Challenges of Managing Small Scale Business Enterprise in a Depressed Economy
CHAPTER ONE
OBJECTIVE OF THE STUDY
It has been established that the small-scale business employ the highest member of the work-force found in any nation, be it a developing nation. It is in the light of the above, that the study is focused on;
- To find out the challenges of managing small scale business enterprise in a depressed economy.
- To determine the contribution of government towards developing small scale business in the Nigeria’s economy.
- To establish to what scale, small scale industries are producing due to the low capital investment by entrepreneurs.
- To find out the challenges faced by the sector and suggest solution that will enhance their roles.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Economic Depression
An economic depression is a period of sustained, long-term downturn in economic activity in one or more economies. It is a more severe economic downturn than a recession, which is a slowdown in economic activity over the course of a normal business cycle.
Economic depressions are characterized by their length, by abnormally large increases in unemployment, falls in the availability of credit (often due to some form of banking or financial crisis), shrinking output as buyers dry up and suppliers cut back on production and investment, more bankruptcies including sovereign debt defaults, significantly reduced amounts of trade and commerce (especially international trade), as well as highly volatile relative currency value fluctuations (often due to currency devaluations). Price deflation, financial crises, stock market crash, and bank failures are also common elements of a depression that do not normally occur during a recession.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Challenges of managing Small scale business enterprise in a depressed Economy. 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 managing Small scale business enterprise in a depressed Economy
Summary
This study was on Challenges of managing Small scale business enterprise in a depressed Economy. Three objectives were raised which included; To find out the challenges of managing small scale business enterprise in a depressed economy, to determine the contribution of government towards developing small scale business in the Nigeria’s economy, to establish to what scale, small scale industries are producing due to the low capital investment by entrepreneurs and to find out the challenges faced by the sector and suggest solution that will enhance their roles.. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Dadin Kowa enterprise in Jos. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
SMEs have always played vital role in the economy. Among the advantages derivable from SMEs are the checking of rural/urban migration, provision of employment opportunities, and conservation of foreign exchange and development of indigenous entrepreneurial skill. Handling special and varied products, which the large firms do not specialize in, and helping in the dispersal of industries and the growth in the quality of life of rural areas where they mostly operate, are some of the other advantages. While the future of the Nigerian economy resides in the development of SMEs, there are many problems hindering their growth and development. The major problems confronting SMEs include: financial problem, deficient entrepreneurial capacity and shortage of technical manpower. Economic depression is characterized by these problems. Most of these problems or obstacles can be overcome by political stability, provision of adequate incentive systems, adequate infrastructures, developmental finance and credit facilities, among others. In spite of the large problems confronting SMEs during economic depression, the future for this vital sub-sector of the Nigeria economy is bright. The ever-increasing ability of SMEs will lead to generating new ideas, new products and new services to consumers. Among other programmes which show promise of a bright future for small scale industries include (i) encouragement by the Nigerian Stock Exchange (NSE) in approving SMEs applications to raise funds from the capital market due to the increasing cost of funds in the money market, and (ii) the special loan facilities provided by the National Economic Reconstruction Fund (NERFUND) from time to time. The various measures taken to ensure the growth and development of the small and medium scale enterprises have witnessed limited success as a result of myriad of reasons. These include inadequate infrastructural facilities, continued restricted access to credit as well as abuse of the various programmes by both the beneficiaries and the operators arising from insincerity of purpose, among others
Recommendation
1) Efforts should be intensified towards the adequate provision of infrastructures. This would not only reduce the cost of production and enhance competitiveness, but would also encourage further investment and growth of the sector. Also, observed constraints such as demand for cumbersome collateral security in accessing available credits should be removed. Operators of the different initiatives should therefore endeavour to ensure that funds get to the targeted group of investors. This may require a review of the existing framework to ensure greater flexibility without sacrificing the principle of sound financial practice.
2) Government should on its part endeavour to fund the Banks of Industry and the Nigerian Agricultural Cooperative and Rural Development adequately. Again, the apparent lull in the activities of the Small and Medium Industries Equity Investment Scheme (SMIEIS) shows that the problem with the growth of the SMEs is not just capital. There is the problem of inertia, unwillingness to dilute ownership and control, fear of the unknown, etc. These can be solved through enlightenment. Therefore, the active involvement of the Nigerian Association of Small Scale Industrialists (NASSI) and all other groups of the organized private sector should be encouraged in order to have wider coverage and patronage. Experience has also shown that information on SMIEIS is yet to be adequately disseminated
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