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PROBLEM OF SMALL SCALE INDUSTRIES

IN ENUGU

(A CASE STUDY OF FAMILY JOY PRODUCT)

 

 

ABSTRACT

This study. The problem of small sickle Industries in Enugu state. This is an attempt to present the framework which will help the enter pries and the mode and the need for financing them and the special problems those inhering may face with Inadequate financing and assistance.

In terms of organization, this work is divided into three chapters. Chapter one is the introduction and analysis including the background of the study statement problems.

Chapter two deals with Literature review relevant on the subjects writhen by fellow students, well respected authors and opinion on the related journals and newspaper.

Chapter Three form the conclusion Data collected were presented, analyzed and interpreted, Recommendation and suggestion for further research.

 

TABLE OF CONTENT

CHAPTER ONE

1.  

Background of the sub-matter……………………….1

Problem association with the sub matter…………...6

Problems that the study will be concern with………7

The important of the studying the area……………..8

Definition of important terms…………………………8

Reference…………………………………………………………10

 

CHAPTER TWO.

1. .           LITERATURE REVIEW……………………………….11

2.1.            The origin of the subject area………………………...11

2.2.            School of thought within the subject area…………...14

2.3.            School of thought relevant to the problem of study...15

2.4.            Different methods of studying the problem………......17

2.5.            Summary……………………………………………...….19

 Reference…………………………………………………………...21

 

 

 

CHAPTER THREE

3.0.            CONCLUSION………………………………………....22

3.1.            Data presentation /highlight of the study…………......22

3.2.            Analysis of the data……………………………………26

3.3.            Recommendation……………………………………….26

3.4.            Conclusion……………………………………………….27

3.5.            Reference………………………………………………..29

Bibliography………………………………………………………….30

 

 

CHAPTER ONE

1.0       INTRODUCTION

1. Background of the sub- matter

            The word Industry has several different meaning. Sometimes

We speak of Industry as referring only to the manifesting of goods and thus being different from aquaculture and trade.

The term Industry is also used to refer to certain types of Inductile activates in the sense that an Industry is taken to mean a group of enterprise for Industry, the automobile Industry, the banking Industry, textile Industry and so on, Each Industry is based on Lab our specialization Individuals who are experts in particular fields strives towards Improved skill and efficiency in providing particular goods and seines. But in this research, Industry will be treated in the broadest sense including all the activates which provide us with the things we want and need, that is agriculture. Trade, mining, banking, semi- manufactory, transportation,   

Commune action and building.

Industries may be classified in different ways depending on the purpose for which they are Intended for Instance their closeness to the national resources or raw material out of goods are to be produced.

However, in the research Industry are classified into the three small medium and large scale Industries. This classification varies from country to. Even within a country there is no hard and fast rule for hence each country could classify industries to meet the objective being paused.

Many definitions have been given a small-scale industry. These we optically examined later that small scale is retentive concept because what is small in a particular situation many not be considered small inn different situation as regards larges scale enterprise. However, small and medium scale enterprise are expected to play a vital role in Nigerian Industrial development and the industrial sector based on the capital strength and degree of the industry.

In Nigeria much emphasis has been placed on small scale industries, a key to industrialization of the country. In this regard, the federal government has been in forefront by promoting the industry by granting them lots of incentives as stated below.

           Government always gives allocation to some small scale industries which hence been established in contain areas for example the 2nd National Development plan for 1970-1974 and so on. In order to develop their countries which provide extension services in terms of technological advice to the small scale industries in their area of jurisdiction.

In 1984, the central Bank of Nigeria issued directive to the commercial Banks to reserve a mums of 16% for their loan, packages for the small scale industries. Defaulters were punished. There and other commendable moves have been made to ensure the sustained growth of small scale enterprise in the country.

