IMPACTS OF SMALL BUSINESS ON ENTERPRISES ON EMPLOYMENT CREATIONS
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- November 5, 2021
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IMPACTS OF SMALL BUSINESS ON ENTERPRISES ON EMPLOYMENT CREATIONS
1.0 BACKGROUND OF THE STUDY
Small business enterprise plays a key role in expanding and diversifying industrial production and also contributes to such objectives as employment generation, poverty eradication, improved income distribution and fulfilling basic needs of most developing countries. Small business enterprises was defined by the Central bank of Nigeria in it’s guideline that it is any business organization with an annual turnover of less than five hundred thousand naira. (CBN Guide (2002). Small business enterprise may be seen as a business which is independently owned and managed and which does not dominate its relevant market segment of interest (Griffin and Ebert, 1999) Unemployment is undoubtedly a big challenge to any government, development planner the private sector and society at large. This is why it is very important to pay particular attention to the creation of employment because according to Tomori (1998), the consequence of unemployment (whether prolonged or short-term), leaves a scar on every individual, family or country that is faced with the problem.
In the first instance, the degree of frustration and poverty experienced by the unemployed person who is willing to work but cannot find a job is considerable. His or her frustration could be transformed into violence or crime, which in-turn whether collective or individual can shake up any political system and cause instability. Second, the loss of income to individuals and households is equally great; the under-utilization of labour resources create poses a difficult problem for society in terms of the wastage in manpower resources which may have probably been expensively trained. Small business enterprises have been favored as institutions that are capable of providing solutions to the high level of unemployment menacing the country. Small business enterprises is an independent business which is managed and which does not dominate its relevant market segment of interest, managed by its owner or part owner and has a small market share (Bolton Report, 2006).
Today, the unemployment problem has eaten even deeper into fabrics of the Nigeria society and threatened her economic growth, much more than was bargained for and has left little to be desired indeed, the situation has deteriorated to the level that graduates of higher institution spend up to three to four years at home after graduation without any sign of “white-collar” jobs coming their ways, thus, it has been argued that people who lose their jobs or are prematurely relieved from active civil service, pensioners delinquent youths, unemployed graduates even suffers of HIV/AIDS, all of these groups, and many others, could solve their problems of unemployment by starting a business of their own in the small business enterprises (SBEs). Small business enterprises believed to be the engine room for the development of any economy because they form the bulk of business activities in a growing economy like that of Lagos State. This is manifested in the following ways.
Employment generation capacity of about fifty percentage of global working population Small business enterprises constitute major avenues for income generation and participation in economic activities in the lower income and developing societies. National economic development prospects hangs on entrepreneurial energy of vibrant small business as most big business concern grew from small scale to become big icons. As they grow they protect nations from the geographical cost benefit permutations of a few multinational who are ever prepared to close up their business and relocate at the slightest provocation or appearance of economic downturn.
1.1 STATEMENT OF THE PROBLEM
For any economy to be developed, people must be prepared to place their money or resources on short-term and long term investment and bear business risks. In Nigeria, there was lack of authentic up to date information on the role played by small Business Enterprises towards economic growth and development and most especially through creation of job opportunities for the people (AJALA E.M 1999). The irregular government policies, poor financial aid and poor infrastructural problems that ginger the cost of production, make the small business enterprises to be baffling with survival rather than creation of employment as expected. As a result the researcher intends to find out at what rate has SBEs in Nigeria create employment.
1.2 OBJECTIVES OF STUDY
The major objective of this study is to determine the role played by small business enterprises in generating employment opportunities for the people of Lagos State in order to enhance the growth and development of the economy.
To examine the extent to which small business enterprises creates employment opportunities in Lagos State.
To study the mechanism that assists and support small business enterprises and their contribution to employment generation.
To examine how small business enterprises create employment opportunity in the manufacturing sector.
To know if financial institutions encourages small business enterprises to achieve its predetermined objective.
To study if infrastructural provision helps small business enterprises to grow in Lagos State.
1.3 RESEARCH QUESTIONS
1. To what extent has Small Business Enterprises create employment opportunity in Lagos State?
2. How does Small Business Enterprises improve the standard of living of average Nigerians?
3. Does financial institution help Small Business Enterprises to achieve it predetermined objectives?
4. To what extent has Small Business Enterprises help to reduce unemployment rate in Lagos State?
5. How does infrastructural provision help small business enterprise to grow in Lagos State?
1.4 RESEARCH HYPOTHESES
Ho: Small Business enterprises have no positive impact on employment creations in Lagos State.
Hi: Small Business Enterprises have positive impact on employment creations in Lagos State
Ho: The availability of infrastructural provision on Small Business Enterprises would not have any impact on employment generation in Lagos State.
Hi: The availability of infrastructural provision on Small Business Enterprises would have impact on employment generation in Lagos State.
1.5 SIGNIFICANCE OF THE STUDY
The significance of this study is very important to individual or groups, firms, and the nation at large. The following were some of the importance of this study? The study would assist as to know how small business enterprise aid in creating employment opportunities in Lagos State. The study would assist individual, firm and the nation in planning business by revealing all aspects of the intended business. The study would also aid prospective investors to fulfill the requirements of small business establishment.
1.6 SCOPE AND DE-LIMITATION OF WORK
The research would be limited to a few selected Small Business Enterprises in Ojo and Amuwo Odofin area of Lagos State.
1.7 OUTLINE OF CHAPTERS
Chapter one: Introduced us to the body of research work, in this chapter various textbooks and journals will be reviews to ascertain various thoughts on small business enterprises on employment creations in Lagos State.
Chapter Two: The means of literature review will be majorly through textbooks and journals to get a grasp of what small business enterprises is all about and how it leads to employment opportunities.
Chapter Three: research methodology is the term on how research will be carried out the primary and secondary data, research design will be adopted, and this will involves acquisition of various and relevant information concerning small business enterprises and employment creations in Lagos State.
Chapter four: Data Analysis and interpretation is based on presentation of data, analyses and results testing of hypotheses and discussion for results. It explains how facts will be analyzed using statistical framework.
Chapter five: Summary and conclusion of main findings and recommendations will take place after completion
1.8 DEFINITION OF TERMS
Small Business: These are enterprises that are locally owned and managed often with very few workers. Small business enterprises have simple structure they often show attitudes and behaviours.
Unemployment: It means a situation where able men and women have not job to do.
Economic Development: It means maturity of the quality and quantity of a goods produced in a county.
Economic Growth: It means quantitative increase in country’s input and output over a particular period of time.
Working Capital: This means fund for acquiring and running small business.