CHALLENGES OF HIGH FAILURES OF SMALL SCALE BUSINESSES FOR SUSTAINABILITY IN ANAMBRA STATE

CHAPTER ONE

INTRODUCTION

• Introduction

Small Scale Business Enterprises is the key to economic growth and prosperity (Onukwuli, Nwagbala, Ofodile, and Umeifekwem, 2013). However, for an economic development or growth of a particular country or state to increase depends on how hard working its citizens are (Simobi, 2011). Creating  something new does not only call for knowledge, innovation, and flexible disposition, it also calls for a good understanding of the relevant environment, availability of resources, willingness to embrace change as an opportunity, readiness to make sustained efforts and ability to manage risk (Udu, 2008).

1.1     Background of the Study

Nigeria’s vision of being counted among the first twenty economies in the world by 2020 cannot be attained in a socio-economic milieu, poverty and unemployment among a large segment of its population (Onukwuli, Nwagbala, Ofodile, and Umeifekwem, 2013). Olawale and Garwe in Idemobi (2012) argue that the contributions of Small Scale Business Enterprises cannot be sustained without the sustenance and development of new Business and promoting the existing ones. They further indicated that one of the best ways to address unemployment is leverage the potential of small scale enterprises and to promote Small Scale Business Enterprises development.      Kadiri (2012) assert that Nigeria depends largely on oil exports and the initial exceptionally high oil prices that brought a huge inflow of oil revenues that raised the per capital income from $ 1,300 in 1972 to $ 2,900 in 1980, thereafter collapsed. More so, because of the countries over reliance on oil as its main source of income, a decline in the international price of oil resulted into drop in real per capital income of the country, expenditure, consumption and rise in unemployment and poverty.     The consequences of youth unemployment are too grave to toy with. Recent experiences in Nigeria with youth agitation in the Niger Delta region and youth gang clash in Lagos and other cities are largely the by-product of unemployment. Other consequences of society include high rate of juvenile delinquency, involvement in violent crime such as armed robbery, couriers of drug traffickers, bombing and victims of human traffickers (Safiriyu and Njogo, 2012). According to manufacturers association of Nigeria in Nwokoye (2014), they assert that between 1990 and 1995, Small Scale Industries generated an average of 84% of the new jobs created in Nigeria. More so, Ebong in Onukwuli et. el., (2013) indicates that entrepreneurship constitutes the majority of companies in the private sector and account for about 55% of the total employment and about 50% of industrial output. However, over the years the future of these enterprises has dwindled around Nigeria, which may lead to the total extinction of this class of business given the unfavorable condition existing in the sector (Onukwuli et. al., 2013). This study therefore attempts to isolate the challenges of high failure of Small Scale Business in Anambra State for Sustainability in Anambra State.

1.2    Statement of the Problem

Scholars have indicated that starting a business is a risky venture and warn that the chances of Small Scale Business Enterprises entrepreneurships’ owners making it past the first five year mark are very slim (Ilo in Olabisi, Olagbemi, and Atere., (2013), Idemobi, 2012). Successive Nigeria Government has instituted various programs and schemes through Small Scale businesses for sustainable development. Some of the programs include; National Economic Empowerment and Development Strategy (NEEDS) in 2004; National poverty Eradication Programs (NAPEP) in 2001; the National Directorate of Employment (NDE) in 1986; and Green Revolution (GR) in 1980.

Despite the efforts, supports and incentive programs to Small Scale Business Enterprises in Nigeria, Akabueze (2012) clearly stated that it would seem reasonable to expect that Small Scale Business would grow and flourish but the rate of business failure continues to increase creating problem for sustainability. The problem of the study is to locate what could be the challenges of high failure of Small Scale Business in Anambra State for Sustainability in Anambra State.

1.3      Objectives of the Study

The main objective of this study is to examine the challenges of high failure of Small Scale Business for Sustainability in Anambra State.

1. Assess the internal environmental challenges that hinder Small Scale business enterprises sustainability in Anambra State.

ii        Identify the external environmental challenges that pose obstacle to Small Scale business enterprises sustainability in Anambra State.

• To ascertain the role of governments policies on Small Scale business enterprises for sustainability in Anambra State.

1.4     Research Questions                                   

1. What are the internal environmental challenges that hinder Small Scale business enterprises sustainability in Anambra State?
2. What are the external environmental challenges that pose obstacle to Small Scale business enterprises sustainability in Anambra State?

iii.   What is the role of governments’ policies on Small Scale business enterprises for sustainability in Anambra State?

1.5      Statement of the hypotheses                                                                      Arising from the background study, subsequent purpose of the study and research questions, the following hypotheses were generated and tested:

Ho₁:   There is no significant variation between the internal challenges of Small Scale business enterprises’ and sustainability development.

Ho₂:   There is no significant variation between the external challenges of Small Scale business enterprises and sustainability development.

1.6       Significance of the Study

        The findings of this study will be beneficial to policy makers, government and business owners in the following ways;

1. To know what constitutes the internal and external environmental challenges of Small Scale businesses for sustainability.
2. What policies that is necessary in order to create an environment conducive for Small Scale industries for sustainability.

• It also emphasizes the importance of Small Scale enterprises and the need for people to develop and build their entrepreneurial skills by engaging in meaningful productive venture that will add value to economic development and create more wealth.

1.7     Justification of the Study

This study is justifiable in some areas. Among these are the following:

1. The design of the study through survey method is appropriate because the study wants to obtain the opinion, belief of the respondents on the subject matter.
2. The study is justifiable on the above premise that the instruments used have already been validated and used by previous researches: Kadiri (2012); Onakoya, Fasanya and Abdulrahman (2013); and Onukwuli, Nwagbala, Ofodile and Umeifekwem (2013).

1.8   Scope of the Study 

The scope of this study is drawn in terms of content, geography and level of analysis. The content scope is challenges of business organization in sustainability. The geographical scope is selected entrepreneurships businesses in Anambra State. The level of analysis is the managerial staff of selected organizations in Anambra State.

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