Problems and Prospects of Small and Medium Scale Food Processing Organizations

Description

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Abstract

The study was undertaken to examine the problems and prospects of small and medium scale food processing firms.

Oral interview was used while data collected through questionnaires show the effect of capital outlay, expert manpower, environment, infrastructural development, competition and requisite law on small and medium scale food processing firms in Enugu Metropolis.

Major findings are that expert manpower, infrastructural development, healthy competition contribute to the development of these firms. There are also correlations between nature of environment, requisite laws and development of small medium scale enterprises.

Introduction

Business organizations from sole proprietor type to the large multinational conglomerate firms are simply classified into three broad categories. The categories are small scale enterprise (SSE), medium scale enterprise (MSE) and large scale enterprise. The following definitions of SSE were given by Ayozie (2006;5):

In Nigeria, the Third National Development plan defined a small scale business as a manufacturing establishment employing less than ten people, or whose investment in machinery and equipment does not exceed six hundred thousand naira.

The Central Bank of Nigeria in its credit guidelines, classified small scale business as these businesses with an annual income/asset of less than half a million naira.

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