THE ROLE OF SMALL SCALE BUSINESSES TO THE NIGERIA ECONOMY DEVELOPMENT (A CASE STUDY OF GLOBAL SOAP AND DETERGENT INDUSTRY, ILORIN AT KWARA STATE, NIGERIA)
TABLE OF CONTENT
1.1 Background To The Study
1.2 Formation And Development Of The Study
1.3 Objective Of The Study
1.4 Importance Of The Study
1.5 Historical Background Of The Study
1.6 Scope Of The Study
1.7 Limitation of the study.
1.8 Definition of terms.
2.0 Literature Review
2.1 The Term “SMALL SCALE BUSINESS”
2.2 Purpose Of Small Scale Business
2.3 Structure Of Small Scale Business
2.4 The Role Of Small Scale Business
2.5 The Role Of Managers
2.6 Sources Of Financing Small Scale Business
2.7 The Development And Importance Of Small SCALE Industries
2.8 The Problem Facing Small Business
3.0 Research Methodology
3.2The Method Of Data Collection
3.3 Procedures in gathering data.
3.4 Measurement Techniques
3.5 Research Design
3.7 Reliability And Validity
4.1 Presentation And Analysis Of Data
4.2 Data Analysis
4.3 Analysis And Interpretation Of Questionnaire
5.0 Summary, Conclusion And Recommendation.
5.1 Summary Of The Research
1.1 BACKGROUND TO THE STUDY
The Nigeria federal, state and local government have been taking the development of industries as a master of importance. The government is encouraging the establishment of small scale indigenous industries by creating favourable condition to the industrialist especially by granting them short and long term loans. The government also exempts the infant industries from taxation and grant loans to them for further establishment.
In view of the above, it is observed that many industries have been in existence for quite a while. Some of such industries are soap and detergent industry, leather factory, Tailoring, weaving to mention but few. The effort of government in encouraging the citizens of Nigeria to engage upon primitive investment has led to the
establishment of many local industries by the people of Nigeria. The government also educates the citizens through social and political means to enhance the nation becoming great through economic self reliance, industrialization that will make Nigeria economy less dependent on foreign Nations. However, all these can only be achieve, if the government will provide some more favorable terms, like provision of more loans, free education and as well as provision of infrastructural facilities to enhance and encourage a large number of small scale industries.
1.2 FORMATION AND DEVELOPMENT OF THE STUDY
The small scale industries have no special structure for its formation. The nature of the business or industry most often, determine the capital requirement, numbers of labour and the category needed for it operation. In many community, production of goods on small scale generate higher saving and higher capital
formation. These stimulate the growth and development of small scale industries.
It is pertinent here to explain some of the factors that can help the development of small scale industries such factors includes the level of savings and investment, human resources, good and thoughtful planning, availability of capital, transport facilities, raw material. However, capital among other is very important in the development of small scale industries.
Due to the inability of small scale business to secure these necessary factors, there is need for government as well as investors to explore ways to stop the wave of industrial failure in other to build standardized structures that will enhance effective growth and development in businesses.
1.3 OBJECTIVE OF THE STUDY
The small scale business has always played important roles in the sustenance of any economy. The objective of this study will
therefore, includes the following.
i. To analysis the meaning of small scale and the various role and function it performs in the economy.
ii. To determine their role in investment appraisal
iii. To also determine the benefits to individuals in the society.
1.4 IMPORTANCE OF THE STUDY
The result of the study would be of important to the people of Nigeria and to the intending industrialist because the study would reveal various roles and the benefits of small scale business.
The study will also be of importance to resourceful individual or group of people who may be interested in the establishment of small scale business in future. This study would provide information on the role and important of small scale business within the country and as a result, will stimulate and encourage the industrious individual to invest their resources for national growth and development.
1.5 HISTORICAL BACKGROUND OF GLOBAL SOAP AND DETERGENT INDUSTRY, ILORIN AT KWARA STATE, NIGERIA.
The Global soap and Detergent industry is sited along Asa-Dam Road, Ilorin, Kwara State.
This company which specialized in production of soap, extra powder flash, Hi-clean bar, vogue, Grand Detergent Bar, Bold Detergent (10kg, 5kg, 2kg, 1kg) and wash right Detergent etc.
The Company was incorporated in October, 1984 by the Federal Government of Nigeria under the commerce and industry Act in 1985, all the plants were received into the site and the process of installation started immediately.
The commissioning of the industry was done towards the end of 1985. This industry is under Doyin Group of Companies, the head office is at Lagos. Doyin is from Kwara State. He decided to site the
industry in the state capital for the purpose of reducing the problems of unemployment within and outside the state.
