ENVIRONMENTAL FACTORS AND THE PERFORMANCE OF SMALL SCALE BUSINESS IN NIGERIA

TABLE OF CONTENT

Title page………………………………………………………………………………i

Declaration:………………………………………………………………………….  .ii

Certification:………………………………………………………………………… .iii

Dedication:…………………………………………………………………………… iv

Acknowledgement:…………………………………………………………………..  v

Abstract:……………………………………………………………………………….vi

Table of Content:…………………………………………………………………..    viii

CHAPTER ONE:      INTRODUCTION

1.1              Introduction:…………………………………………………………………..1

1.2              Background of the study:………………………………………………….     1

1.3              Statement of the Problem:………………………………………………..       4

1.4              Objective of the study:……………………………………………………..    4

1.5              Research Questions:…………………………………………………………  5

1.6              Research Hypotheses:………………………………………………………   5

1.7              Significance of the study:…………………………………………………..    6

1.8              Scope  of the study:………………………………………………………      7

CHAPTER TWO:      LITERATURE REVIEW

2.1       Introduction:………………………………………………………………….8

2.2       Concept Framework:…………………………………………………..     …..8

2.3       The concept of economic development………………………………………12

2.4       Empirical studies:………………………………………………………. … .14

2.5       Summary:…………………………………………………………………….19

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Introduction:…………………………….……………………………… 20

3.2       Research Design:…………………………….………………………… .20

3.3       Population and Sample:……………………………………………… .. 20

3.4       Sample Size and Sample Technique of the Study:……………………….. 20

3.5       Method of Data Collection:…………………………………  …………    21 

3.6       Research instrument:……………………………………………………….22

3.7       Method of data analysis:………………………………………………  . … 22

3.8       Difficulties encounter in the course of obtaining data………………………23

CHAPTER FOUR:    DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1       Introduction:…………………………………………………………………24

4.2       Data Presentation and Analysis:……………………………………………..28

4.3       Test of Hypothesis:…………………………………………………………..44

CHAPTER FIVE:     SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Findings:……………………………………………………….49

5.2       Conclusion:…………………………………………………  ………  ……..50

5.3       Recommendations:…………………………………………………………..50

REFERENCES:…………………………………………………………………….52

APPENDIX:…………………………………………………………………………55

ABSTRACT

The study evaluate the Environmental Factors And The Performance Of Small Scale Business In Nigeria. The government of Nigeria identifies entrepreneurship development as a major trust to achieve economic development through SMEs growth and development. This made Nigerian government both at national and state as well as local government to prioritize small and medium enterprises development initiatives. This study intend to evaluate the impact of SMEs on employment generation in Kaduna metropolis. The study made use of both primary and secondary source of data to obtain the information, for the primary sources, questionnaire method was used, while for the secondary data, the use t3ext books and journals was adopted. Regression analyses was used to analyze the data. The major findings of the research reveal that small and medium enterprises impact on employment generation of the youth in Kaduna metropolis. The findings of  this research also reveals that there is genuine motives behind employment generation in Kaduna metropolis, the rating of employment generation of the youth in Kaduna metropolis is highly satisfactory as a result of SMEs. The study recommend that government should therefore pursue policies and programs that encourage the growth and development of SMEs, the power sector should be reposition so as to stop or minimize erratic power failure, the government should established new and enhance existing human capital development centers most especially the skill acquisitions center at affordable cost and accessible to her citizens.     

CHAPTER ONE

INTRODUCTION

1.1              Background of the study

Distribution is a key element of marketing mix that ensures the movement of products or services from the point of production to the ultimate consumption. Essentially, it is often said that production remains incomplete until the goods or services concerned reach the final consumer.

Kotler (2006) sees distribution channels as “set of interdependent organizations involved in the process of making a product or services available for use or consumption”.

Distribution activities of marketers are critical as the most innovative product or attractive product at an attractive price and right promotion is worthless of the product does move from the point of production to the final consumers when they are needed. Therefore, a product distribution is getting the product to market and arranging for its sale and the transfer of title from producer to final consumers.

Distribution activities include inventory location and warehousing, material handling. Inventory control order processing and transportation. All these activities can only be carried out by few manufacturers which employ the services of middlemen activities are geared toward facilitating the movement of goods from the manufacturer to the consumers.

The physical distribution function is relevant, not only after goods have been produced, but even before the production and ready for market. For proper planning of schedules and channels of distribution. To optimize in physical distribution, the component activities must be seen and performed as an integrated set of decisions which must start with a consideration of the market or target consumer. Thus, the marketing approach to physical distribution is based on the realization that the relationships between the relevant activities are systemic and therefore, decisions on the others. it is also required that costs are minimized over all activities simultaneously rather than an individual activities. This is because the cost are interdependent, and cost decisions in one area affect costs in other areas.

At this juncture, management should determine what method and route will be used to get the product delivered. This means establishing strategies for the products distributions, channels and physical distribution. Distribution management must therefore, make key decisions with regard to the type of intermediaries to use, how to motivate them to perform their various activities effectively and efficiently and also make sure that all the intensity of distribution to employ are readily available.

The problem of eratic supply of petroleum products resulting in price differentials in different parts of Nigeria is not a new phenomena. Before 1973, the pump price of petroleum products for petroleum products had exceeded the supply from refineries and other sources. This led to higher process. In order to abolish differentiated pricing, the federal government in October 1973 in the exercise of the power of section 5 (1) of the petroleum Decree 51 of 1969 ordered the prices of petroleum products to be uniform throughout the country. The situation before this order was such that the pump prices of petrol and other products were determined by the government in consultation with the oil companies.

