This topic analyzed the impact of small scale business to national economic growth and development in the country. It also paid attention to the finding of these enterprises.
Chapter one contains a general discussion of the contribution of small scale business to economic growth and development as seen by different people. It went further to state the problem to be studied and why this study was carried out, the scope and research questions. A number of past related literature examined by other studies as it related to the impact of small scale business in Nigeria are highlighted in chapter two.
Chapter three deals with the design of the study, the method used in collecting relevant data. It also deals with the way the questionnaire were distributed and the treatment of data and statistical techniques used. The data got from the research survey were analyzed and interpreted. Finally the summary of finding, conclusion in the research and recommendation made by the researcher.
1.1 BACKGROUND OF THE STUDY.
The impact of small scale business in fostering economic growth and development has been well articulated in different areas of the study.
The specific attention on them is based on their expected impact and potential contribution on board and diversified production base, as well as their acceleration effect in achieving macro objectives, pertaining to full employment, income distribution and the development of local technology.
They are particularly most conducive for diffusion of management skills and emulation of indigenous entrepreneurship overtime. (Ani, et al. 2000
Small scale provides financial opportunities and a chance to develop wealth. It is a place where creative, motivated individuals can use their talents and expertise to the fullest because it provides satisfying careers and job opportunities. Also it is the back bone of the market economy of the world. Most big businesses started as an entrepreneur (small business), who at first earns little or no profit. It was the new idea of small business that brought about Ekene Dilichukwu Transport, the Fanmilk, Nnewi “Tokumbo” parts and even the many commercial banks in Nigeria.
Small business is the basis for the economic well being of many developed Nations, including U.S.A/Japan. (Ezeh:1999)
The unemployment situation in the country coupled with the new government instinct towards easing social tensions among unemployed youths through the programme of the National Directorate of Employment (NDE) are intended to lure a lot of unemployed Nigerians including graduates into self determination through self employment. Graduates and school leavers are now realizing that government and the established private companies are not ready to come to their aid directly through paid employment due to dwindling state of the economy. Short of the alternatives, Nigerians including our graduates are therefore launching themselves into various small scale business ventures, such as soap and cosmetics production, restaurant, fast food, publishing, writing, baking, advertising and other small business venture which depends mostly on local raw materials.
The determination to succeed is also fast becoming the order of the day among Nigeria youths.
Government has been playing appreciative role in promoting the survival and growth of small scale enterprise in recognition of their flexible and adaptive nature as well as their re-generative power in promoting economic growth and development. Government also encourages people to establish their own small business so as to reduce the problem of unemployment in the country and also reduce the problem of importation of goods, more so, to produce exportable goods ( Agbo:2002)
Government in believing that a dynamic and growing small manufacturing sub-sector can contribute significantly to the implementation of a wide range development has thus enunciated various policies to encourage their proliferation and make them veritable engines of growth and development. The basic activities of government policies as maintained in the monetary and fiscal policy measures, are to improve the financing and other supportive services of small scale businesses by expanding and improving access to credit and infrastructural facilities reducing their production costs, boosting their profitability, enhancing their survival and growth capacities as well as expanding their contributions to non-oil exports by making their products competitive in the export market. (Lawa;1991).
Hardly could any major industry succeed without the services of small business enterprises. The major goals of any profit oriented business is to make profit. Therefore, small scale business, bakeries would produce what the customers want and by so doing, they maximize profit and only bakeries that are effective and efficient can satisfy customer’s needs.
In reality, it is possible to run business without profit for a time, but it is not possible to survive in business without customers. Customers are the central theme of any business, without a total commitment to them, the impact to economic growth and development will have limited and brief effects.
1.2 STATEMENT OF THE PROBLEM
These days it is very difficult for government to employ all graduates into paid employment. This has made the rate of unemployment and crime to be on the increase in Nigeria. Based on this, there is a wide cry for government and individuals to partner with a view to curb this problem of unemployment and crime rate. This is so because these developments have hampered both the economic growth and development of the country. In view of the above it has become pertinent to look into the impacts of small scale business in the economic growth and development of Nigeria.
1.3 OBJECTIVE OF THE STUDY
The importance of small scale business in the promotion of economic growth and development has always been at the forefront of development strategies by various governments in Nigeria.
However, many developing countries have failed to adopt this strategy owing to their belief that it is a relatively slow process of industrialization which may not be very compatible with their desire to catch up with the industrialized countries. The strategy of individualization often requires continuous dependence on major supplies overseas for the provision of raw materials and spare parts needed for uninterrupted production in these industries.
Therefore the aim of this study is to know:-
1.4 RESEARCH QUESTION
1.5 SCOPE OF THE STUDY
The study is therefore limited to bakery industries in Enugu Urban because of time and material resources to see to the whole state.
1.6 SIGNIFICANT OF THE STUDY
This study will be beneficial to bakery owners, business managers, consumers of bakery products and students of business. It will also serve as a source of reference for further research on related topics.