TABLE OF CONTENTS.

CHAPTER ONE

1.0      INTRODUCTION

1.1   BACKGROUND OF THE STUDY

1.2   STATEMENT OF THE PROBLEM

1.3   OBJECTIVE OF THE STUDY

1.4   RESEARCH QUESTION

1.5   SIGNIFICANCE OF THE STUDY

1.6   SCOPE AND LIMITATION

1.7   ORGANIZATION AND PLANNING

1.7   ORGANIZATION AND PLANNING

CHAPTER TWO

2.0      LITERATURE REVIEW

2.1   DEFINITION OF SMALL AND MEDIUM SCALE ENTERPRISES

2.2      SME AS A STRATEGY FOR ECONOMIC DEVELOPMENT

2.3      SME AND EMPLOYMENT OPPORTUNITIES

2.4    SME AND UTILIZATION OF LOCAL RESOURCES FOR PRODUCTION

2.5      SME AND ITS FINANCING

2.5.1        ASSOCIATED PROBLEMS WITH SOURCING OF FUNDS FROM COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTIONS BY SMES 2.5.2    OVERVIEW OF GOVERNMENT’S EFFORT IN THE DEVELOPMENT OF SMES IN NIGERIA INDUSTRIAL DEVELOPMENT CENTRES (IDCS) 

2.5.3   SMALL SCALE INDUSTRIES CREDIT SHEME (SSICS)

2.6   SME AND SELF RELIANCE

CHAPTER THREE

RESEARCH METHODOLOGY

3.1   INTRODUCTION

3.3   SAMPLE DESIGN AND PROCEDURE

3.4   METHOD OF DATA ANALYSIS

3.5   DATA COLLECTION INSTRUMENT AND ADMINISTRATION

3.7   LIMITATION/ PROBLEMS OF DATA COLLECTION

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1   INTRODUCTION

4.2   PRESENTATION OF DATA

4.2.1  TYPES OF COMPANIES STUDIES

4.3   RESPONDENTS BY VARIABLES

4.4   ANALYSIS OF RESEARCH QUESTIONS

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1   SUMMARY OF FINDINGS

5.2   CONCLUSION

5.3   RECOMMENDATIONS

5.3.1        COMMERCIAL BANKS

5.3.2        CENTRAL BANK OF NIGERIA

5.3.3        GOVERNMENT

5.3.4        SMALL AND MEDIUM SCALE ENTERPRISES DEVELOPMENT AGENCY OF NIGERIA (SMEDAN)

5.3.5        PROMOTERS OF SMALL AND MEDIUM SCALE ENTERPRISES

REFERENCES

APPENDIX: QUESTIONNAIRE 

CHAPTER ONE

 

1.0      INTRODUCTION

1.1   BACKGROUND OF THE STUDY

        This study will have its fundamental root from the contribution of small and medium scale enterprises (SMES) o the economic development in Nigeria.

        Apart from the potential development of small and medium enterprise for ensuring a self reliant industrialization in terms of the ability to rely largely on local raw materials. It is also a good strategy to boost employment and guarantee an even distribution of industrial establishments in the country including the rural area.

        Consequently, both the federal and state Government and recently Local government has had risen to promote the development of small the medium enterprises (SMES) through increased incentive scheme including enhanced budgeting allocation for technical assistance programmes.

        In all countries of the world, small and medium enterprises have emerge as an important agent of economic and social transformation. The promotion of small amd medium enterprises (SMES) is no longer just the business of the world association for small and medium enterprises (WASME) and other Non-Government organization (NGOS) but as become a major policy thrust in industrialized and developing countries.

        In industrialized countries, recent innovation in information technology, industrialized designation and global competition have propelled the spread of small business and forced large cooperation to search for new strategies to gain competitive operations. Small and medium enterprises (SMES) could help to facilitate mobilization of capital and human resources that could otherwise be left idle.

        An important feature associated with small and medium enterprises which is particularly relevant to our current economic problems is that, this industries characteristically, depend less on imported in outs relevative to their total capital investment than large scale industry. Small and medium enterprises (SMES) seek to diffuse economic power by helping to check imbalance seek to diffuse economic power by helping to check imbalance between various locality of a country and between different income groups in the same locality.

        The various role of small and medium enterprises mentioned above point to the fact that the development of small and medium Enterprises (SMES) in Nigeria does not only help in economic diversification and development, it is also crucial in the achievement of those sociopolitical objectives of Nigeria without which the country may begin to disintegrate.

 

1.2   STATEMENT OF THE PROBLEM

        As it could be observed, the contribution of small and medium scale enterprises (SMES) towards the development of Nigeria economy has not been able to achieve the desired progress due mainly to a number of constraints.

