EXAMINATION OF PROBLEM FACING SMALL SCALE BUSINESS IN RURAL AREAS OF EDO STATE

EXAMINATION OF PROBLEM FACING SMALL SCALE BUSINESS IN RURAL AREAS OF EDO STATE

CHAPTER ONE

INTRODUCTION

Nigeria is one of the countries in West Africa with vast population of both human and natural resources for her full development. One of the ways developing countries like Nigeria starts high level development is through the establishment of different types of business organisation that will help the country to channel her resources into productive areas. This means that business organisation can play a major role in the process of transforming an underdeveloped economy like Nigeria into a developed one.

Business organisations form the most important aspect of the economy of every developed nation. There are different kinds of organisations such as governmental, religious, charity, trade unions and associations but none of the above mention appears to be as important to the economy as the business organisations, this is because they are closely and generally identified as economic institutions. In most parts of the world, the high value of small scale enterprises in the process of socio-economic development has been well documented, particularly in developing countries. It is now realised that large scale enterprise cannot be alone be expected to play a dynamic role, that they are suppose to play in the rapid growth and development of the economy. (Nwoye, 1994).

Business organisations can therefore be described as an organised effort or activity by a person or a group of persons employing the resources of the environment to produce and distribute goods and services with objective of maximising profit. (Barach,  1977). The major incentive for setting up a business enterprise is the profit motive, There are many entrepreneurs that do not easily recognise that they are established in other to provide some services to the society. In such cases, providing services is the same as creating a customer to achieve whatever objective he may have. A business man or woman must be familiar with event in his or her environment.

Commencing a new business like small scale business in Nigeria and making it grow involves both the science of creation and art of management. It also entails a lot of risk but chances of making it succeed will be better if one understand the problems that will be met and work out as many of them as possible before the business takes off and such Problems includes Failure to plan, skilled manpower, infrastructure, finance, raw materials.

EXAMINATION OF PROBLEM FACING SMALL SCALE BUSINESS IN RURAL AREAS OF EDO STATE