Critical Analysis of Core Management Principles in the Management of Small and Medium Scale Industries in Nigeria
- January 13, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue XII, December 2018 | ISSN 2454–6186
Ajugwe Chukwu Alphonsus Ph.D.
Abstract: In Developing countries like Nigeria, it has been observed that more than 80 percent of the startups died at their infancy, while the older SMEs suddenly folded up. This is despite various policies adopted by the Federal Government through the Central bank of Nigeria to encourage the sustainable growth of the SMEs by ensuring grants are extended to them and through extension of soft loans to the sector at less than one digit interest rate. This inclusive of other favorable incentives targeted to grow the sector.
The paper will critically analyze various management styles applied by the operators of the SMEs, again will examine how effective and efficient they are in enhancing the management of the SMEs, furthermore pointing out the advantages accruing exclusively to those enterprises that apply management principles. The impediments that prevent the operators of SMEs from not applying the management principles are also analyzed and solutions to remove the bottlenecks are proffered.
They are however many researches who have focused on determining the importance of applying management principles in the running of Small and Medium Scale Enterprises (SMEs), this entails examining various theories of management. Emphatically stated, Yasin Olum (2004) stated three reasons for studying management theories: theories provide a stable focus for understanding what we experience, theories enable us to communicate efficiently and thus move into more and more complex relationship with other people and thirdly theories make it possible indeed, challenge us – to keep learning about our world. Therefore, it becomes necessary to examine the various management theories critically and analyze their importance, effect and impact on the management of SMEs. The management theories took their roots from three well known approaches to management: classical approach, behavioral approach, and management science approach.