THE EFFECTS OF ENVIRONMENTAL FACTORS ON SMALL SCALE BUSINESS ENTERPRISE

THE EFFECTS OF ENVIRONMENTAL FACTORS ON SMALL SCALE BUSINESS ENTERPRISE

A CASE STUDY OF NASARAWA STATE

ABSTRACT

Small scale business is defined as some of all activities which involved distribution of goods and services to making profit in the business. In this project, the researcher will examine the environmental factor that affects small scale business enterprises. Such factors are culture and political economic factors. The major aim is to identify these problems and find appropriate solution to it in trader to enhance the smooth moving and effectiveness of small scale business enterprises in Nigeria.

CHAPTER ONE: INTRODUCTION

1 .0 INTRODUCTION

Over decades, small scale business has been making gain strides in Nigeria. It has been battling to make life more tolerable and comfortable by trying to make the gradual dwindling of the standard of living amids the gloom and doom economy.

The importance of small scale business in Nigeria cannot be over-emphasized. Employment and entrepreneurial development can be cited as positive and genuine reasons for promoting small scale business. The employment capacity of small scale is more significantly seen in the opportunities they provides for unskilled or the urban and rural workers.

S.J Owuala remarked that (Nigeria needs a comprehensive support policy for small scale  business.)

Business  time said “ the unskilled policy worker is handicapped in competing favourably in the open job market due to his low skill, consequently, the relies on small scale business to satisfy his employment needs”.

By providing employment or remunerative economic activities apart from supplementing incomes earned from regular jobs, small scale business contributes immensely in bridging the gap between the different social economic lapses in Nasarawa state in particular and Nigeria at large.

The small scale business also contributes in developing entrepreneurial talents, small scale business serve as a reliable avenue for innovative ideas both imported and indigenous. It prevents monopoly by forcing big firms to be more competitive in terms of product improvement, new method and processes. Small scale business serves as patronize of local raw materials.

  

1.1   BACKGROUND OF THE STUDY

The environmental forces and nuisance experienced by small scale business are more than what meet the eyes for instance, between 1984 and 1985, the government of Buhari took street Kiosk and traders by surprise when their businesses were swept away without compensation.

Again between 1990 and 1992 religious riot culminated into burning and looting of businesses of natives of Bauchi, Kaduna and Kano. However, the story is the same in Lagos where business under overhead bridges in Oshodi bus stop and other location in Lagos fell into the hands of the Federal Government while business with telecommunications services throughout the country were closed down without prior notice to the business owners at the time when means of telecommunications were out of the common man’s labour market and derived the poor masses of communication.

Moreover, what is more worrisome is the persistent religious crises that has continued to spill like wild fire with resultant effect of consuming small scale business owners and their businesses through looting and burning. An instance can be cited at the recent ethnic and religious crises between 1999 and 2001 which took place in Kano, Kaduna, Jos, Benue, Nasarawa and Taraba state.

  

1.2   STATEMENT OF PROBLEM

A the topic implies the effects of environmental factors tan small scale business enterprise. Government policies has been one of the major problem facing small scale business as well as poor implementation of its policies. The political instability in the country as a result of tribal ntiments is directed to small scale business.

1.3   OBJECTIVE OF THE STUDY

The objective of this project can be summarized in the following ways:

• To identify, define and explore environmental forces that work in and around small scale business.
• To highlight the influences, impact and implications of these environmental forces on the management and growth of small scale business in Nasarawa state.
• To make stability, profitability, harmony, peace and comfort of small scale business without business community.

 1.4   SIGNIFICANCE OF THE STUDY

There are quite a good number of environmental factors that inhibit the growth and development of small scale business which includes economic government, political and cultural which are external and other internal factors like the management. However, the most visible of all these are cultural government policies and management. Hence, we shall dwell on these thoroughly.

  

1.5   SCOPE OF THE STUDY

This research work is restricted to cultural and governmental/political environment of small scale business in Nasarawa state. The emphasis is to identify the effects of these environmental forces and possible solutions.

  

1.6   STATEMENT OF HYPOTHESIS

Hypothesis can be defined as a testable tentative probable explanation of the relations. The following are the hypothesis to be tested.

Ho: Government policy has negative effect on small scale business due to the frequent changes in government policy.

Hi: Government policy has no negative effect on small scale business due to the frequent changes in government policy.

Ho: Ethnic and linguistic sentiment brings about lack of improvement in the economic growth of the society.

Hi: Ethnic and linguistic sentiment brings about improvement in the economic growth of the society. The following set of hypothesis will be tested by the researcher in this study.

Ho: government policy has a significant effect on the business.

Hi: Government policy does not have a significant effect on the business.

 1.7   LIMITATION OF THE STUDY

The major limitations of this project is the difficulty in obtaining data as is usually the case with most project.

The lack of data is further compounded by the fact that the researcher has a very tight schedule programme.

For instance, time is too short for the research considering the time within which to submit the project and combined with academic work load could not enable the researcher to carry out wide research on the general environmental impact on small scale business. Finance is another hitch encountered during the course of study.

 1.8   DEFINITION OF TERMS

Small Scale Business: Is defined as some of all activities which involve distribution of goods and services to making of profit in the business.

Some of the terms used in this study include political economic factor and cultural factor.

Political: Economic factor is synonymous with the word government which simply means management and control of the affairs a given social group and this factor plays a vital role in small scale business. The role government plays in the growth of small scale business could be deduced from special banks and institution established by the government to provide finance. Cultural system of a nation influences the ideas and value of this people

Culture: could be defined as knowledge, belief, art, customs, moral and other attribute that are accumulated by individual members of a particular society.

Environment: This can be referring as existing surrounding that affect activities of individuals.

Environment: this can be defined as the combination of external physical condition that affect and influence the growth, development, behavior, and survival of persons or community.

REFERENCE

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Shavler, G. The irrelevance of Organizational boundaries for owner- Manged Firm. Small Business Economic 5 September (1993: 229-257)

Owuala S.J. (1989): Business Times Newspaper (Dept. of Finance University of Lagos.