CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

  In Nigeria, there are manufacturing firms that manage to manufacture on small-scale basis.  The manufacturing enterprises make such local consumable as garri pomade, detergents, sachet water, foot wears, garment, corn flour, cassava flour, and pastries including bread, cake, meat pie, fish roll, toast etc other relevant manufactured products include furniture items cement blocks and so on.  It has however been observed that the quantity and quality of the products are to in-adequate to satisfy the needs and demands of consumers.

          The terrible state of inadequacy of manufactured products has been attributed to certain problems which militate against the effective and efficient management of the small-scale manufacturing enterprises.  The constraints have become frustrating and resistant.  Consequently, fear is being entertained that small-scale manufacturing a firms inNigeriamay lack chances of success, growth, and diversification.  Despite the ugly situation all hopes are not lost for the small-scale manufactures inNigeria.  Solutions can be found in the accurate identification, presentation and analysis of the problems and prospects of managing small-scale manufacturing enterprises inNigeria. The researcher id determined to provide the said solutions.

Some of the Problems Includes:-

1.       Lack of infrastructural facilities such as good road, pip-borne water, telecommunication services, electric power and industrial estate.

2.       Inadequate funding

3.       Scarcity of technical man-power

4.       Ignorance of available incentives provided by government and other agencies.

5.       Lack of well-equipped maintenance workshops.

6.       Frequent changes in government policies by successive administrations.

7.       High cost of and difficulty in, obtaining needed raw materials, and so on.

          In the face of the problems of managing small-scale manufacturing enterprises inNigeria, it can be convincingly shown that small-scale manufacturing enterprises inNigeriahave hope of chances of surviving and performing even much better.

          The chances or prospects comprises

1.       Creation or awareness about available incentives provided by the government.

2.       Recent rehabilitation of vital and basic infrastructural facilities like roads and electric power supply.

3.       Family ties and patriotism

4.       Availability of market for manufactured goods.

5.       Small initial capital which one or two investors can provide.

1.2     STATEMENT OF PROBLEM

          This research work will dwell on the problems and prospects of managing small-scale manufacturing enterprise in Nigeria.

          The sub research problem include the concept of small-scale business, the concept of small-scale manufacturing enterprises the historical development of manufacturing inNigeria.

          Other components of the problems are problems of small-scale manufacturing enterprise inNigeria, the prospects of managing small-scale manufacturing enterprise inNigeriaand the industrial background of Ariwa sachet water Achara Layout.

1.3     THE PURPOSE OF THE STUDY

1.       To clearly define and describe small-scale business.

2.       To clearly define and describe small-scale manufacturing enterprises.

3.       To present the problems of managing small-scale manufacturing enterprises inNigeria.

4.       To present the prospects of managing small scale manufacturing enterprises inNigeria.

5.       To determine the relationship between the problems and prospects of managing small-scale manufacturing enterprise inNigeria.

1.4     SCOPE OF STUDY

1.       To find out the concept of small-scale business.

2.       To find out the concept of small –scale manufacturingEnterprise.

3.       To find out the problems of small-scale manufacturing enterprises inNigeria.

4.       To find out the prospects of managing small-scale manufacturing enterprise inNigeria.

5.       To find out the relationship between the problems and prospects managing small-scale enterprise inNigeria.

1.5     RESEARCH QUESTIONS

          In carrying out this research, the following questions were asked.

1.       What are the problems of managing small scale manufacturing enterprise inNigeria.

2.       What are the prospects of managing small scale manufacturing enterprise inNigeria?

3.       What are the concept of small-scale business?

4.       What are the concept of small-scale manufacturing enterprise.

1.6     SIGNIFICANCE OF THE STUDY

          Two aspects of the significance of this study are:

1.       The practical aspect, and

2.       The theoretical aspect

          Practical benefits can be derived from study of the problems and prospects of managing small-scale manufacturing enterprise inNigeria.  Firstly the problems of managing small-scale manufacturing enterprise are identified.  Like the saying does “problems identified is problem solved”.  Therefore, solutions to the identified problems become forgone conclusion.  Again, when the identified problems are solved, existing manufacturing firms proper and their prosperity will induce prospective investors to site their own factories inNigeria.

          Future, government and people are sensitized towards the need and bases for effective industrialization of the country.  Therefore government should try to provide industrial estates and efforts will also be made to provide vital telecommunication facilities, electric power supply and so on.

          Theoretical significance of this study is under consideration at this point.  It is important to note that some existing principles and theories of managing the enterprise and prospects small-scale manufacturing enterprises have irrelevant today, limited in applicability and imperfect point.