THE ROLE OF SMALL AND MEDIUM ENTERPRISES IN THE NIGERIAN ECONOMY
This research work was designed to determine the role of small and medium enterprise in the development of Nigeria economy. Some selected enterprises were used as a case study and questionnaires were administered in order to extract information on this project. The objectives of the study includes to identify the roles of small and medium enterprises in the development of the Nigeria economy and to evaluate the problems the encountered in the establishment of small businesses. Some literature were reviewed in relation to the topic with the themes and sub themes of the study. However, in research methodology, the researcher used some instruments for data collection. These instrument s emanated from both the primary and secondary source of data. The data collected were analyzed, grouped into frequency, computed and arranged in tables for easy references. The statistics tools for analysis are the simple percentage and chi-square technique. These techniques were appropriately applied at 5% level of significance. The result of the study shows that small and medium enterprise plays a vital role in the development of Nigerian economy despite the various problems the encounter in the establishment of small businesses. Some recommendation were also made based on the results of the findings.
TABLE OF CONTENTS
Table of Contents
CHAPTER ONE: INTRODUCTION
- Background of the Study
- Statement of the Problem
- Objective of the Study
- Significance of the Study
- Scope and Limitation
- Research Question
- Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
- Meaning and Concept of Small Business Enterprise
- Basic Characteristics of Small Scale Enterprise
- Types of Small business
- Sources of Fund to Small Businesses
- Government Influence on Small business Enterprises
- The Role of Small Scale Business
- Problems of Establishing Small Business Enterprise in Nigeria
CHAPTER THREE: RESEARCH METHODOLGOY AND DESIGN
- Research Design
- Sample Size Used
- Instrument for Data Collection
- Population of the Study
- Validity and Reliability of Instrument
- Method of Data Analysis
CHAPTER FOUR: PRESENTATION OF DATA
- Data Presentation and Analysis
- Testing of Hypothesis
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION
- Summary of Findings
- BACKGROUND OF THE STUDY
For the past decades, small business enterprises in Nigeria were characterized as essentially backward and cog in the wheel of the overall development of the Nigeria economy. As a result of this, there has been a prevalent feeling that such businesses could be assisted only for social reasons, not as a promising opportunity for national development. Obviously, too little attention has been paid to the benefits to be derived from helping small enterprises of modernize and grow. This attitude arose partly amongst both the citizens and government and mainly from the very nature of the small business which made it difficult for its impact to be felt in the economy.
The latent contributions which small business can make are now attracting recognition. This awareness is manifest in the ever-increasing number of Nigerians who daily strive to put up their personal ideas and abilities to effective use [by starting small business] ventures. Evidence around the world indicate that small scale enterprise provide an effective means of stimulating indigenous entrepreneurship, enhancing greater employment opportunities per unit of capital invested and aiding the development of technology. Through their wide dispersal, they provide an effective means of mitigating rural-urban migration and resource utilization. Furthermore, by producing intermediate products for use I n large scale enterprises, small businesses contribute to the strengthening of industrial linkages.
Accordingly, due to the recognition of the roles of small business, the Nigerian government has since 1970 initiated programmes for the assistance of small businesses, especially, in the areas of finance, extension and advisory services including, training and provision of infrastructures. All these are designed to enhance the development of small businesses. Successive governments in Nigeria have for the past three decades shown great interest in the financing of small businesses by establishing specialized banks and other credit agencies/schemes to provide customized funding.
In spite of all the contributions and the attention given to it by the government, the small business enterprise is still confronted with problems peculiar to what many may refer to as the ‘Nigerian factor’. One of such problems is the lack of funds, “It takes money to do business”. From the time a business idea is conceived of [the promotional state] until after it has ceased to operate, there are financial implications in every activity at every point in time associated with the businesses. It is therefore not surprising that the issue of financing is of major concern to small business organization. Despite that, the role of SMEs in Nigeria cannot be underestimated.
It is noteworthy that most of the small businesses in Nigeria are sole proprietorship and partnerships.