EXAMINATION OF PROBLEM FACING SMALL SCALE BUSINESS IN RURAL AREAS OF EDO STATE


EXAMINATION OF PROBLEM FACING SMALL SCALE BUSINESS IN RURAL AREAS OF EDO STATE   

ABSTRACT: 

   This research work was carried out to assess the problems facing small scale business in rural areas of Edo State. In recent times, some small scale business organizations in this country, particularly those in the rural areas of Edo state seem to be incapable of growing and expanding and there are no traces of new ones coming up because of the numerous limitations to their growth . Those disturbing observation prompted the researcher to assess the problems facing such existing small scale business in the rural areas. The first chapter dealt with background and relevance of small scale business. The second chapter dealt with literature review where textbooks, journals and material related to this easy are reviewed, in this chapter scholar’s definition and meaning of small scale business were highlighted. Chapter three dealt with methodology, chapter four deals with presentation and analysis of data while chapter five deals with summary, conclusion and recommendation. From the research findings, the researcher was able to reach the conclusion that if proper planning, provision of raw materials, provision of skilled manpower, infrastructural development and financial provision are put in place small scale business can contribute greatly to the economic development of Edo state Nigeria through employment creation, revenue generation etc.   

     The researcher was also able to recommend that owners of small scale enterprise should ensure proper record keeping, planning should be at high standard, the right infrastructures should be put in place, business environment should be located in a favourable place to employee and government in their own way encourage and provide means of capital for small scale business owners.

TABLE OF CONTENT

Pages

TITLE PAGE                                               i

CERTIFICATION                                  ii

DEDICATION                                     iii

ACKNOWLEDGEMENT                             iv

TABLE OF CONTENTS                                 v

ABSTRACT                                     vii

CHAPTER ONE

Introduction                                    1

Statement of the Problem    -    -    -    -    -    -    4

Research questions        -    -    -    -    -    -    5

Purpose of the Study        -    -    -    -    -    -    5

Significance of the Study    -    -    -    -    -    -    6

Scope of the Study        -    -    -    -    -    -    6

CHAPTER TWO: REVIEW OF RELATED LITERATURE

The Concept of  Small Scale business Organization               7

Sources of fund                                10

Personal Funds (Equity)                            10

Loans from relatives and friends                        11

Trade credit                                    11

Sales of Capital Stock                                17

Financial Management                            17

Problems of small scale business in Rural areas                18

Role Of Small Scale Business In Rural Areas                21

Summary of Review of Related Literature                    22

CHAPTER THREE: METHODOLOGY

Design of the Study                                24

The population of the Study                             24

Sample and Sampling Techniques                         25

Instrumentation                                 25

Validity of the Instrument                            26

Method of Data Collection                            26

Method of Data Analysis                            26

CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION OF RESULTS            27

Discussion of Results                                34

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS        37

Summary                                    37

Conclusion                                    38

Recommendations                                39

Suggestion for Further Study                            40

REFERENCE                                    42

APPENDIX                                    44                       

CHAPTER ONE:

INTRODUCTION -

Nigeria is one of the countries in West Africa with vast population of both human and natural resources for her full development. One of the ways developing countries like Nigeria starts high level development is through the establishment of different types of business organisation that will help the country to channel her resources into productive areas. This means that business organisation can play a major role in the process of transforming an underdeveloped economy like Nigeria into a developed one.

Business organisations form the most important aspect of the economy of every developed nation. There are different kinds of organisations such as governmental, religious, charity, trade unions and associations but none of the above mention appears to be as important to the economy as the business organisations, this is because they are closely and generally identified as economic institutions. In most parts of the world, the high value of small scale enterprises in the process of socio-economic development has been well documented, particularly in developing countries. It is now realised that large scale enterprise cannot be alone be expected to play a dynamic role, that they are suppose to play in the rapid growth and development of the economy. (Nwoye, 1994).

    Business organisations can therefore be described as an organised effort or activity by a person or a group of persons employing the resources of the environment to produce and distribute goods and services with objective of maximising profit. (Barach,  1977). The major incentive for setting up a business enterprise is the profit motive, There are many entrepreneurs that do not easily recognise that they are established in other to provide some services to the society. In such cases, providing services is the same as creating a customer to achieve whatever objective he may have. A business man or woman must be familiar with event in his or her environment.

