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1.1 BACKGROUND OF THE STUDY
Business in Nigeria today includes a mixture of both large and small firms in many industrial areas big business clearly dominate small business establishment are dwarfed by giant ones because of the greater visibility of big business, we tend to over estimated the contribution of the less conspicuous small firms which are indispensable to the functioning of our economy.
The small Business may be described as “small” when compared to the larger institution and as “large” when compare to the smaller firm, what is a small depend upon one’s point of view observes would classify an independently owned services station, restaurant or retail store as a small business.
Similarly, most would agree that the major automobile manufacturers are big business.
In between however, are firms which may be considered large or small depending upon ones criteria and point of view.
An explicit definition of small business is necessary for inclusion in legislating for research purpose and for reasoning intelligently concerning problems of the economy. The role of small business cannot be complete if the definition of small business cannot be complete if the definition of small business are not included in Nigeria, there is no consensus on what constitute a small business, a small business has been defined as an establishment whose annual turnover does not exceed N50,000. the Nigeria bank for commerce and industries in 1981/82 (for the purpose of revolving loans schemes for small scale industries). However, the bank official definition since 1985 has been firms whose capital does not exceed N75,000 excluding working. Capital but including land. This raises the question then as to what yardstick should be applied to determine business size.
For example is independent ownership a critical factor? Is either sales volume or number of employees being accurately describe in the same manner in both manufacturing and retailing? Can a business larger? These are many other questions come to mind as attempt is made to introduce he concept of small business.
The number of employees on a firm’s payroll is perhaps he most widely used criterion. About two employees constitute a typical line of demarcation between small and large business. As a practical matter, however many different standards have been applied at one or time the another there are been little consistency even from one place of legislation to another, In fact, guide adopted for one elsewhere.
1.2 BRIEF HISTORY OF FOTO KWIK:
Foto kwik industries limited is a private enterprise with head office at no. 21, Akpodiete street Ughelli, delta state and with branches at Warri; Uyo and Caliber.
The company renders services of developing and printing of films, it also engages in sales of photographic materials. The company has different Viz; the accounting department, production department, management department for the sales and distribution of their production to different branches.
1 3 STATEMENT OF PROBLEMS
This research was conducted as a result of problem evident in small scale business in Ughelli; north local government area the problem leading to the conduct of this research are the decreasing rate of small scale business due to the attitude of government towards them. For instance this attitude came in form of lack of interest in the survival of small scale business
More so, the end result of small business is not encouraging despite the effort made by delta state government. It is because of these reasons that this research is conducted.
1.4 PURPOSE OF THE STUDY
Based on the statement of problems stated above, the objectives of the study are as follows:
1 To find the role of small scale business in the economic development of delta state.
2 To find out the extent to which small scale business help in creating employment.
3 To find out the validity concerning the gradual extinction of small scale business.
4 To find out the competitive strength of small scale business if there is any.
5 also to make possible recommendation that can encourage small business in the Nigeria development
1.5 SIGNIFICANCE OF THE STUDY:
In conducting the research, the researcher, quite appreciated that the study shall apart from servicing as a sources of what to establish or know the problem of roles of small business shall serve as a yardstick of asserting on the success or failure of such venture. The study will be of a significant interest to those who may be interested in researching further on the activities of small scale business. The study could also be of immense help to business administration students, practicing managers and administrations.
1.6 RESEARCH QUESTIONS:
What important role do small scale Business play in the Nigeria development in Delta State?.
1.7 SCOPE OF STUDY:
Any social research necessarily attracts broad coverage and so it is important to delimit the work t4o enhance in- depth analysis, for this reason, the research seeks to investigate the role of small scale business in Nigeria development. Therefore, the investigate with mainly focus on Foto Kwik Nigerian enterprises, Ughelli Delta State for more facts.
1.8 LIMITATION OF STUDY
In this course of study there has been some limitation amongst them was financial constraint there was insufficient fund to carryout the purpose why the project work was designed.
Transport to various libraries in their various locations was so costly was the photocopying of related materials that has help in the on going project.
1.9 OPERATIONAL DEFINITION OF TERMS:
The terms used in research work were simple and understanding and the following terms used in this study is fully explained.
Small scale business: the center foe management development (CMD) has however recommended to the federal government that the official definition of small – scale industry is a manufacturing processing or services industry, employing up to 50 full time workers investment in plant and machinery but excluding land and building shall not exceed N500,00 and the process of improvement in the various aspect of the life of the society.
Business; is the sum total of all human activities involved in the production and distribution of goods and service for the purpose of satisfying human wants.
Development: it involves the emergence of new or higher levels of organization. In the case there is not merely a quantitative increase in the levels of activity or accomplishment, but a quantitative increase in the level of activity or accomplishment, but a quantitative change in the way the activity is carried out in society.
Economic Growth: Growth, in the world of economics refers to an increase in output, which is a result of technological improvement and the addition of factories, machines and other resources.
Finance: finance deals with the capital structure of a business organization. Financing consist of the determination and planning for fund for the present and future needs of the enterprise.
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