 1998).
REFERENCES
Osagie E.P (1979) Element
of economics principle and scholar press ogizo publishers.
Onosode G.O (2003) evaluating
bank credit department’s performance.
Nwosu E.J (1961) Characterizes
and Employment Vol. 8 No 7 USA world bank publication.
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