EXAMINATION OF PROBLEMS FACING SMALL SCALE BUSINESS

ABSTRACT

Small business enterprises are seen as an important sector of a nation’s economy which should be adequately given attention. There is need for the developing countries to emulate from the developed countries in ways of giving credible support measures in developing small business enterprises within its economy due to their impacts on economy. This can be achieved by creating enabling environments such as providing easy access to funds, good legislation, infrastructure etc. In sum, according to Ford (2004) small business enterprises create most employment, provide a greater degree of economic stability and very often contribute the lion’s share of GDP in industrialised economy. Most Africans may be employed by micro or small-scale businesses but most GDP is generated by the large-scale export orientated extraction and agricultural companies. Therefore, small business enterprises in Nigeria require an urgent attention from the government in tackling their problems in order to survive, grow and develop. Another problem facing small business enterprises in Nigeria is the high level of corruption in the country also account greatly for the low performance of the various bodies set by government to encourage small business enterprises. Setting up business in Nigeria requires procedures by Corporate Affairs Commission. This procedure was described as being sluggish when compared to the Swedish way of setting up business. There are several irregularities in registering small business enterprises by CAC in Nigeria. Acquiring premises for doing such business as bakeries, beverages, restaurant and café requires permission from the government authorities in charge of that locality or region both in Nigeria and Sweden. Due to the cut throat competition small business enterprises are facing from companies that operate with greater capital outlay, companies with better and modern equipments for production, companies with better manpower and companies with marketing capabilities have resulted to low level of business and at times outright closure by small business owners. Competition from large business enterprises is revealed to be the fourth on the ranking. This study also revealed that lack of infrastructures which is second in ranking as of the set back to the growth of small business enterprises in Nigeria. There has been erratic power supply in Nigeria which has resulted or left the small business owners with no other option than using other sources of energy such as diesel for generation of power. This alternative of power supply is very costly when compared with electricity therefore increasing the cost of productions of goods. Other infrastructural problems include road networking, inadequate technologies, poor water supply, electrical and electronic equipment, poor internet services, accessories and components. These factors militate against the development and growth of small business enterprises in Nigeria. However, the business managers in developed country such as Sweden do not face such problems with infrastructures.