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THE EFFECTS
OF ENVIRONMENTAL FACTORS ON SMALL SCALE BUSINESS ENTERPRISE
ABSTRACT
Small scale
business is defined as some of all activities which involved distribution of
goods and services to making profit in the business. In this project, the
researcher will examine the environmental factor that affects small scale
business enterprises. Such factors are culture and political economic factors.
The major aim is to identify these problems and find appropriate solution to it
in trader to enhance the smooth moving and effectiveness of small scale
business enterprises in Nigeria.
CHAPTER ONE:
INTRODUCTION
1 .0
INTRODUCTION
Over
decades, small scale business has been making gain strides in Nigeria. It has
been battling to make life more tolerable and comfortable by trying to make the
gradual dwindling of the standard of living amids the gloom and doom economy.
The
importance of small scale business in Nigeria cannot be over-emphasized.
Employment and entrepreneurial development can be cited as positive and genuine
reasons for promoting small scale business. The employment capacity of small
scale is more significantly seen in the opportunities they provides for
unskilled or the urban and rural workers.
S.J Owuala
remarked that (Nigeria needs a comprehensive support policy for small
scale business.)
Business time said “ the unskilled policy worker is
handicapped in competing favourably in the open job market due to his low
skill, consequently, the relies on small scale business to satisfy his
employment needs”.
By providing
employment or remunerative economic activities apart from supplementing incomes
earned from regular jobs, small scale business contributes immensely in
bridging the gap between the different social economic lapses in Nasarawa state
in particular and Nigeria at large.
The small
scale business also contributes in developing entrepreneurial talents, small
scale business serve as a reliable avenue for innovative ideas both imported
and indigenous. It prevents monopoly by forcing big firms to be more
competitive in terms of product improvement, new method and processes. Small
scale business serves as patronize of local raw materials.
1.1 BACKGROUND OF THE STUDY
The
environmental forces and nuisance experienced by small scale business are more
than what meet the eyes for instance, between 1984 and 1985, the government of
Buhari took street Kiosk and traders by surprise when their businesses were
swept away without compensation.
Again between
1990 and 1992 religious riot culminated into burning and looting of businesses
of natives of Bauchi, Kaduna and Kano. However, the story is the same in Lagos
where business under overhead bridges in Oshodi bus stop and other location in
Lagos fell into the hands of the Federal Government while business with
telecommunications services throughout the country were closed down without
prior notice to the business owners at the time when means of
telecommunications were out of the common man’s labour market and derived the
poor masses of communication.
Moreover,
what is more worrisome is the persistent religious crises that has continued to
spill like wild fire with resultant effect of consuming small scale business
owners and their businesses through looting and burning. An instance can be
cited at the recent ethnic and religious crises between 1999 and 2001 which
took place in Kano, Kaduna, Jos, Benue, Nasarawa and Taraba state.
1.2 STATEMENT OF PROBLEM
A the topic
implies the effects of environmental factors tan small scale business
enterprise. Government policies has been one of the major problem facing small
scale business as well as poor implementation of its policies. The political
instability in the country as a result of tribal ntiments is directed to small
scale business.
1.3 OBJECTIVE OF THE STUDY
The
objective of this project can be summarized in the following ways:
To identify,
define and explore environmental forces that work in and around small scale
business.
To highlight
the influences, impact and implications of these environmental forces on the
management and growth of small scale business in Nasarawa state.
To make
stability, profitability, harmony, peace and comfort of small scale business
without business community.
1.4 SIGNIFICANCE OF THE STUDY
There are
quite a good number of environmental factors that inhibit the growth and
development of small scale business which includes economic government,
political and cultural which are external and other internal factors like the
management. However, the most visible of all these are cultural government
policies and management. Hence, we shall dwell on these thoroughly.
1.5 SCOPE OF THE STUDY
This
research work is restricted to cultural and governmental/political environment
of small scale business in Nasarawa state. The emphasis is to identify the
effects of these environmental forces and possible solutions.
1.6 STATEMENT OF HYPOTHESIS
Hypothesis
can be defined as a testable tentative probable explanation of the relations.
The following are the hypothesis to be tested.
Ho:
Government policy has negative effect on small scale business due to the
frequent changes in government policy.
Hi:
Government policy has no negative effect on small scale business due to the
frequent changes in government policy.
Ho: Ethnic
and linguistic sentiment brings about lack of improvement in the economic
growth of the society.
Hi: Ethnic
and linguistic sentiment brings about improvement in the economic growth of the
society. The following set of hypothesis will be tested by the researcher in
this study.
Ho:
government policy has a significant effect on the business.
Hi:
Government policy does not have a significant effect on the business.
1.7 LIMITATION OF THE STUDY
The major
limitations of this project is the difficulty in obtaining data as is usually
the case with most project.
The lack of
data is further compounded by the fact that the researcher has a very tight
schedule programme.
For
instance, time is too short for the research considering the time within which
to submit the project and combined with academic work load could not enable the
researcher to carry out wide research on the general environmental impact on
small scale business. Finance is another hitch encountered during the course of
study.
1.8 DEFINITION OF TERMS
Small Scale
Business: Is defined as some of all activities which involve distribution of
goods and services to making of profit in the business.
Some of the
terms used in this study include political economic factor and cultural factor.
Political:
Economic factor is synonymous with the word government which simply means
management and control of the affairs a given social group and this factor
plays a vital role in small scale business. The role government plays in the
growth of small scale business could be deduced from special banks and
institution established by the government to provide finance. Cultural system
of a nation influences the ideas and value of this people
Culture:
could be defined as knowledge, belief, art, customs, moral and other attribute
that are accumulated by individual members of a particular society.
Environment:
This can be referring as existing surrounding that affect activities of
individuals.
Environment:
this can be defined as the combination of external physical condition that
affect and influence the growth, development, behavior, and survival of persons
or community.
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