The basic prices were uniform but the pump prices varied from state to state these differences were influenced by transport costs, haulage changes, state purchase taxes and duties.

However, in order to achieve the uniformity desired in petroleum products across all the states in the federation, the federal government had to forgo a large portion of the income that usually accrued to it from excise duties. The major aims of uniform pricing were as follows:

i.                    To reduce the burden of fuel costs

ii.                  To prevent industrialists from using price differentials as an excuse for refusing to establish in the hunter land.

iii.                To assist the government in the execution of development projects through reduced cost.

The proposed uniform pricing policy and the resultant price equalization find encountered serious management problem including the springing up of illegal markets for petroleum products and the increased incidence of sporadic shortages of petroleum products. These problems are largely marketing in nature which defy solutions by successive regimes in Nigeria.

In this research project, the problem of supply of these petroleum products would be analyzed in detail and solutions to it through recommendations would be forwarded.

1.2              Statement of the problem

The strategic importance of NNPC in the supply and marketing of petroleum products in Nigeria cannot be over emphasized. With the 3 major refineries sited in Kaduna, Warri and Port Harcourt working at full capacity, NNPC will be well positioned to meet the demand of motorist and industrialist. However, persistent acute shortages of petroleum product spanning almost over a long period of time with little period of stability poses the question as to whether NNPC has the capacity to sustain the supply of petroleum product to match the rising demand in Nigeria. Recent studies in PPMC clearly revealed that the activities of economic saboteurs and profiteers continue to affect the activities of the company in serving its statutory functions in the country. The consequences of eratic supply of petroleum on the people of Nigeria cannot be quantified. Despite the unofficial price hyke due to artificial scarcity of the product, its cyclical effect on living standard of Nigerians cannot be quantified.

This problem continue to persist despite various measures by the government over the years. Some Nigerians believes that this problem continue to defy solutions due to active collaboration of NNPC in diversion of the product and selective approach to distribution and other corrupt activities leading to missing of trucks in transits. These are problems that are not substantiated by empirical evidences.

In this research project, an attempt is made to prove into the supply strategy of NNPC with the sole aim of identifying factors of forces that militate against the steady supply of petroleum product and its consequences on living standard of people within Kaduna North Local Government Area.

The choice of this locality for this study was born-out of realization that despite the numerous distribution outlets within this area, shortages of the products created untold hardship to people due to long queues in filling stations.

1.3              Objectives of the study

The objective of the research is to examine petroleum supply strategy of NNPC and its implication on the standard of living.

i.                    To determine the most effective distribution and supply strategy that will ensure adequate supply of petroleum product.

ii.                  To examine the factors responsible for the deregulation of the oil sector.

iii.                To determine the factors responsible for the shortage and supply of petroleum products.

iv.                To identify the factors responsible for the increase in demand for petroleum products.

v.                  To proffer adequate solutions to the problems identified by the study.

1.4              Significance of the study

This research project has theoretical and practical significance in the following ways.

First and foremost, it contains adequate literature on distribution and logistic management that relates to oil industry in general and NNPC in particular. This broad based literature provides sufficient materials not only for general public but future researchers who may face the challenges of inadequate literature on petroleum distribution and marketing in Nigeria.

In addition, this study generates further interest amongst future researchers as the challenges, dilemmas and contradictions within the supply networks cannot be resolved through a single research endeavour such as this.

The need for further studies is thus stimulated in this research project.

1.5              Research questions

i.                    What are the factors responsible for the shortage and supply of petroleum products?

ii.                  What are the benefit of allowing market mechanism as a major determinant of the product?

iii.                What are the factors responsible for the deregulation of the oil sector?

iv.                What are the techniques of resolving conflict?

v.                  How can costumers achieve satisfaction through effective supply strategy?

vi.                What are the factors responsible for the shortage and supply of petroleum products?

1.6              Scope of the Study

This research project is exclusively on supply and marketing strategy of NNPC in relation to its channel of distribution consisting of major, independent marketers and other channel members that have a stake in the petroleum business within Kaduna metropolitan areas.

It also covers the transporters, filling stations, depots and other strategic reserve sections that have direct bearing on the supply and marketing of petroleum and allied products within the area of this research.

1.7              Definition of terms

–                    Product: This is anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a need at a profit.

–                    Petrol: Is a liquid obtained from petroleum, used as fuel in cars, engines e.t.c.

–                    Petroleum: Mineral oil that is found under the ground or the sea and is used to produce petrol/gas, paratin, diesel, oil etc.

–                    Objective: This supply means desired outcome.

–                    Strategy: Is a broad plan of action by which an organisation intend to reach it desired or stated goals.

–                    Marketing: Human activity directed at satisfying needs and wants through exchange process.

–                    Marketing Mix: Is the particular blend of the controllable marketing variables that the firm uses to achieve its objective.

–                    Product Mix: Is a set of all product offered for sale by a company.

–                    Product line: Is a group of product within a product mix that are closely related either by function or physical characteristics.

–                    Distribution: Is an activities that involved the flow of goods and services from the manufacturers or producers to the ultimate consumers.

–                    Physical distribution: This consist of all the activities concerned with moving the right quantity of the right product to the right place at the right time.

–                    Distribution channel: Is a set of all the firms and individuals that assist in transferring the title of a particular goods or service as it moves from the producer to the consumer.

–                    Distribution structure: Is the available arrangement of a particular industry to get products from the producer to the consumers.

–                    Wholesaler: Independent trader who sells goods and services at wholesale to business organization for the purpose of resale or use in producing other goods or services.

–                    Retailer: Independent trader operating outlet selling at retail to ultimate consumer for personal use.

–                    Customer: A person who usually frequent a certain place of business.