Project Materials

CONTRIBUTION OF PURCHASING TO THE ORGANIZATIONAL OBJECTIVE OF A SMALL SCALE BUSINESS

CHAPTER ONE

INTRODUCTION

Mr Christian Provision Stored is a small-scale business located on Okigwe Road in Owerri, Imo State. Mr. Christian Ibekwe.A. founded the tiny business on March 18th, 2009. The company now employs approximately three (3) individuals. (1) Saleswoman (2) Cashier (3) An apprentis (boy). This business performs some functions, which include (1) supplying to the final consumers and (2) employing people.

According to (Mr Christian Ibekwe, A.), his business has benefitted him in a variety of ways. He started with N5,000 as capital and now has N500,000 (five hundred thousand naira). He also told unemployed teenagers that it is better to start as an entrepreneur rather than stay ideal. “An ideal man is the devil’s workshop”

1.1 Background of the Study

Every organisation, whether private or public, is formed to address a certain need, such as economic, political, or social. Small-scale business is undoubtedly an important part of entrepreneurship.

It is worth noting that entrepreneurship is not a new course in Nigeria, having grown in popularity over the years. Small-scale businesses are being attributed with being responsible for the bulk of innovations, so much that small-scale businesses have been nicknamed the innovations “engine of the economy”

Small-scale businesses vary in terms of time from one location to another. However, regardless of the definitions offered for small-scale businesses, the criteria are usually as follows:

1) Employee size

(2) Sale of investment capital

(3) Number of paid employees.

(4) A combination of any of the above.

(5) A small-scale business is defined as one with 50 or less employees. Krectner (1995:62) defines a small business as an independently owned and managed profit-seeking enterprise with fewer than 100 employees.

1.2 Statement of Problem

Effective small-scale business, as previously said, is required for organisational goals. Not all businesses succeed; numerous factors have contributed to the failure, winding up, and closure of many small-scale businesses, including: – – Lack of managerial experience – Poor business decisions – Adverse government policies – Inadequate knowledge and experience in children’s business – Financial issues – Fraudulent activities – Poor location – Competition – Rapid adoption of modern technology All of these issues have the potential to lead to a business failure. If there is no improvement, the business will undoubtedly collapse.

1.3 PURPOSE OF THE STUDY

It should be noted that because small-scale business is crucial to both purchasing and supply and entrepreneurship management, the purchasing department should be cost-effective in its operations, with the primary goal of increasing profits. The study objectives should be summarised as follows:

(1) To highlight the significance of purchasing to the goals of a small scale business.

(2) To demonstrate the relevance of purchasing in small-scale business.

(3) To investigate the infrastructure requirements for effective small-scale company.

1.4 RESEARCH QUESTIONS

(1) How does purchasing contribute to the organisational goals of small-scale businesses?

(2) What are the basic requirements for the establishment of a small-scale business?

(3) How does an inefficient supply function affect the performance and profitability of a small-scale business?

1.5 Significance of the Study

This project is very important to me because I have gained a lot of knowledge about the subject, as well as for the benefit of others who may find this project useful for research or orientation purposes.

It is also beneficial to managers, bankers, and others in carrying out their duties/obligations. It will be useful for government and organisation policy marketers because it will serve as the foundation for making sound and operational decisions.

1.6 SCOPE OF THE STUDY

The scope of this research encompassed both the roles of small scale businesses and the contribution of purchasing to organisations that include small scale businesses.

The contribution of small businesses to the economy has been significant, just as employment has allowed many young people to have something to do, which is important for the country.

1.7 Limitations of the Study

Because of the nature of the topic under study, the researcher was unable to cover as much ground as needed; in addition, other factors hampered the researcher’s efforts. They include:-

(1) Time constraint The research team was unable to quickly contact the necessary organisations for references and enquiries because the majority of their time was spent on academic work.

(2) FINANCIAL CONSTRAINTS Due to lack of insufficient availability of money, the sources of information including the internet café was inaccessible

(3) Lack of related information from journals

(4) Unwillingness and bad responses from the staff of the sample forms.

1.8 DEFINTIONS OF TERMS

Small scale business according to Leslie. E. Palich (2008) defines small scale business as a business that is privately owned and operated with a limited number of employees and relatively low volume of sales.

INDUSTRIALIZATIONS: The establishment of small and medium scale business in any nation will aid the growth and development of that country, it is believe that this sort of business is the engine room for development.

MOBILIZATION: The tiny business are ideal for mobilization/ mobilizing savings for productive purpose which may not be readily available.

ADAPTABILITY: The small business may quickly adapt to their business environment because of their uniqu