TABLE OF CONTENT
Cover page ………………………………………………………………i
Certification……………………………………………………………..ii
Dedication………………………………………………………………iii
Acknowledgement………………………………………………………iv
Abstract………………………………………………………………….v
CHAPTER ONE
1.0
Introduction………………………………………………………….1
1.1 Background
of the study………………………………………….1-2
1.2 Statement
of problem……………………………………………….2
1.3 Purpose
of study…………………………………………………….2
4.1 Importance
of the study……………………………………………..3
1.5 Scope and delimitation of
the study…………………………………4
1.6 Working
hypothesis…………………………………………………..4
1.7 Definition
of terms……………………………………………….....4-6
CHAPTER TWO
2.0 Review of literature…………………………………………………...7
2.1 Definition of small scale industries…………………………………..7
2.3 Qualities
of successful entrepreneur……………………………….7-8
2.4 Obstacles to the rapid growth of small
scale industries…………….8-9
2.5 How
government promote small businesses………………………9-10
2.6 Strategy: concept and adaptation to small
scale businesses….….11-12
2.7 Threats and opportunities in
the farm industry in Nigeria……….13-15
References……………………………………………………..……15
CHAPTER THREE
Research design and methodology…………………………………………16
3.1 Introduction…………………...……………………………………..16
3.2 Description of respondents…………………………..………………16
3.2.1 Sample
size………………………………...…………………….16-17
3.3 Method
of sample selection……………………………………........18
3.4 Sources
of data………………………………………………………18
3.5 Procedure
in gathering data……………………………………...18-19
3.5.1 Instrument validity…………………………………………………..19
3.5.2 Instrument reliability………………………………………………..19
3.6 Method
of data collection…………………………………….....19-20
3.7 Method
of data analysis……………………………………………..20
References…………………………………………………………..20
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of findings…………………………………………...41-42
5.2 Conclusion……………………………………………………….42-43
5.3 Recommendation………..………………………………………….44
References…………………………………………………………..45
Appendix……………………………………………………………47
Appendix……………………………………………………..….48-49
CHAPTER
ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Histories
of various developed countries have shown that industrial revolution had been
the main cause for their economic survival. Their great financial strength have
come principally through the acquisition of industrial and technological power.
Without
exception, all big industrial organization be they multi – national or
indigenous, started in a small outfits. Small scale industrial set – ups
abound, but most of them are buying and selling outfits. Considering the
economic situation in the country, the entrepreneurs in the state, now more
than ever need to branch out into some other areas outside buying and selling.
The
Nigerian economy in the last two decades has passed through various stages.
From the oil boom era of the seventies to the period of wasteful spending and
painlessness of the early eighties and the present economic down turn.
One
must appreciate the fact that the survival of the sole proprietor in the
Nigerian economy today would depend of his initiative, drive and quick
adaptation to the environment.
A
greater percentage of the people are engaged in Agriculture while others are
engaged in trading as well as traditional and industrial activities such as pot
moulding, basket and mat weaving, hair dressing. Others are block moulding,
Farm, poultry, soap making, food processing e.t.c. Most of those activities are
small scale establishments and sole proprietorship and partnership oriented.
A good
number of people have shown their concern over the development of Udi local
government area and Enugu
state in general. People like Engr. Roy Umenyi who had carried a study of this
nature, discovered a lot of bottle – necks in the development of the local
government in question. Such studies also revealed that answers to poor
development of the area could be found largely on the insufficient investment
in industrial activities. This has struck the mind of the project writer to
carry out a research into the problems militating against the establishment and
development of small scale industries in Udi local government area.
1.2 STATEMENT OF PROBLEM
Industrialization has been identified
as a basic tool for rural development. Thus, this study title “Accounting and
management problems of small scale industries in Enugu State
(a case study of small scale industries in Udi local government area, attempts to
determine why:
- There
are only few small scale industries in Udi local government area.
-
The few industries existing are not prospering
-
There is a high rate of infant mortality of small
scale industries in the area.
-
What scares the investors from making investment in
small scale industries in the area under review.
