Growth and Development of Small Scale Business

Growth and Development of Small Scale Business

INTRODUCTION

People are willing to start new business if they feel that the risk of losing their money isn’t too great, part of that risk involves the economic system and how government works with or against businesses. Government can do a lot to lessen the risk of business and thus increase entrepreneurship and wealth. One way for government to actively promote businesses is to allow private ownership. In some countries, such as Cuba, the government owns most businesses and thus there is little incentive for people to work hard or create profit. All around the world today, however various countries in which the government formerly owned all businesses are selling those businesses to private individuals to create more wealth.

The federal government has equally established and empowered some agencies to facilitate the establishment and continued existence of small and medium scale businesses. Such agencies include.

1.     Nigeria agricultural cooperative and rural development bank (NACRDB)

2.     the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN),

3.     National Agency for Poverty Eradication Program (NAPEP)

4.     National Directorate of Employment (NDE)

5.     Industrial Training Fund (ITF)

6.     Bank of Industry (BOI)

7.     Nigerian Agricultural, Cooperative and Rural Development (NACRDB)

Governments in Nigeria have been stimulating the establishment and continued existence of businesses in several ways. These include:

TRAINING AND ENLIGHTENMENT:

The major objectives of such training include empowering business owners with creative skills and management abilities. These training programs are also geared towards assisting business owners on registration of business, sting of business facilities, record-keeping and broad resources utilization.

Apart from equipping business owners with business related skills and abilities, these government-sponsored training programs are directed at the persons of business owners. They are, through these programs, being informed on the qualities a business owner must possess or continue to build for him to succeed in business. Another training being extended to business owners is the inclusion of business management and entrepreneurship education into the syllabuses of some courses in our tertiary institutions especially business-related disciplines and general education by the Federal Government. This was considered necessary to prepare our young graduates for self-employment due to high level of unemployment in the country.

PROVISION OF INFRASTRUCTURAL FACILITIES:

Infrastructural facilities being provided by governments in Nigeria include roads, prepared portions of land, electricity and pipe-borne water supply. All these facilities are provided through heavy capital outlay to enhance business activities. Some state governments even provide industrial estates and areas for interested entrepreneurs at reduced rates or very convenient payment terms. Such estates already have access roads, water and electricity supply.

ENCOURAGING POLICY MAKERS AND FINANCIERS

The federal government, in its efforts to encourage the establishment of small business for enhancement of rapid industrialization, has been acquitting policy-makers and financiers with important features and the needs of enterprises. This is being done to facilitate and generate external finances through international financial institutions such as World Back

RESEARCH AND DEVELOPMENT:

Institute of Industrial Research, Oshodi (FIIRO) and Project Development Institute (PRODA) are all established by the federal government for conducting management training through seminars and workshops especially in the area of technological innovation and to conduct research into various aspects of industrial development in Nigeria. The results of such research efforts are to be disseminated to all those who seek industrial research information.

PROVISION OF LOCAL FINANCE:

Agencies such as Nigerian Bank of Industry (BOI) and Nigerian Agricultural, Cooperative and Rural Development (NACRDB) are established to provide various classes of loans to business at interest rates that are lower than what is obtained in commercial banks.

DIRECTIVES TO COMMERCIAL BANKS:

The federal government through its monetary policies also issues directives to banks to grant specified minimum credit to businesses.

FOREIGN TRADE MEASURES:

Several measures such as trade protection are adopted by the Federal Government to protect our indigenous small businesses. Imposition of high tariffs on some categories of imported goods to discourage their importation, the use of quotas for some other goods, outright ban on importation of some goods and strict custom control to avoid “unfriendly” trading such as dumping are examples of such measures. Most of these measures are directed towards protecting our infant industries to ensure their growth and survival

EXTENSION OF SUBSIDIES:

Government in various ways extends subsidies to small-scale business men. For example, such subsidies always granted to farmers on fertilizers, seeds and seedlings and some agricultural implements.

CREATING CONDUCIVE INVESTMENT ENVIRONMENT:

Governments at all levels in Nigeria have established different organs and mechanism to ensure peaceful co-existence of all residents (both indigenous and non-indigenous) in all parts of the country. This has been done to ensure the safety and security of levies and property especially business assets.