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TITLE PAGE

THE IMPACT OF SMALL SCALE BUSINESS TO THE NIGERIA ECONOMY DEVELOPMENT

BY

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EE/H2013/01430
DEPARTMENT OF ----
SCHOOL OF ---
INSTITUTE OF ---

DECEMBER,2018

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APPROVAL PAGE

This is to certify that the research work, "the impact of small scale business to the nigeria economy development" by ---, Reg. No. EE/H2007/01430 submitted in partial fulfillment of the requirement award of a Higher National Diploma on --- has been approved.

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Supervisor                                                  Head of Department.
Signature……………….                           Signature……………….        

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DEDICATION
This project is dedicated to Almighty God for his protection, kindness, strength over my life throughout the period and also to my --- for his financial support and moral care towards me.Also to my mentor --- for her academic advice she often gives to me. May Almighty God shield them from the peril of this world and bless their entire endeavour Amen.

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ACKNOWLEDGEMENT

The successful completion of this project work could not have been a reality without the encouragement of my --- and other people. My immensely appreciation goes to my humble and able supervisor mr. --- for his kindness in supervising this project.
My warmest gratitude goes to my parents for their moral, spiritual and financial support throughout my study in this institution.
My appreciation goes to some of my lecturers among whom are Mr. ---, and Dr. ---. I also recognize the support of some of the staff of --- among whom are: The General Manager, Deputy General manager, the internal Auditor Mr. --- and the ---. Finally, my appreciation goes to my elder sister ---, my lovely friends mercy ---, ---, --- and many others who were quite helpful.

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Small scale business occupies a unique position in the economy of any nature and they are the bedrock of any economic development. They constitute of the cornerstone of any competitive economy and by far outnumber the large scale business. Also, they provide large scale business, more fertile ground for creativity and entrepreneurship. Hence, as a result of easy entry into the market, small scale business spring up all the time keeping the competition environment lively, a phenomenon that leads to productivity gains and real economic growth, apart from the fact that they generate employment opportunities, they are closer to the grass root and so on, ginger rural development. They are less capital intensive and do not require gigantic infrastructure for their operation. 
Being part of the economic system, small business entities are faced with numerous problems, particularly funding and many ways these are very different from the financial problems on large concern. However, the principles underlying financial decision are similar irrespective of the size of the business, hence, the basic goal so financial management through acquisition, anticipation and allocation of funds equally apply to small scale business.It is widely known in business circles that small scale business find it difficult to secure funds from financial institutions due to the fact that they have difficulty in meeting the collateral requirement that would qualify them for the financial assistance from the back. This is not withstanding every business whether small or large needs funds. Funds constitute the life blood of any business while other things follow. 
Small scale business serves as an engine room for economic development and government recognize the fact that small business is the second largest employers of labor apart from government. Government is also encouraging the establishment of small scale business by forming such bodies like Small and Medium Enterprises (SME). Government has also provided monetary incentive for small scale industries. As stated earlier, small scale industries play very important roles in the economic development of any country, state or local government. For instance, in any depressed unemployment is the increase, where the available resources are under-utilized and where raw-material supply to our big industries is inadequate, establishment of small scale business is considered as an alternative means of earning a living and providing raw-materials to our big industries. The aim of this study is to study impact of small business scale in the sustenance of any economy

TABLE OF CONTENT
CHAPTER ONE

1. Background To The Study
2. Formation And Development Of The Study
3. Objective Of The Study
4. Importance Of The Study
5. Historical Background Of The Study
6. Scope Of The Study
7. Limitation of the study.
8. Definition of terms.

CHAPTER TWO
2.0     Literature Review
2.1     The Term “SMALL SCALE BUSINESS”
2.2    Purpose Of Small Scale Business

1. Structure Of Small Scale Business
2. The Role Of Small Scale Business
3. The Role Of Managers
4. Sources Of Financing Small Scale Business
5. The Development And Importance Of Small SCALE Industries
6. The Problem Facing Small Business

CHAPTER THREE

1. Research Methodology
1. Introduction
2. The Method Of Data Collection     
3. Procedures in gathering data.
4. Measurement Techniques
5. Research Design
6. Sample

