Abstract
It is apparent that small and medium-sized enterprises play an important role in the development of national economies, creating new jobs and providing a basis for the training of highly qualified managers. This study examines the role of management in small scale business. The research adopted a survey research design. A well-structured questionnaire was designed and administered to respondents. A sample size of Twenty (20) was drawn from the population of study. The sampling was made based on a simple random sampling technique. The data gathered were presented in tables and analyzed with simple percentages. The hypothesis formulated was analyzed with the use of Chi-Square technique. It was concluded that – there is significant relationship between manager impact and Small Scale Organization Performance. Recommendations were proffered that; It is of value for the organization to employ a well-motivated and season managers at all levels of management, organizations should merge the right skill with right roles and duties, in order words, the right person should be engaged in doing the right job at the right time. It is also very important that management reward performance to encourage the mangers to use their skill to maximum capacity in attaining the objectives of the firm.
INTRODUCTION
Small medium enterprises (SMEs), have been identified for a number of decades as a possible solution for economic and employment growth (BER, 2016; Storey, 2014). Gree and Thurnik (2013) contended that economic growth cannot be sustained without the growth of existing SMEs and the continued creation and establishment of new SMEs. The management of SME’s is an important factor in business growth as well as the environment within which businesses operate (Churchill and Lewis, 2013). A sound and supportive environment allows for business success (Meyer, 2014). Research on the reasons for business failure is a comprehensive study field and many stumbling blocks or obstacles have been identified by various researchers over the years (Olawale and Garwe, 2010). In an effort to reap the benefits of SSBs, successive administrations in Nigeria have formulated and implemented different strategies to create enabling environment for SSBs formation and growth. Prior to 1970- 1975 National Development Plan, the Nigerian development plans and their strategies were directed towards supporting LSBs (Osamwonyi & Tafamel, 2010). But by 1970s the policy makers’ attitude to SSBs began to improve and in subsequent development plans they have been very specific on the importance of the Small and Medium Scale Enterprises (SMEs) sub-sector to the over-all economy (Nwankwo, Ewuim, & Asoya, 2012). Since then, they have been given increasing policy attention probably because of the growing disappointment with the results from LSBs in provision of employment and economic development (Mambula, 2012). Another reason that might account for that was the realization of the potentials of SMEs in terms of positive contributions to economic development in many countries (Schreiner & Woller, 2003). The first move was the setting up of the thirteen industrial centers (IDC) during the 1970 – 1975 National Development Plan which aimed at providing extension services to small scale enterprises (SMEs) (Arogundade, 2011). This was followed by the establishment of financial institutions to provide credits for SMEs. Banks such as Nigeria Industrial Bank (NIDB), Nigeria Bank for Commerce and Industry (NBCI), Nigeria Agricultural and Cooperative Bank (NACB), People’s Bank and Community Banks were established for that purpose (Nelson & Johnson, 1997). Some other programs aimed at supporting SMEs were: The World Bank Assisted SME Scheme, National Economic Reconstruction Fund (NERFUND), The Export Stimulation Loan Scheme (ESL), The Rediscounting and Refinancing Facility (RRF), The National Directorate of Employment (NDE), Fadama Programs and Poverty Alleviation Program/National Poverty Eradication Program (NAPEP) (Ehinomen & Adeleke, 2012; Olugbenga, 2012). Contrary to the expectation of all the bodies responsible for the formulation and implementation of the above programs that Nigerian business environment would be a home for the evolution of SSBs; it emerged as an unfriendly one. Chuta (2012) observed that SMEs in Nigerian business environment are like fishes out of water, because of its unsuitability for their growth. Nnodim (2012) also observed that poor management is the number one reason why small businesses fail. The use of larger part if not all the profit by the owners for celebrations, investing in nonprofit social and spiritual ventures and inappropriate rules guiding giving out of credit, may be a common source of SSBs degradation since these affects not only the profit of the business but also the capital. The issue of lack of outlining strategic plans in the form of vision and objective or not working with them, may also lead to lack of direction. The manager is the life of the organization. The manager ensure that the organization perform to expectation, he must also ensure that the firm archive it purpose and goals, to do this the manager perform certain roles and duties ,this include organizing controlling, directing coordinating and leading. The manager may be the entrepreneur, sometimes he may not be, however, at all-times the manager must aggregate the resources of the firm to attain the firm’s goals and objectives of the firm. The manager to be able to carry on this duties he must posses certain skills this include interpersonal skill, people skill, Conceptual Skills, People Skills, Technical Skills etc. Some managers demonstrate these skills very strongly while others only demonstrate it fairly. There are basically three levels of management within the business organization; these include the top management, the middle management and the lower management.
STATEMENT OF THE PROBLEM
Most SMEs in Nigeria die within their first five years of existence, a smaller percentage goes into extinction between the sixth and tenth year while only about five to ten percent survive, thrive and grow to maturity. Many factors have been identified contributing to this premature death of SMEs. Key among them include: insufficient capital, irregular power supply, infrastructural inadequacies (water, roads etc.), and poor management. Most SMEs lack structure, one staff could hold two to three position all to reduce cost. The owner of the business usually hold the manager position and call MD/CEO, whether he has the skills or not, he direct the organization based on his ability. Small Scale businesses are faced with the challenge of management because they cannot afford to employ an expert as a manager to achieve the goals of the organization. This research work tends to examine the role managers to Small Scale Business organization and provide solutions to the aforementioned problems.
OBJECTIVE OF THE STUDY
The study has one main objective which is sub-divided into general and specific objective, the general objective is to examine the role of management in small scale businesses, the specific objectives are;
- To examine the impact of manager to the success of Small Scale Business organization
- To examine the influence of managers on employee towards attainment of organizational goal
