Management Science

EFFECTS OF CAPITAL INVESTMENT ON PROFITABILITY IN SMALL SCALE BUSINESSES A CASE STUDY OF ECWA JOS

Bachelors Degree

This study is aimed at ascertaining whether the Nigeria small scale business can gain profit by applying capital investment.

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Research have shown that small scale business contribute 80% of the growth of most economies and Nigeria is not excluded. Since that is the case there is the need of operating small scale business and to create room for it continues operation, in which that can only be guaranteed when profit are realized, which is the main motive of establishing the business. To make profit in the small scale business there are many decision that need to be taken but for the purpose of these research work we will look at one fundamental factor that affect the profit of small scale business, which is capital investment. When money is accrued into business to acquire capital asset or fixed asset such as manufacturing plants & machinery that is expected to be productive over many years capital investment is said to have taken place. Business makes continual capital investment to sustain existing operations and expand their business for the future. The main type of capital investment is in fixed assets to allow increased operational capacity, captive a large share of the market and in the process generate more revenue.

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