Challenges Facing Small and Large Scale Organizations in Nigeria. Case Study Indomie Foods and Pepperoni
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To find out the challenges facing indomie foods and pepperoni
- To Find out the factors that determine the growth of small and large scale organization in Nigeria
- To analyze the effect of the challenges on the growth of indomie foods and pepperoni
CHAPTER TWO
REVIEW OF RELATED LITERATURE
THE HISTORY OF SMES IN NIGERIA
SME has a long history in Nigeria like every other part of the world; it was the means of survival for the people since ages, it has managed to save many poor homes that have the innovation to start a unique business but with different problems with establishment or survival. In Nigeria there is no generally acceptable definition of SMEs but it varies over time from organization to organization. The NCI (National Council of Industry) in 2001 include the capital investment band of SMEs at between NGN 150 to 200 million, excluding land but including working capital and also the working force band between 11 and 300 inclusive. But on the other hand, the (NASME) National Association of Small and Medium Scale Enterprises also define a small scale enterprise as a business with less than fifty employed people by the enterprise and with an annual turnover of NGN 100 million. NASME came up with another definition, which states that Small medium scale enterprise is a business with less than 100 employees and an annual turnover of NGN 500 million. The Central Bank of Nigeria (CBN) defines SME as an enterprise with a maximum asset base of NGN 200 million, without land and working capital, also the number of employees not less than 10 and not more than 300. Due to the flexible nature, SMEs are quite able to withstand economically diverse situations. In Nigeria SMEs are more likely able to survive in smaller urban and rural areas where they can effectively contribute to the distribution of economic activity in any region and That has helped the reduction in the migration to the larger cities like Lagos and Kano. SMEs in Nigeria can be categorized into urban and rural enterprises, but in a more formal way they can be called Organized and Unorganized enterprises. The organized enterprises have paid employees with a registered office while the unorganized enterprises are mainly made up of artisans who work in open spaces. Operating in temporary wooden workshop or structures, the unorganized enterprises rely mostly on apprentices or family members and mostly employ low rate or no salary paid workers. Rural enterprises are made up of family groups, women that are engaged in food production from local farm crops, and individual artisans. The major activity involved in this sector include; soap and detergents, fabrics, textile and leather, local blacksmith, tinsmith, ceramic, clothing and tailoring, timber and winning, bricks and cement, food processing, wood furniture, beverages, bakeries, electronic assembly, agro processing, chemical based products and mechanics.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to challenges facing small and large scale organizations in Nigeria. Case study indomie foods and pepperoni
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Challenges facing small and large scale organizations in Nigeria. Case study indomie foods and pepperoni. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of small and large scale organizations in Nigeria.
Summary
This study was on Challenges facing small and large scale organizations in Nigeria. Case study indomie foods and pepperoni. Three objectives were raised which included: To find out the challenges facing indomie foods and pepperoni, to Find out the factors that determine the growth of small and large scale organization in Nigeria and to analyze the effect of the challenges on the growth of indomie foods and pepperoni. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected indomie foods and pepperoni in Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, secretaries, sales representatives and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Different SMEs meet the above mentioned challenges in different ways. Clearly there is no magic bullet in achieving success. Business success is a consequence of embracing the whole package of strategies in order to succeed. Selling a variety of products or offering a variety of services is just as important as embracing prudent financial management systems. The development of SMEs and its effective promotion have not been approached seriously in Nigeria; hence, the lack of their impact in the economy. In Nigeria, various governments instituted various programs aimed at developing SMEs sector. The Non-Governmental organization and Donor Agencies are currently involved in the promotion of SMEs in Nigeria. Access to credit continues to pose a major problem to SMEs sector in Nigeria. The traditional financial institutions have not been able to meet the credit needs of the SMEs. Since the introduction of economic reforms, more SMEs have been forced to the informal institutions for credit. But the supply of credit from the informal institutions is often so limited to meet the credit needs of the SMEs
Recommendation
Based on the finding, the following recommendations were made. Finally, based on the survey findings and available literature, we propose the following guidelines and strategies that SMEs can use to boost their performance. It is appreciated that each business has its own unique combination of critical success factors, but some are important for all businesses. First small businesses should have a global outlook‘. Businesses of all sizes across the globe can interact and share information, technology and products. Small businesses should consider what global trends are affecting availability of resources, increasing or decreasing demand for products or service and where there is an unfilled need one might be able to meet. This may prove a challenge to SMEs but the government can step in here to provide information on business trends. Government can accelerate the development of markets for financial services suited to the special characteristics of SMEs by promoting product innovation and building institutional capacity. In financial markets, improving SMEs access to credits requires an increase in the number of financial institutions that find lending to SMEs to be profitable and therefore sustainable.
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