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This project examined the Survival of Small Scale Business in the Development of Nigeria economy. It accessed the opinion of some randomly selected staff of Oarie Equipment Service Nig Ltd. The study was carried out through the use of questionnaire, observations and interviews of personnel. The aim is to find out some of the factors that hinder the survival of small scale business in Nigeria. A review of related literature examined the concept. One hundred and thirty (130) staffs were used as sample in the company under study. Three hypothesis were formulated from the analysis of data, problems that hinders the survival of small scale business identified. In view of these problems, the following recommendations are made among others. The proprietors of small scale business should grant the importation of inevitable raw materials duty free in order to reduce high cost of production. The proprietor of small scale business of local and international bodies should assist small scale business to grow, reduce and maintain proper financial record keeping.


Title Page                                                                         i

Certification                                                                     ii

Dedication                                                                       iii

Acknowledgements                                                          iv

Abstract                                                                           vi

Table of Contents                                                             vii

CHAPTER ONE: INTRODUCTION                           1

1.1   Background to the Study                                                 1

1.2   Statement of the Problem                                                2

1.3   Research Hypothesis                                                       4

1.4   Purpose of the Study                                               4

1.5   Scope of the Study                                                   5

1.6   Significance of the Study                                                 6

1.7   Limitation of the Study                                            7


2.1   Definition of Small Scale Business                          8

2.2   Characteristics of Small Scale Business                  9

2.3   Importance of Small Scale Business Development in Nigeria                                                                   10

2.4   Planning the Business Ventures                              12

2.5   Financing the New Business Venture                      16

2.6   Problems Hindering the Survival of Small Scale Business in Etsako West Local Government            24

2.7   Government Assistance to small scale business      27

2.8   Future prospect of small scale business in Etsako West Local Government                                                         30


3.1   Introduction                                                             32

3.2   Research Deign                                                        32

3.3   Population of the Study                                           32

3.4   Sampling Procedure                                                 33

3.5   Method of Data Collection                                       34

3.6   Method of Data Analysis                                                  35

CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION                                                        36

4.1   Presentation of Data                                                36

4.2   Data Analysis                                                           37

4.3   Data Interpretation                                                  45

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS                                                 51

5.1   Summary                                                                         51

5.2   Conclusion                                                              52

5.3   Recommendations                                                   52

References                                                               55

Appendix I                                                               56

Appendix II                                                              57




Business is defined as all the commercial and individual activities that provide goods and services to maintain and improve our quality of life. Small scale business in Nigeria was not pronounced until the emergence of the white men. Until recently the concept of small scale business was taking seriously in Nigeria due to the fact that most people depended on working in the offices after graduating from school.

Small scale businesses are known to be a major tool for rural industrialization and equitable distribution of income. It also serves as a “nursing bed” for entrepreneurial growth, development and maturity. Note that one factor that has been identified as militating against rapid industrialization of Nigeria, is poor supply of management talent and professionalism. Small scale business also plays a very crucial role in the generation of employment because most of the firms are labour intensive. Small scale industries contribute towards a more equitable distribution towards a more equitable distribution of income in the economy through the provision of livelihood and low cost goods and services which satisfies the demand or need of low income consumers.

It has observed that many Nigeria, especially the younger generation; do not have a favourable disposition towards setting up a small scale. business. Instance where some people manage to set up small scale businesses, we set the turn-over of the business is very high. This project therefore is an attempt to look more closely at small scale business in Nigeria, their problems and prospect.


Following the down of global economic situation, the nation (Nigeria) and Etsako West Local Government in particular, men have began to have a rethink of what they can do. Successive government emphasized and encouraged self reliance for economic survival. This is why the government has been making efforts to encourage the establishments and growth of small scale businesses in the country.

In view of this, the federal government of Nigeria established the industrial development centre. This was fashioned out to render extension service to the small scale business sector through the Nigeria bank for commerce and industry (NBC).

Despite their effort, the problem of survival still threatens the small scale business. A number of problems hinder the survival of small scale business. The researcher in order to find out how this small scale business would survive, decide to carry out an inquiring to this regard.

i.            On availability of entrepreneurial skill hinder the survival of small scale business.

ii.          Limited capital needed also to render or hinder the survival of small scale business?

iii.        The market available also affects survival of small scale business.


The following hypothesis drawn from this research work:

Ho:  The survival of small scale business operation is not traceable to lack of positive business attitude.

Hi:   The survival of small scale business operation traceable to lack of positive business attitude.

Ho:  Lack of financial record keeping does not affect proper accounting and survival of small scale business.

Ho: Lack of financial record keeping affect proper accounting and survival of small scale business.

Ho:  Competition from foreign products does not hinder the survival of small scale business.

Hi: Competition from foreign products hinder the survival of small scale business.


This research aims at taking a critical look of the survival of small scale business in Etsako West Local Government, so as to ascertain following.

i.      Small scale business can survive even in an epileptic economy like the Nigeria economy.

ii.     Whatever with adequate feasibility study, a wider market can be explored.

iii.    Small scale business play an important role in the development of Nigeria economy.

iv.    What are the factors preventing the survival of small scale business.

v.     Government assistance of small scale business in Nigeria.

vi.    Analyzing the future prospects of small scale business in Nigeria.


This research is aimed at studying small scale business ownership and it is operated by individuals in Nigeria. The entrepreneurs may decide to run the business themselves or appoint manager and few staffs to help in managing the business.

The focus of this study is limited to a selected small business enterprise in Etsako West Local Government Edo State.


The research study will be of great importance to the enterprise under study in terms of knowing their growth and management deficiency of their survival.

This study will also be useful to students and researcher of small scale business particularly in the area of analyzing the problems and prospects of small scale business, it will enable them to know why some small scale business survive and other fail.

Furthermore, this research will be useful to my entire nation, because it will enable small scale business owners to evaluate their business whether their standard of performance is up to standard of performance is up to standard or not.

Another significance of this study is that it will provide the basis for further research work which will lead to a better basis for effective economic development and growth.


The following factors militates this research work:

1.     Hospitality and inadequate co-operation of respondents: The owners and managers of the business enterprises finds it difficult in releasing the information needed for this research work. Each time the researcher visits their shops, she is told by the managers to call again for the fact that he is buys and cannot attend to her now or that he is traveling

2.     The accuracy and reliability of data of information supplied by the employers and staffs of the enterprise to the researcher could be independently verified.

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