1.1 BACKGROUND
OF THE STUDY
The contribution of
small –scale business in fostering economic growth and development has been
well articulated in different areas of this study .the specific attention on
them based on their expected impact and potential contribution on broad and
diversified production base, as well as their accelerative effect in achieving
macro objectives pertaining to full employment, income distribution and the
development of local technology. They are particularly most conducive for
diffusion of management skills and emulation of indigenous entrepreneurship
overtime.
Small business provides
financial opportunity and a chance to develop wealth. It is a place where
creative, motivated individuals can use their talents and expertise to the
fullest, because it provides satisfying careers and job opportunities and it’s
also the back bone of the market econ starts as a small business, and it
started with an entrepreneur (small business), who at first, earns little or no
profit. It was the new ideas of small business that brought about Ekene Dili
Chukwu Transport, the parts, and even the many commercial banks in Nigeria.
Untried ideas become annulations that become concepts that changed the business
world. And so it goes. Small business is the basis for the economic well being
many developed nations including USA/Japan.
Entrepreneurship is
what makes a small business successful. Entrepreneurship occurs when an
individual develops a new venture, a new approach to an old business or idea,
or a unique way of giving the market place a product or service by using
resources in a new way under conditions of risk. Small business triumphs and
entrepreneurship are closely related to it. It is difficult to separate them.
The unemployment
situation in the country coupled with the new government instinctive towards
easing social tensions among unemployed youths, through the programmed of the
National Directorate of Employment (NDE), were intended to lure a lot of
unemployed Nigerians, including graduates into self determination through self
employment. Graduates and school leavers are now realizing that government and
the established private companies are not ready to come to their aid directly,
through paid employment due to the dividing state of the economy. Short of the
alternatives, Nigerians including our graduates are therefore launching
themselves into various small-scale business ventures, such as cottage soap and
cosmetics production, fairing, restaurants, fast food, publishing, writing,
block making, garri processing, food processing, refuse disposal, taxi driving,
cleaning services, weaving, baking tailoring, advertising and other same
business venture which depends mostly on local raw materials. The determination
to succeed is also fast becoming the order of the day.
Government has been
playing appreciative role in promoting the survival and growth of small-scale
enterprise in recognition of them flexible and adaptive nature as well as their
re-generative power in promoting economic growth and development. Government also
encourages people to establish their own small business so as
to reduce the problem of unemployment in the country and also reduce the
problem of importation of goods, more so, to produce exportation products.
Government in believing
that a dynamic and growing small manufacturing sub-sector can contribute
significantly to the implementation of a wide range development effectives, has
thus enunciated various policies to encourage their proliferation and make them
veritable engines of growth and development. In the third and for the
development plans and the on-going three years rolling plan, priority has been
accorded industrialization with greater emphasis on small-scale enterprises.
The basic activities of government policies as maintained in the monetary and
fiscal policy measures, are to improve the financing and other supportive
services of small-scale business by expanding and improving access to credit
and infrastructural facilities, reducing their production costs, boosting their
profitability, enhancing their survival and growth capacities as well as
expanding their contributions to non-oil exports by making their products
competitive in the export markets.
Hardly could any major
industry succeed without the services of small-business enterprise. The major
goals of any profit oriented business are to make profit. A company will make
more profit if statistics its customers need better them the competitors. Therefore
in the contribution of small-scale business, bakeries would produce what the
customers want and by so doing they maximize profit and only bakeries that are
effective needs. In reality, it is possible to run a business without profit
for a time, but it is not possible for to survive for one day without
customers. Customers are the central theme of any business. Without a total commitment to
them, contribution to economic growth and development will have limited and
brief effects.
1.2 STATEMENT OF
THE PROBLEM
Bakery is in the
production industry the quality of products rendered by our Bakeries have been
attracting criticisms from people in all works of life. The civil servants,
business men and the general public are all very critical of production of
cookies like bread, chi-chin, cake, meat pie, boons etc. The complaints ranges from
those of poor quality of products, poor packages, high prices, poor delivery,
shortage of skilled manpower which affects productivity and restrain expansive
the use of potassium bromated which National Agency for food and Drug
Administration Commission (NAFDAC) banned for health purpose.
Most bakeries do not
put their customers in the prime place as they supposed to be. There is now
keen competition and to compete means to contribute to economic growth and
development.
Dickson (1971:4),
agreed with this view when he said that small scale enterprises are ploughed by
inadequacies and serious miss-uses of business records and business
information. The problem of poor or wrong location of an industry affects its
production. Such as nearness to raw materials, market, sources of power and
access to supply of labour and transport facilities etc.
Government incentive in
industries has previously directed to public investment neglecting private
initiative. But a diversified and self-sufficient economy must take into
consideration the importance of private sector in capital formation.
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