THE EFFECT OF THE MARKETING PRACTICE OF SMALL SCALE BUSINESS. (A CASE STUDY OF CHAMPION BREWERIES PLC UYO)

CHAPTER ONE

BACKGROUND OF THE STUDY

• Introduction

Small and Medium Industries (SMIS) have been widely acknowledge as the springboard for sustainable economic development. According to UNDP (1974), developing countries including Nigerian, have since 1970 shown increase interest in the promotion of  small and medium scale enterprise for three main reasons; the failure of past industrial policies to generate efficient self-sustaining growth; increase emphasis on self-reliant approach to development and the recognition that dynamic and growing SMEs can contribute substantially to a wide range of developmental objectives. These objective include efficient use  of resource, employment creation, mobilization of domestic saving for investments, encouragement, expansion and development of indigenous entrepreneurship and technology as well as income distribution, among other.   Consequently, programmes of assistance in the area of finance extension and advisory services, training and provision of infrastructure were designed by the government for the development of SMEs to enhance the attainment of these objective. However, the full potential of the SMEs in the developmental process have not been realized, owing to various constraints.

Since the 1960s to data, small and medium sized enterprise (SMEs) have been given due recognition especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economic. They make up the largest proportion of business all over the world and play tremendous roles in employment generation, provision of good and services, creating a better standard of living, as well as immensely contributing to the gross domestic product (GDPs) of many countries. However, it appears that considering the enormous potentials of the SMES sector, and despite the acknowledgement of  its immense contribution of sustainable economic development, its performance still falls below expectation in many developing countries.

This is because the sectors in these developing countries has been bedeviled by several factors such as management inability militating against its  performance, and leading to an increase in the rate of SMES failure. These factors include the unfavorable and very harsh economic condition resulting from unstable government policies, gross under  capitalization strained by the difficulty in accessing  credit from banks and other financial institution; inadequacies resulting from the  highly dilapidated states of infrastructural facilities; astronomically high operating cost; lack of transparency and corruption; and the lack of interest and lasting support for the SMEs sector by government authorities.

The thrust of this paper is therefore, to articulate the management challenges posed to the development of a dynamic SME sub-sector arising from some lingering constraints despite previous and current government measures, which were aimed at facilitating the sub-sector’s development.

1.2   Statement of the Problem

Presently small scale business enterprises in Nigerian are faced with problems that hamper the growth and development of this enterprise. This support the saying that, the success of any business whether small, big or mega depends largely on the performance of people which is management, finance and multiple and high tax. To ensure the achievement of this management objective in small scale business, this research has being proposed to address the following challenges:

1.    Management problem  cause by poor planning
2. Finance problem  caused by lack or financial support and poor finding
3. multiple and high taxes

The prospects of small scale business in Nigeria can be sub-divided into

1. Employment opportunity
2. Job creation
3. Contribution to total gross domestic product (GDP)

1.3     Purpose of Study

From all that has been written above, it is the aim of this study to take a segment of the small and medium scale enterprise and study it roles in revamping uplifting the Nigeria economic. Such role ensure other include:

1. Production of goods and services for both end and intermediate user.
2. creation of employment/job opportunity

• serving as local ground for entrepreneurs

1.4       Research Question

1. What are the strategies of production of goods and services for both end and intermediate user of small scale business.
2. What are impact of creation of employment/job opportunity
3. what are intensive user of basic raw materials
4. To ascertain serving as local ground for enterprisers.

1.5   Research Hypotheses

Given the objectives of the study, the following hypotheses are formulated:

H_o:   There is no strategies of production of goods and services for                         both end and intermediate users of small scale business

H_i:   There is significant strategies of production of goods and                      services for both end and intermediate user of small scale                             business

H_o:   There is no impact of creation employment/job opportunities

H_i:   There is no positive impact of creation employment/job                         opportunities.

1.6   Significance of the Study

1. The finding of this study will enable management of production goods and services to appreciate better need for a proper feasibility study and business strategies before starting up a business for easy management.
2. The study will enable the government, private sector and prospective of creation employment of small scale business entrepreneur to come up with policies that will improve the management.
3. the study will be of immense help to other people and student who wish to carry out other research in the file or related field.

1.7   Scope of the Study

                  The scope of this study is limited to the problems and                  prospect   of management of small scale business in         Nigeria.

1.8   Limitation of the Study

In carrying out this research many factors served as                               constraints

Time Limitation: Time factor constitutes a major limitation of this research study. It relates to the fact that the  time  for this research work.

Negative attitude of Respondents: The problems facing the researcher will regards to the respondents relates to the non-cooperation and uncompromising attitude of some respondents  in giving out relevant information or facts. The research was able to get the relevant information at the end of the day.

Trend: Due to high financial involvement of this project work the researcher has narrowed.

1.9   Definition of Terms

Small and medium enterprises have been widely accept as the spring board of sustainable economic developments. The researcher definition of small and medium enterprise are follows: