This project is a review of The problems and prospects of management of small-scale business in Nigeria. The Statement of Problem identified were management problem caused by poor planning, finance problem caused by lack of financial support and poor funding and multiple and high Taxes. While the prospects of Small Scale Business in Nigeria can be sub- divided into: employment opportunities, job creation and contribution to total Gross Domestic Product (GDP). To meet the general objective, the study will focus on the following specific objectives: To identify the effect of poor planning to the management in small-scale business, to examine how lack of financial support and poor funding can lead to Finance problem of small-scale business and to determine how Multiple and High Taxes influence the management of small-scale business. The descriptive survey method was used and the research tool was questionnaire. 9 respondents answered the questionnaire. Data analysis using likert scale and presentation was done by the use of tables. The findings from the study showed mainly that there is evidence to prove that poor planning affects the management in small-scale business. Finally, solutions and recommendations were proffered on how the poor planning to the management in small-scale business should be improved to help their productivity by combination of critical success factors. The write up is duly summarized.


Tite Page i

Certification Page ii

Dedication iii

Acknowledgement iv

Abstract v


: Background of the Study1

: Statement of the Problem3

: Objective of the Study3

: Research Hypotheses4

: Significance of the Study4

: Scope of the Study5

: Limitations of the Study5


: Nature of Management in Small-Scale Business6

Types of Management in Small-Scale Business19

: Principles of Management in Small-Scale Business31

: Concept of Small-Scale Business33

: Brief History of Small-Scale Business in Nigeria48


: Research Design54

: Area of Study54

: Population of the Study54

Procedure for Data Collection55

: Sample and Sampling Technique55

: Data Collection Instrument56

: Validation of Instrument57

: Method of Data Analysis58


: Presentation of Data60

: Analyses of Data60


: Summary of Findings67


: Recommandations69





Small and Medium Industries (SMIs) have been widely acknowledged as the springboard for sustainable economic development. According to UNDP (1974), developing countries including Nigeria, have since the 1970s shown increased interest in the promotion of small and medium scale enterprises for three main reasons: the failure of past industrial policies to generate efficient self-sustaining growth; increased emphasis on self-reliant approach to development and the recognition that dynamic and growing SMIs can contribute substantially to a wide range of developmental objectives. These objectives include efficient use of resources, employment creation, mobilization of domestic savings for investments, encouragement, expansion and development of indigenous entrepreneurship and technology as well as income distribution, among others. Consequently, programmes of assistance in the areas of finance, extension and advisory services, training and provision of infrastructure were designed by the government for the development of SMEs to enhance the attainment of these objectives. However, the full potential of the SMIs in the developmental process have not been realized, owing to various constraints.

Since the 1960s to date, small and medium sized enterprises (SMEs) have been given due recognition especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies. They make-up the largest proportion of businesses all over the world and play tremendous roles in employment generation, provision of goods and services, creating a better standard of living, as well as immensely contributing to the gross domestic products (GDPs) of many countries.

However, it appears that considering the enormous potentials of the SMEs sector, and despite the acknowledgement of its immense contribution to sustainable economic development, its performance still falls below expectation in many developing countries.

This is because the sector in these developing countries has been bedevilled by several factors such as management inability militating against its performance, and leading to an increase in the rate of SMEs failure. These factors include the unfavourable and very harsh economic conditions resulting from unstable government policies; gross undercapitalisation, strained by the difficulty in accessing credits from banks and other financial institutions; inadequacies resulting from the highly dilapidated state of Infrastructural facilities; astronomically high operating costs; lack of transparency and corruption; and the lack of interest and lasting support for the SMEs sector by government authorities.

The thrust of this paper is, therefore, to articulate the management challenges posed to the development of a dynamic SME sub-sector arising from some lingering constraints despite previous and current government measures, which were aimed at facilitating the sub-sector‘s development.

The very ownership of a business tends to create elitist attitudes and self-orientation. It imposes a monocular vision which limits the company's capacity to respond positively and aggressively to business opportunities and changing business conditions. A person who stands head and shoulders over his colleagues in perceived authority can create benefits as well as disadvantages for the business. In cases where he is a poor manager even though a good entrepreneur, his domination might prevent the enterprise from obtaining the skills and methods which are needed for further growth.


Presently, small-scale business enterprises in Nigeria are faced with problems that hamper the growth and development of these enterprises. This support the saying that, the successes of any business whether small, big or mega depends largely on the performance of people which is management, finance and multiple and high tax

To ensure the achievement of this management objective in Small-scale business, this research has been proposed to address the following challenges:

· Management problem caused by poor planning

· Finance problem caused by lack of financial support and poor funding

· Multiple and High Taxes

The prospects of Small Scale Business in Nigeria can be sub-divided into:

· Employment opportunities

· Job Creation

· Contribution to total Gross Domestic Product (GDP)


General Objective of the Study

The general objective of the study is to determine the problems and prospects of management in small-scale business in Nigeria.

Main Objectives of the Study

To meet the main objective, the study will focus on the following sub objectives:

I. To identify the effect of poor planning to the management in small-scale business.

II. To examine how lack of financial support and poor funding can lead to Finance problem of small-scale business.

III. To determine how Multiple and High Taxes influence the management of small-scale business.


Given the objective of the study, the following hypotheses are formulated:

Ho1. There is evidence to show that poor planning affects the management of small-scale business.

Ho2. There is evidence to prove that lack of financial support and poor funding can lead to Finance problem of small-scale business.

Ho3. There is a  significant relationship to show that Multiple  and High Taxes and the management of small-scale business.


1. The findings of this study will enable management of small-scale businesses to appreciate better the need for a proper feasibility study and business plan before starting up a business for easy management.

2. The study will enable the government, private sector and prospective small-scale business entrepreneurs to come up with policies that will improve the management of small-scale business.

3. The study will be of immense help to other people and students who wish to carry out other research in the field or related field.


The scope of this research is limited to the problems and prospects of management of small- scale business in Nigeria.


In carrying out this research many factors served as constraints:

1. Time Limitation: time factor constitutes a major limitation of this research study. It relates to the fact that the time for this research work.

2. Negative attitude of respondent- The problem facing the researcher with regards to the respondents relates to the non-cooperation and uncompromising attitude of some respondents in giving out relevant information or facts. The researcher was able to get the relevant information at the end of the day.

3. Fund - Due to high financial involvement of this project work, the researcher has narrowed the study to A.K Block Industry, Abakpa Nike, Enugu.



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