ASTRACT
The objective of this topic is to examine the causes and effects of failure of small scale business firms in Anambra State. Taking note on the role small scale industries could play in the economic self sufficiency of any country, this paper has attempted to identify what a small scale industry is, and the problems militating against the growth. It went further to analyze the source of funds available to small scale industries, Government strategies made to encourage the development of such small scale enterprises. This study is divided into five chapter, chapter one is one of introductory analysis providing background and brief history information on the case study, features of financing small scale industries in Anambra State. This chapter also contains the statements of the problems associated with the financing of small scale industries and limitations of the study. Chapter two contains the literature review of distinguished and respected authors as well as the opinions of eminent industries in the country. This chapter is made up of the nature of small scale business organization in Anambra State. Chapter three and four form the heart of this study as they dwelt more on method of data collection, presentation and analysis of results, finally, Chapter five deals with the recommendations and conclusion based on the finding of this study. It is hoped that this paper will be of immense benefit to the small scale industries, government and general public.
TABLE OF CONTENTS
Title …………………………………………………………………..i
Approval …..………………………………………………………..ii
Dedication……………………………………………………………iii
Acknowledgement…………………………………………………iv
Abstract………………………………………………………………vi
Table of contents ………………………………………………….vii
CHAPTER 1…..…………………………………………………….1
INTRODUCTION……………………………………………………1
- Background of the study……………………………………1
- Statement of the problem………………………………….5
- Purpose of the study………………………………………..6
- Significance of the study…………………………………..7
- Scope of the study………………………………………….8.
- Research Question…………………………………………8
CHAPTER 2…..……………………………………………………9
LITERATURE REVIEW……………………………………………9
2.1 The meaning of small scale Business…………………..9
2.2 The importance of Small Scale Business………………16
2.3 The Role Small Scale firm……………………………….22
2.4 Government Involvement in Small Scale Business…27
2.5 The Types of Small Business Activities in Nigeria…28
CHAPTER 3…….……………………………………………….32
RESEARCH METHODOLOGY……………………………….32
3.1 Design of the Study……………………………………….32
3.2 Area of the Study…………………………………………..33
3.3 Population of the study……………………………………34
3.4 Sample of the study……………………………………….35
3.5 Instrument for Data Collection…………………………35
3.6 Validation of the Instrument……………………………36
3.7 Distribution and Retrieval of Instrument…………….37
3.8 Method of Data Analysis…………………………………37
CHAPTER 4………………………………………………………38
PRESENTATION AND DATA ANALYSIS…………………..38
Presentation of findings…………………………………………38
CHAPTER 5………………………………………………………49
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS………………………………………..49
5.1 Summary of findings…………………………………….49
5.2 Conclusion………………………………………………….50
5.3 Recommendation………………………………………….51
5.4 Limitation of the study……………………………………53
5.5 Suggestion for further Research ………………………54
REFERENCES…………………………………………………….55
Appendices…………………………………………………………57
CHAPTER 1
1.1 BACKGROUND OF THE STUDY
The word business is used in everyday conversion by different people. It is a household term in the sense that even kids in one process or the other make use of it. the History of the place I used as my case study were as follows; Rock Tama Pure Water Industry Nanka, in Orumba North Local Government Area of Anambra State, in the year 1989, the name of the owner of the business is Jacob Eberechukwu Okeke Enemuo, a Business Administrator who graduated from the School of Business Studies in the year 1978, the business has spread to 12/4 of the state as at present, but one of the problems they used to encounter; Lack of skill power from the employees.
It is obvious that in our every day dealings, we engage in one form of business activity or the other yet it is most understood by many in Nigeria just as a layman would think any business activity carried out illegally that in return yield, profit is a deal armed robbers, after all operation, would say they went for success, those involved in all forms of cheating also do same financial fraud and embezzlement commonly known as “419” will tell you they are business men.
According to Nwanna and Nnadozie (1993) business is all profit directed activity towards findings or providing Goods and Services to mankind. An economic activities is considered as business if only these can exists an opportunity for both profit and risk of loss, knowingfully, the full motivator of any business is profit.
The history of business in America was the history of independent small scale business. Business are every where and in every line of work, we seen them in every community, most people want to be a boss on their own. Somebody’s goals are services, as an incentive for thousands to become business entrepreneur every year.
In this, country we have a climate where it is possible, the only thing one need is the idea, limited capacity and willing to succeed. This is an excellent example of free and open competitive market in place like limited state; it is obvious that many great enterprises today started as a small business such as mail order, houses , automobile companies, hotels and food processing plants etc.
Small scale business are those business forms that are owned by private owners or individual.The Americans classifies, it as mon and pop operation because they are owned by one family with little or outside help example of such are Nigeria optical service, deluxe optical services, Eastman Electrical. On the other hand, big or large business firm are those run by the government and Professional, they have thousands of employees and conduct business in other countries.Some other forms of small scale includes sole proprietorship and one man business in which the owner bears overall responsibility of management public and private limited liability company which registered with the registered company and also the partnership.
Over the years small scale business firm has been selected in the Anambra State Development plan and this is consequently resulted to their failure, some failed due to lack of proper planning, while others failed because of inadequate capital and also lack of technical knowledge.
Some small scale firms contribute immensely to the economic recovery of any country by providing many essential goods and services at all levels; Yet it is easily forgotten just because large business firm are so prominent. The largest, manufacturer of large small scale business depend on relatively small firms to manufacturer and assemblies. Some parts, if this be the case why should these small scale business be neglected. What are the possible causes of the fairly of these small scale business firms especially in Anambra State, and for long this continues. It is on these questions that the researcher tends to find out answers in the causes of the failures in order to improve and encourage individuals in the establishment of more of small scale business in Anambra state.
1.2 STATEMENT OF THE PROBLEM
The survival of any nation depends on the goods and services. The small business firm plays a very crucial role in the economic development of any nation irrespective of a firms advantages such as large contribution to Gross National Product (GNP), provision of employment opportunities, product of small market, quicker development. It is still unfortunate that most of them are faced with various problems. These problems are poor financial planning which adversely evaluate a standing point for people who will make further studies on causes and effects of the failure of small business firm in the nation.
1.3 PURPOSE OF THE STUDY
The major purpose of the study is to determine the causes of the business failure in Nanka, Orumba North Local Government Area specifically, the study is to determine.
- To determine how the causes of business in Nanka (Rock Tama) promote the growth of their firm.
- To determine whether advertising can help in the business.
- To determine the problems that impede the smooth flow of the business firm
- To determine whether lack of communication can lead to the failure of a firm.
1.4 SIGNIFICANCE OF THE STUDY
- The result of the study would be of help to educate the public and small scale industry owners on how to finance their business effectively in terms of planning, controlling and record keeping.
- The outcome of the study will be of immensely assistance to the intending small scale industry entrepreneurs by informing them of necessary preparation they could undergo before going into such ventures.
- SCOPE OF THE STUDY
This study discusses the causes of business failure in Nanka, Orumba North Local Government Area of Anambra State, a case study of piler pole the producer of Rock Tama Pure Water.
- RESEARCH QUESTION
1 How does the small scale business promote to growth of their firm?
2 Does poor transportation network effect the activity of the business (Rock TamaPure Water).?
3 Does lack of communication lead to the failure of a firm?
4 Can the business promote without complete advertisment of their product?
5 Does improper price of a product set the business firm back.
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