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SOURCE OF RAW MATERIAL FOR SMALL-SCALE BUSINESS IN NIGERIA

 

ABSTRACT

There has 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 these 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 amenties, 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.

 

TABLE OF CONTENTS

 

CHAPETR ONE

1. INTRODUCTION
2. Background
3.  Statement of problem
4. Objective of study
5. Research question
6. Hypothesis formulation
7. Significance of the study
8. Scope of the study
9. Limitation
10. Definition of term

Chapter of reference

 

CHAPTER TWO

1. Literature review

2.1     Introduction

2.2     Purpose of small- business

1. Types of raw- material
2. Basic requirement for effective business
3. Advantages of small business
4. Source of raw material and how to avoid failure in business

Reference

 

CHAPTER  THREE

RESEARCH DESIGN & METHODOLOY

1. Introduction of the study

3.1     research design

1. Area of study.
2. Population of the study
3. Sample size determination
4.  Instrument for data collection
5. Variability of the instrument
6. Reliability of the instrument
7. Methods data collection
8. Method of data analysis

Chapter reference

CHAPTER FOUR

DATE PRESENTATION & ANALYSIS

1. Presentation & analysis of data
2. Testing of hypothesis
3. Summary of result

 

CHAPTER FIVE

DISCUSSION RECOMMENDATION AND CONCLUSION

1. Discussion of result finding
2. Conclusion
3. Recommendation
4. Suggestion for further study

 

CHAPTER ONE

1. INTRODUCTION

1.1  BACKGROUND

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 tend to neglect the small scale business which are more essential to the country taking into consideration the countries human and natural resources as well as capital availability.

Large-scale business have been so much over estimated compared to the small scale business, because of the size. This indicates that so much attention is being give to the large-scale business by the government than the attention given to the small scale business which are indispensable to the functioning of our economy.

It is scale business les on their potentials for creating employment opportunities.  The encouragement of small scale business will help to eliminate the imbalance in the rate of economic growth difference between the rural and urban areas and this enhance integrated rural development.

The  problem with most entrepreneurs especially in Nigeria and in general is their inability to recognize the need to give priority attention to the issue of planning and control which are the essential ingredients in the management of very business.  Venture be it large or small scale business.

 

In small scale manufacturing industries there are also the problem of sourcing raw material, which are essential for the manufactures of the products.

It is for this reason that we intend to look at the subject matter under consideration with a view to identifying problems and thereby suggest meaningful solutions to those problems.

 

1. STATEMENT OF THE PROBLEM

Any business whether small or large operating in any socio- economic setting is bound to have problems.  Small scale business however, have problem peculiar to its size.

Studies have identified some of these problems as follows, incompetent management, competition, country, state of economy, lack of encouragement from the government finance high level of exchange rate, ban on importation of raw material etc.

Any of these problem could lead directly to the failure of small scale businesses which has been put as comprising the bulk of new business every year.

 

 

1. OBJECTIVE OF THE STUDY

This study has objectives as follows.

1. To identify how raw material are been sourced
2. To identify the general problems of small scale business and how the problem be solved.
3. To identify the effect of government legislation on important and the effects of exchange rate has on the small scale business.
4. To identify the problems of planning and control as it effects the management of small scale business and then to proffer solutions that can help to bring about the availability of raw materials.