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Full Project – The constraints on small scale business in rural areas and programme implementation in business sector

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Proper management of small-scale business in rural area can contribute significantly to the success of large organization.

Nigeria government jointly established so many institutions like CMD, NDE, NBCI and NERFUND etc. to assist small medium and large-scale business in accomplishing their aims and objectives. In addition, numerous programs have been designed in the past to ensure the success and perpetually in business especially the small business since they contribute primarily to the growth of our nation.

In the light of this failure, it is worthy to note that there were numbers of constraints encountered by small-scale business most especially the small rice mills enterprises in Ibaji local government area of Kogi state the problems or threats that confronted small rice mills business since Ibaji areas could be enumerated as follows.

Problem of financial insecurity
Lacks of manpower sources
Frequent change in production technologies
Absence of market raw material
Power instability and many others to mention but tool numerous the researchers’ problem.

It is a clear fact that these constraints if prior attention is not designed will definitely humped our national and individual dreams of industrialization since the contributions of small business to the development of large business enterprises in Nigeria are not only indelible but equally enormous and tremendous.

1.2 Statement of the Problem

The existence of small scale rice mills in Ojila ward, Ankpan ward, Ejule ward, Unale ward, Aya ward, Iyano ward, Uje ward, Onalo ward, Odeke ward and Onyedega ward. Which make up Ibaji local government area are not performing effectively due to some associated constraints.

The constraints emanated because of the following:

Lack of finance
Absence of managerial competence
Lack of manpower planning
Presence of technical and production hurdles
Seasonality in the production of raw material and absence of market.
Power

Consequently, these constrain if checked and properly address can militate against the success and smooth running of any milling establishment.

To this end, the researchers are optimistic that the solutions, which this research is out to find, can minimize to totally curb these constraints.

1.3 Objectives of the Study

The main objective of this research is to identify the constraints encountered by rice mills in Ibaji to suggestion possible solutions to the problems. In essence the specific objectives of this study are as follows:-

To examine whether finance affect the smooth running of the establishment
To examine the mode of selection and training of manpower.

To determine whether managerial constraints hamper the success of rice mills.

The examine the extent to which technical production hurdles constitute a constraints.
The verification of the variability of market and consequences of market mix.

1.4 Research Questions

The following research questions have been drawn for the purpose of this research undertaking. The questions are as follows:-

What are the financial constraints in establishing and running of small-scale rice mills?
Is there any managerial constraints hindering the success of rice mills?

In what way(s) has selection and training of manpower constitutes a battle neck to the progress of rice milling

Are there technical/production constraints?
To what extent have unavailability of market and the consequence of market mix affect rice milling?

1.5 Significance of the Study

This research shall be immense benefit of student and researcher who might willing to test their investigation or having been presented with the blue print of the solution some of the constraints hindering the effective operation of these who key interest in the industrialization of our rural area can now go ahead to promote encourage and implement the establishment of the forms on the hand. Investors and the general public who have been missing the opportunity of investing in these etudes types of industrials before can now go ahead and establish one having been aimed with the solutions to the constraints that militate against the smooth operation of these industries. The researchers believe that this study will surely service in the area of provision of necessary information to such users.

1.6 Scope of the Study

This research work concentrated mainly on the constraints. Hindering the fast and accelerative success of small-scale rice in Ibaji Local Government Area of Kogi State.

The area understudies in Ibaji consist of ten wards namely Ejule, Uje, Aya, Iyano, Onyedega, Unalo, Odeke, Ojila, Analo expand wards.

1.7 Limitations and Constraints of the Study

In the course of this research a lot of problems were encountered by the researcher they include problems of our inability to retrieve administered questionnaire from respondents owing to ignorance. Lack of co-operation and misunderstanding of the activities of researchers by the influential people of the society. Inaccessibility to the area and above all the bureaucratic approach of the various information keepers.

1.8 Definition of Key Terms

Milling: is a process of removing husks from the edible grain therein.
Hand-milling: is the crude method of milling of rice by the use of mortar and pestle.
M.D: Centre for Management Development
D.E: National Director of Employment
NBCI: Nigeria Bank for Commerce and Industry

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