However, the materials used in production are imported material, but research has been going on and very soon, local raw material will be in replacement, some of the materials were specifically made for Doyin Groups of Companies from overseas e.g. Blank Corp, Sodium syndicate.
In the organizational chart, showing departments and staff position, they have the general manager as the head of the industry. The sole responsibilities of the whole operation rest on him. He is the only person that gives orders on any important issues, whenever there is any purchase or large quality of raw materials involving thousands of Naira, he assign or signs it. After the General Manager are technical, production and the quality control manager.
The technical manager has under him, electrical Engineering Department and the stores, the store supervisor report directly to the technical manager when there is need to purchases costly equipment or tools.
The production manager has under him, the raw material stores, the central stores and warehouse where they keep the finished products. The raw material that are always kept in the store for production includes.
i a. Flash cartons for packing the detergents in cases
b. Inner cases in which the soap or the detergent it self are being packed.
c. Poly products (wash right bags) is used to pack the detergent that are not in cartoons. It is weighted in Kilograms. (500kg)
ii. The component at the raw materials stores.
a. STPP (sodio Tripolifostato)
b. Sodium Cylindicate.
d. Blank Corp
e. Blue dye
g. Costic soda
h. Sulphuric Acid
All these raw materials are kept for the production process in the raw material stores until they come to request for them from production sharp floor.
The S.T.P.P (Sodio Tripolifostato) is in a separate tank with the provision of tap, so that as they are being dissolved by water before some is passed to the next machine where the operation starts. The sodium syndicate is used to neutralize the acid of the detergent during the production.
Glove, Bank Corp and Costic Soda are also part of the raw materials used in production of the detergent and during this period. it is in white colours, the blue dye will be supplied so that it will change the white colour to blue. It depends on the colour of the
detergent they want to produce perform is then supplied at the final stage so that the detergent will give a passive odour, this will also be shown on the clothes.
The quality control manager in collaboration with design and engineering department works on quantity of chemical to be used. The design, packing and packages what types of colour that will attract the customers. The dimension of the cartons, hardness, so that it does not just get spoiled any how. The amount of the qualities control department.
As it is, the practiced in all organization, the stores department will supply all the documents connected with the purchase of raw materials and stationeries to the account department so that, the necessary funds are given to them to buy from outside the organization.
All these document are not given to the accounts department for money alone, but for the purchase, and also to use it for the
preparation of the annual budget.
In every department there is a supervisor, making the affairs of the clerks and other cleaners, so that the information flow upwards from the cleaner to supervisor and to different head.
Most of the decisions taken in the organization state or demand that there must be directives from top management. That was how the processes has been taken care of at Global Industry.
The diagram bellows organization charts structure of the Global soap and detergent Industry.
1.6 SCOPE OF THE STUDY
The result of the study would be of important to the Nigeria citizen in general because the study will reveal in details the various roles, benefits, advantage as well as amount of capital that one can start scale business with. The research considered small scale industries which are randomly selected. Those to consider for
selection must have been in existence for at least five years. This as a result enables the researcher to get the true picture of the problem of the study and not a problem caused as a result of the infancy of industries.
1.7 LIMITATION OF THE STUDY.
Despite the aids and direct government allocation to small scale industries of both federal and state level through agencies like small scale credit scheme (SSCS) copied with directives to all commercial bank and other financial institutions to extend certain percentage of their loans and advances to small scale business owner the small scale business is still crumbling and unable to find its feet due to the inability to secure fund and some other beneficiary factor for their growth.
1.8 DEFINITION OF TERMS.
This section attempts to define variable and terms used in the study.
a. CAPITAL: The money and all man made aids further production process i.e machine, factory tools, material etc.
b. ROLE: This means the part taken by small scale business to contribute to the growth and development of the country .
c. INFANT INDUSTRIES: domestic industries that needs protection from foreign competition.
d. INDIGENOUS: native industries in a country usually referred to as infant industries.
e. TAXATION: the imposing of tax. Is money that must be paid to the government, charge as a proportion of personal income and business profit or added to the cost of some goods and service
f. Loans: A sum of money that is lent to a business owner by the government.
g. CREDIT SCHEME: plan and design by government to provide short and long term loans to industries.
h. PRIMITIVE: The earliest time in history or stages in development.
i. INDUSTRIALIZATION: Develop industries in a country or region on a wide scale.
j. INFRASTRUCTURAL: The basic facilities in which the commerce of a country depends on e.g. good roads, communication system, pipe borne water etc.
k. Investment: the purchase of real or tangible asset such as machines factories stocks of investment that are used to produce goods and service.
l. Foreign: having to do with a country or language other than ones own.
m. Turnover: the amount of business done in a particular period with a certain amount of capital..