3.7     Reliability And Validity
CHAPTER FOUR

1. Presentation And Analysis Of Data

4.2    Data Analysis
4.3     Analysis And Interpretation Of Questionnaire
CHAPTER FIVE

1. Summary, Conclusion And Recommendation.
2. Summary Of The Research
3. Conclusion
4. Recommendation

      References
CHAPTER ONE
INTRODUCTION

1. 1 BACKGROUND TO THE STUDY

The Nigeria federal, state and local government have been taking the development of industries as a master of importance. The government is encouraging the establishment of small scale indigenous industries by creating favourable condition to the industrialist especially by granting them short and long term loans. The government also exempts the infant industries from taxation and grant loans to them for further establishment.
In view of the above, it is observed that many industries have been in existence for quite a while. Some of such industries are soap and detergent industry, leather factory, Tailoring, weaving to mention but few. The effort of government in encouraging the citizens of Nigeria to engage upon primitive investment has led to the establishment of many local industries by the people of Nigeria. The government also educates the citizens through social and political means to enhance the nation becoming great through economic self reliance, industrialization that will make Nigeria economy less dependent on foreign Nations. However, all these can only be achieve, if the government will provide some more favorable terms, like provision of more loans, free education and  as well as provision of infrastructural facilities to enhance and encourage a large number of small scale industries.

1. 2 FORMATION AND DEVELOPMENT OF THE STUDY

The small scale industries have no special structure for its formation. The nature of the business or industry most often, determine the capital requirement, numbers of labour and the category needed for it operation. In many community, production of goods on small scale generate higher saving and higher capital formation. These stimulate the growth and development of small scale industries.
It is pertinent here to explain some of the factors that can help the development of small scale industries such factors includes the level of savings and investment, human resources, good and thoughtful planning, availability of capital, transport facilities, raw material. However, capital among other is very important in the development of small scale industries.
Due to the inability of small scale business to secure these necessary factors, there is need for government as well as investors to explore ways to stop the wave of industrial failure in other to build standardized structures that will enhance effective growth and development in businesses.

1. 3 OBJECTIVE OF THE STUDY

The small scale business has always played important roles in the sustenance of any economy. The objective of this study will therefore, includes the following.

1. To analysis the meaning of small scale and the various role and function it performs in the economy.
2. To determine their role in investment appraisal
3. To also determine the benefits to individuals in the society.
1. 4 IMPORTANCE OF THE STUDY

The result of the study would be of important to the people of Nigeria and to the intending industrialist because the study would reveal various roles and the benefits of small scale business.
The study will also be of importance to resourceful individual or group of people who may be interested in the establishment of small scale business in future. This study would provide information on the role and important of small scale business within the country and as a result, will stimulate and encourage the industrious individual to invest their resources for national growth and development.

1. 5 HISTORICAL BACKGROUND OF GLOBAL SOAP AND DETERGENT INDUSTRY, ILORIN AT KWARA STATE, NIGERIA.

The Global soap and Detergent industry is sited along Asa-Dam Road, Ilorin, Kwara State.
This company which specialized in production of soap, extra powder flash, Hi-clean bar, vogue, Grand Detergent Bar, Bold Detergent (10kg, 5kg, 2kg, 1kg) and wash right Detergent etc.
The Company was incorporated in October, 1984 by the Federal Government of Nigeria under the commerce and industry Act in 1985, all the plants were received into the site and the process of installation started immediately.
The commissioning of the industry was done towards the end of 1985. This industry is under Doyin Group of Companies, the head office is at Lagos. Doyin is from Kwara State. He decided to site the industry in the state capital for the purpose of reducing the problems of unemployment within and outside the state.
However, the materials used in production are imported material, but research has been going on and very soon, local raw material will be in replacement, some of the materials were specifically made for Doyin Groups of Companies from overseas e.g. Blank Corp, Sodium syndicate.
In the organizational chart, showing departments and staff position, they have the general manager as the head of the industry. The sole responsibilities of the whole operation rest on him. He is the only person that gives orders on any important issues, whenever there is any purchase or large quality of raw materials involving thousands of Naira, he assign or signs it. After the General Manager are technical, production and the quality control manager.
The technical manager has under him, electrical Engineering Department and the stores, the store supervisor report directly to the technical manager when there is need to purchases costly equipment or tools.
The production manager has under him, the raw material stores, the central stores and warehouse where they keep the finished products. The raw material that are always kept in the store for production includes.
i    a.     Flash cartons for packing the detergents in cases
b.  Inner cases in which the soap or the detergent it self are being packed.
c.   Poly products (wash right bags) is used to pack the detergent that are not in cartoons. It is weighted in Kilograms. (500kg)
ii.       The component at the raw materials stores.

