Small Business in Nigeria - 2732 Words

Table of Contents Introduction------------------------------------------ 1 Constraint in small business : 1) Exchange rate-----------------------------------2 2) Access to loan -------------------------------2 - 3 3) Infrastructure --------------------------------3 - 4 4) Technology ----------------------------------4 - 5 5) Taxation -----------------------------------------6 6) Regulation --------------------------------------7 7) Policy---------------------------------------------8 Conclusion-------------------------------------------9 Recommendation----------------------------------9 Reference list-----------------------------------10 - 12 Introduction Nigeria is a country with 923,768 sq km ( 356,700 sq miles†¦show more content†¦Then, their business profit needs to be share to government and they only get 67.8 percent of profit. For example, if a business earns 10000 Nigerian naire then 3220 Nigerian naire need to give government for the tax. They only get 6780 nigerian naire and it will limit the expand of business as yearly profit frequently be the main resource of capital to grow the firm. So the high tax rate will make the entrepreneur have less money to increase the capital in business. (Mitchell, and Fellow 1993,6 ) ( Source : Paying Taxes in Nigeria, n.d ) 6 Regulation Nigeria has a high cost on register a legal licence for a standardized company and takes lot of times. It takes around 31 day around 1 month to start up a new business but in US it only takes 6 day. It need 89903 Nigerian naira plus 7.5 percent stamp duty paid on capital to get a new business licences but in US it only need 325 US dollar. Without operating the business, small business already had to use around 89903 Nigerian naira by getting the new licences. Sources : Starting a Business in the United States. n. d Sources : Starting a Business in Nigeria. n. d 7 Policies Abugu( 2007 ) has found that the government in Nigeria is lack of commitment at every level in order to develop small business sector. But there are certain of the policies or laws that only can carry out by government. In Nigeria, the government hasShow MoreRelatedSmall Business in Nigeria2742 Words   |  11 PagesTable of Contents Introduction------------------------------------------ 1 Constraint in small business : 1) Exchange rate-----------------------------------2 2) Access to loan -------------------------------2 - 3 3) Infrastructure --------------------------------3 - 4 4) Technology ----------------------------------4 - 5 5) Taxation -----------------------------------------6 6) Regulation --------------------------------------7 7) Policy---------------------------------------------8 Read MoreThe Role of Cost Accountants in Small Scale Manufacturing Industries in Nigeria1259 Words   |  6 PagesBACKGROUND OF THE STUDY The preponderance of vast number of small scale industries in Nigeria suggest that the situation offers substantial opportunity for the intensive development and improvement of this sector, with appropriate injections of technology, improved management, efficient marketing techniques and so forth (Echu, 2002). 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