ASSESSING SURVIVAL STRATEGIES FOR SMALL SCALE BUSINESSES ENTERPRISES IN EDO STATE
in BUSINESS ADMINISTRATION PROJECT TOPICS AND MATERIALS on September 7, 2020CHAPTER ONE
INTRODUCTION
- BACKGROUND TO THE STUDY
The evolution of small scale business enterprises can be traced to the emergence of business itself.
The origin of business is as old as man. At the early stage of existence, man was self-sufficient with whatever he had. Therefore, the capacity of what the man can produce was only centered on himself and his immediate family became more sophisticated and knowledgeable, the need for exchange arouses. Man could no longer produce all that he need and require to have a satisfied life. This brought about trade by barter (exchange of what you have with what you do not have) and eventually monetary exchange system (paying physical money to get ones goods)
This early stage of business existence was mainly on small –scale and it was geared towards the satisfaction of availability of what man needed nut could not produce for himself. Businessmen in the world, over, find it difficult to arrive at when should be exact definition of small –scale business. Definitions very from country to country by different measures, reasons and parameters are used while defining small scale business.
At times, the number of persons employed is used as yardstick for defining a small on the other hand capital employed or involved in a business is sued as a criterion, using the turnover of the business. Again, we can use the installed capacity utilization, output, type of industry, scale value, independent ownership etc.
Today, with an improved standard of living education and technology, the number of enterprises has increased tremendously all over the world and the motives for establishing this business are not merely for satisfaction of what one can produce but for the maximization of wealth/profit.
A lot of factors have been adduced for the high mortally rate of small scale enterprise in Nigeria. These include inadequate capital of proprietorship equity, lack of managerial skill in dealing with human, material and financial resources and the inability to follow trends in the business environment, amongst others. Bearing all these in mind, what survival strategies are open to small and medium scale business enterprise. Besides the new economic arrangement as contained in the structural adjustment programme (SAP) of Ibrahim Babagida. Obasanjo administration in 2006 has drastically altered the process of resources allocated in Nigeria and consequently opened new vistas from discussion of the matters concerning small and medium scale enterprises.
