SURVIVAL STRATEGY FOR ENHANCING SMALL-SCALE BUSINESS PRODUCTIVITY
1.1 BACKGROUND OF THE STUDY
The paper presents the findings of extensive research that shows how important strategic management is and how it can help to strengthen the awareness of management to enhance small-scale business productivity. This chapter deals with the general introduction of the research study.
A business whether small or big, simple, complicated, private or public, etc is created to provide competitive prices. Business in Nigeria has been classified as small, medium and large-scale. However, a small-scale industry can be defined by the criteria of project-cost, capital and cost turnover by the employee etc. The Federal and State ministries of industry and commerce have adopted the criteria of the value of installed fixed capital to determine what a small-scale industry is, in this respect. This is figured as excessive of building and subject to government determination and land prevailing adjective of public policy. Nevertheless, since the review, there may be a need to classify the small-scale industry into MICRO and SUPER-MICRO business with a view to provide adequate inceptive and protection for the former. In the meantime, any business or enterprise below the upper limit of 260,000 and whose annual turnover exceeds that of a collage inducting currency put at
N 5,000.00 per annum is a small-scale industry.
1.2 STATEMENT OF THE PROBLEM
However, there is need to state that there exist many small-scale businesses in Akwa Ibom state. These ventures at various point of their existence help in promoting employment opportunities to our teaming youths and also help in the development of the state. Many eminent scholars have stated that small-scale businesses are agents of development in any given area of their operation. The problem which this project study is concerned is to answer the question posed such as: ‘what are strategies for enhancing small-scale businesses for survival in our state?’
1.3 THE OBJECTIVE THE STUDY
The objectives of the study include all the under-listed below:
1. To investigate strategies of enhancing small business
2. To assist small businesses to expand their scope
3. To discover the socio-economic benefits of small business
4. To identify ways in which the problem of small-scale business could be minimized.
5. To explore ways of strategizing their scope of operations.
1.4 SIGNIFICANCE OF THE STUDY
1. The study could be of immense help to students and practitioners in small-scale business.
2. It shall be of use for consultancy firms that may want to explore means of enhancing small-scale business.
3. It shall be of use for specific manpower development and training institutions, like Centre for Management and Development (CMD), Nigeria Industry Development Bank and Small-Scale Industrial Credit Scheme (SSICS).
4. And finally, it shall serve as a useful companion to employees, directors and entrepreneurs of small business organizations who may be interested in enhancing their organizations.
1.5 RESEARCH QUESTIONS
1. What are the aims of establishing small-scale business?
2. Can government fund small business?
3. Do their operations help in societal development?
4. Do their poor performances have anything to do with poor findings?
5. Will a new formula of strategies help revive the small business?
1.6 RESEARCH HYPOTHESIS
Null Hypothesis (Ho): There is no significant relationship between small-scale business and societal development.
Alternative Hypothesis (H1): There is significant relationship between small-scale business and societal development.
Null Hypothesis (H0): There is no significant relationship between findings of small-scale business and the expected performance of the firm.
Alternative Hypothesis (H1): There is significant relationship between findings of small scale business and the expected performance of firm.
Null Hypothesis (H0): There is no significant relationship between small-scale business and government funding of business.
Alterative Hypothesis (H1): There is significant relationship between small-scale business and government funding of business.
1.7 LIMITATION OF THE STUDY
a) The research project was limited through the administration of questionnaires in Royalty Hotel. The staff did not respond immediately to the questionnaires. This was a serious limitation. Also, how to locate and find materials for the review of related literature was not easy. This was another area of big limitation to this study.
1.8 DEFINITION OF THE TERMS
A. AMALGAMATION: The process of two or more organizations joining together for mutual benefit, either through a merge or consolidation.
B. APPROPRIATION: A sum of money that has been allocated for a particular purpose.
C. BUSINESS CLUSTER: A group of small firms from similar industries that team up and act as one body.
D. COMMERCIAL: Relating to the buying and selling of goods and services.
E: COMMODITY: A good or service. For example: cotton, or a laptop computer resulting from the process of population.
F. EQUALITY RATE: The interest rate that a lender charges because of the apparent risk of financing it.
G. N.B.T.E: National Board for Technical Education
G. N.D.E: Nigeria Directorate of Employment
H. N.E.R FUND: National Economic Remonstration Fund
I. N.I.D.B: National Industrial Development Bank.
J. N.U.C: National University Commission
K. N.Y.S.C: National Youth Service Corps.
L. R.M.R.A.C: Raw Material and Research Development Council
M. SMES: Small and Medium-scale Enterprise.