CHAPTER ONE

1.0 INTRODUCTIONThe small scale business of (Mr Christian provision stored) is located at Okigwe Road Owerri in Imo state.The small scale business was established on March 18th 2009 by Mr Christian Ibekwe .A.At present, the business has about (3) three employees.(1) Sales lady(2) Cashier (3) An apprentis (boy)This business performs some function which include (1) Supplying to the final consumers(2) Employment to people According to (Mr Christian Ibekwe .A.) he further confirmed that these business of his has helped him in so many ways.He started with the sum of N5,000 as capital but now he can boast of N500,000 (five hundred thousand naira) at present. He further advised the unemployed youths that is better to start as an entrepreneur than stay ideal “ An ideal man is the devil’s workshop”

1.1 BACKGROUND OF THE STUDYEvery organization be it private or public is established to meet some needs, while some are established for economic purpose, others for political or social needs.Small scale business in no doubt is an important aspect of entrepreneurship.It is to note that entrepreneurship in Nigeria is not a new course because it has gained ground over the years. Small scale business are being credited with being responsible for the majority of innovations s much that small scale business has been called the innovations “ ENGINE OF THE ECONOMY”Small scale business varies, it varies in terms of time from one place to the other. However no matter the kind of definitions given for small scale business the criterias are usually:-(1) Size of the employees (2) Sales of capital invested (3) Size of paid employees(4) Combination of any of the above(5) Any business that employees 50 below is regarded as a small- scale business.Krectner (1995:62) Defines small scale business as a independently business owned and managed profit seeking enterprise with fewer than 100 employees.

1.2 STATEMENT OF PROBLEMEffective small scale business as earlier mentioned is necessary for the organizational goals. Not all business is a success, many things has contributed to the failure wind- up and folding up of many small scales business like:-(1) Lack of managerial experience (2) Wrong business decisions(3) Poor management(4) Adverse government fiscal and monetary policies (5) Lack of knowledge and experience in children line of business (6) Financial problem(7) Fraudulent activities (8) Poor business location (9) Competitions(10) Swift towards modern technologyAll these are problems that can make a business fail. If there is no improvement I anyway the business will definently collapse.

1.3 OBJECTIVE OF THE STUDYIt should be realized that sine small scale business is important to both purchasing and supply and entrepreneurship management, purchasing department should be economical in it’s performance and it’s primary aim is to improve profit.The objectives of the study should be summarize as follows:-(1) To highlight the contribution of purchasing towards the objectives of a small scale business (2) To indicate the relevance of purchasing in small scale business(3) To examine infrastructure needs for effective small scale business. 1.4 RESEARCH QUESTIONS(1) How does purchasing contribute of the organizational objective of small scale business(2) What are the basic things needed for the establishment of a small scale business (3) Does inefficient supply function affects the performance profitability of a small scale business?

1.5 SIGNIFICANCE OF THE STUDYThis project is of great importance to me in the sense that I have acquire so much knowledge based on the subject matter and also for he benefit of others that might find this project relevant for their research or for orientation purpose.It is also for the benefit of managers, bankers, e.t.c for the execution of their job/ obligations. It will be useful to government and organization policy marketer’s as this will be the basis of formulating sound and operating decisions.

1.6 SCOPE OF THE STUDYThe span of this research cut across the roles of small scale business and also the contribution of purchasing to organization which small scale business in included. The contribution of small scale business to the economy has helped a lot like employment has helped somany youths to have something doing, and that is a big one to the nation.

1.7 LIMITATIONS OF THE STUDYIn view of the nature of the topic under the study, could not cover much area as necessary, besides these were other factors that also incapacitated the researcher. They include:- (1) TIME CONSTRAINTThe research could not easily reach the necessary organizations for references and inquiring as most of time were being dedicated to academic work loads. (2) FINANCIAL CONSTRAINTSDue to lack of insufficient availability of money, the sources of information including the internet café was inaccessible(3) Lack of related information from journals(4) Unwillingness and poor responses from the staff of the sample forms.

1.8 DEFINTIONS OF TERMSSmall scale business according to Leslie. E. Palich (2008) defines small scale business as a business that is privately owned and operated with a small number of employees and relatively low volume of sales. INDUSTRIALIZATIONS: The establishment of small and medium scale business in any nation will facilitate the growth and development of that country, it is believe that this type of business is the engine room for development. MOBILIZATION: The small business are suitable for mobilization/ mobilizing savings for productive purpose which may not be readily available. ADAPTABILITY: The small business can easily adapt to their business environment because of their uniqu