Small Scale Entreprise in Nigeria: Issues and Prospects
1.Introduction
Small Scale Enterprises (SSEs) have played and continue to play significant roles in the growth, development and industrialisation of many economies the world over. In Nigeria, the SSEs have performed below expectation due to a combination of problems. This situation has been of great concern to the government, citizenry, practitioners, operators and the organised private sector groups.
Small businesses are generally regarded as the driving force of economic growth, job creation, and poverty reduction in developing countries. They have been the means through which accelerated economic growth and rapid industrialization have been achieved (Harris and Gibson, 2006; Sauser, 2005; Arinaitwe, 2002; Kiggundu, 2002; Monk, 2000). While the contributions of small businesses to development are generally acknowledged, entrepreneurs face many obstacles that limit their long-term survival and development. Research on small-business development has shown that the rate of failure in developing countries is higher than in the developed world (Arinaitwe, 2002). They should develop both long-term and short-term strategies to guard against failure (Sauser, 2005; Monk, 2000).
It is generally accepted that SSEs play a key role in economic growth and industrialization in both developed and developing countries (Akinbogun, 2008). An understanding of the problems negatively affecting small businesses in Nigeria is a vital step in managing and avoiding the massive failure of these small businesses and therefore, the purpose of this paper is to examine the challenges facing SSEs in Nigeria with a view to proposing solutions.
The methodology that is employed in this paper is the use of decumentary research to gather information through the secondary sources of data. The use of simple content analysis of the problem are employed in the analysis. To this end the paper is organized as follows; section one is the introduction, section two is the literature review,
Small Scale Enterprises (SSEs) have played and continue to play significant roles in the growth, development and industrialisation of many economies the world over. In Nigeria, the SSEs have performed below expectation due to a combination of problems. This situation has been of great concern to the government, citizenry, practitioners, operators and the organised private sector groups.
Small businesses are generally regarded as the driving force of economic growth, job creation, and poverty reduction in developing countries. They have been the means through which accelerated economic growth and rapid industrialization have been achieved (Harris and Gibson, 2006; Sauser, 2005; Arinaitwe, 2002; Kiggundu, 2002; Monk, 2000). While the contributions of small businesses to development are generally acknowledged, entrepreneurs face many obstacles that limit their long-term survival and development. Research on small-business development has shown that the rate of failure in developing countries is higher than in the developed world (Arinaitwe, 2002). They should develop both long-term and short-term strategies to guard against failure (Sauser, 2005; Monk, 2000).
It is generally accepted that SSEs play a key role in economic growth and industrialization in both developed and developing countries (Akinbogun, 2008). An understanding of the problems negatively affecting small businesses in Nigeria is a vital step in managing and avoiding the massive failure of these small businesses and therefore, the purpose of this paper is to examine the challenges facing SSEs in Nigeria with a view to proposing solutions.
The methodology that is employed in this paper is the use of decumentary research to gather information through the secondary sources of data. The use of simple content analysis of the problem are employed in the analysis. To this end the paper is organized as follows; section one is the introduction, section two is the literature review,
References: Akinbogun , T. L. (2008): ‘The Impact of Nigerian Business Environment on the Survival of Small-Scale Ceramic Industries.’ Journal of Asian and African Studies, Vol. 43, No. 6, 663-679. Arinaitwe, J.K Arthur, P. (2003): ‘The Implications of State Policy for micro-enterprise development’. In: Tettey, Wisdom; Puplampu, Korbla; Berman, Bruce, eds Aruwa, S.A.S. (2004): ‘Financing options for Small and Medium-scale Enterprises in Nigeria’. Nigerian Journal of Accounting Research. Ahmadu Bello University, Zaria, 1(2). Ekpenyong, D.B. & Nyong, M.O. (1992): Small and medium scale enterprises in Nigeria: their characteristics, problems and sources of finance. Research paper 16; African Economic Research Consortium, Nairobi. Harris, M.L Kiggundu, M.N. (2002): ‘Entrepreneurs and entrepreneurship in Africa’: What is known and what needs to be done. Journal of Developmental Entrepreneurship, 7 (3). King, K Longenecker, J.G., Petty, C.W., Moore, J.W. & Palich, L.E. (2006): Small Business Management, An entrepreneurial emphasis: Thomson South Western. London Lussier, R.N Mahadea, D. (1996): ‘Financial constraints on small business entrepreneurs’: A Transkei Case study. Acta Academia, 29(1): 70-89. Monk, R Murphy, M. (1996): Small business management. : Financial Times and Pitman Publishing. London Nosike M. (2008): Nigeria: Major problems facing small scale enterprises. 1-11-08. Document origin: African Charter Article #24. Vanguard, Lagos. http://www. vanguardngr. com/ Retrieved 7-7-10. URL: Onugu B.A Sauser, W. I. (2005): ‘Starting Your Own Business? Prepare for Success’ SAM Management in Practice, 3(1): 1-4.