CHAPTER ONE

1.1 INTRODUCTION
Business as a word has different things that its reference to, here a small scale business is
the occupation or profession a person or an individual engage in. In other to cater for
himself or herself and for the family. Business started from a person who works to
produce for his family. As an example of such a person business involves Event decoration
which deals mainly on decoration.
Event decoration is the adornment and beautification of the event environment and
persons. Its involve a lot of planning and creativity. Tools used are fabric, tape ribbon,
balloons etc. They are used for decorating social events places like wedding, birthdays,
carnivals, conferences, seminars etc. It could be for education purpose, promotion,
purpose entertainment purpose etc. Decoration business has been in existence for the past
decade and as one of the growing areas of service tendered in Nigeria economy sector.

1.2 STATEMENT OF THE PROBLEMS OF SMALL BUSINESS IN NIGERIA

Small scale business face some challenges due to some their size, and other factors.
1. Difficulty to attract customers: They have to try hard to make sure that they provide
excellent service. They have smaller marketing and advertising budget on like the large
company
2. Must compete again bigger companies: These is a very big problems faced by small
scale business because they must be able to match up with the prices charged by larger
business or provide extra benefits to customers just as the large companies do.
3. Difficult to finance Expansion: The small scale business find it difficult to obtain
money for expansion, because of scarcity of resources. Bank dont easy lend them
money.
4. Difficult to Grow: The small scale business finds it difficult to grow because of their
limited budgets and limited human resources to work the growth of the company
5. Difficult to Attract Employees: The small scale businesses find it difficult to pay their
employee exactly as the large companies pay their workers.
1.3 OBJECTIVE/ RESEARCH QUESTION
1. To know the source of finance of the business.
2. To know the management style of the organization.
3. To know the impact of the organisation on the immediate environment of the
organisation.
1.4 SIGNIFICANCE OF SMALL SCALE BUSINESS IN NIGERIA
Small business has contributed a lot to the growth and development of an economy.

Small scales has given individual benefits in its operations. Most large organizations
started from small. Therefore small scale business play important roles in the nation
economy as follows.
A. Employment opportunity
Small scale business creates new job opportunities for the young graduates reducing the
level of unemployment
B. Encourage personal saving
So many people have seen that there is a lot of great returns from being a small business
properter and this gives room to save for the saving of any business of their choice
C. Allocation of scare Resources
Small business play a prominent roles in the efficient of a nation scale resources. They
Identify and exploit opportunities which may consist of unfulfilled wants that have profit
potential of exploited.
D. Enhancement of self-reliance goal of the nation
These would help enhance employment and also capable by teaming population by the
government.
1.4.1 GOVERNMENT EFFORT TO DEVELOP SMALL BUSINESS IN NIGERIA
Certain effort has been put in place to develop the small scale business in Nigeria by the
government for example
(a) Creating of capital Allowance
The investment in machinery and equipment in small scale business enjoy capital
allowance.
(b) Pushing private sector into social Desired outcome
The government push the private sector into social desired outcome for the outcome to be
accomplish e,g using monetary policy.
3

(c) Credit Schemes

The government can increase the supply of credit in the market, creating incentive for
investment over saving and this stimulating the economy
(d)Impose of Heavy Duty on Import Goods
The government place heavy traffics imposed on imported goods even restricting the
importation of good in other for local small scale business to catch up and develop.
(e) CBN
The central Bank of Nigeria as directed that at least 10% of loans of Nigeria borrowers be
reserved for small scale industries.
CHAPTER TWO
2.1

LITERATURE REVIEW

2.1.1 DEFINITION OF SMALL SCALE BUSINESS

Small scale business and management are define by Nigeria Industrial policy as these with
total investment between one hundred and thousand Naira ( 100,000,000) and two million
Naira( 2m) exclusive a land but including working capital.
The companies and allied matter Decree (CAMD) define small scale

business as a

company whose annual turnover is not more than two million Naira or whose net asset
value is not more than one million Naira (1,000,000). It is agreed that small scale business
4

could be defined using the number owner Asset base, labour force, turnover and working
capital etc.
According to Flora Richard-Gustafson (2009) define small scale business as a business
that employs a small number of workers and does not have a high volume of sales. Such
business are generally privately owned and operated by sole proprietorships. According to
the United States of America define any business with fewer than one hundred (100)
employees is classified as a small business
According to the fair work Act of Australia (2003) it defines small business as one that has
fewer than 15 employees on payroll, or
According to the research of Obafemi Awolowo (1987) define small scale business as one
whose total assets or capital is less than #50,000 and employee fewer than 50 fulltime
workers
In Nigeria the third Nation development plan (1975-1980) defines small business as a
manufacturing or service organisation whose employee is not more than 10.

