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THE CHALLENGES AND PROSPECTS OF SOLE PROPRIETORSHIP

THE CHALLENGES AND PROSPECTS OF SOLE PROPRIETORSHIP

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CHAPTER 1

INTRODUCTION

  • Background of the Study

Historically, sole proprietorship is defined as the oldest, most common and simplest form of business organization. Sole proprietorship is unofficial because it is not subject to federal or state regulation, also it is relatively simple to manage and control. In this type of business, one person that is the proprietor provides all the capital required to carry on the business.

Characteristics of sole proprietorship are that the owners are inseparable from the business. More so, that proprietor provides the initiative controls the business and retains all the profit arising from the business. The owner takes all the risks and bears all the losses sustained in any bad year. However, we should remember that those who lend money and extend credit to the sole proprietorship also should be part of the risk in that. A loss, incuitably falls on them if the owner proves unable to pay the debts.

A sole proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company but he/she reports business income or losses on his/individual income tax return.

However there are other forms of business organization such as:

Partnership Business: Which is the association of people who co-owned a business for the purpose of making profit?

Limited Liability Company: Is a business owned by a number of people, operated as a legal person on behalf of its owner with the usual motive of profit.

All these business organizations are formed for the purpose of making profit. Despite these forms of business statistics shows that much eighty five percent business organization in Nigeria today is sole proprietorship whether in small scale or collage industries.

However, one of the characteristics of sole proprietorship which is profit motive has been created by making a good production in other to satisfy their customer. Therefore, sole proprietors should try to produce the right product in other to satisfy the customers.

Business organization therefore should research on the challenges and prospect which will help them in a good production. Also this research work of Ugomentus enterprises Nigeria limited will be of help.

 

  • Statement of the Problems

It has been observed that sole proprietors contend with daunting challenges.

Taking the plunge and becoming your own boss is risky at the best of times, but the danger for sole traders is higher than for other types of business. According to official statistics, sole traders are more likely to fail than any other kind of small business with 20% of self-employed people packing up their ventures each year. It is easy to see why the cost and time pressures of establishing a business is a huge burden for just one person. Indeed, there are amyriad of challenges that face sole trader when they standout.

Sole proprietors have to realize that a one person company can’t keep up with businesses that have multiple employees. The world more so quality today and sole proprietors will have to think about how to evolve their business and potentially bring on management team.

No matter what industry they are in, its most important for sole proprietors to be organized are efficient in order to succeed.

Another challenge of sole proprietorship is “decision making” and management control. Sole proprietors are in full control of every aspect of the business. Sole proprietors do not engage the services of competent and qualified personnel. The result in taking irrational decisions which impact negatively on business operation. Hence, lack of requisite skills and knowledge pose daunting impediments to the growth of the business.

Life is a challenge to sole proprietorship. A sole proprietorship will automatically end if the owner dies, decides to retire, or sell the business. This is in contrast to a corporation or LLC (Limited Liability Company) which enjoy continuity.

 

  • Purpose of Study

The broad objectives of the study are to examine that challenge and prospects of sole proprietorship. The study also includes:

  1. Determine the sources of fund for the sole proprietor.
  2. Determine the challenges of sole proprietorship.
  3. Determine solution to these challenges.
  4. Determine how concentration of ownership policy and management control of an individual favour sole proprietorship.
  5. Determine how external environment favour sole proprietorship.

Determine those factors that will facilitate the growth of sole proprietorship.

 

Significance of the Study

The study will go a long way in solving most organizational problem with regards to solve proprietorship organization.

The study will help sole proprietorship, partnership, corporation and enterprises in Nigeria especially Ugomentus Enterprises Nigeria Ltd in contending with the daunting challenges of the business environment and in tapping the existing opportunities fully. It will help the sole proprietors to gain better insights into the management of their business ventures. Future researchers will also use the study as a spring board for conducting their studies. It will help the sole proprietor to manage their business ventures efficiently.

