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THE IMPACT OF SMALL SCALE BUSINESS IN THE


NIGERIA ECONOMY

TABLE OF CONTENT
Cover page ...................................................Error! Bookmark not defined.
Title page ......................................................Error! Bookmark not defined.
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Acknowledgement......................................Error! Bookmark not defined.
Table of content............................................................................................ i
Abstract ........................................................................................................ iii
CHAPTER ONE ....................................................................................... 1
INTRODUCTION ...................................................................................... 1
1.1 Background of the Study .............................................................. 1
1.2 Statement of the problem ............................................................. 6
1.3 Research questions ......................................................................... 6
1.4 OBjective of the study .................................................................... 7
1.5 Hypotheses ........................................................................................ 7
1.6 Significance of the study ............................................................... 8
1.7 Scope of the study ........................................................................... 9

CHAPTER TWO .........................................Error! Bookmark not defined.


LITERATURE REVIEW .........................Error! Bookmark not defined.
2.1 An Overview of Small Scale Enterprises .. Error! Bookmark not
defined.
2.2 Small Scale Business .......................Error! Bookmark not defined.
2.3 Small Business in Africa .................Error! Bookmark not defined.
2.4 Life Cycle of Small Scale Enterprises ........ Error! Bookmark not
defined.
2.5 Characteristics of SSEs in Nigeria ............. Error! Bookmark not
defined.

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2.6 Information Communication and Technology (ICT) ....... Error!


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2.7 Financing of Small Scale Business Enterprises .............. Error!
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2.8 Importance of Small Scale Enterprises .... Error! Bookmark not
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2.9 Problem of Small Scale Enterprises........... Error! Bookmark not
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CHAPTER THREE ................................Error! Bookmark not defined.
RESEARCH METHODOLOGY............Error! Bookmark not defined.
3.1 Introduction .........................................Error! Bookmark not defined.
3.2 Research Design .................................Error! Bookmark not defined.
3.3 Sampling Techniques .......................Error! Bookmark not defined.
3.4 Population of the Study ...................Error! Bookmark not defined.
3.5 Sample Size ..........................................Error! Bookmark not defined.
3.6 Data Collection Instrument/Tools ............. Error! Bookmark not
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CHAPTER FOUR .......................................Error! Bookmark not defined.
4.0 DATA PRESENTATION, ANALYSIS AND FINDINGS ....... Error!
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4.1 Responses Rate of Respondents ...Error! Bookmark not defined.
4.2 Analysis and Testing Of Research Hypothesis ................. Error!
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4.3 Hypothesis 1 ........................................Error! Bookmark not defined.
4.4 Hypothesis II ........................................Error! Bookmark not defined.
4.5 Hypothesis III ......................................Error! Bookmark not defined.
4.6 Discussion of Findings .....................Error! Bookmark not defined.
CHAPTER FIVE .....................................Error! Bookmark not defined.
5.0 SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION ................................Error! Bookmark not defined.
5.1 Summary of Findings .......................Error! Bookmark not defined.
5.2 Conclusion ...........................................Error! Bookmark not defined.
5.3 Recommendation ...............................Error! Bookmark not defined.
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REFERENCES ........................................Error! Bookmark not defined.


APPENDIX ...............................................Error! Bookmark not defined.

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ABSTRACT

It is widely accepted that small scale businesses is the


basis for development t in any nation. The existence of
poor economic development programme in Nigeria has
been a major problem to researchers and the government.
This research work was carried out to investigate the
impact of small scale business in Nigeria economy. A 15
item questionnaire which reflected the three research
questions and three research hypothesis was developed
and administered on 97 staff of the five small business
that constituted the sample of the study. the statistical
tool used to analyze the data obtained from the
respondents was the chi-square and simple percentage.
The analysis of data revealed that poor infrastructure,
ineffective planning, and poor records keeping were
identified as causative factors of poor entrepreneurial
development programmes in Nigeria. Based of these
findings, conclusion and recommendation were made.

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In discussing the economic development of any

locality and particularly that Uvwie Local Government Area

of Delta State. Small-scale business cannot be overlooked.

Small scale business is that type of business that can

be established by an individual or group of individual such

as partnership and co-operation societies.

In Nigeria, the definition of small scale business also

varies from time to time and according to institution for

instance the central bank of Nigeria’s (CBN) monetary

policy circular No: 27 of 1988 defined small scale

enterprises (excluding general commerce) as enterprises In

which total investment (including land and working

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capital) did not exceed ₦500,000 or the annual turnover

did not exceed ₦5,00 million.