According to Glos et al (1976) referred small business as a whole scale whose annual
sales do not exceed 9.5 million dollars
According to the commercial banks e.g. Central bank (1991) defined small scale as an
establishment whose annual turnover does not exceed twenty five million Naira
( 25,000,000).
The Federal ministry of industrial defined a small scale industry as enterprises that has
investment capital of up to one hundred and fifty thousand Naira (N 150,000) and
employing not more than ten persons (10)
According to Elton Mayo defines small scale business as any business with less than fifty
(50) workers. The committee of economy development (CED) of the united state define
small scale as one with two qualities.
a.
b.
c.
d.

Managers are also owners

Owners supplied capital
Area of operation mainly local
Size of operation within the industry

The Nigeria Industrial policy (1990) defines small scale industries as those with total
investment between one hundred thousand and two million naira (N 100,000- 2,000,000).
6

The national economic reconstruction fund (NETRFUND 1980) classifies a business as

small.

If its assets (excluding land) is below ten million naira(10m) in management those things
that a manager of small business must attend to maximize to generate revenue.

It is therefore evident from the above that most of the big business started as small
business mostly as a one man business like the event management and decoration.

2.2 CHARACTERISTICS OF A SMALL SCALE BUSINESS

A small business is one which possesses at least two of the following five characteristic.

1. Less sharing of decision making

2. Capital is supplied and an individual or small group holds the ownership
3. The area of operation is mainly local with the workers and owners living in one area
community, however the market need not be local. It has a relative small share of market
4. The size of the company must be small compared to the bigger companies. These measure
could be in terms of sales, volume, number of employee and other significant companies
5. Management of the business is done by the owners.
All these characteristics are mostly present it. Every small scale business and if otherwise
it wouldnt be a small scale business.
2.3
IMPACT OR ADVANTAGES OF SMALL SCALE BUSINESS

The small scale business has a lot of impact on we the Nigerians, they include

1. More labour intensive and therefore capable of creating more jobs

2. Conducive for the provision of effective training ground for development of managerial

3.
4.
5.
1.
2.
3.
4.
1.

talent
Generate substantial employment opportunities for the unemployment youth
It speeds up indigenous enterprises or businesses.
Helps to utilize our raw materials
Advantages of the owner of small business
Security and Income
Self expression
Close decision making
Short time of communication
2.4
TYPES OF SMALL SCALE BUSINESS
We shall briefly discuss some classes of small scale business they are
Retail business involves selling of products to consumer eg like book stores medicine

store. They buy from the whole sales and sell in little to consumer
2. Decoration service Business. They offer specialized and technical services to consumer for
decorating wedding, seminars churches and are called event decorations.
3. Whole seller. Employ capital raised to buy finished product from manufacture and resell
them to retailer, who in turn sell them to consumer build industrial users.
4. Manufacturing firm e.g pure water. They produce finished products like pure water using
the raw materials that they have.
2.5 TRENDS OF NIGERIA SMALL BUSINESS
The Nigeria bulk small scale business like tailoring, farming, metal work, decoration are
all in the commercial sector, the trend is now toward series industries. For example in
1980 the registered company where only about 38percent for the year
8

2.6

WHY SMALL BUISINESS FAIL?

There are reasons why small scale business fails as reported in our country.

1.
2.
3.
4.

Some start with too much capital and become careless in its use
Attempting to do too much business with too little capital
Under pricing of goods and services
Extending credit freely

2.7

1.
2.
3.
4.

HOW TO COPE

Learn from the failure of others

Evaluate your capital requirement
Try and try again never give up- survival of the adaptable
Seek professional advice

CHAPTER THREE
3.0

RESEARCH METHODOLOGY

These chapter deals with the method and procedure in collecting of the data , how is the
research goes to the field to collect information in a systematic way to provide solution to
problems.
The information collected will be analysed to answer the research Questionnaire,
interview direct observation. The questionnaires presented were divided into sections.

10

The first selection deals with respondent while the second selection deals with
information that were relevant. It allows the respondent to thick either yes or No.
3.0.1 POPULATION OF STUDY
Population define the number of people leaving in a particular geographical area.
E.g country, village, town etc. the population used by researcher is the store department.