Finally, t hey appears marvelous but there is a significant lack of realism in their practices. It is a known fact that government always has good intension when formulating any policy and during its implementation. It is very important to note that this study sticky dwells on the family Joy production small scale industry, its enterprise in Agriculture, transportation and trade. Industries. These industries. These industries have its own background that we are going to deed on.

The family joy product industry limited Enugu is an indigenous company specifically concerned with the business of bakery, under bakery section, they produce bread lives: family Joy Royal, festival, Perstoge and Teat time Bread.

           The company was incorporated in 1989 and started production in Jan 1990. The company has Mr. Osmond Wze as its chairman and managing Director. Family Joy product emphys about 120 workers and is financed with personals savings of the owner and loans from commercial banks.They sell their products on daily basis and their area of operation is local basis. Their daily productions on bread ranges from 600 t0 2000 loaves of bread depending on the demand for the day. Them, if move capital is available, the management may consider going into the manufacture of another product live altogether.

           To increase the market share of their products, the company is contemplation on opening depots in some other commercial towns like Aba, Ointsha, lagos state. The opening depots will help the factory to have more sales and increase their daily production. They are also planning to go international if additional capital is obtained.

Family joy industry is located at No. 18 hgbence Abakapa Nike Enugu. Family joy industry Enugu is one of the leading companies in confectionaries here in Enugu. Family joy is faced wish the following problems.

Inability of the company to sourced funds externally due to lack of security. As a result, the company has continued to rely on personal savings and internally generated revenue as their main resource of capital. This has remained inadequate. 

 Secondly, family joy products industry fails to keep proper records of their transaction as a poly top defraud the company.   

 Thirdly, lack of finds has also prevented the company from the desired market perpetration and outreach to the consumers. Insolently also precluded the company from effective promotions and advertisement of their products.  

  Finally, remuneration to the workers is another problem that is facing the campaign. As a result of its limited scope and coupled with the fact that the company is not a quoted company, the level of its remuneration to staff has adversely affected the recruitment of specialist staff in the company. The company’s condition of seine is not such that caters adequately for its staff problems and as such has attracted less qualified workers to cater for its administrative needs.

 

1.2       Problems Associated With T He Sub-Metter

 

1. Family joy industry limited Enugu found it difficult to source funds externally because of lack of security, which appreciated with time. As a result the company relied on personal savings and internally generated revenue as main source of capital that had remained inadequate.
2. Family joy product did not keep proper record of Evanscation as a ploy to defraud the company.
3. Lack of funds prevented the company from the desired market penetration and outreach to the consumer’s insolvency also precluded the company from effective promotion and advertisement of their products.
4. inability to remunerate their staff min part with what is obtainable in similar establishments adversely affected the recruitment of qualified staff.

 

1.3       Problems that the study will be  concern with 

 

            The purpose of the study includes the followings.

1. To identify the problems of family joy control with respect to the source of capital.
2. To examine how family joy kept proper records of their transactions.
3. To find out the extent to which lack of funds affects family joy industry limited Enugu.
4. To ascertain the impact of remuneration to the staff of family joy on the production level.

 

1.4       The important of the studying the areas:

 

1.   The study will serve as a source of revenue to the owners and even to the government as a whole.

1. The study will help assist the management in providing the machinery for the proper keeping of their transaction
2. It wills create awareness for the management to channel their attention on staff remuneration.
3. It will help the management award even government to understand some of those problems, which is facing many small scale industries in Nigeria.
4. Finally, this study is significant because the researchers hopes that this will serve as a stepping stone for any future researchers especially those who would wish to research more on the subject matter.
   1. Definitions of the Important terms

1. Human Resource: One of the factors of production contributed by man. It is known as labour.
2. Remuneration: This means reward or payment for work done or services rendered by a worker in an organization.
3. Management: this is the act of running an organization with the are of three M’s that is men, material and money to achieve a set objective.
4. Collateral security: means property example Bank or stock, pledge as security for the repayment of a loan.
5. Capital: this is one of the major factor of production which is being contribution by human effort.