Consequently, both the federal and state governments

and recently, local government, have stepped up efforts to

promote the development of small scale business through

increased incentive scheme, including enhanced budgetary

allocations for technical, assistance programmes. New

lending schemes and credits institutions such as the

national economic reconstruction fund (NERFOUND) world

bank assisted small scale enterprises loan scheme (SMES)

the people bank of Nigeria (PBN) and community bank

have also emerged at both the national and local levels to

boost the flow of development finance of small scale

business which have so far depended largely on personal

funds and credit for informal sources for both their

investments and working capital.


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Historically before the advent of the Europeans in

Nigeria small scale business have flourished in filed, like

pottery, carving, black nothing, leather work etc. these

were located in different parts of Nigeria particularly in

areas where the raw materials were abundantly and

cheaply available.

However, with the advent of the European there were

radical changes in the growth of small scale industries in

Nigeria. Like the industrial revolution of Britain which led

to the flooding of markets with already manufactured

goods, wealthy individuals in the small vein used their

influence to secure loans from bank to manage small scale

business or firms.

There is the need to say that the economic

development of any local government rest greatly on the

number of industries and business established In such


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locality. Uvwie local government area of Delta State having

several towns and villages have majority of her populace as

peasant farmers and petty traders.

Many small scale business in Uvwie Local

Government Area are created without a separate business

name. The majority of these shops are in market places

and in personal house while others are in shops and

Kiosks. These categories of traders carryout their business

in informal ways such that there may be no record keeping

of sales, purchase and inventories. They may not accept

cheques but sell mainly for cash and may not give receipts

to customers. But well established small scale business

owners have business names properly displayed on their

shops and keep simple business records.

Some of the business activities which small scale

business dominate include bookshops, leather wears,


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hospital, motor transport, groceries, medicine sales, spare

parts, food canteen and restaurant, vehicle repairs, hair

dressing, boutiques stores, private school, poultry farms,

bakery etc.

Small scale business owners usually obtained their

initial capital from personal savings and in some cases

from friends and relatives. It is not easy for small-scale

business owners to collect loans from banks because they

do not posses collateral securities. Only well established

small-scale business enjoy bank loans and bank over-

drafts. Most individuals and banks fix a very high rate of

interest on loans, which most entrepreneur may term

colossal.

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1.2 Statement of the Problem

There are numerous small scale businesses in uvwie

local government area but there is slow pace of industrial

development.

This research intends to find out why there are

numerous small-scale businesses and yet slow pace of

industrial development.

1.3 Research Questions

a) Is there enough market opportunity for the goods and

services produce by small scale business owners?

b) Do small-scale business owners possess the

entrepreneurial ability to manage the type of business

they are operating?

c) Is it that small scale business finds it difficult to

obtain loans from banks?

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1.4 Objective of the Study

a) To find out if there are enough market opportunities

for the goods and services produce by small-scale

business owners

b) To ascertain whether small-scale business owners

possess the entrepreneurial ability to manage the

type of business they are operating

c) To determine whether small-scale businesses find it

difficult to obtain loans from banks.

1.5 Hypotheses

a) Hi: there is no market opportunity for the goods and

services produce by small scale business owners.

b) Ho: there is market opportunity for the goods and

services produce by small-scale business owners.

c) Hi: small-scale business owners do not possess the

entrepreneurial ability to manage their businesses


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Ho: small scale business owners do possess the

entrepreneurial ability to manage their business.

d) Hi: small scale business find it difficult to obtain

loans from banks

Ho: small scale businesses do not find it difficult to

obtain loans from banks

1.6 Significance of the Study

The relevance of this study in today Nigeria cannot be

overemphasized. This study is particularly relevant to:

a) Investor/operators of small scale businesses in order

to identify their roles in the economic development of

Nigeria.

b) It is also beneficiary to the government, who play major

role in creating a fair environment for business

practitioners and providing or formulating a right and

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executable financial policies favourable to small scale

business operators.

c) This research project is also relevance to researchers

seek to know more and undertake further finding in

order to explore possible areas on small scale

businesses.

d) It is also beneficiary to the federal, state and local

government of the country. And most especially this

research work is relevant to uvwie community

1.7 Scope of the Study

This work is based on uview local government area of

delta state, Nigeria. For convenience, case of data

collection and as a result of time limitation the work was

specifically on selected firms in uvwie local government

area of delta state.

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