  • Research Question
  1. What are the sources of fund to the sole proprietorship?
  2. What are the challenges of sole proprietorship?
  3. What are the solutions to the challenges of sole proprietorship?
  4. Does concentration of ownership policy and management control favour sole proprietorship?
  5. Does external environment favour sole proprietorship?

What are those factors that would facilitate the growth of sole proprietorship?

 

 

  • Scope of the Study

The research work is concerned with the challenge and prospects of Ugomentus Nigeria Ltd, Oba.

  • Definition of Terms
  • Sole Proprietorship: Is the simplest and oldest form of business organization. It is owned and controlled by one person.

 

  • Capital: The money or wealth needed to produce goods and services.

 

  • Partnership Business: This is a single business where two or more people share ownership.

 

  • Registered Company: An association or collection of individuals, whether national persons, legal persons or a mixture of both, registered under the company’s act.

 

  • Limited Liability Company (LLC): It is a business structure than combines the pass through taxation of a partnership or sole proprietorship with limited liability of a corporation.
  • Limited Liability: Is where a person’s financing liability is limited to a fixed sum, most commonly the value fo aperson’s investment in a company.
  • Enterprise: A company, business, organization or other purposeful endeavours.
  • Insurance: A means of indemnity against a future occurance of an uncertain event.

 

  • Tax: Money paid to the government other than for transaction – specific goods and services.

 

 

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AN EVALUATION OF STAFF AND MANPOWER TRAINING AND DEVELOPMENT IN NIGERIAN ORGANIZATIONS

AN EVALUATION OF STAFF AND MANPOWER TRAINING AND DEVELOPMENT IN NIGERIAN ORGANIZATIONS

 A STUDY of NIGERIA PORT AUTHORITY

LAGOS STATE

 

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TABLE OF CONTENTS

 

CHAPTER 1

INTRODUCTION                                                            1

  • Background of the Study 1
  • Statement of the Problem 6
  • Purpose of the Study 7
  • Significant of the Study 8
  • Research Question 9
  • Statement of hypothesis 9
  • Scope/ Delimitation of the Study 10
  • Definition of Terms 11

CHAPTER 2

RELATED LITERATURE REVIEW                                 

CHAPTER 3

RESEARCH METHODOLOGY                                              

  • Design of The Study         76
  • Area of the Study 77
  • Population of the Study 77
  • Sample of the Study 78
  • Instrument for data Collection 82
  • Method of Data Analysis 83

CHAPTER 4

DATA PRESENTATION AND ANALYSIS                   85

CHAPTER 5

SUMMARY OF   FINDING CONCLUSION AND

RECOMMENDATION      

  • Conclusion                 101
  • Limitation of Study 107
  • Recommendation                 107
  • Implication of the study 109
  • Suggestions for Further Research         110
  • Summary of Findings         111

References                                                             112

Appendix A                                                             116

Questionnaires                                                       117.

 

Abstract

This research work was designed to study training and development of employees in service organization. This study titled “An Evaluation of the effect of manpower training and development in service organization A case study of Nigeria Port Authority of Nigeria (NPA) Lagos zone is of the view of finding out the way by which training and development can be conducted. The objective of this study is to highlight the advantages of human resources training and development and recommended an appropriate measure that could help improve the current human resources training programmes. Relevant data for this research work were collected from both primary and secondary sources of data. A descriptive method was used for this study. The total population of the staff in the organization is 250 out of which questionnaires were drawn from staff of the organization which constitute a sample size of 154. The statistical instrument used in testing the validity of the hypothesis was Chi-square. Among other findings of the work was that training and development programmes improve was that training and development programmes improve productivity and better performance. The research therefore recommends that there should be a free flow of information to enable all the staff to be aware of the training and development programme available to them both internally and externally.

CHAPTER 1

                            INTRODUCTION

1.1 BACKGROUND OF THE STUDY

        Manpower training and development must be based on a need analysis derived from a comparison of actual performance” and behavior with “required performance” and behavior. Manpower training and development is one of the major ways organization invests in the workforce for greater return today and even in the foreseeable future.

Organizational effectiveness rests on the efficient and effective performance of workforce that makes up the organization. The efficient and effective performance of the workforce in turn, rest on the richness of the knowledge, skills and abilities possessed by the workforce. Manpower training and development in most organizations is a continuous act/exercise. The inexorable march of time and the ceaseless glamour for social change combined to make adaptability and continuing preparation of the workforce as inevitable as the initial acquisition of knowledge and skills.

This cannot happen if employees training and development do not occur in an enterprise. In order to maximize the productivity and efficiency of the organization, every executive, manager or supervisor in a public or private organization has the responsibility and indeed the bounding duty to ensure the development of their employees who have requisite knowledge and expertise.

Training is like sharpening an existing skill in order to reflect the trends in technology and other social cultural environment changes of an organization. Productivity is the goal of today’s competitive business world and training can be a spring board to enhance productivity. The aim is to enable them contribute their full measure to the welfare, health and development of the organization (Onah 1993). The main objective of training and development in service organization is to increase efficiency of employees with the resulting in corporate productivity. This account for why large number of fund and time is expected by organizational one period of the other in the improvement of the skills of their employees at various levels.

The principle intention of training according to AKPAN (1982:128), is to equip people with the knowledge required to qualify them for a particular position of employment, or to improve their skills and efficiency in the position they already hold.

Manpower development on the other hand implies growth and the acquisition of wide experience for future strategic advantages of the organization.

Manpower training and development, therefore improves the effectiveness and efficiency of the employee. therefore, the aim of this research is to know the current state, nature, procedure and method of training and development used by the Nigeria Port Authority (NPA) for their employees and let’s not forget that any organization that has no plan for the training and development of its staff is less that dynamic, for learning is a continuous process and acquired skills gets absolete when the environment changes. Also, a popular caption in the field of personnel management says “if you think training and development are expensive try ignorance”. While training and development prosper organization, ignorance destroys it. Therefore workers like machines must be updated on constant basis or else, they end up becoming absolute or misfit.

BRIEF HISTORY OF NIGERIA PORT AUTHORITY 

Port operations and development in Nigeria began in the middle of the 19th century effort towards the provision of facilities for ocean going vessels started with the opening of Lagos Lagoon in the early 1990.

The Apapa port in the south west embarked on development in 1913 and construction of the first four deeps water berths of 548.64m at the port began in 1921.

The Nigeria port Authority was established as a address the institutional weakness that bordered on lack of coherent policy framework as port development were done on ad hoc basis driven by changes on the level and demand of sea borne trade.

In 2003, the federal Government of  Nigeria initiated the drive towards improving efficiency at our ports, and the landlord model was adopted for all the Nigerian ports. This gave rise to the concession of 25 terminals to private terminal operators with lease arrangement ranging from 10-25 years. One of the concession was a build, operate and Transfer (BOT) arrangement. Also in the process of reorganizing the ports, the former eight (8) ports were reduces to six (6) major parts, with two (2) ports in Lagos and four (4) in the east namely; Lagos Port Complex, tin can – Island port complex, Calabar port, Rivers Ports, Onne Ports complex and Delta Ports complex respectively.

  • STATEMENT OF PROBLEMS

This research at it deals with the training and development of employees in service organization is meant to find out the efficiency and effectiveness of training and development programme in service organization with reference to Nigeria Port Authority Lagos as an organization governing the use of ports in Nigeria serves as a source of transportation, supply distribution and maintenance round the nation. For this reason, it encounters numerous problems which range from

  • Lack of qualified instructors and consultants to undertake training courses.
  • Lack of essential training tools to
  • Lack of effective communication within the organization which makes it possible for employees to know about training opportunities available to them.
    • OBJECTIVES/PURPOSE OF THE STUDY

