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ABSTRACT
This is a research work which examine the causes of small-scale business failures in Nigeria as such the study will go a long way in identifying and improving the prospect for survival of small-scale business, consequently contributing to the economic growth of the Nigeria nation.
In conducting the research, questionnaire and oral interviews where used. The sample size for the research consist of 30 and 50 business centers and restaurant owners respectively. The data collected were tested statistically by the use of x2 (chi-square) the finding of the revealed for the following. That sex of respondents do not contribute to business failure, that there is a bearing between educational level respondents and business failure, that finance is a causative factor to business failure.
Therefore, recommendations such as: encouragement of the financial Institutes to extend loans at a less stringent condition to the small-scale business subsection sourcing of cheap and available substitutes (raw-materials) locally; consistency in government polices as it affects small-scale business, enhancement of the managerial acumum of managers of small-scale business through seminars and workshops, business owners should engage in business that are less competitive, amongst others were suggested.
Conclusion was drawn following the findings that there should be more commitment when assistance inform of loans from banks and enlightment programmes like seminar are being organized by government or its agencies, what are needed therefore for an overall improvement in the performance of small-scale enterprises are better support, understanding and encouragement by all concerned.
CHAPTER ONE
1.0 INTRODCUTION
Nigeria’s quest for national economic development have been her through several approaches. Since 1960, the year of Independence the country’s development plans have laid a great deal of emphasis on public sector control of the economy. We have a situation where the public/private sector mix has increasingly titled towards public sector donation. In the first National Development Plan (1962-68) the private sector of which small-scale business was part received 62% of the total capital expenditure while on the other hand; on the fourth plan (1981-1985) only 12% of total capital investment was accorded the private sector with the public sector controlling a staggering 88%. This apparently wrong development planning did not pass without adverse consequences for the Nigeria economy. The net effect of the unbridled government participation and control of business activities through the large scale industries and the oil boom of the 70’s which dictated the entire frivolous and wasteful attitude of the government and the people including the relegation of the agricultural sector and private initiative has now give way to hunger, squalor, spiraling inflation, disease and mass unemployment. But today the situation is changing. The current emphasis is on the development and strengthening of the small-scale business sector as the main foundation of economic self-reliance.
The unemployment situation in the country coupled with the new government initiative towards easing social tension among unemployed youths through the programmes of the National Directorate of Employment (N D E) are new luring a lot of unemployed Nigeria including graduates and others who want to be their own boss into self determination through self-employment. Graduates and school leavers are new realizing that government and the established private companies are not ready to come to their aid directly through paid employments due to the parolons state of the economy. Short of alternative, Nigerians including our graduates are therefore launching themselves into various small-scale business ventures, such as collage soap and cosmetics production, farming, publishing, writing, blocking, garri production, food processing, refuse disposal, taxi driving, cleaning, services, advertising and public relations, business centers, restaurants and other small business ventures.
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