Continental J. Social Sciences 3: 83 - 91, 2010 ISSN: 2141 - 4265© Wilolud Journals, 2010 http://www.wiloludjournal.comAPPLICATION OF OPERATIONS RESEARCH TOOLS TO AID PERFORMANCE GROWTH OF SMALLSCALE INDUSTRY IN NATIONAL DEVELOPMENT IN SUB SAHARAN AFRICA: CASE STUDY OFNIGERIAMagbagbeola, J.A.O
, Adetoso, J.A
& Magbagbeola, E.O
Dept. of Actuarial Science & Insurance,
Dept. Of Accounting, Joseph Ayo Babalola University, Osun State,Nigeria, Joseph Ayo Babalola University, Osun State, Nigeria,
Research Fellow, Dept. of Business Admin., LagosState University, Ojoo, Lagos State, NigeriaABSTRACTMost entrepreneurs are even undecided about the type of business to set up and lack necessary businessideas. Some Small scale operators are undecided on how to finance their business and where to source forthe funds. Other obstacles and reasons for non striving of the small scale sector of our economy alsoincludes socio-cultural obstacles such as lack of entrepreneurship culture and education. Nigeria’s socialsystem limits opportunities for creative activities, and the limiting role of most relying belief which barsadmission to initiatives and entrepreneurships. They preach perseverance, rather than risk taking andaggressiveness, necessary for business. Other includes technological backwardness of Nigerian which leadsto labour inefficiency, political sabotage, coup d’états, local and youth restiveness, thuggery, armedrobbery. All these create insecurity in the minds of entrepreneur. Some managerial problem which includesbut not limited to the absence of strategic management skill and attitudes, the inability to respond tothreatening environmental conditions, lack of clearly defined objectives, lack of delegation, inability toselect appropriate equipments and resources, and the faulty design, implementation and evaluation by smallscale business. Also, rudimentary introduction to available tools in Operations Research (OR) should beencouraged, in other to assist the young business owners in the art and science of decision making. Someidentified problems earlier stated would have received attention if the said entrepreneur(s) is acquaintedwith the use of this great tool. Take for instance, the traditional problem resource allocation, planning,allocation, replacement, control and management of as envisaged in any business can be best approachedusing the knowledge that would be gained from the appreciative study of use and application of ‘OR’ tools.Let it be mentioned that OR tools deployment and application are not decision, but rather they will aid andassist or guide decision-making process. ‘Yes’ quantitatively, business owners may want to shy away fromembracing its usage i.e OR tools, but imbibing its culture (OR) is best recommended as ‘OR’ is described asthe science of decision making.KEYWORDS: Entrepreneurs, Modelling, Education, Operations Research.INTRODUCTIONA business whether small or big, simple or complex, private or public, etc is created to provide competitive prices.Business in Nigeria has been classified as small, medium and large. However, a small scale industry can be definedby the criteria of project costs, capital, cost turnover by the employee, etc. the federal and state ministries of industryand commerce have adopted the criteria of value of installed fixed capital to determine what a small scale industryis, in this respect, the value has varied from N60,000 in 1972, N159, 000 in 1975, N250,000 in 1986, to a fixedinvestment of not more than N2,000,000 (two million naira) in 1992. This figure is exclusive of buildings andsubject to government determination and land prevailing objective of public policy. In the wake of SFEM, and SAP,this value has now been reviewed and sufficiently increased to five million naira. Since this happened, there may bea need to classify the small scale industry into MICRO and SUPER MICRO business, with a view to providingadequate incentives and protection for the former. In the meantime, any business or enterprises below the upper limitof 250,000 and whose annual turnover exceeds that of a cottage industry currency put at6 N5,000 per annum is asmall scale industry. The National Directorate of Employment (NDE) concept of a small scale industry has beenfixed to a maximum of N35, 000.
Historical Development and Orientation of Small Scale Industry In Nigeria.
Small scale industry orientation is part and parcel of Nigeria. Evidence abound in our respective communities of what successes our great grandparents made of their respective trading concerns, yam barns iron smelting, farming,cottage industries and the likes. So the secret behind their success of a self reliant strategy does not like in anyparticular political philosophy, so much as in the people’s attitude enterprise and in the right to which the right