AN INVESTIGATE INTO THE SMALL AND MEDIUM ENTERPRISES (S.M.E.s) AS A NECESSARY WHEEL FOR ECONOMIC DEVELOPMENT IN NIGERIA
ABSTRACT
The contribution of small and medium enterprises to the Nigerian economy is greatly visible in creating employment opportunities for many Nigerians. The research was carried out to investigate the Small and Medium Enterprises (S.M.E.s) as a necessary wheel for economic development in Nigeria. The data collection method was a questionnaire and consultation of relevant and recent journals and textbooks. Therefore, the role of S.M.E.s can not be underestimated in both developing and developed nations. Some of the problems identified as barriers to the development of S.M.E.s (tools of Economic Growth) are the areas of financial support from the government, lack of electricity, and no availability of good loans or grants. Hence, the government should provide the necessary resources, facilities, and support to develop S.M.E.s to reduce the rate of unemployment and increase production in Nigeria. This action will yield and increase the economic output, which will lead to economic growth, and in no time, economic development will become a reality in Nigeria.
TABLE OF CONTENT
PAGES
Title page i
Certification ii
Dedication iii
Acknowledgment iv
Abstract vi
Table of Content vii
CHAPTER ONE
- Introduction and Background to the Study 1
1.1 Statement of Problem 2
1.2 Purpose of Study 3
1.3 Research Questions 4
1.4 Research Hypotheses 5
- Significant of Study 5
1.6 Scope of Delimitation 6
1.7 Definition of Terms 7
CHAPTER TWO
2.1 Literature Review 10
2.2 History of Small and Medium Enterprises
in Nigeria 11
2.3 The Concept of Economic Growth
and Development 12
2.4 The Impact of Small and Medium
Enterprises in Nigeria Economy 16
2.5 The Meaning of Small Medium Enterprises 18
2.6 Government Impact on Small and
Medium Enterprises 21
- N.G.O.s Impact on Small and
Medium Enterprises 24
- Financial Impacts on S.M.E.s 27
2.9 Constraints to the Development of S.M.E.s 28
2.10 Small and Medium Enterprises
Modalities for Implementation 34
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction 35
3.1 Research Design 35
3.2 Population of Study 36
3.3 Sample and Sampling Technique 36
3.4 Instrument for Data Collection 36
3.5 Validation of Instrument 36
3.6 Reliability of Instrument 37
3.7 Method of Data Collection 37
3.8 Method of Data Analysis 37
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.0 Introduction 38
4.1 Personal Information of Respondents 39
4.2 Presentation of Results and
Testing of Hypothesis 41
CHAPTER FIVE
SUMMARY, CONCLUSION, AND RECOMMENDATION
5.1 Summary 60
5.2 Limitation of Study 61
5.3 Suggestions 62
5.4 Conclusion 62
5.5 Recommendation 63
References 64
Appendix 67
CHAPTER ONE
- INTRODUCTION AND BACKGROUND TO THE STUDY
This study investigates the activities of the small and medium enterprises and the part they played in bringing the desired economic development in Nigeria. It is crystal clear that, since the discovery of crude oil in 1956, Nigeria has neglected the potential inherent in other sectors of the economy.
Diversity in the economic approach is the only lasting key to achieving the desired development.
Considering that Nigeria in 2020 would want to join the league of the first twenty (20) developed countries globally, To achieve this vision, the Nigerian economy should emphasize the required sectors like the Small and Medium Enterprises (S.M.E.).
According to Akinola A.O (2013), small and medium enterprises are part of the tools of diversity that can bring forth the nation’s required development.
This research will consider the potential of small-medium enterprises (S.M.E.) as a necessary wheel for economic development.
Also, the study of small and medium enterprises is in various stages, which will allow discussion and interactions with small business owners.
This work is divided into five chapters: the introductory part, review of literature, research methodology, presentation and analysis of data, and summary.
1.1 Statement of Problem
The research work considered various problems confronting the small and medium enterprises (S.M.E.) in Nigeria.
The problem of this study is to educate on the challenges of human and natural resources for enterprises; The inconsistent and negative attitude of small and medium investors coupled with the government; The lack of ideas and strategies for growing and expanding small and medium enterprises.