3.0.2 SAMPLE SIZE

This is where the researcher takes a small part representing the whole worker of an
organization. It sample size was15
3.0.3 SAMPLE TYPES
These are different sampling types example are:
a. SYSTEMATIC RANDOM SAMPLING
These is where the last of all the members of the population are in alphabetical order,
picking a specified proportion according to the intended relative size of the population.
b. PURPOSE SAMPLING
11

This is a sampling selective literally because there is a good presentative of the

population.
c. ACCIDENT SAMPLING
This is a sampling selected
3.1 HISTORY OF THE CASE STUDY
Favour Decoration &Event Planner started their operation in the year 2010. It was first
situated in Ibadan which is very attractive t;o customers. It is now located at Paradise
Estate Lane 2. They specializes in different kind of decoration both indoor and outdoor
decoration. It was founded in 2006. They help to add beauty to whatsoever you want to do
like , the wedding or seminars.
The business started with just N 50,000 , I was managing the organization up to the time
when I started giving training to student that came.It has a lot of benefits to the host and
those who participate in them. It is a very good small scale business to support the family.
3.1.1 TRAINING AND EDUCATION OF THE PROPRIETOR
Mrs Eguabor Mercy began her primary School education in year 1985 to 1991 at
El-bukun Primary School, Ijeshatedo Lagos State. Later proceeded to Beatiful Gate in the

12

year 1992. He own Higher National Diploma (HND) from Federal polytechnic Ado
between 2000 and 2005.
Romec event and Decoration will prepare you for leadership in a short, intense and
rigorous training.
Whether you are starting in the event decorating business or you are looking to upgrade
your skills, Romec event and Decoration will have amazing designs to help your business
grow. This is a one of a kind event-featuring architectural ballon designs, wall fabric
draping, wedding gazebos, kids theme party packages with candy tables, and
extraordinary event floral designs. Learn the art of incorporating all the different elements
for an extraordinary look.
This camp is designed to push people a bit further than they would normally push
themselves. Four groups will rotate for hands on training of the different themes.
Our event floral dcor design course will help you create floral dcor and arrangement for
corporate, special events and weddings. Just imagine the Wows when the guests arrive
and see your elegant designs, spectacular colours and well-coordinated dcor.
We also have flora Arrangements, flora arrangements are big business by themselves or as
an addition to your existing retail. In this courses you will use fresh and silk flowers.
Latex balloons, plush, baskets and other items to make wonderful arrangements and
baskets.
3.2 SOURCE OF INFORMATION
13

i)

i)

.)
.)

In these chapter the two types of source where used that is the primary and the secondary
source of information gotten directly from customers and manager using interview and
question method
DATA ANALYSIS
The other for the data analysis to be carried out the researcher made use of the sample
percentage method
LIBRARY RESEARCH
Several textbook have been contacted in the school library. This method helps in obtaining
very vital information. The list contacted contained in the bibliography.
3.3 METHOD OF DATA COLLECTION
DIRECT OBSERVATION
In my observation i paid personal attention to the activities of the workers and the entire
environment. Here i observed the attitude of some employees and the financial strength.
QUESTIONAIRE METHOD
These is a very good method of collecting information raw facts here as a researcher I
introduced the topic spoken on what it was all about so that the respondent could
participate in the study . I asked respondent question likes
Why was it that she founded these her business
Why and what were the thing that inspired her to go into the business?
Here the respondent was very opened and poured out her view( these was an opened
ended question)
14

i)

INTERVIEW
These are another method which was used to get information from the respondent
on the topic Event decoration. It involved a face to face conversation using a
(C lose ended question). The question was presented in a way where she would have to
chooses answer between yes or NO
e.g Does decoration business bring in lots of profit yes( ) or No ( )

15

CHAPTER FOUR
4.0

DATA PRESENTATION AND ANALYSIS

4.1

DATA PRESENTATION

This chapter focused basically on the presentation and analysis of the data collected
through questionnaire presented to them.
Ten (10) questionnaire where distributed to the respondents of the Romec Events
management and Decoration company
The data collected where analysed conclusion and result where determined
according to the alternative that had the highest response in the questionnaire

16

.)

4.2

USING SIMPLE PERCENTAGE METHOD

Personal data of the respondent where as follows
What is the staff designation in the organization?

