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SOURCING RAW MATERIALS FOR SMALL-SCALE BUSINESS IN NIGERIA

 

 

ABSTRACT

 

There have been a lot of difficulties in determining the definition of small scale business. To determine what a small scale business is we have to put into consideration so many employees, asset values, sales volume, financial strength number of locations, relative size and so on.

Some definitions of small scale business have been put up as in the case of the industrial research unit if Obafemi Awolowo university Ife, which states that is one whose capital assets equipment plant and working capital are less than N250.000.00 and employing power of not less than 50 full time workers

This study work toward how this small scale business can source raw materials for their production and how some of their problem can be solved.  Small scale business are being posed by a lot of problem like finance, social amenities, not belonging to union of small scale business lack of planning .

This work studies how this problems will be solved and suggest how people involved in small scale business can solve this problem and more away of sourcing raw materials.

This study also made use a random sampling method in its research where questionnaires were supplied and distributed to various concerned firms.

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

 

Industry has become the most dynamic sector in most developing countries like Nigeria.

It would be an over statement to say that small scale industries or business constitute the bulk of business establishment in most of these developing countries.  It is very difficult to make a specific statement regarding the small scale business but walking along the streets of major towns in any state of this country would show that small scale business constitute at least 60% of the Nigeria industrial activities.  This follows that the small scale business constitute a substantial portion of the gross domestic product (G&P) as well as generate the foreign exchange earnings of Nigeria.

Nigeria in the past times has placed much emphasis on capital intensive industries and tends to neglect the small scale businesses which are more essential to the country taking into consideration the countries human and natural resources as well as capital availability.