1.3 PURPOSE OF STUDY
The main
purpose of this study are:-
i)
To find out why there are only few small scale
industries in Udi local government area.
ii)
To determine the major problems confronting small
scale industrialists in Enugu
state and Udi local government area in particular.
iii)
To determine the extent to which poor financial
records has hindered the multiplication and prosperity of small scale
industries in the area.
iv)
To determine the extent to which poor finance has
hindered the multiplication and prosperity of small scale industries in the
area
v)
To find out what roles the government and the
financial institution should play towards alleviating the sufferings of small
scale industrialists in Udi local government area.
4.1 IMPORTANCE OF THE STUDY
It
is felt that this study would be of immense benefits to a number of individuals
and firms in the following ways:
i.
This study is going to provide its numerous readers
a clear insight into the problems militating against the establishment and
development of small scale industries in Enugu
state especially in the rural areas.
ii.
It would equally provide a basis for further studies
into other aspects of problems of industrialization in the country.
iii.
Finally it is also viewed that this study would be
of significance to the planning authorities since it would provide them with
the necessary information needed in articulation of economic activities.
1.5 SCOPE
AND DELIMITATION OF THE STUDY
This
study titled “Accounting and management problems of small scale industries in Enugu state” (a case
study of small – scale industries in Udi local government area). Would have
been extended to cover the whole of Enugu state and beyond and also to cover
all aspects of problems of business establishment but in view of the huge
financial requirement involved coupled with the short period within which the
study would be completed, the project writer is compelled to limit the scope of
the study to only the accounting and management problems of small scale
industries in Udi local government area of Enugu state.
1.6 WORKING HYPOTHESIS
having reviewed
the theories and opinions of different authors and business giants, the project
writer wishes to formulate the following working hypothesis:
i.
Poor financial records in the major cause of infant
morality of small scale industries in Udi local government area.
ii.
Lack of Trust (Co-operations among small scale industrialists
is the chief cause of fewer number of small scale industries in Udi local
government area.
1.7 DEFINITION OF TERMS
At
this juncture, the project writer deems it necessary to define and explain some
of the cause of this study.
ACCOUNTING:- “Accounting may be defined as a process by
which data relating to the economic activities of an organization are recorded,
measured and communicated to interested parties for analysis and
interpretation”.
From the
definition we discover that accounting is made up of three major branches.
-
Financial Accounting
-
Cost Accounting and
-
Management accounting
COST ACCOUNTING: - Is said to
be “that part of management accounting which establishes budgets and standard
costs and actual cost of operation, processes, department or product and the
analysis of variances, profitability or social use of funds.
FINANCIAL ACCOUNTING:- Can be said to be
the process of classifying and recording of actual transaction of an entity in
monetary terms in accordance with established concept, principles, accounting
standard and legal requirement and presents as accurate a view as possible of
the effect of those transaction over the period and at the year end.
MANAGEMENT ACCOUNTING:- In the terminology of management
and financial accounting published by (LCMA), management Accounting is said to
be “the application of professional knowledge and skill in the preparation and
presentation of accounting information in such a way as to assist management in
the formulation of policies and in the planning and control of the operations
of the undertaker”. (ICMA).
AGRO- BASED /PROCESSING INDUSTRIES:- This covers such industries
like rice milling industry, cassava processing, palm oil processing industries
and poultry industry. This category of industries engage themselves either in
the production or processing of Agricultural products.
MANUFACTURING INDUSTRIES:- These are those
industries engaged in manufacturing activities through the input of raw
materials, technical as well as human resources to produce finished product(s)
which are often referred to as their industries, foods industries, block
molding industries etc.
SMALL SCALE INDUSTRY:- The definition of small scale
enterprises varies form time to time and according to institutions. For instance,
the Central Bank of Nigeria’s (CBN) Monetary policy circular No. 22 of 1988
defined small – scale enterprises (excluding general commerce) as enterprises
in which total investment (including land and working capital) did not exceed
N500,000 and or the annual turnover did not exceed N5 million.
The
national Economic reconstruction fund (NERFUND) puts the ceiling for small –
scale industries at N10 million. Section 376(2) of the companies and Allied
Matters Decree of 2008 defines a “small company” as one with:
a)
Annual turnover not more than the N2 million;
(B) Net assets value not more than N1 million.
However,
for the purpose of this research, it is pertinent to classify industries under
the following headings;
SERVICE INDUSTRIES:- These are industries that engage
in rendering services of various types to people such services industries
include: tailoring industries, motor and motorcycle repairing, Hair dressing
saloons, petrol filling station, Hotels.
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