CHALLENGES AND OPPORTUNITIES OF SMALL SCALE BUSINESS IN WEST AFRICA USING NIGERIA AS CASE STUDY
The paper discussed Issues, Challenges and Prospects of Small scale business in Nigeria. The major challenges facing small scale business in Nigeria are highlighted in this work these problems include lack of finance of inadequate amenities such as poor water electricity supply.
TABLE OF CONTENT
Title page i
Table content iii
1.1 Introduction 1
2.1 The History of Small Scale Business In Nigeria 3
2.2 The importance of small scale business in different3
parts of the world
2.2.1 The Contributions of Small scale business 6
to the Nigerian Economy
2.3 Motives for establishing a small business enterprise 9
3.1 Challenges to small scale business in Nigeria 11
3.2 Opportunities of small scale businesses in Nigeria 15
3.3 Government contributions towards small scale 15
Business in Nigeria
4.0 sample of small scale business in Nigeria 17
4.1 historical background of Alahteef Nigeria limited 17
4.2 Objectives of the organization 17
5.1 Conclusion 20
C HAPTER ONE
There exist lots and lots of business ventures that are being engaged by individuals, group of people or association, firms, industries and government with the main aim of maximizing profits. They range from small scale to medium and large scale. In the Nigerian economy, the small scale enterprises are the most common form of business. The aim of any economy (either industrialized or non industrialized) depends largely on how well organized the small industries are, for instance if we look at the standard of practice of small scale industries in economically developed countries. The small scale enterprise in Nigeria seems too stagnant, less adventurous than developed countries. Meanwhile in economically developed countries small scale business are better organized and coordinated than in the developing countries because the governments appreciate their significance to the national economy.
Firstly, most of the small businesses are essentially one person’s operation which makes such companies sole proprietorship business ventures. The profit of the business is reaped solely by the owner; this includes people or an individual who wants to invest in that type of business. It is also the easiest form of business ownership to organize because there is relatively small capital to use for its establishment. The owner also has managerial freedom and this will help the owner employing his incentive to the maximum. Entrepreneurs are risk avoiders, not necessarily risk takers; they appear to be risk takers because they see market differently than the other forms of businesses. They can be referred to as risk eliminators because they seem to methodically eliminate all the factors that might prevent them from getting into a particular market (Thomas W. & Norman M. 2001). Small businesses do not conform to any neat parameters because much of their activities depend on the industry in which they operate also the personalities and aspirations of those in charge of these businesses. These factors vary from manufacturers to retailers, couples team, professional managers, high growth, high start-ups that are funded by venture capitalists to self-financed tradesmen and women for the purpose of making a living. (David’s and Nicholas. 2006).
EC refined its definition of Micro Small and Medium-Sized Enterprises to pro-mote competition and growth in the European Community. The financial ceiling for qualification has risen tremendously while the staff count still remains the same. A micro enterprise can still have up to 10 staff; a small enterprise has up to 50 staff while medium enterprise must have less than 250 staff. Furthermore, staff professional training, maternity or parental leave are not counted in staff ceilings in order to promote vocational training and a life-work balance according to enterprise commissioner Erkki Likened small and medium sized enterprises have shown their importance in West Africa, they are recognized by policy makers as an important reservoir for growth. The African Development Bank regards them as representing over 90% of business, providing employment in Africa and representing GDP of approximately 50% in Africa.