THE ROLE OF SMALL BUSINESSES IN JOB CREATION

 SOLD BY: Excellent Project| ATTRIBUTES: Title, Abstract, Chapter 1-5 and Appendices|FORMAT: Microsoft Word| PRICE: N3000| BUY NOW |DELIVERY TIME: Within 24hrs. For more details Chatt with us on WHATSAPP @ https://wa.me/2348055730284

THE ROLE OF SMALL BUSINESSES IN JOB CREATION

(A case study of selected small businesses in Karu Local Government Area)

ABSTRACT

The aim of this research work is to examine the Role of Small businesses in job creation and suggested methods to be adopted in order to enhance the trend. The work is divided into five (5) chapters. Chapter one (1) deal with the introduction and background of the study, while chapter two (2) deals with the literature review. Chapter three (3) is data collection and chapter four deals with presentation, data collection and chapter five deals with conclusion, finding and recommendations.

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

One of the most important functions that small scale enterprise performs in the economy is their ability to create new jobs.  Innovation is at the foundation of Small businesses oriented issues. According to Schumpeter (1953), an entrepreneur is an innovator who owes the innovation generates revenues and creates new jobs.  He acknowledged that such a role belongs to large firms due to the resources and possibilities they possess. The role of Small businesses in the process of Schumpeterian creative destruction was presented by Kirchoff (1994). From his perspective entrepreneurship and innovation do not necessarily have to go hand in hand as Schumpeter argued. This is because there are plenty of innovations that are not used successfully by entrepreneurs, and at the same time there are many entrepreneurial activities carried out without constant exploitation of innovation.

        Conditions of small scale enterprises growth became one of the focal interests of both researchers and the government’s policy aimed to support this sector. One of the significant characteristics of a flourishing and growing economy is a booming and blowing (SME) sector. Small businesses play important roles in the development of a country’s economy (Feeney and Riding 1997). Small businesses contributes to economic development in various ways, by creating employment for rural and urban growing labour force, providing desirable sustainability and innovation in the economy as a whole. In addition sustainable to that, large numbers of people rely on the Small businesses directly or indirectly (Fida, 2008). The development of Small businesses is seen as the way to increase the achievement of wider socio-economic goals, including poverty alleviation (Cook and Nixson, 2000).  Economy plays an important role in the development process of any country. An improvement in the living standard of people is the main concern of any development process. Life sustaining is the ability to provide basic necessities for all at reasonable prices. Everyone has certain basic needs without which life would not be possible. There is no development when the benefits of economic progress are used only by small number of people, while the majority are being excluded (Todaro and Smith 2003). The negative effects of recent economic downturns have seriously affected the socio economic conditions of many people worldwide. As a response to these negative conditions, it is necessary that Small businesses enhance their job abilities (Barakat, 2001). A well supported and enhanced small business sector is likely to continue contributing to the economic development process in the same way as large businesses (Abraham, 2003). Decline in the living standards and unemployment due to economic downturns are the most challenges facing many poor people in developing countries. This has been made        

New jobseekers of who the majorities are increase the army of unemployment people. It is recognized that the development and growth of Small businesses is an important role in supporting economic development. Policies and strategies to support and enhance the development of small business are together an important part of the programmers’ to create better conditions for all. Finding by economists over the years have shown that small firms entrepreneurs play much important roles in economic growth and development.

Many economics development and developing have come to realize the value of Small businesses. They are seen to be characterized by dynamism, witty innovation, efficiency and the small size allows for fast decision making process. Governments all over the world have realized the importance of these categories of companies and have formulated comprehensive public policies to encourage, support and fund the establishment of small scale enterprise. The benefits of Small businesses to any economy are easily noticeable. They include: creation of job at relatively low capital cost, especially in the fast growing service sector, provide a vehicle for reducing income disparities, develop a pool skilled and semi-skilled workers as a bases for future industrial expansion, improve forward and backward linkage between economically, socially, geographically diverse sectors of the economy, provide opportunities for developing and adapting appropriate technological approaches, offer an excellent breeding ground entrepreneurial and managerial talent. The critical shortage of which is often a great landscape to economic development among others.

1.2   Statement of the Problem

Every economy depends on certain sources of employment creation opportunities to carry out its economic development activities. Nigeria economy depends on the oil sector as its major source of revenue generation. It has been established that 85% government incomes are from the sector, hence, resulting into shifting attention to the crude oil exploration and neglecting other sectors of the economy most especially the Small businesses sub-sector.

The need to transform Small businesses into vibrant/ or engine of economic growth is borne out of the necessity and fact that it helps in generating employment which in-turn is the catalyst for raising the standard of living of Nigerians.

Despite government support that has been committed to this sub-sector of the Nigerian economy, the sub-sector has been characterized by huge poor performance and backwardness. Therefore, the major problem that necessitates this research work is to investigate the inability of Small businesses to innovate and create suitable job opportunities to the teaming Nigerian population. It is against this background that the researcher intends to assess the impact of Small businesses in employment creation in Karu Local Government Area of Plateau State.

1.3   Objectives of the Study

In line with the problem under study, the following objectives are to looked at:

1. To examine whether Small businesses contribute to employment opportunities in Karu L.G.A
2. To examine inter-organizational linkages using the problems and service of Small businesses.

1.4       Significance of the Study

1. It is important to know the role of Small businesses in the development of an economy. This project is to give an insight to both existing and will be Small businesses as it:
2. Provides academic discourse in area of study to students and other readers on the importance of Small businesses to the development of the economy.
3. Adds to existing materials on the subject matter and also serves as a reference material to consumers, shareholders, policy makers, members of the general public and the entrepreneurs themselves
4. Help policy makers (Small businesses) in taking corporate decision concerning their businesses and as means to create good employment opportunities to teaming unemployed youths in the country.

1.5   Research Questions

i.      What are the contributions of Small businesses in employment generation in         Karu LGA?

ii.      Is there any relationship between Small businesses and other large scale            businesses?

1.6   Research Hypothesis

        Hypothesis one

        Ho: Small businesses have no significant impact on employment generation in        karu LGA.

        Hi: Small businesses have significant impact on employment generation.

        Hypothesis Two

        Ho: Small businesses have no linkage with large scale businesses.

        Hi: Small businesses have linkages with large scale business.

1.7   Scope of the Study

The scope of the study is Karu Local Government Area of Plateau State. The scope of the study is therefore limited to Karu Local Government Area’s densely populated with Small businesses in recent years.

1.8   Limitation of the Scope

This research work is limited by the factors of interest in our environment such as finance, time and attitude of respondents. The limitation encountered in the course of this research work are, it is evidently clear that thing are difficult in Nigeria this days, these problems become more apparent due to high cost of transportation, net browsing, increase in price of printing typing binding, data collection and devaluation of naira.

1.9   Definition of Terms

Small businesses: it is defined as the business enterprise whose total capital base of above ₦50 million but not exceeding ₦200,000,000 including working capital, but excluding land and labour size of 100 to 300 workers (NCI, 2002:13).

Job Creation: The process for providing opportunities for paid work, especially for people who are unemployed.

Economic Development: Is the increase in the standard of living in a nation’s population with sustained growth from a simple, low-income economy to a modern, high-income economy.

Growth: It is defined as the process of increase.

 SOLD BY: Excellent Project| ATTRIBUTES: Title, Abstract, Chapter 1-5 and Appendices|FORMAT: Microsoft Word| PRICE: N3000| BUY NOW |DELIVERY TIME: Within 24hrs. For more details Chatt with us on WHATSAPP @ https://wa.me/2348055730284