The purpose of this research is to probe into the evaluation of the effect of manpower training and development in service organization using Nigeria port Authority Lagos as a case study with a view to find out how the organization is performing in terms of its employee training and development

The following are the specific objectives of the study

  1. To highlight the advantages of employee training and development in service organization.
  2. To examine the current training and development of employees in the organization and Nigeria Port Authority Lagos in particular.
  • To increase the general knowledge and understanding of individual members.
  1. To recommend appropriate measures that could help improve the current manpower training program. To increase efficiency and effectiveness of employees with the resulting increase in corporate productivity.
    • SIGNIFICANCE OF THE STUDY

The research will be beneficial to all service organization especially Nigeria. Port Authority of Nigeria (NPA) Lagos and their staff as it emphasized the need and encourage the establishment of policy guidelines on the efficient and effective training and development programme.

It will help managers of various organizations to generate ideas and solution to problems based on the best way to run training in their organization in order to achieve desired goals and objectives

It will equally be useful to small scale business

  • RESEARCH QUESTIONS
  1. What method of training and development does your organization use?
  2. What are the category of staff level in your organization
  3. Lack of effective communication within the organization which makes it impossible for most employees to know about training opportunities available to them
    • STATEMENT OF HYPOTHESIS

Here, Hi and Ho below represent the alternative hypothesis and null hypothesis respectively.

Hi: Training and development improve productivity and better performance.

Ho: Training and development does not improve productivity and better performance.

 

 

Hypothesis two

Hi: Training and development improve skills and knowledge of manpower in service organization.

Ho: Training and development do not improve skills and knowledge of manpower service in organization.

  • SCOPE AND LIMITATION OF THE STUDY

The scope of this study although very wide if it has been carried out in the entire service organization. For this reason, it was necessary to have a concentrated area of study which was restricted to the evaluation of the effect of manpower training and development in service organization using Nigeria Port Authority Lagos as the case study.

Its major limitation was the problem of getting information from the institution under study. As a parastatal, there is always the fear of giving information to the public as such, vital information needed was not readily available.

Time equally would not be left out: getting permission to leave school and the issue of finance cannot be ignored as much was spent in procuring materials. However, with fact and judicial use of the limited resources, reasonable analysis has been carried out in this research work.

  • DEFINITION OF TERMS
  • Development: Is the improvement, sharpening, or enhancing existing skills in order to make it meet up with the new challenges arising. It also is a process of improving personnel confidence to face work challenges
  • Training: Is sharpening an existing skill I order to reflect the trends in technology and other social cultural environment changes of an organization
  • Manpower: Is the number of people working or available for work or service

 

 

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EVALUATING THE ROLE MULTINATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES

EVALUATING THE ROLE MULTINATIONAL COMPANIES AND THEIR SOCIAL RESPONSIBILITIES

A CASE STUDY OF CHEVRON PLC PORT-HARCOURT RIVERS STATE

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TABLE OF CONTENTS

CHAPTER  1

Introduction

  • Background of the study
  • Statement of the problem
  • Purpose of the study
  • Significance of the study
  • Research Question
  • Scope of the study
  • Definition of Term

CHAPTER 3

Methodology

3.1     Design of the study

3.2     Area of the study

3.3     Population of the study

3.4     Sample of the study

3.5     Instrument for data collection

3.6     Validation of the instrument

3.7     Distribution and Receival of Instrument

3.8     Method of data analysis

CHAPTER 4

4.1     Data presentation and Analysis

CHAPTER 5

Summary, Conclusion and Recommendation.

5.1     Summary finding

5.2     Conclusion

5.3     Recommendation

5.4     Limitations of the study

5.5     Suggestions for further Research

References

Appendices

Questionnaire

ABSTRACT

This research work to investigate and evaluate the role of multinational companies and their social responsibilities in port-Harcourt rivers state with special emphasis on (chevron Nigeria Plc). It expresses the need for multinational companies to assist the communities on which they operate and run their business. It also reviews the background of the study including a brief history of chevron Nigeria Plc, the sample size of 370 was randomly selected and use out of the total population 500 workers and based on these 370 questionnaires was distributed to ascertain the social responsibilities of chevron plc to their host community. The basic impediment to the companies objectives are discovered to be the problem of pressure groups affecting the corporation improper financial management, riot by indigenes of the host community and vandalization of the company’s property. Similarly, the community experience some problems as a result of the company’s operations, these includes business hazards on environment such as air, lend, water pollution and consumerism. The findings revealed that business social responsibilities creates cordial relationship between Chevron Plc and its host community which helps in raising the standard of living of the people of the community. It is recommended that the company should give employment to the indigenes and scholarships to their children, the company should establish centers where training programmes should be carried act for training their staffs to increase efficiency and success of Chevron Plc. If is also recommended that the host communities should not in turn make the company their enemies rather they should reason together for mutual growth.

CHAPTER ONE

INTRODUCTION

 

Background of the study

To enhance effectiveness and efficiency, companies have to create the cordial relationship with their host communities if business organization relies on society for existence it is only logical that the environment be cultivated and natured to ensure its continuity. It is only in this regards that the oriented of the modern business manager has been changed to reflect the increasing important interdependence between organizations and their communities. With these there is an increasing clamour that business should participate actively in the well being and welfare of the community, society and environment in which they operate and make their profits.

However, it is very obvious that the main motive of establishing any business is to private competitive goods and services to the consumer and society at large. This does not however mean that they have concluded their obligation to the people especially the host communities where the business is sited and operated. Although there is no law as what form of services the host community should benefit from the company. It is normally obliged to cafer for at least their host communities. This they do by aiding the development of infrastructures such as good road network where necessary and again through the provision of electricity to the local populace other forms of services that could be rendered to youth members of that community are of course the provision of gainful employment for school leavers

There are a lot of other services that the hole communities can gain from the business such as the provision of safety measures against pollution whether air, water or land.

On the other hand, the business also looks forward to the local populace for continuous patronage and also for ensuring he business of their support. Therefore the recognition of the business by the community is very important and there is the need to keep the good of the good of the society as a whole in mind while the company is the bedrock of social responsibility.

A BRIEF HISTORY OF CHEVRON NIGERIA PLC

Chevron was found in the year 1913 in the United States of America by Dr. David Rockefeller, it was formerly known as American overseas petroleum company Ltd. In 1963 when the established themselves at escravos River, it discovered oil at the koluama field, offshore Nigeria. In the same year it started drilling for oil deposits at Oka field in the present day Rivers state following the Nigeria indigenization decree of 1972 and 1978 which was designed to raise the level of Nigerian participation in business, chevron Plc divested 40 percent of its shareholdings to the Nigeria public while retaining 60 percent equity in chevron oil Nigeria Plc. Chevron is the third largest oil producer in Nigeria and one of its largest investors, spending more than N30 billion annually. The company operates under a joint venture arrangement with the Nigeria national petroleum Corporation and has assets on land swamp and near offshore concession covering approximately 2.2 million acres (8,900549km) in the Niger Delta region. In 1996, they built a states of the art 103,000 barrel storage terminal and loading facility at Onne in port-Harcourt River state. In the year 2010 chevron’s total daily production in Nigeria average 524,000 barrel of crude oil 206 million cubic feet of natural gas and 5,000 barrels of liquefied petroleum gas (LPG).

Chevron Nigeria Plc Onne-port-Harcourt has been participating in all aspects of petroleum including exploration, production, marketing, transportation and distribution Chevron Plc indulges in programmes which its purpose have been to promote academic excellence, training of indigenous workers, encouraging indigenous participation in the development of infrastructure and social amenities for the community and manpower development in Onne community in particular and port-Harcourt River state in general.

1.2     STATEMENT OF THE PROBLEM

Chevron Plc port-Harcourt encounters the problem of pipeline vandalization of the oil pipeline by the community another problem is he demonstrations being carried out by the community youths because of unemployment and this leads to serious riots which will have a negative effect to the company by hindering work performance for some weeks or even months as the case may e. this also may lead to the harassment of chevron plc staffs by the community youths.

On the other hand, the excessive government taxation levied on business actually end down the profit margin of Chevron Plc Port-Harcourt rivers states in order to take up their social responsibility. A turbulent environment is usually proned to risk, and it’s certainly should be planned for. The problem of kick back philosophy of Nigerian business rode chevron plc profit margine thus ignoring its social responsibilities.

1.3     PURPOSE OF THE STUDY

The purpose of the study are:

1        To evaluate the extent corporate organizations has contributed to the development of host community.

  1. To investigate the causes of non-challant attitude of multinational companies towards social responsibilities.
  2. To determine the extents of benefits host community has received through social responsibility.
  3. To determine the effects of social responsibility on the corporate image of an organization.

1.4     SIGNIFICANT OF THE STUDY

Over the years it has been very difficult for many multinational companies to exercise their full social responsibilities to their host communities which have made the communities to keep on giving some problems to the companies. It is with this view that the importance of this project cannot be over emphasized.

  1. This study will enable the management and staff of Chevron Plc Port-Harcourt rivers state and other organization to know the proper procedure of assisting their host communities.
  2. To the student. This study will expose the student to the functions performed by multinational firms their problems and possible situations.

3        To the society: This study will help the members of the society to know that multinational companies have contributed greatly to the rapid development and economic growth of the communities.

1.5     RESEARCH QUESTIONS

1        To what extent does corporate organizations contribute to he development of host community?

  1. What are the causes of non-challant attitude of multi-nationals towards social responsibility?
  2. To what extent has host communities benefited through social responsibility.

4        What are the effect of social responsibility on the corporate image of an organization.

1.6     SCOPE OF THE STUDY

The scope of the research work is limited to the establishment Chevron Plc Port-Harcourt River states. This study will be carried out with in the geographical boundaries of Onne community in port-Harcourt River states of Nigeria.

1        The attitude of the workers in matters that affects them directly are to be covered.

  1. The relationship between the management and staff of Chevron plc port-Harcourt is to be treated.
  2. Extensive discussion on how Chevron plc port-Harcourt management would imbibe discipline in the workers in order to form a stale organization would be looked into.

1.7     DEFINITION OF TERMS

  1. i) Multinational Company: According to (Eni 2005:26) a Multinational Company is an organization doing business in tow or more countries, according to Lawal (1993:285). A multination company can be defined as an enterprise which the manages interact globally by coordinating, and interchanging Technology, production sales and distribution among subsidiaries and with the parent company.
  2. ii) Business: Nnadozie and Nwana (1995:2) defined business as all profit directed economic activities that are organized and directed towards providing goods and services to mankind.

iii)     Social Responsibility: Luttans and Hodget (1976:185) defined it as the obligation of businessmen to pursue those policies, to make those decisions, or follow those line of actions which are desirable in terms of objectives and values of our society.

  1. iv) Community: A community can be defined as all the people who live in a particular area or country etc. when talked about as a group.
  2. v) Organization: David Hampton (1977:54) defined on organization as a systematic arrangement of people and technology to accomplish some purpose.

