Problems Of Managing Small Scale Business In The Rural Area

INTRODUCTION
This study is designed to examine the small scale business in the rural areas with particular reference to Jocob’s Wines Limited Mgbidi in Oru West Local Government Area in Imo State.
Human wants are insatiable where as the resources to satisfy them, are highly scarce (limited) by economics factors.
Unemployment is almost at its top most in countries of the world. Most people who are employed by the government earning salaries and wages which cannot with stand the pressure mention on them by the high rate of inflation and high cost of living. Some are retired, some recanted even when they are still willing and are able to work other resigned due to poor and other predicaments at least half way, people engage in small scale business.
However, not came into small scale business are able to make it due to poor management, poor planning, poor control, poor directing, and organizing, lack of infrastructural equipment problem of finance, insufficient market technology problems social problems, greedy staff and uncooperative attitude of the people, all these factor constitute a lot of problem in the management of small scale business in our society today.
A consideration of the geographical spread of business establishment in the country with reveal that almost all the business that are regarded as big are found in the urban areas.
1.1 BACKGROUND OF THE STUDY
In the background of study will analyze how the federal state and local government have inculcated the spirit of success in the small scale business.
The federal government in their decree no 2 of 1989 introduce the scheme the National Economic Reconstruction Fund (NERFUND) the scheme makes provision of medium to long term financially those small and medium scale industrial enterprises especially manufacturing and agro-allied enterprise and ancillary services. In 1987, the government having discovered that the majority the small scale business are instituted in rural area, impacted directorate of foods, roads and rural infrastructure (DFRRI).
This scheme is to provide the basic infrastructure needed in rural area like water electricity and federal roads. The provision this thing have gone a long way to help the small scale industries.
In November 1986 because of the level of unemployment federal government created National Directorate of Employment (NDE) promote small scale business and graduate employment space public works programme and agricultural programme.
1.2 STATEMENT OF PROBLEMS
The problems associated with scale business (industry) have affected most of they, if not all since inception as a self finance industry, Jocob’s Wine Limited finds it difficult obtain loans from the bank and our financial institution.
Most owners and directors of small scale business are not trained so poor management of both human capital resources leads the death of a business employment of unskilled workers, hasty implementation of policies does a lot of harm to small scale business.

1.3 OBJECTIVE OF THE STUDY
This study has the general objective of identifying and analyzing the problem of small business in Nigeria. It seeks to identify the problems of the financial management.
The major objectives are:
1. To identify the causes of problem in managing small scale business in rural area.
2. To create and awareness to small scale investor and business owners other problem of managing small scale business in rural area.
3. To find possible solution to the problem analyzed.
4. To determine the extent to which small scale business have helped to increase the G.N.P of the nation, in terms of employment and production of the needed good for the upliftment of standard of king for the past few years.
1.4 SIGNIFICANCE OF THE STUDY
The study is aimed at creating awareness on the vital roles of small scale business in rural area with particular reference to Jacob Wines Limited Mgbidi.
It is designed to achieve the following:
1. To enlighten the reader who has little or no knowledge of small scale business and their economic importance on the welfare of the people.
2. To give suggestion which if adopted by government will lead to a profitable and small scale business sectors.
3. To help in predicting to the probes facing small scale business in their management with reference to Jacob Wines.
4. To provide some solution to the problem the organization in particular and entire nation as a whole.
5. To help some future researcher who may use the same case study on related topic.
1.5 RESEARCH QUESTIONS
1. What ways can we identify the cause of problem in managing small scale business in rural area?
2. How can we create and awareness to small scale investors and business owners other problem of managing small scale business in rural area?
3. How do we find possible solution to the problem analyzed?
4. What extent has small scale business helped to increase the G.N.P of the nation in terms of employment and production of the needed good for the upliftment of standard of king for the past few years?
1.6 METHOD OF THE STUDY
The availability of the bed rock which the effectiveness and successfulness of any research is built. The data due in this study is getting through primary and secondary sources.
Primary sources, this refers to sources of collecting original data which the researcher gathered specifically for this study. It is done through personal interview, observation techniques and visitation to the premises of my case study.
Secondary sources, these refer to already existing data gathered from vase book journals, newspapers, magazines, periodical publication and visitation and libraries.
The above tools were used to successfully get the view and through or respondent on the subject of study.

1.7 SCOPE AND LIMITATIONS OF THE STUDY
This project covers the whole of the reference to my case study. A wider range would have been taken into cognizance but due to some inheritance factor like:
1. Lack of finance
2. Distance of my case study from school
3. Nonchalant attitude of respondents.
4. Also other academic
These factors I will also affected that capacity of my study.
1.8 DEFINITION OF TERMS
In order for the reader to understand the report fully the following time are explained in context in which are used.
Management: It can be defined as the effective and efficient utilization of human and non-human resources to achieve organization goals, hence producing goods and services desired by customer B. Chima Onuoha (1991).
Small Scale Business: It can be defined as business that employs a small number of workers and does not have a high volume of sales. Such enterprises are generally privately owned and operated sole proprietorship, corporations or partnerships.
Rural Area: It can be defined as an open swath of land that has few homes or other buildings and not very many people. A rural areas population density is very low.
Business: All profit directed economic and commercial activities that provide goods, services necessary to a nation standard of living AEAW (1995).
Business Management: For this study it means being able manages the function of management effectively that is planning controlling, directly and organizing in the business outfit to achieve every business desire which is profit maximization.
1.9 HISTORY OF CASE STUDY
Jacob Wines Limited started 1955 following several years of research conducted by our CEO, Dr. Jacobs, the lecturer turned industrialist, on the use of various Nigerian fruits in wine making. The result of the research was the identification of pineapple as the most suitable fruit. The research began in Canada, where Dr. Jacobs was working as a postdoctoral follow and later continued in Nigeria to establish the first commercial pineapple winey in Africa and second in the world.
Dr. Frank Jacobs holds Ph.D degree in analytical chemistry from Washington State University. He is a fellow of the institute of chartered chemist of Nigeria and holds a Nigeria national honour of the member of the order of the Niger (MON). Welcome to Jacob’s Wines Limited a pineapple winery in 1985, we produce assorted brands of wines from pineapple fruit. We produce wines with great balance finesse and value.