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The Development Of Small Scale Industries As An Instrument For Controlling Unemployment Problems In Nigeria
[A CASE STUDY OF OSTRICH BAKERY ILORIN KWARA STATE]
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Business involves activities embarked upon for livelihood and for the purpose of profit making. For any pursuit or activity to be legally recognized as a business some type of economic activities must be involved and a profit motive must be present. An activity is considered a business it is entered into and carried on in good faith for the purpose of making profit and for its material contribution to the welfare of the community. Having decided to start a business, an initial or early consideration which should be in mind is what type of business entity is to be set up? This is an area where professional assistance should be sought as there are legal matters to be considered in making this decision.
For anybody embarking on business venture, following should be considered:
1. Sole proprietorship
2. Partnership
3. Corporation
Partnership or sole proprietorship does not pay any federal income taxes, but sole proprietorship which is considered in most cases small scale includes. The profits and losses from business on their own income tax return. Corporate profit on the other hand are levied on both the corporate and the individual share holders when the profits are distributed as dividend losses by the corporation and stock holder would not have dividend for that period.
SOLE PROPRIETORSHIP
Sole proprietorship is a one business which stands the advance of sample formation with less legal requirement. Individual who engage in business on their own account are referred to as sole proprietorship. More than seventy five percent of small scale businesses in the country are sole proprietorship. In this firm, the business has no legal existence apart from the owner; its liabilities are the personal liabilities of the proprietor and on death of the proprietor automatically bring the business to an end.
The proprietorship undertakes all the risks of the business to the full extent of all his assets. The income from sole proprietorship is exported as part of the owners total arose income, and cash asset in a sole proprietor is treated separately for tax purposes.
PARTNERSHIP
A partnership represents the relationship that exist between two or more persons who team together to embark on a business with each contributing money, property, labour, or skill and each expecting to share in the profit or losses of the business either or not a partnership agreement has been drawn up. Though a partnership is not a taxable entity, it must determine its income and fight on income tax return in the same manner as on individual except for certain items that must be stated separately. Each partnership agreement specifically limits the liabilities of certain partners. In partnership the business stand a better chance in raising capital because it will have more input from other partners rather one-man business.
CORPORATIONS
The formation of a corporation involves the transfer of money and property or both by the prospective shareholders in exchange for capital stock in the corporation. It costs a lot more to set up a corporation and its profits to corporate profits are tax to the corporation, when the profits are distributed as dividend, the dividends are taxed to the individual shareholders.
In computing its taxable income, a corporation officially can take the same deduction allowed to individual in addition to some special deductions available only to corporations.
Every corporation must file an income tax return regardless of the amount of its income. The personal liabilities of the individual involved in the corporation. Unlike sole proprietorship or partnership are limited to their investment, the corporation is treated like an individual. However, it can due and can be sued.
1.2 STATEMENT OF PROBLEM OF THE STUDY
Despite direct government allocation to small scale industries at both federal and state levels through agencies like small scale credit scheme (S.S.C.E) coupled with directives the all commercial banks and other financial institutions to extend certain percentage of their loans and advances to small scale business owners the sector is still crumbling and unable to find its feet due to inability to secure funds for their growth.
1.3 AIM AND OBJECTIVES OF THE STUDY
The objectives of this study are to critically analyze and highlight the development of small scale industry as an instrument for controlling unemployment problems in Nigeria.
To serve as a source of information to students of business and management department on small scale business.
The aim of this research is to find out the various avenues by which the development of small scale industries can serve as an avenue or instrument for controlling unemployment problem in Nigeria. The research intends to find out problems of securing funds for the local industries and getting useful advice to the intending local industrialist in other to be able to manage their enterprise effectively and efficiently.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThe main thrust of this study was to evaluate the significance of the development of small industries as an instrument for controlling unemployment problems in Nigeria, choosing Ostrich Bakery Limited Ilorin, Kwara state as the case.To achieve this series of text on the development of small scale industries as an instrument for controlling unemployment problems in Nigeria were consulted with the aim of knowing the perspective of various aultours on the theoretical frame work of the study ... Continue reading---
