ACCOUNTING AND MANAGEMENT PROBLEMS OF SMALL SCALE INDUSTRIES.

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ACCOUNTING AND MANAGEMENT PROBLEMS OF SMALL SCALE INDUSTRIES

ABSTRACT

The industrialization of every nation emanates from the ability of private individuals and government in business to make optimum allocation of available resources in order to achieve future objectives. Business in the third world countries is characterized by ineffective and ineffectual utilization of available resources which has limited the scope of business to small scale. This calls for the application of some theories in the field of management accounting to enhance the productivity of existing small scale businesses in the third world countries.Small scale enterprises encounter problems which often times result into pre – mature death of such industries or/production below capacity. Some of these problems lie largely outside the control of the entrepreneur. These are the problems to be solved, by the government in the interest of industrial development of Nation while other problems arise from the enterprenuer’s limitation in his decision making process. This study, has been limited to Imo state by the project writer after a thorough research.An analysis of factors that contributed to this development would be highlighted and useful recommendation towards resolving these problems would be made. The researcher is optimistic in view of the fact that if these recommendation are adhered to, they will go a long way in achieving the objectives of this research work.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Histories of various developed countries have shown that industrial revolution had been the main cause for their economic survival. Their great financial strength have come principally through the acquisition of industrial and technological power. Small – scale industries undisputedly constitute the bedrock for any meaningful industrial development and for the acquisition of this industrial and technological power.Without exception, all big industrial organization be they multi – national or indigenous, started in a small way. Small scale industrial set – ups abound, but most of them are buying and selling outfits.

Considering the economic situation in the country, the entrepreneurs in the state, now more than ever need to branch out into some other areas outside buying and selling. One would appreciate the fact that one can make quicker and more money by buying and selling. But this is only for a short term investment in the production of goods (manufacturing), though it has a longer payback period ensures a longer lasting profit. This could not only be a safer investment for the entrepreneur in the long run, but it is also a sure way of providing employment for our teeming high school and university graduates.

The Nigerian economy in the last two decades has passed through various stages. From the oil boom era of the seventies to the period of wasteful spending and painlessness of the early eighties and the present economic down turn.One must appreciate the fact that the survival of the sole proprietor in the Nigerian economy today would depend of his initiative, drive and quick adaptation to the environment.

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