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THE ENVIRONMENTAL INFLUENCE OF SMALL SCALE BUSINESS IN MARKETING THEIR PRODUCTS IN NIGERIA

CHAPTER ONE

1.0INTRODUCTION

There must be development in small-scale business if Nigeria is to improve. It has been noted that, small business may be an individual or partnership basis, which operates through out the countries of the world and it depends on the types of economic system being practiced in the countries concerned.

The system can be any of capitalism, socialism or mixed economy, Nigeria as a nation is operating mixed economy and this has helped the nation to develop since this type of economic system permits means production to the owned or managed by individuals as well as government.

The environmental factors could have a significant effect on small-scale business if care is not taken. There is need to know what environmental influences are as this project is concerned.

“According to Professor Etuk (1991) in his book title marketing management second edition as “A business enterprises does not exist in a vacuum but function as an integral part of the environment in which it operates”.

“According to the Webster’s, dictionary defined an environment as the surroundings especially the materials and spiritual influence which affect the growth, development and existence of a living being. In short business environment is the sum total of the community in which it operates. The small-scale business has positive impact on the development of the economy by making use of little resources available to generate employment and create utility by selling goods and services produced.

However, it is misleading to conclude without reservation that, small scale business does not bear some benefits The benefit associated with them are far more than their problem.

1.1     The statement of problem

The contributions of small-scale business organization to Nigeria economic growth cannot be ignored by any government. This sectors has been under various environmental influence.

(1)One of the problems that have always been identify as a factor affecting the small scale business development is the lack of finance. There is no doubt that for a business to operate profitability, it needs adequate financial resources to take advantages of existing opportunities.

(2)In addition, the government restriction on raw material importation is also a major problem facing small business organization.

However, in Nigeria, the process of acquiring adequate finance for small-scale business is difficult.

1.2         Objectives of the study

In view of the above problem, the objectives of this study are;

(1)To identify the available sources of finance to the small-scale business.

(2)     To identify the problems faced by small-scale industrialist in accession of finance from various sources.

(3)     To evaluate the effects of other factors associated with small business development is i.e. environmental factor such as economic, demography, political, legal, social, culture e.t.c.

(4)     To determine whether the failure of small-scale business arises as a result of restriction of importation of raw materials.

1.3     Statement of hypothesis

An hypothesis may be defined as a tentative statement made by a researcher which believes that there are certain relationships between given variables. The hypothesis can also be defined as a tentative statement specifying a particular relationship between two or more variables.

Interpretation of Ho/H1

Hypothesis statements are tentative sentences that give us variables to test and narrow our focus to elements of main consideration be it guess work, until confirmed by data. Hypothesis statements are of two types. A null hypothesis, which is a sentence formulation to contradict the wild, believe or commonly helped opinion denoted by Ho and it is always negative. An alternative hypothesis is positive in nature and to the variables under consideration. It is usually represented byH1

Rejection of H1 means acceptance of Ho or vice-versa. What this means is that either of this must prove true and correct from the statistical test carried out on them. Hypothesis must therefore be completed and all embracing of the subject under investigation.

Hypothesis one

H0: The lack of finance or liquidity constraint is not one the major problems facing small business organization.

H1: The lack of finance or liquidity constraint is one of the major problems facing small business organization.

Hypothesis two

H0: That government restriction on raw material importation is not a major problem facing small business organization.

H1: That government restriction on raw material importation is a major problem facing small business organization.

Hypothesis three

H0: Environmental factors will not have significant effect on industrial performance.

H1: Environmental factors will have significant effect on industrial performance.

1.4     Significant of the study

This study is to help the investors in small-scale industries to identify ways of financing the business within the limited sources surrounding them. To show how to manage the business towards the realization of the purpose of its establishment. Also, this study will encourage potential investors, to see small-scale business as an avenue for investing surplus funds.

It is also believed that the information obtained in this study will expose it’s readers, especially students of management to know more about the small scale business organisation. It could stimulate economic growth of the country and give enlightenment on how the problem will be reduced or manipulated to boost productively that would be encourage to Nigeria economic growth.

1.5         The scope and limitation of study

The scope of this research work would be limited to the Safiriyu Tiamiyu (S.T) Nigeria limited. It will also look into the sources used in financing their business.

The following limitations were encounter in the course of carrying out the research such as, financial constraints, time limitation, communication, gaps, poor response rate and secrecy as well as poor library facilities.

Financial constraints: to be able to make meaningful generation for a population, it is necessary that a relatively large sample should be studied to give remarkable representation of the entire population. Though the sample were restricted to Safiriyu Tiamiyu (S.T) Nigeria limited Ijebu Imushin in Ogun State. It is obvious that that the representatives have been somehow compromised in the study which intends to speak for typical Nigeria small-scale businesses. The limitation has been brought about by the meagerness of financial resources available to researcher especially during the time of economic. Crunch.

Time limit: Despite the fact this project was registered in the second semester, it was surprising that specific time was allocated for the course in the timetable. Due to the time constraint, it was not possible for the researcher to carry out the research work as extensively as it was originally anticipated.

Response rate: The nature of the soap business, the official to be confidential to the company, which made the official response poorly. However, the researcher was able to do something with the limited information given in the long run.

Non-availability of library facilities and secondary data: The non-availability of routable or well equipped library to consult for the purpose of colleting secondary data made the researcher’s works a little cumbersome.

1.6         The organisation structure and historical of the organisation

In the year 1985, the organisation introduced production of antiseptic soap for bathing up till today the industry use only family brand name for all its products.

But after two years of this National Association Food and Drug Agency and Control passes and instruction to stop production of antiseptic soap due to reason not disclosed. After two years of banning, they now lift sanction on production of antiseptic soap up till today.

          In 1988, the organisation embarks on what is called backward investment unto nylon not for the production of soap. With the assistance of Ijebu East Community, the organisation invests into another business, which was printing press for the packing of soap.

          According to speech delivered by the director in the magazine. He said that the organisation mostly involved in the backward investment due to fact that those area nylon and packaging constituted more than sixty-five percent needs for the production of soaps.

          According to the managing director’s speech delivered in a conference held in January 2007 “he disclosed that, though the organisation started with local tools in a primitive area and few workers in the organization can now increase to three hundred (300) workers”.

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