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PROBLEMS OF MANAGING SMALL SCALE BUSINESS IN THE RURAL AREA

Format: MS WORD  |  Chapter: 1-5  |  Pages: 55  |  1497 Users found this project useful  |  Price NGN3,000

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PROBLEMS OF MANAGING SMALL SCALE BUSINESS IN THE RURAL AREA

 

ABSTRACT

The problem which a small scale business encounter are mostly management problems and lead to the failures. According to Samuelson (190) must small business are here today and gone tomorrow. The average life expiratory of a business being only half a dozen years. Some will terminate in bankruptcy, many more will be voluntarily be brought to a close with sign or regrets of dashed hopes and an expensive lesson learned, others will come to a joyous end when the owner finds a good job. Hence the research as attempted in this project, the problems of managing a small scale business in rural area.

 

CHAPTER ONE

1.0  INTRODUCTION

This study is designed to examine the small scale business in the rural areas with particular reference to Jocob’s Wines Limited Mgbidi in Oru West Local Government Area in Imo State. Human wants are insatiable where as the resources to satisfy them, are highly scarce (limited) by economics factors. 

Unemployment is almost at its top most in countries of the world. Most people who are employed by the government earning salaries and wages which cannot with stand the pressure mention on them by the high rate of inflation and high cost of living. Some are retired, some recanted even when they are still willing and are able to work other resigned due to poor and other predicaments at least half way, people engage in small scale business.

However, not came into small scale business are able to make it due to poor management, poor planning, poor control, poor directing, and organizing, lack of infrastructural equipment problem of finance, insufficient market technology problems social problems, greedy staff and uncooperative attitude of the people, all these factor constitute a lot of problem in the management of small scale business in our society today.

A consideration of the geographical spread of business establishment in the country with reveal that almost all the business that are regarded as big are found in the urban areas.

1.1  BACKGROUND OF THE STUDY

In the background of study will analyze how the federal state and local government have inculcated the spirit of success in the small scale business. The federal government in their decree no 2 of 1989 introduce the scheme the National Economic Reconstruction Fund (NERFUND) the scheme makes provision of medium to long term financially those small and medium scale industrial enterprises especially manufacturing and agro-allied enterprise and ancillary services. In 1987, the government having discovered that the majority the small scale business are instituted in rural area, impacted directorate of foods, roads and rural infrastructure (DFRRI).

This scheme is to provide the basic infrastructure needed in rural area like water electricity and federal roads. The provision this thing have gone a long way to help the small scale industries.

In November 1986 because of the level of unemployment federal government created National Directorate of Employment (NDE) promote small scale business and graduate employment space public works programme and agricultural programme.  

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