ALTERNATIVE
RESPONSE
Senior Staff
1
Junior Staff
9
Total
10
Source: field survey, April 2015

PERCENTAGE%
10%
90%

The table above shows that the junior staff has 90% dominated the company
Numbers of each sex

ALTERNATIVE

RESPONSE

PERCENTAGE

SEX
Male
Female

2
8

20%
80%

Total

10

100%

This table above indicates that the female are higher than the number of male counterpart.
iii Academic Qualification
17

v)

ALTERNATIV

RESPONSE

PERCENTAGE

E
W.A.E.C
3
O.N.D
4
H.N.D
2
B.SC.
1
Total
10
Source: field survey 2015.

30%
40%
20%
10%
100%

The above table indicates that O.N.D holders are mostly involved in the organization
activities having 40 as percent.

(iv) Criteria used in selecting employee

ALTERNATIVE
RESPONSE
PERCENTAGE
Physical fitness
5
50%
Qualification
5
50%
Total
10
100%
Source: field survey April 2015
From the table above the respondents are of the view that the organization made
use of Qualification and physical fitness in selecting employees.
Respondent with post held as Manager

ALTERNATIVE
Manager

RESPONSE
1
18

PERCENTAGE
10%

Supervisor
0%
Worker
9
90%
Total
10
100%
Source: field survey 2015
The above table indicate that it is just one manager of the business.
4.3 DATA ANALYSIS
The following where there is research and analysis of data.
Questionnaire distributed to the respondents.
Questions
1. Do the management organize training for workers
Table 1.

ALTERNATIVE/RESPONSE

NO

OF PERCENTAGE

RESPONDENT
S
YES
NO
TOTAL
Sources: field survey April 2015

10
10

0%
100
100

The table indicates that all the respondents said No. This means that the organization does
not organize any training for the workers. The No which is 100% have it all said.
Indirectly. The organisation can not be very effective and efficient.
Is the business financed by its owner? Or the Bank?
TABLE 2 .

19

ALTERNATIVE/RESPONSE
ce:

NO

OF PERCENTAGE

RESPONDENTS
10
100
10
100

YES
NO
TOTAL
survey April 2015

Sour
field

From the table 2 above indicates that the business is been financed by its owner that is it
is(self financed)

TABLE 3.
Are there any means of motivation?

ALTERNATIVE
Yes
No
Total
Source: field survey. April 2015.

NO OF RESPONSE
8
2
10

20

PERCENTAGE%
80
20
100

From the table Above it is seen that out of the 10 respondents, 8 of them said yes and 2
said No from the Question given meaning that the workers are well motivated which is
very helpful for the growth of the organization.
TABLE 4.
Do the management put into consideration the welfare of the staff?
ALTERNATIVE
Yes
No
Total
Source: field survey April 2015

NO OF RESPONSE
6
4
10

PERCENTAGE%
60
240
100

As shown above it is clear that the organization management take into consideration the
welfare of the staff because 6 said yes ie 60%.
TABLE 5
Does the organisation have any impact on its immediate environment?
ALTERNATIVE

Yes
No
Total
Source: field survey April 2015

NO

OF PERCENTAGE%

RESPONSE
9
1
10

21

90
10
100

90% of the respondent said yes and only 10% said No. this simply indicates that the
organization really have lots of impact on its environment.

TABLE 6.
Do these organisation benefit from the micro credit scheme for small scale business
organisation?

ALTERNATIVE

Yes
No
Total
Source: field survey April 2015

NO

OF PERCENTAGE%

RESPONSE
10
10

22

100

It is clearly stated from the table that all the respondents 10 of them said No. which means
100% of the respondents said the organisation have never benefited from the micro credit
scheme of Government.

TABLE 7
Do the customer patronize this organisation?
ALTERNATIVE

NO
RESPONSE
7
3
10

Yes
No
Total
Source: field survey April 2015

OF PERCENTAGE%

70
30
100

70% of the respondents said Yes while only 30% said No. this simply means that
customers do patronize this organisation.

23

TABLE 8
Do you know the aims and objectives of the organisation?
ALTERNATIVE NO

Yes
No
Total

OF PERCENTAGE%

RESPONSE
8
2
10

80
20
100

Source: field survey April 2015

From the table above shows that most of the staff knows the aims and objectives of the
organisation because 80 percent of them said Yes and just 20 said No.

TABLE 9.
Are there rules guiding the staffs in these organisation?

