Full Project – An analysis of the causes of low productivity in a small scale business enterprise in Nigeria

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CHAPTER ONE

1.0  INTRODUCTION

In recent time, the falling standard of most companies and organization especially small scale Business enterprises (Private Sector) has received wider comments and publicity. Many small scale establishment have either folded up or are in disarray, to many their productivity is extremely low that they are mere shadows of themselves.

The implication is that the causes of this low productivity is not addressed and researched upon in no distant time these small scale business enterprises will close up production and layoff their staff.

1.1  BACKGROUND OF THE STUDY

The Adaobi Plastic Industry Limited, Aba was established in 1979, it was commissioned in 1963. It commenced business with an initial share capital of (N150,000.00) one hundred and fifty thousand Naira.

The emergence of the Nigeria civil war between 1967-1970 affected the operations of the industry adversely. It was short down but was reactivated and went back to production in 1975.

Since 1975 the industry has been involved with restricting and reconstruction with restricting and reconstruction with expansion in some sectors where necessary presently, the industry’s major products are plastic jug, plastic plates, basin, pan jars, buckets and a range of plastic materials. The present plant capacity is at two thousands tones per- annum. As a result of this low plant capacity, production was grossly insufficient.

In 1980, the industry once again started expansion programme which is not yet conclusion due to inadequate funds. It is expected that if this expansion programme is completed, production would increase to about three thousand (3000) tones.

Today the industry can boost of a share capital of about three million five hundred thousand Naira (N 3.5m) the staff strength is about four hundred and fifty workers which reduces with time.

The organization has five directors and the management structure of:

• M
• Company Seel
• Accountant
• Chief Engineer
• And Production Manager

About ninety-eight percent (98%) and two present (2%) of the company’s raw materials are sources locally and internationally respectively.

1.2  STATEMENT OF THE PROBLEM

One striking feature on the rate of production in the private sector (small scale business enterprises) is that it has been plagued with a number of managerial and production obstacle and the resultant effect is low productivity of the enterprises.

Against this background the researcher wishes to find out the causes of low productivity in a small scale business enterprise in Nigeria Limited using Adaobi Plastic Industry Nigeria Limited as a case study.

1.3  OBJECTIVES OF THE STUDY

1. The major concern of this study is to ascertain as accurately as possible the causes of low productivity in small scale business enterprises in Nigeria: A case study of Adaobi Plastic Industry Nigeria Limited Aba.
2. The research will also place emphasis on the employment pattern and the effort made by the Nigerian Government towards the existence and growth of the industry. The modern policy on industrialization is concerned much about the use of local materials in the development of indigenous technology.
3. This work hopes to appraise the contribution of small scale business enterprises to this policy with the help of the following objectives:
4. To determine whether small scale business really make us of local raw- materials.
5. To determine what factors affect small- scale industry.
6. To determine whether these small-scale industries make other contribution in terms of employment creation.
7. To see to what extent these small-scale industries have come to help solve the problems of technology in Nigeria.

1.4  RESEARCH QUESTIONS

1. Does poor management pose any serious challenges to the survival and growth of small scale industries?
2. To what extent does lack of capital affect the progress of small scale industries in Aba State?
3. To what extent does lack of proper planning affect the operation of small scale industries?
4. To what extent does lack of effective government policies affect the success of small scale industries in Abia State?

1.5  SIGNIFICANCE OF THE STUDY

This research work is intended to serve as a guide to entrepreneurs who intend to establish small-scale business industry to be aware of some of the causes of low productivity in small scale industries, with a view of avert them.

This work will entirely serve as a reference point to Adaobi Plastic Industry Limited, Aba, since the industry was used as a case study.

Beside, researching students may find this place or work useful in their further studies on factor/industrial, management problems.

This study is very important because manager should appreciate the indispensable role of their workforce and provide in their scheme of their enterprise both financial and non financial motivation and endeavour to activate their potentials at all time to enhance productivity.

The Federal Government especially Abia State Government and its agencies are not left out in what the study has to offer. The study will serve as a water shade to the causes of low productivity in small scale business enterprises in Nigeria.

1.6  SCOPE OF THE STUDY

Productivity is a quantitative or statistically weighed measure of low efficiency given set of resources use, in achieving a given set of objectives. It therefore connotes efficiency within a defined, effectiveness context.

Productivity refers to output of an organization taking into account, the input and expected outcome geared towards the enterprise goals and objectives.

Low productivity is therefore the negative of the above concept. Low productivity implies that the total output of an organization does not measure with the input taking into account the input and the expected output. Negative motivation will surely lead to low productivity in small-scale business enterprises. Motivation is one of the most important ingredients in creating industrial harmony and making the workers performs better or higher.

It is pertinent to note that in most small-scale business enterprises, there is low productivity; it is therefore the aim of this research to find out the causes of this low productivity.

1.7  LIMITATIONS OF THE STUDY

For the purpose of the project work, the method used in the collection of data was primary and secondary sources. A particular sample and population was used before arriving at the conclusion. The population used is made of the number of workers in Adaobi plastic industry Aba.

1.8  DEFINITION OF TERMS

Small scale business: This is a business that is owed by one or two persons with the direct owners influence in the decision making.

Low Productivity: This is a process whereby an organization produces goods and services that cannot satisfy the demand of their customers.

Motivation: This is a zeal that makes a person to improve in his working ability.

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Full Project – An analysis of the causes of low productivity in a small scale business enterprise in Nigeria