The impact of taxation on small and medium scale buisiness in nigeria

The impact of taxation on small and medium scale business in Nigeria

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Chapter one

Introduction

  • Background of the study……………………………………………….….2
  • Statement of the problem…………………………………………………..3
  • Purpose of the study/Objective of the Study……………………………….4
  • Research questions………………………………………………………….4
  • Scope of the study……………………………………………………….…4
    • Subject scope………………………………………………………………5
    • Geographical scope…………………………………………….…………..5

1.5.3    Time scope………………………………………………………..…….….5

1.6       Significance of the study…….…………………………………………….5

 Chapter two

Literature review

2.1        Introduction …………………………………………………………..………7

2.2       Theoretical Review …………………………………………….………..……9

2.3        Theory of Planned Behaviour……………………………………………..…..12

2.4          Theory of Taxation…………………………….……………………………….12

2.5          Ability-to-Pay Principle………………………………………………………….13

2.6          Concept of Small Scale Enterprises…………………………………………….14

2.7         The concept of tax compliance……………………..……………………………16

2.8          problem of tax compliance ……………………………………………………..19

2.9          Contribution of Tax Policy on the Growth of smes……………………………21

2.10        Factors that Favour the Growth in smes………………………………………22

2.11        Policy Measures that will Encourage smes Growth…..………………………24

              Chapter Three

METHODOLOGY

3.1        Research Design……………………………………………………………………28

3.2        Population of the study……………………………………………………………28

3.3        Sample design……………………………………………………………………..28

3.4        Method Of Data Collections………………………………………………………29

3.5        Methods of Data Analysis…………………………………………………………29

             Chapter Four

DATA ANALYSIS AND RESULTS………………………………………………30

4.1      Introduction……………………………………………………………….………….30

4.2      Results of correlation and multiple linear regressions……..…………………………30

           Chapter Five

          Summary,conclusion and recommendation

5.1      Summary………………………………………….…………………………………….35

5.2     Conclusion……..……………………………………………………….………………..35

5.3 Recommendation………………………………………………………………………….37

Bibliography………………………………………………………………………….…..38

Appendix A…………………………………………………………………………………………………………..39

      Appendix B………………………………………………………………………………..40

                                                      Abstract

The study was carried out to find out the impact of taxes on small and medium scale business enterprises in nigeria.the study aimed at assessing the performance of business enterprises in nigeria, finding out if tax payers are aware of all their tax obligations, policies and problems affecting them as well as their businesses. The study applied both qualitative and quantitative research designs where interviews and questionnaires were used. Data was collected from both primary and secondary sources.

Data was processed and analysed using formal tables, pie charts, narrative text, and correlation to find out the relationship between the impact of taxes and performance of small scale businesses. A total of 50 respondents were considered out of the entire population of small scale and medium enterprises.  The findings indicated that the performance of small scale business is affected by stock levels, capital employed, daily expenses, daily sales and the average amount of taxes paid annually.most business owners are aware of taxes paid, uncertain of the mode of assessment and little assistance is given as regards tax awareness.

The findings revealed the problems faced by the small and medium business men as regards mode of assessment, collection and tax collectors, inefficiency by tax collectors, loss of equipment, loss of sales and loss of stock as a result of taxes.recommendations on impact of taxes included; improvement on the method of collecting taxes, educating the business community about its different tax rates and  introducing a scheme that allows tax payers to pay the tax obligation.

 

                                               

Chapter one

                                             introduction

  • Background of the study

taxation increases incentives for public participation in the political process and creates pressure for more accountability, better governance, and improved efficiency of government spending. Taxation also creates incentives for governments to upgrade their institutions for tax collection and administration and to provide more public services (Moore, 2007).

taxes have existed virtually as long as there have been organized governments. The first tax law legislation was introduced in 1919 and ever since then taxes have evolved through a number of reforms. The government in an attempt to widen the tax base and collect more revenue has had to levy several taxes especially on business enterprises in Nigeria which constitute a large part of the formal sector.

The taxes charged on business enterprises in Nigeria include; corporation tax, value added tax, presumption tax and exercise duty. In 1997 the income tax act was made. This was to give guidance in assessment and computation of taxes (campsy, 1997). The nigerian government has made some recommendable efforts to promote development through taxation since the inception of the current taxation laws for purposes of promoting development.