ALTERNATIVE

NO

Yes
No
Total

RESPONSE
10
10
24

OF PERCENTAGE%

100
100

Source: field survey April 2015

The above table clearly states that the staff have rules guilding them to prevent
misconduct the result shows the roves as 10 respondents said yes having 100 percent.

TABLE 10
Is there any good relationship between the management and staff?

Alternative
Yes
No
Total

No of Respondent
5
5
10

Percentage%
50
50
100

Source: field survey April 2015

50% said yes from the respondents and also 50% said No. so therefore these indicates
poor relationship by the management to its staff the management need it improve in their
relationship with the staff. To prevent rebellion from occurring in the organisation.

25

TABLE 11
Do you think that the organisational system of this organisation is leading to maximum
profit?
Alternative
Yes
No
Total

No of Respondent
8
5
10

Percentage%
80
20
100

Source field survey April 2015

From the table aboves shows that 80% think that the organisation would be leading to
maxium profit while 20% does not.

26

CHAPTER FIVE
5.0 SUMMARY, CONCLUSSION AND RECOMMENDATION
5.1 SUMMARY
With the study of these project we were able to examine critically on the importance
impact, History of small scale business in Nigeria economy along side the government
effort to develop small scale business.
Emphasis has been made from these study on management and operation of small scale
business in Nigeria, how Nigeria source for their capital, objectives to be achieved and
how to cope in some situations.
It has also be observed that small scale business face problems, which has been
discussed in the earlier chapters

27

5.2

CONCLUSSION

Definitely opportunity to achieve wealth and personal grafication , the end of white collar
jobs would come to pass through small scale business.
Life of so many people in the world would be transformed through small scale
business so many people would be self employed ie ones own boss at places like Ekiti
State. Also creation of employment to thousands of Nigeria to where thousands of
customer benefit monetary wise through patronized slip of their products, laminating,
computing and decoration.
The product of the firm is given post production test to ascertain that the required
standard is met before it will finally offered for produc.
5.3

RECOMMENDATION

Based on the findings of this study, I hereby recommend the following:

1. There should be more employments of B.SC holders
There should be regular training and development for all staffs to increase their
morals and efficiencies
2. Government should make policies that will positively affect small scale business.
28

29

REFERENCE
Flora Richard-Gustafson (2009) Demand media
Nigeria National Development plan (1975-1980)
Fair work Act of Austria (2003) Practice of management
Glos et al (1976) Journal of small business management
Obafemi Awolowo (1987) the small business in Nigeria, are the backbone of Nigeria
economy
Elsto Mayo (1990). Introduction to business, Economic of west Africa
Nigeria Industrial policy Acts (1990) small scale summary
Central bank of Nigeria (CBN) (1991) Standard Building vol. 2

APPENDIX
30

The Federal Polytechnic, Ado-Ekiti

Department of Business Administration
Management
QUESTIONNAIRE
Dear respondent,

This is a questionnaire on management and operation of small scale business

You are pleased answer this questionnaire to the best of your knowledge and any
answer provided shall be treated confidentially

Kindly tick appropriate answer please

Thank you for your understanding.

31

SECTION A

NAME (Optional)

SEX: Male (

Female (

AGE: 20 yrs(

) 30yrs

) 40yrs ( )

Marital :Status. Married ( ) Single (

Qualification: Olevel ( )

OND (

) HND ( ) B.SC ( ) MSC(

SECTION B
1.
2.
3.
4.

Do the management organise training for the workers? Yes ( ) No ( )

If yes in above, how often? monthly ( ) Annually ( )
Is the business financed by its owner or bank? Yes ( ) No ( )
If Bank, is it easy to secure loan from Bank? Yes ( ) No ( )
Are there any means of motivation? Yes ( )
No ( )
5. Do the management put into consideration welfare of the staff?
Yes ( ) No ( )
6. Does the organisation have any impact on its immediate environment?
Yes ( ) No ( )

32

7. Do this organisation benefit from the micro credit scheme for small scale business
organisation? Yes ( ) No ( )
8. Do customer patronize this organization? Yes ( ) No ( )
9. Do you know the aims and objectives of this? Yes ( )
No ( )
10.Are there rules guiding the staffs in this organisation? Yes ( ) No ( )
11. Is there any good relationship between the management and staff?
Yes ( ) No ( )
12. Do you think that the operational system of this organisation, is leading to
maximum profit? Yes ( )

No ( )

33