NAME: IHEUKWUMERE LILIAN
DEPARTMENT: BUSINESS ADMINISTRATION
OPTION: OPERATIONS AND PRODUCTION MANAGEMENT COURSE TITLE: BUS 802 BUSINESS RESEARCH METHODOLOGY
ASSIGNMENT : IMPACT OF ALTERNATIVE POWER GENERATION ON SMALL AND MEDUIM SCALE ENTERPRISES IN NIGERIA. CASE STUDY: THE LAUNDRY BUSINESS IN NIGERIA
KEYWORDS: SME’s, power, performance, financial development, poverty alleviation and employment 1. Introduction
Small and Medium Enterprises Development (SMEs) has continued to be a popular phrase in the Business world. This is because the sector serves as a catalyst for employment generation, national growth, poverty reduction and economic development. More so, 70% to 80% of daily necessities in the country are not high-tech product, but basic materials produced with little or no automation. Most of these products come from the Small and Medium Enterprises. According to Odubanjo (2000), Onwumere (2000).
The only set back to the growth and positive impact of SME’s to the economy is the fact that Nigeria has unstable power supply, this unstable power has really destabilised the SME’s but for the alternative sources of power generation . Most enterprises whose business activities depend on constant power supply to have a smooth running of their activities would have been crippled. This would have resulted in a ripple effect in the larger economy as so many of these business have several dependents who contribute their own little quotas to the economy.
Furthermore, it is essential to note that without the alternative generation of power most SME’s would have collapsed, although it comes at a high cost and eats into the chunk of business profitability these alternatives are the only reason why neighbourhood businesses for example, the laundry service can still be open for business. This is taking into cognizance the importance of the laundry service to the working class populace that are so preoccupied with official assignments, the employees of the laundry service who get paid and in turn caters for their dependents, the government that receives tax from the laundry business and the stress that is being taken away from the economy by not having to pay these individuals unemployment packages.
2. Conceptual Framework and Literature Review
Literature is full of different system concept however, Kaynak and Olofddon-Brendenlow (1995) proffered that an open system is a set of interrelated component that function together, within constraints, towards a common goal. To this end, the open system suggests components that interact dynamically to create a synergistic whole which is greater than the sum of its parts. For an SME organization in Nigeria, the organization interacts with the environment and the units within the technological, infrastructural and financial sub-units within which it operates. That is to say, to effectively run an SME in Nigeria the reliance on alternative power source cannot be over emphasised, it is the back bone of the organization especially those organization that need power to carry out more than 50 percent of their job functions.
The implications of alternative power generation on SME’s the laundry business to be precise which is our case study is very critical. On the outlook whilst independent power generation cuts a very big chunk of the expected profits. It is better than the nothing as it presents a solution to the epileptically power shortage in Nigeria. Alternative power generation for small business makes it possible to keep the business running. Such alternatives like generators (diesel or fuel}, coal irons (charcoal), solar panels e.t.c not only creates a new source of wealth generation to the through the provision of these additional goods but also makes it possible to effectively run a business without waiting for power from the national grid.
References: Kaynak E., P.N. Ghauri, and T. Olofsson-Brendenlow, 1995. ‘Export Behaviour of Small Swedish Firms, Journal of Small Business Management, Vol.25, No.2, April, Pp. 26-32
Olson D.D. 1987. “Entrepreneur and Management”, Journal of Small business Management, Vol.25, No.3, July, Pp. 7-13.
Onwumere, J.U.J (2000). The nature and relevance of SMEs in economic development. Journal of the chartered Institute of Bankers of Nigeria
Odubanjo, K (2000). Relevance of small scale enterprises in the development of the Nigerian
economy . Journal of the chartered institute of bankers of Nigeria. July – December.
Please join StudyMode to read the full document