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The importance of small-scale business especially to a developing country like Nigeria can never be overemphasized. Small-scale businesses are acclaimed the world over as engines of socio-economic development of fostering innovation, entrepreneurship and facilitating the use of raw materials and other resources. They also help in balancing industrial development and socio-economic infrastructure of the rural and urban areas.

Furthermore, it is relatively labour intensive, small-scale business create substantial employment opportunities at low capital cost and being resilient and flexible, can better adapt to unexpected changes if the economic and financial environments.

In agreeing with the above position, Okonkwo (1983) contended that the industrial future of Nigeria depends critically on the twin pillar of a stable macro economic, vibrant and dynamic small-scale business sector based on a foundation of proactive partnership between government and the private sector. But the power of small-scale enterprises of industries to make these noble contributions has been frustrated by enormous problems. Some of them are obvious while some others are too latent as to be noticeable. Like cankerworms, they steadily eat into the very foundation of small-scale industries causing inevitable crash.

Onuoha (1994) described small-scale business to be any manufacturing, processing or service industry with capital investment not exceeding N150,000.00 (one hundred and fifty thousand naira only) in making any equipment alone.

Obi (1998) in his opinion described small-scale business as independently owned and operated and not dominant in its field of operations.

A lot of small-scale businesses operators are so much in a hurry that they ignore some of the managerial functions such as planning, organizing, controlling, staffing and coordinating.

Okechukwu (1987), in his view maintained that a person managing business, on his own has a better chance of success if he understood problems and prospects involved.

However, a lot of small-scale businesses operators dabble into business because of the mere fact that some other person has succeeded on the line of operation.

Even though Redibough and New Dyde (1980) pointed out that every new business venture begins with the idea to produce a product(s), perform a service or sell existing products or services.

Drucker (1964) contributed that, for managers of small-scale business, strategies business planning is a nucleus of management process and the key to growth, success and survival. A business plan states what is to be done, how it should be done, by whom it should be done and what resources available or not that are needed; it also streamlines business actions.

In view of the strategy importance of this category of business, this work sets to investigate the role of small businesses in the development of the society. Using selected business in Abak Local Government as a case study.

The work has five chapters. Chapter one with the topic “general introduction” deals with the introduction, statement of the problem, objectives. Chapter two with the title “literature review”, review related literature.


Events for the past decades have shown that small-scale businesses which suppose to provide a logical starting point for big business, and as a spring board or training ground, and suffered a great set-back, due to inexperience and inconsistence of some entrepreneur, carrying out their businesses. This is the problem. It has become imperative to address and provided answers in this direction.


  1. To assess the contributions of small-scale business in the development of societies in Abak Local Government Area.
  2. To assess the factors that affects the growth of small-scale business in Abak Government Area.
  • To identify the major problems encountered by small-scale business in Abak Local Government Area.
  1. To make recommendations on how to promote favourable investment climate and solve the problems of small-scale business in Abak Local Government Area.


This research study is considered importance in view of the fact it brought out certain problems encountered in the establishment of small-scale businesses in Abak Local Government Area of Akwa Ibom State. Moreover, making of appropriate recommendations toward improving the sector. This research work will go a long way in attracting government at action in looking into contribution and problems militating against smooth running of small-scale business which if properly attended to will help in reducing the current unemployment problem being experienced in the state.


  1. What are the contributions of small-scale business to the development of Abak Local Government Area?
  2. What are the factors which influence growth of small-scale industries in Abak Local Government Area?
  • What are the problem associated with small-scale industries in Abak Local Government Area?
  1. What are the ways of solving the problems?


Hi:    There is no significant relationship between influence growth to small-scale businesses and development of Abak Local Government Area.

Hi:    There is no significant relationship between solving problems of small-scale businesses and development of Abak Local Government Area.


The study had cardinal focused of Abak Local Government Area. There was financial constraint because of the area of coverage, as transportation to the entire Local Government Area entails high cost. Also there were moral problems as interviewed respondents exhibit reluctant attitude and insincerity in answering question.

Another serious problems was time constraint as the research carried out this research work in the amidst of tight academic schedules.


  1. Small-scale business: Small-scale business is any manufacturing processing or services industry with a capital investment onto exceeding N150,000.00 in machinery and equipment alone.
  2. Feasibility Studies: Feasibility studies are the investigation and analysis of a new business to determine the viability of a proposed business.
  3. Market Analysis: Market analysis is the process of determining what the consumers really need, their location, their perception, preference and demographic characteristics.
  4. Training: Training is the process by which a trainee acquires knowledge and skill both practical and technical necessary for the efficient execution of the function for which he or she was desire.
  5. Working Capital: Working capital is the capital needed by a business to finance the day to day operation of the business.
  6. Business Failure: Business failure is assumed to be a situation where a firm consistently performed low, in term of growth, net profit, market share and volume of sales in monetary value.
  7. Bank Overdraft: This refers to a permission given to an enterprise or a person to overdraft his/her account up to an agreed limit.
  8. Trade Bill: This is and unconditional order in writing, addressed to a person requiring the person to whom it is addressed to pay on the demand or at a fixed determinable future time.
  9. Factoring: This refers to transferring of goods from the producers to an agents for custody and sale on his behalf.

Trade Credit: This is a situation where by goods are transferred to the buyers by a formal or informal agreement to be paid for in future.

This material content is developed to serve as a GUIDE for students to conduct academic research

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