        This research work has identified the associated problems mitigating against the contribution of SMES towards the development of the economy and thus, summarized them as follows:

i.            Going into business with little or no experience and without first learning something about it

ii.          Underestinating how much time it will tale to build a market.

iii.        Inability to maintain customer relation.

iv.         Wrong choice of product

v.           Failure to understand changing economic condition

vi.         Failure to keep complete accurate records so that proprietor drift solution trouble without realizing.

vii.       Wrong choice of product

Given the fact that many factor militate against small and medium enterprises and constitute the development towards the nations economy.

 

1.3   OBJECTIVE OF THE STUDY

        SMEs have been identified as a fundamental feature of the economy which can generate over 70% of economic activity as well as become the engine of growth required by the Nigerian government for the much needed sustainable development in terms of job and wealth creation.

        SMEs play a very significant role in the socio-economic development of any country. Bowel, (1992) stressed that the most important role played by the SMEs in a nation’s economy is that it provides a means of entry into business for new entrepreneurial talent and the seed bed from which new large companies will grow to challenge and stimulate the established leaders in industry.

        According to Obikoya in his own ascertion condends that SMEs are close to customers and employees and this closeness provides a potential for superiority over competing industries that are foreign based.

        Besides the aforementioned importance, the objective of this project is to understand some SMEs in kwara state with particular reference to Ilorin metropolis in order to determine their role in the following area.

i.            Small and medium enterprises promotion of economic independence/ development

ii.          Small and medium enterprises an avenue for employment opportunities.

iii.        Small and medium enterprises utilization of local resources for production

iv.         Financing in small and medium enterprises

v.           Small and medium enterprises and self reliance.

1.4   RESEARCH QUESTION

        Corolary to the above, therefore this work aims at anwering the following research questions.

i.            Can small and medium enterprises be used as a strategy for economic development in Nigeria?

ii.          To what entent can small and medium enterprises provide employment oppurtinities for the populace

iii.        How can small and medium enterprises base mainly on the utilization of local resources for production alone?

iv.         What are the effective source of finance to small and medium enterprises in Nigeria.

v.           In what ways can small and medium enterprises lead to economic self-reliance in this country.

vi.         How can other sources be found and properly managed?

1.5   SIGNIFICANCE OF THE STUDY

        The study is tailored towards the education of policy makers in Nigeria on the importance of small and medium enterprises (SMEs) in the development of the economy which will in turn improve the standard of living of Nigerian citizens.

        In developed countries, small and medium enterprises (SMEs) have remained the dynamic sector of the economy. The East Asia miracle was build on the foundation of throwing small and medium enterprises (SMES).

        Small and medium enterprises is widely seen as a panacea for unemployment and economic recession. Therefore, for the small and medium enterprises to serve the expected role of catalyst for rapid industrial and economic development, there is need for more strategy for improved access to development finance for small and medium enterprises that would address the inability to provide collateral security for loan from normal credit institutions. Hence the relevance of this study which aims at other things enamines further option for improving the flow of formal credit to small and medium enterprises (SMEs).

1.6   SCOPE AND LIMITATION

        This project attempts evaluating the various sources of findings the small and medium enterprises (SMEs) including the special credit programme and schemes introduced over the year in nigeria to improve small and medium enterprises (SMEs) access to developing finance.

        The study also access the impact of the formal institution and schemes/programme n terms of their ability to boost small and medium enterprises access to credit. It also highlights the major factors that have militated against their effectiveness.

        The major limitation of this project centeres on the problem of questionnaire the study recognizes. The fact that there are areas that needs probing into but due to lack of sufficient data, insufficient cost in terms of finance and time, such areas could not be covered.

1.7   ORGANIZATION AND PLANNING

        This project attempts evaluating the various sources of findings the small and medium enterprises (SMEs) including the special credit programme and schemes introduced over the year in Nigeria to improve small and medium enterprises (SMEs) access to developing finance.

        The study also access the impact of the formal institution and schemes/ programme in terms of their ability of boost small and medium enterprises access to credit. It also highlights the major factors that have militated against their effectiveness.

        The major limitation of this project centeres on the problems of questionnaire the study recognizes. The fact that there are areas that needs probing into but due to lack of sufficient data, insufficient cost in terms of finance and time, such area should not be covered.

1.8   ORGANIZATION AND PLANNING

        For ease of presentation, this project is structured into five chapter the first chapter introduces the subject matter which includes the background of the study, statement of the problem and the objective of the study. The scope and limitation were also highlighted.

        Chapter two provides the review of relevant interaction, various definitions of SMEs and the importance of SMEs in economic development and self reliance.

        Chapter three takes a look at the research methodology. This embrace the characteristics of the study population, sample procedure and sample size. If also looks at data collection, instruction and administration.

        Chapter four looks at the presentation and analysis of data with regards to various sources of finance available to small and medium enterprises (SMEs). It also enamines the distribution of small and medium enterprises in Ilorin metropolis.

        Lastly, chapter five which is the end of the project deals with the summary of the entire write-up, the conclusions and recommendations for improvement.