CHAPTER ONE
INTRODUCTION
1.1 Background To The Study
Small scale businesses are those businesses which are independently owned and operated requiring limited capital with few employee and non-sophisticated technology and which is not dominant in its field of operation. Small businesses take the form of sole proprietorship, private companies, and partnerships with fewer employees and small scale operations with annual income less than that of large firms. Types of small business include those engaged in trade and commercial activities, services, and small scale manufacturing .Examples include service or retail operations such as delicatessens, hairdressers or convenience stores, small grocery stores, bakeries tradespeople (e.g., carpenters, electricians), very small-scale manufacturing, and Internet-related businesses. Small business can be started with very minimal capital and without any formality .many small business are operated as family business and can be combined with regular employment. The research therefore seek to investigate the Management and operation on small scale business (A case study of Textile unit
1.2 Statement of the Problem
The management and operations of small business is confronted with some challenges which constitute the limitations hindering the growth of small business in Nigeria. Small scale businesses are those businesses which are independently owned and operated requiring limited capital with few employee and non-sophisticated technology and which is not dominant in its field of operation. Small businesses take the form of sole proprietorship, private companies, and partnerships with fewer employees and small scale operations with annual income less than that of large firms. . Types of small business include those engaged in trade and commercial activities, services, and small scale manufacturing .Examples include service or retail operations such as delicatessens, hairdressers or convenience stores, small grocery stores, bakeries tradespeople (e.g., carpenters, electricians), very small-scale manufacturing, and Internet-related businesses. Small business can be started with very minimal capital and without any formality .many small business are operated as family business and can be combined with regular employment. Some of that problem includes lack of huge capital to expand or take advantage of business opportunities .Also the lack of managerial skill also affects the smooth and successful operation of small businesses. Lack of planning skill often leads many small businesses into failure. Poor decision making and improper accounting also constitute the problem confronted by Small businesses among other things. Consequently the problem confronting the research is to proffer an appraisal of the Management and operation of small scale business (A case study of Textile unit
1.3 Objectives of the Study
To determine the nature of small scale business To determine the Management and operation of small scale business (A case study of Textile unit Small business can be started with very minimal capital and without any formality .many small business are operated as family business and can be combined with regular employment.
1.4 Research Questions
What is small scale business? What is the level of impact of the management and operation of small scale business?
1.5 Significance of the Study
The study shall appraise the nature, management and operation of small scale business which shall serve as a vital source of information to investors
1.6 Research Hypothesis
Ho The level of impact of the Management and operation of Textile unit small business is low
HI The level of impact of the Management and operation of Textile unit small business is high
1.7 Scope of the Study
The study focuses on the appraisal of Management and operation of small scale business with a case study Textile unit
1.8 Limitations of the Study
The study was confronted by some constraints including logistics and geographical factors.
1.9 Definition of Terms
SMALL BUSINESS DEFINED Small scale businesses are those businesses which are independently owned and operated requiring limited capital with few employee and non-sophisticated technology and which is not dominant in its field of operation. Small businesses take the form of sole proprietorship, private companies, partnerships with fewer employees and small scale operations with annual income less than that of large firms.
FRANCHISE BUSINESS Franchising is the right obtained to use a company’s name or brand to carry out the sale of product and services by smaller firms. That way the franchisee firm enjoys economies of scale of bigger companies. McDonald’s and Subway are examples of a franchise. The small firm can use all the opportunities and advantages available on the strong brand name of the larger firm. Retailers’ cooperative This is a conglomerate of retailers who have come together to protect, advance and cater for the welfare of its members. They enjoy economies of scale and obtain discounts for large purchases unbehalf of their members. Examples are hard ware stores, grocery stores and pharmacies which combine to form a retailers cooperative
