CHAPTER ONE
1.0
INTRODUCTION
1.1 DEFINITION
CONCEPT OF THE STUDY
The
project described the system which has successfully been used provide service
to small enterprises at a reasonable cost. These services are provided by small
enterprises advisors or consultant.
It is important from the onset to
explain the meaning of small enterprises. The term can be defined in various
ways according to the circumstances in which it is being used.
The Harvard business school in
offers a course and these are said to have annual turnover ofless ten million
dollars. Sometimes people classify business by the number of employees and
maximum numbers of fifty, a hundred or more people have been used to define the
point at which a business ceases to be “small” yet, another way of describing
the size of a business is to refer the ways decision are taken in it. For the
purpose of this project the researcher choose this method and say that we are
mainly concerned with business where the manager is not a specialist in management
but is chiefly occupied in carring out the main function of the business.
In the type of business a single person
has undertaken the risk of production the probably provides all the capital
though to make a start, he may have to borrow from friends or relations.
He is thus the owner of the business
shouldering the entire responsibility of its management and operations success
of failure depends primary on his ability to produce things that other people
need at a price which they are prepared to pay that is upon his efficiency as a
producer.
If he is successful, he reaps his reward
in the form of profits which accrue solely to him, though subject to taxation
by the state but if he is unsuccessful, he must bear the entire loss himself.
The manager of these small businesses
can be skilled carpenters or metal workers and in a shop he spends most of his
time selling goods across the counter.
It should also be cleared that there are
enormous number of the type of enterprises which can benefit from a service
such as it is described in tails project.
No business is too small, the concord is
on people rather than with money and if a business is in the main occupation of
at least one person, it deserves assistance and attention however small its
turnover may be.
there are such large number of very
small business enterprises and there is infact, very little rinks that there
will be any difficulty in deciding how big a business must be before it cease
to be qualified for advice and assistance.
If all business with specialist manager
are excluded, such enterprises like the ones won by a carpenter, a tailor, a mechanic
and perhaps general metal workers are included.
In farming areas, there are often small
mills to process small holder produce large villages or small towns may be
served by bakers, bicycle repairs, garages, blacksmith, brick makers, bus and
tax operators and shoe makers as well as having large numbers of retail shop.
The number and variety of these small enterprises will depend on the community
they serve.
1.2 AIMS AND
OBJECTIVES OF THE STUDY
The
main aim and objectives of the study is to help in providing the system that
has been successful used to provide management advisory services to small
enterprises at reasonable cost. These services are provided by small
enterprises advisors or consultants.
It also includes the enlightment of the
relevance of consultancy services to small business and the economy of in
general.
Furthermore it discusses the
contributions of consultancy from to the fast development of
economy.
It is generally recognized that small
business enterprises have important role to play in the economic progress of
any society.
This research will describe a particular
system for organization and training small enterprises owners and persons who
give expert advises to them that is the consultants or advisors.
Therefore could however, be sold that at
the end of this work most of us who are willing to start business will find it
easy and convenient.
1.3 SCOPE OF
THE STUDY
The
research highlights the needs for having consultancy services in the
establishment and running of small scale business. The study attempts at
highlighting why the services of the consultancy firms are needed by the owners
of small scale business clients.
It is also goes further to discuss at
length how various small scale business having benefit from the services
rendered to them by various consultancy firm especially the case study under
discussion. Also in the context of this study are various approaches adopted by
the consultant firms to provide up to date services for their client.
It is also within the scope of the study
to explain how the services renderd to small scale business by the various
consultant firms contributor to the fact development of the economy of this
great country ().
It could however be said that the scope
of the study is rich indeed as the readers of this work will find it beneficial
now and in the nearest future.
In the light of the above I have
consulted a group number of books, journals, and magazines, I also conducted
interview with very few workers of Ezad limited and a staff of a
recognized consultant firm.
1.4 LIMITATION/
PROBLEMS OF THE STUDY
The
scope of this study is limited to the context of 1.3 above because of the
persistent problem of finance. The researcher traveled to more states to gather
more information from journals textbooks magazines or meeting a host of other
consultants.
As you all know that those I had my
interviews with are professionals, who are always busy, so the interview I had
with them on their job was very brief. Apart from this, the researcher also
have all the notes and textbooks collected from all my lecturers and even going
to the extent of discussing the topic with all the student who are versed in
it.
But because of limited time it is very
difficult for me to do that. And this is due to my tight schedules in and
outside the school.
1.5 ORGANIZATION/
PLAN OF THE STUDY
The organization of the study will be
highlighted on why smaller enterprises need help. If the need of any specific
group of small business is investigated, we find out that they do not always
need what they believe they really need. Never the less, this research will
help us to know what small business enterprises really need
The organization of the study will also
be extended to the reason why small management should be improved. Among the
reasons are (1) there are very large number of them, (2) they are widely spread
or scattered all around (3) most of them are not educated. Then we are also
going to know the types of training methods to be used like radio, books, and
classroom instruction etc.
The research will also help us to
recognize the persons that are in the best position to provide service to small
business.
1.6 HISTORICAL
BACKGROUND OF THE CASE STUDY
As
the economy of
is becoming a fast developing one, there is the need for every businessman and
woman to take advantage of the internal opportunities opened to them. During
the 1980s, there was a very high demand for some items like snacks, and other
fast food in some part of the country especially in the big cities where a vast
majority of the citizen are either civil servant or self employed businessman
and women. This demand arose because, majority of people find it extremely
difficult to wake up in the morning and cook before finding their way to their
working places.
In the light of the above, many business
man and woman went into business like banking, ice cream making and similar product
on the 26th day of September 1989, a business man in person of
Elegbede Zacheus, commenced a business in banking cheeps, frying doughnuts etc
and made his enterprise Ezad foods, with time there was a significant expansion
in his business and this called for diversification. Mr. Elegbede Zacheus got
the service of a consultancy firm.
He was helped to see the need for
diversifying his business and he was also helped to see benefit of taking a
particular business prescribed to him. After the consultation, he saw the need
to enter into the soap making business and this dream was realized in July 1992
and Ezad soap came into being.
Today the business is really experience
what can be described as economic boom. It has also been successful in spite of
the economic instability the country is facing as a whole.
1.7 DEFINITION
OF KEY CONCEPT/TERMS SMALL BUSINESS
Cama (1990) section 352 sub-section it
gives us an insight into company or business that are qualified as small
company. The section states that for a business to be viewed as small business
it must. Fulful the following conditions.
1.
Be a private company
2.
Has a turnover of not
more than N2m or an amount fixed by the CAC (corporate affair commission)
3.
The net asset value is
not more than N1m or such an amount specified by CAC.
4.
None of the member is a
foreigner
5.
That it is not owned by
government, or its agencies.
6.
That the directive
between themselves own nothing less than 5% of the equity share of the company.
CONSULTANT:
These are the person that provide active
and training to small business owner they are known as advisors.
CONSULTANCY SERVICES
These are the service, training or
assistance render or given to small business enterprises.
CLIENTS
These are the person that receive the
services or assistance rendered by the consultant. They can also be referred to
as small business owners.
DEVELOPMENT AGENCIES:
This may be government and other
organization that are interest in extending various modern techniques in
developing countries not because they are making money by selling them but
their use would benefit the people
VOLUNTARY ORGANIZATION
These are organization that volunteers
themselves in training small business.