PROBLEM OF MANAGING SMALL-SCALE ENTERPRISES IN NIGERIA

PROBLEM OF MANAGING SMALL-SCALE ENTERPRISES IN NIGERIA

CHAPTER ONE

1.1 INTRODUCTION
BACKGROUND OF STUDY
In recent year, particularly since the adoption of the economic reform programme in Nigeria in 1986, there has been a decisive switch of emphasis from the grandiose, capital intensive, large-scale industrial project based on the philosophy of Impact Substitution to small scale industries with immense potential for developing domestic linkage for rapid, sustainable industrial development. there can be no gain-saying that Nigeria has long recognize the importance and valuable contribution that small scale enterprises can make to poverty alleviation, wealth creation employment generation and private sector development. this small-scale enterprises are given the right and opportunity to exist because it is an open social system where people come in group with the purpose of combining knowledge, techniques, skills and resources to accomplish a goal oriented task by integrating their structural activities.
The development of small –scale industries is not only an effective way of contributing to the economy and increase standard of living, but also one of the principle means of achieving social and political objectives by stemming the problem of rural-urban migration, increasing the income of low income earners, all of which are of crucial importance to our societies.
consequently, both the federal and state government and recently, local government have stepped off to promote the development of small scale enterprises through increase incentives schemes, including enhanced budgeting allocation for technical assistance programme. new leading scheme and credit institution such as the National Economic Reconstruction Fund (NERTUND World Bank Assisted Small Scale War Scheme (SMEX), Nigeria Export and Import Bank (NEXIM), The peoples Bank of Nigeria (PBN) and the Development Bank have also emerged at both the National and local level to boost the flow of development finance to small scale enterprise.
In trying to promote small scale industry there is need to understand that the entrepreneurs are face with the problem of managing the enterprise and the extend of realization of it contribution to the economy depends on how they are cogently identified and tackled.
The problem of managing the small scale enterprises are caused by both external and internal factors. the external factors are government policies, lack of infrastructural facilities, raw materials, banks unwillingness to give out loan etc internal factor are lack of managerial skill, lack of planning, market , finance etc.

1.2 STATEMENT OF PROBLEMS
The various successive government in Nigeria have been making conceited effort through their budgeting provision and other enabling policies to encourage the establishment of small-scale enterprises in the country, these enterprises are expected to argument landable government opportunities ensuring efficient productivity as well as raising the standard of living.

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PROBLEM OF MANAGING SMALL-SCALE ENTERPRISES IN NIGERIA