1. STPP (sodio Tripolifostato)
2. Sodium Cylindicate.
3. Glue
4. Blank Corp

1. Blue dye
2. Perfume
3. Costic soda
4. Sulphuric Acid

All these raw materials are kept for the production process in the raw material stores until they come to request for them from production sharp floor.
The S.T.P.P (Sodio Tripolifostato) is in a separate tank with the provision of tap, so that as they are being dissolved by water before some is passed to the next machine where the operation starts. The sodium syndicate is used to neutralize the acid of the detergent during the production.
Glove, Bank Corp and Costic Soda are also part of the raw materials used in production of the detergent and during this period. it is in white colours, the blue dye will be supplied so that it will change the white colour to blue. It depends on the colour of the detergent they want to produce perform is then supplied at the final stage so that the detergent will give a passive odour, this will also be shown on the clothes.
The quality control manager in collaboration with design and engineering department works on quantity of chemical to be used. The design, packing and packages what types of colour that will attract the customers. The dimension of the cartons, hardness, so that it does not just get spoiled any how. The amount of the qualities control department.
As it is, the practiced in all organization, the stores department will supply all the documents connected with the purchase of raw materials and stationeries to the account department so that, the necessary funds are given to them to buy from outside the organization.
All these document are not given to the accounts department for money alone, but for the purchase, and also to use it for the preparation of the annual budget.
In every department there is a supervisor, making the affairs of the clerks and other cleaners, so that the information flow upwards from the cleaner to supervisor and to different head.
Most of the decisions taken in the organization state or demand that there must be directives from top management. That was how the processes has been taken care of at Global Industry.
The diagram bellows organization charts structure of the Global soap and detergent Industry.

1. 6 SCOPE OF THE STUDY

The result of the study  would be of important to the Nigeria citizen in general because the study will reveal in details the various roles, benefits, advantage as well as amount of capital that one can start scale business with. The research considered small scale industries which are randomly selected. Those to consider for selection must have been in existence for at least five years. This as a result enables the researcher to get the true picture of the problem of the study and not a problem caused as a result of the infancy of industries.

1. 7 LIMITATION OF THE STUDY.

Despite the aids and direct government allocation to small scale industries of both federal and state level through agencies like small scale credit scheme (SSCS) copied with directives to all commercial bank and other financial institutions to extend certain percentage of their loans and advances to small scale business owner the small scale business is still crumbling and unable to find its feet due to the inability to secure fund  and some other beneficiary factor for their growth.

1. 8 DEFINITION OF TERMS.

This section attempts to define variable and terms used in the study.

1. CAPITAL: The money and all man made aids further production process i.e machine, factory tools, material etc.
2. ROLE: This means the part taken by small scale business to contribute to the growth and development of the country .
3. INFANT INDUSTRIES: domestic industries that needs protection from foreign competition.
4. INDIGENOUS: native industries in a country usually referred to as infant industries.
5. TAXATION: the imposing of tax. Is money that must be paid to the government, charge as a proportion of personal income and business profit or added to the cost of some goods and service
6. Loans: A sum of money that is lent to a business owner by the government.
7. CREDIT SCHEME: plan and design by government to provide short and long term loans to industries.
8. PRIMITIVE: The earliest time in history or stages in development.
9. INDUSTRIALIZATION: Develop industries in a country or region on a wide scale.
10. INFRASTRUCTURAL: The basic facilities in which the commerce of a country depends on e.g. good roads, communication system, pipe borne water etc.
11. Investment: the purchase of real or tangible asset such as machines factories stocks of investment that are used to produce goods and service.
12. Foreign: having to do with a country or language other than ones own.
13. Turnover: the amount of business done in a particular period with a certain amount of capital.

1.9          ORGANIZATION OF THE STUDY
The study is divided into five chapters,;.
chapter one; is the introduction which contains background of the study, statement of the research, research question, objectives of the study, research  hypothesis, significance of the study, scope and limitation of the study, definition of key terms and organization of the study.
Chapter two: is the literature review which contains literature review.
Chapter three:- is the  research methodology which contain research design, sources of data collection, population and sample size, sampling technique, method of data analysis and limitation of the study.
Chapter four:-is the  data presentation,  analysis and interpretation which contains data presentation, data analysis and data interpretation.

Chapter five:-is the summary, conclusion and recommendations which contains summary, conclusion, recommendation.

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