    Commencing a new business like small scale business in Nigeria and making it grow involves both the science of creation and art of management. It also entails a lot of risk but chances of making it succeed will be better if one understand the problems that will be met and work out as many of them as possible before the business takes off and such Problems includes Failure to plan, skilled manpower, infrastructure, finance, raw materials.

       Another important consideration for any businessman and woman is the decision to know about the form of business organisation to adopt. Basically there are three forms of business ownership, we have the single proprietorship, partnership and corporation. Single proprietorship is an enterprise owned by an individual, the owner is the manager, it is commonly found in the areas of retailing firms, professional practice, repair shops e.t.c.   The formation of a small business under single proprietorship does not need any legal formalities, since the business and its ownership are often one and the same. (Nwoye, 1994). Partnership is a form of business organisation owned by two or more persons by voluntary arrangement. As is sole proprietorship, partnership is not a separate entity from the owners. The legal requirements in formation of a partnership are also minor in registration of business and securing of a license or permit. (Nwoye, 1994).

       Small scale business is any business organisation whose annual turn-over does not exceed five hundred thousand naira (500,000). Its capital includes cost of machinery and equipment which does not exceed six hundred thousand naira and employees not more than fifty workers

         Corporation is the most complex type of business organisation both in formation and operation. A business corporation has been described as legal entity having separate life from its owner unlike the two other forms of business organisation, The ownership is represented by shares of stock in the company. Anyone who owns shares in a corporation becomes part owners of the business. To determine which of these three categories of organisations that best describe a particular business organisation, a number of factors are considered such as availability of capital required, ability and experience of owner, difficulty of organisation, degree of control, types of business engaged, the size of the market and even the location.

    The increasing rate of failure of many small scale business organisations in the rural areas of Edo State, suggest that this kind of business is facing some problems, this situation has prompted this study to wanting to examine both the remote and immediate problems if any that faces this business organisation

         Statement of the Problem

        Small scale business in the rural areas of Edo State have problems that are widely observed by the generality of the people. Small scale business appears to be either disappearing or incapable of growing and expanding. It appears that many undergraduates are roaming the street without job, this existing and disturbing observation has prompted the researchers to carry out this study to assess the problem confronting small scale business from going into extinction, if this trend is not curtained now, sooner or later, unemployment rate would be uncontrollable in Edo state due to the unenticing nature of small scale enterprises in The rural areas . Most small scale enterprises in rural areas are unattractive to graduates due to lack of infrastructural development and other factors.

Purpose of the Study

     The purpose of the study is to identify the problem facing small scale business organization in Edo State.  Specially, the study sought to ascertain:

1.    The way Financial problem affect small scale business in Edo state.

2.    The way lack of infrastructures affect small scale business in Edo state.

3.    The way failure to plan affect small scale business in Edo state.

4.    The way lack of skilled power affect small scale business in Edo state.

5.    The way raw material problem affect small scale business in Edo state.

Research questions   

The questions which this study attempt to answer is:

1.    How does Financial problem affect small scale business in rural areas of Edo state?

2.    How does lack of plan affect small scale business in Edo state?

3.    How does raw materials  problem affect small scale business in Edo state?

4.    How does infrastructure  problem affect small scale business in Edo state?

5.    How does lack of skilled manpower  affect small scale business in Edo state?

Significance of the Study

    This project is written with a view to presenting an examination in problems facing small scale business organisations in the rural areas of Edo State, which of course will enlighten the mind of scholars and other interested persons that are inquisitive in knowing the problems confronting the small scale business organisation.

    This study is expected to be of great benefit to all prospective and aspiring individuals who want to operate business enterprises in rural areas of Edo State. So also it is intended to benefit other researchers, policy planners and government both at state and Federal levels.

Scope of the Study

    This study of the trends in business organisation is specifically related to small scale business and in particular problems facing small scale problems in rural areas. But this is not to say that large scale business organisation is not facing some problems. But due to time and financial constraint, only a sample of the small scale business organisations in the rural areas of Edo State will be included in the study

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.