CHAPTER ONE

INTRODUCTION

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.