Also, the problem of illiteracy affects small and medium enterprises that feature in the preparation of a business plan. The problems of financing small and medium enterprises can not be underemphasized.
1.2 Purpose of the Study
This research is being done to achieve some set aims and objectives, and it is appropriate that at this junction, the purpose of the study will be made known so that they would be able to serve as a yardstick that would determine what and what would be and would not be in work. Therefore the purpose of the study is as highlighted below:
- To reveal that Small and Medium Enterprises (S.M.E.) impact overall Nigeria.
- To make it known to the public that investment has a great impact on the economic development of a nation.
- To expatiate the role of government and Non-Governmental organizations (N.G.O.) in developing small and medium enterprises in Nigeria.
- To reveal and emphasize the role of business plans for small-medium enterprises in Nigeria.
- To elucidate vividly the problem facing the N.G.O. and government of the nation in developing Small and Medium Enterprises (S.M.E.).
- To reveal the government’s ongoing effort to develop Small and Medium Enterprises (S.M.E.).
- To use this work to make appropriate recommendations that policymakers might find useful.
1.3 Research Questions
- Can Nigeria attain economic development by developing small and medium enterprises (S.M.E.)?
- Can an enterprise-oriented educational curriculum lead to the expansion of small and medium enterprises in Nigeria?
- How can government and N.G.O. support the growth of small and medium enterprises?
- Will the persistent terrorism crisis in Nigeria become a cog in the wheel of the small and medium enterprises?
1.4 Research Hypotheses
Ho: There is no relationship between economic development and small and medium enterprises (S.M.E.) development.
H1: There is no significant relationship between enterprise-oriented educational curriculum and the expansion of small and medium enterprises in Nigeria.
H2: There is no significant relationship between the government and non-governmental organizations and the growth of small and medium enterprise.
H3: There is no relationship between the persistent terrorism crises in Nigeria and the small and medium enterprises.
- Significant of Study
The result of the research work can help address the problems affecting the development of small and medium enterprise in Nigeria and throw more light on the activities of the government and non-governmental organizations on the promotion of small and medium enterprise (S.M.E.).
Almost all the available works on small and medium enterprises and their impacts on an economy have always focused their attention on the developed economy, with little recognition being accorded to the developing countries.
Thus the significance of this work lies in the fact that at successful completion, it would have added to the libraries on works that relate small and medium enterprise (S.M.E.) to the developing countries like Nigeria.
1.6 Scope of Delimitation
As a result of the size of the population and the number of organizations involved, the researcher bent on using personal interviews, journals, and desk research as the main method of gathering the data needed.
The researcher limited his information gathering to S.M.E.s within Ojo Local Government Council in Lagos State based on the populations involved.
Finally, the researcher was able to conclude his research work with the help of the available materials in her possession.
1.7 Definition of Terms
Small and Medium Enterprises (S.M.E.):
Different scholars define S.M.E. differently based on country and nation’s standards.
In the international journal of academic research in business and social science (2012), Arowomole (2000) said S.M.E.s are business or firms which is independently owned and operated; it is not dominant in their field and meets the criteria for the S.M.E. business administration sponsored loan program.
In Nigeria, CBN defines small and medium enterprises according to asset base and number of staff employed. The criteria are an asset base between N5 million and N500 million and a staff strength between 20 and 300 employees.
- Economic Development: Professor Micheal Todaro defined economic development as an increase in living conditions, improvement of citizens’ self-esteem, needs, and a free and just society. He suggested that the most accurate method of measuring economic development is the human development index, which considers the literacy rate and life expectancy, which has an outright impact on productivity.
- Investigation: Observing or studying by close examination and systematic inquiry. The investigation is seen as conducting an official inquiry.
- Business Plan: This document describes the business’s nature, sales strategy, and financial background and includes a projected profit/loss statement. A business program is also a roadmap that provides direction so a business can plan its future and help it avoid bumps in the road.
- Enterprise Modalities: This refers to the formal, ceremonial forms, protocols, or conditions of small and medium enterprises that surround the operation of a business.
- Wheel: A drive or potential to achieve another end. A factor or a push or pull that helps realize intended goals.
- Financial Planning: It is estimating the capital required and determining its competition. It is a process of framing financial policies with procurement, investment, and administration of funds of an enterprise.
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