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CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE ESSAY
The history of indigenous businesses in Nigeria has the history of small-scale enterprises. Independent businesses are everywhere and in line of work in our community.
Many people want to become their own boss someday. This goal serves as an incentive for millions to become business entrepreneurs most especially now that people have come to realize that it does not pay much to work as civil servant. But rather think of operating businesses of their own.
In recent times in this country, government (federal and state) level have championed the campaign for individuals especially the unemployed ones to become creative and bring to a halt the searching for a White Collar Jobs that are not available; rather people should engaged themselves in thinking of how to get themselves involved in doing one thing or the other on their own in order to create employment for themselves and if possible employ other people.
Making this possible will matched the nation towards its long awaited industrial take off. It is a consensus opinion that small – scale and medium size entrepreneur can assist in re – shaping our economic system.
However, a close look at the performance of small – scale businesses in Nigeria portrays a situation of neglect, apathy and general underdevelopment. This situation had seriously hampered the rapid growth of this important sub sector of the economy, pathetic situation could be attributed to a number of problems hindering the development of small – scale businesses such as managerial problems, marketing problems, lack of high caliber of employees and lack of quantitative data among others. The above-mentioned factors have hindered the development of small-scale business. The acute shortage of required capital to meet the business operational requirements has cultivated has cultivated the fluctuating performance and its declining role in the development of nations economy. The difficulties of small-scale businesses in obtaining required credit facilities and varieties of credit issues has further complication the financial problem facing these industries.
OBJECTIVE OF ESSAY
The aims of this study are as follows: -
- To identify possible constraint facing the business with a view to finding solutions.
- To undertake an intensive investigation on how the establishment of small-scale business could help in economic development.
- To critically examine how small scale business can be managed.
- To humbly fulfilled the requirement for the award of National Diploma in business studies (Department of Purchasing and Supply) College of Business and Management Studies.
SIGNIFICANT OF THE ESSAY
The important of this study cannot be over emphasized. In the course of this extended essay the following importance will be revealed.
- Academic Significance: At the end of this essay, it is hoped and wished that the study will be of an enormous importance to other fellow student and the general public as a whole.
- Policy Significance: It is equally hoped that the essay will be of great assistance to the government in making decision concerning economic development.
SCOPE AND LIMITATIONS OF ESSAY
The extended essay is all about the significance of small scale businesses in economic development with a specific reference to the Nigeria economy.
Effort on the course of these essay study were constraint by the following factors:
- Having little experience in writing these extended essay work is an obstacle, hence, how to go about it for ideas was a big problem.
- Seeing the supervisor twice a week or sometimes only once a week was also a problem
- Spending money in going about the process of writing the essay is a major problem.
- Time was also not sufficient enough to obtain all the relevant fact in respect of the essay.
However, all the limitation mentioned above were put aside to conclude the extended essay study.
DEFINITION OF KEY TERMS
DEVELOPMENT: A Multi – dimensional process involving re – organization and re orientating the entire economic and social system. This involves, in addition the improvement of income and output, radical changes in institutional, social and administrating structure as well as in popular attitudes, customs and beliefs. In other words, it is a process of change from one stage to another, which is a positive change.
ECONOMIC DEVELOPMENT: It is a service provided by people in the increment of skills, capacity, freedom, creativity, self-discipline, responsibility and material well being where poverty, unemployment and inequality have reduced tremendously.
ECONOMIC GROWTH: This is a quantitative increase over a country’s level of output both goods and services at a particular period of time.
GROSS NATIONAL PRODUCT: The (GNP) is the sum total market value of all final goods and services produced in a country in one year.
EMPLOYEMENT: Using the services of some and pay in return a form of salary or wage.
ENTREPRENEUR: One who initiates, establishes, organizes, maintains and expands economic activities.
DEPRECIATION: This is the wearing or loss of quality of fixed assets from use.
INDUSTRY: A factory where raw materials are used to manufacture usable and consumable goods.
PROFLIGACY: This is the state of being reckless and extravagance the use of resources.
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