APPRAISAL OF THE PROBLEMS AND PROSPECTS OF PURCHASING IN SMALL SCALE BUSINESS IN NIGERIA

APPRAISAL OF THE PROBLEMS AND PROSPECTS OF PURCHASING IN SMALL SCALE BUSINESS IN NIGERIA

Chapter one

Introduction

Nigeria has failed to achieve industrial development despite a decade and a half of pursuing an industrialisation strategy based on large-scale enterprises, primarily assembly-line operations.

The large-scale industries that were established tended to be capital intensive and suited for the country’s resource endowment. Their capital equipment and technical manpower have remained mostly imported.

As a result, the triple goal of establishing large-scale industries, namely:

1. Achieving high levels of employment

2. Raw materials are sourced locally.

3. Savings on foreign exchange acquisition materialised. In reaction to the inadequacy of large-scale manufacturing, the government has attempted to support small-scale companies as a strategy for self-sufficient industrialisation.

In Nigeria’s economy, attention has been drawn to the fact that small-scale enterprises have received very little attention, despite the fact that they provide employment for roughly triple the number of people employed in large-scale manufacturing while also playing a critical role in our developing economy.

This is why it is critical to evaluate the issue impeding the expansion of his industry. The researcher has characterised such issues as management and financial constraints, as well as some government policies that do not benefit small-scale industries.

1.2 Statement of The Problem

For the year under review, the country’s economic goals were to reduce the level of important and promote the expansion of domestic production, particularly in the small-scale manufacturing sector. However, Nigeria’s small-scale companies are currently facing numerous challenges.

These issues have a significant impact on their possibilities for expansion in the country, reducing their potential contributions to economic development. The problems are as follows:

a) Many small-scale enterprises do not have a visible feasibility study for their initiatives.

b) There is also a problem with loan misapplication and nonpayment.

c) They maintain weak accounting and business records, and

d) Because of the minimal capital investment, professionals are rarely hired. As a result, the researcher will concentrate on the difficulties and prospects of Parts Company Limited, as well as what the company should do to address the issues that are impeding its prospects and opportunities.

1.3 HISTORICAL BACKGROUND OF AQUA RAPHA INVESTMENT LTD.

The Aqua Rapha (God’s Healing Water) was founded on December 15, 2004, by its only proprietor, Rev. Father Ejike Mbaka. His capacity to make money from little or nothing, as well as his general interest in business, led him to form a modest company partnership that dealt with the distribution of domestic goods. The owner conducted the feasibility study.

The report is fairly close to what became reality. The feasibility study was good, with just a few under and overestimations due to the country’s ongoing inflationary trend and economic reforms (NAFDAC).

The facility is located on the 9th mile beside Ama Brewery Plc in Enugu State. The factory is positioned in this area because it is close to the source of raw materials for production.

The majority of raw materials used in the manufacture of sachet/packaged water are acquired locally. The producer uses the services of several people to manufacture the bottled water.