The main objective of taxation in nigeria has always been to mobilise resources needed to meet the aspiration of government. This is because for any government to be effective, strong, competent and capable of spearheading development, resources have to be readily available in its treasury so as to be in position to provide goods and services to the people adequately. The nigerian government has always had to ensure proper resource mobilization (musa, 1992).

according to manasseh (2000), a tax is generally referred to as a compulsory levy imposed by government upon various categories of assets and taxation is a compulsory and non refundable contribution imposed by government for public purposes. In nigeria a considerable fraction of the businesses are sole traders operating small scale business, locally owned and managed by individuals or families and often with very few employees working at a single location (nigeria development bank report, 1988).

Taxation in nigeria is based on system that existed in britain as it was a british colony. This also applied to other colonies elsewhere and for east africa, one tax system operated under british administration. This process began in 1900 with the hut tax regulation which imposed a standard charge for every hut/dwelling.

During that period, taxation was aimed at raising revenue for the administrative structure imposed by the colonial government but also as a means of encouraging monetary/economic activities. It was the local authority ordinance of 1991 that governed the collection of taxes. In september 1991, after a period of review the rural revenue authority (ura) was established. All taxes including income tax came under the umbrella of the ura. From 1992, ura has been organizing and strengthening the administrative procedures and in 1993 this process assisted by a grant from the british government of approximately us$ 10million.

At least 50 small scale business enterprises were selected in illorin, almost all of them employ 2-4 people. These small scale businesses are locally owned and managed by private individuals who sometimes employ their family members. These small and medium scale businesses bear a wide tax burden which has led to poor performance. Therefore, it was against this background that the researcher undertook the study to investigate more about the problem using nigeria as a case study to evaluate the impact of taxes on small and medium scale business enterprises.

1.2 statement of the problem

Taxes are raised by the government to generate revenue used to provide services to the public such as; health centers, telecommunication, roads, schools and electricity and this have helped to improve the performance of small and medium scale business enterprises. Despite the services provided, small and medium scale business enterprises performance in nigeria is still poor. This could be due to the increasing tax burden brought about by tax rates which are revised annually. These rates seem to be taking an upward trend (gordon and dawson, 1987) which has led to winding up of some small scale business enterprises. This prompted the researcher to investigate more about the impact of taxes on small scale business enterprises.

1.3 purpose of the study/objective of the study

The purpose of the study was to evaluate the impact of taxes on small scale business enterprises in nigeria. The specific objectives are:

  1. To assess the impact of taxation on small and medium scale business enterprises in nigeria.
  2. To find out if tax payers are aware of all their tax obligations and policies.
  3. To find out problems affecting tax payers and their business.

1.4 research questions

  1. What is the effect of taxes on the performance of small scale business in nigeria?
  2. Are tax payers aware of all their obligations?

3.what are the problems faced by tax payers?

1.5 scope of the study

1.5.1 subject scope

The study covered small and medium scale businesses in nigeria. Specifically, the study investigated the performance of small scale businesses, the awareness of the tax payers regarding their obligations, problems faced by the tax payers and the relationship between the taxes paid and the performance of the small scale businesses.

1.5.2 geographical scope

The study was carried out in ilorin kwara state, nigeria. The area was purposely selected because the researcher worked within the vicinity and therefore this eased data collection.

1.5.3 time scope

The study considered a period of four to six months. This period was selected to enable the researcher come up with coherent information from the respondents as it would enable them (respondents) to give responses that are typical of their opinion from the observations made over this period.

1.6 significance of the study

The findings of the study are significant on the following ways;

  1. To scholars and researchers, the findings of the study are expected to contribute to the existing literature about taxation and the effect it causes to the economy as a whole.
  2. To the tax authority and government, the study will guide them in adjusting tax policies so that they suit requirements of small and medium scale businesses.
  3. To future academicians especially of nigeria university students, the study will help in gaining insight about taxes and performance of small scale business enterprises.
  4. The accomplishment of the study will enable the researcher to acquire hands on skills about processing of research work and data analysis. This proficiency will enable the researcher to handle such related work with a lot of precision and proficiency.

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