IMPACT OF SMALL AND MEDIUM SCALE ENTERPRISES ON NIGERIA ECONOMY DEVELOPMENT

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Product Code: 00002068

No of Pages: 52

No of Chapters: 5

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ABSTRACT

The research work was aimed at investigating the growth of small and medium scale enterprises in relation to economic development and to analyze the effect of small and medium scale enterprises in the Nigerian economy development.

 

Starting with a general recourse to study the small and medium scale enterprises at its root; the essay attempted to study institutions responsible for the growth of small and medium scale enterprises in Nigeria.

 

Regression analysis was done on the Gross Domestics Product (GDP) and small and medium scale enterprises and the findings shows that 5% level of significance, the constant term and the estimates of ISSP are both statistically significant.

 

On the basis results obtained, it is recommended that Nigeria must henceforth take bold steps with regards to our small and medium scale enterprises to ensure the growth of the sub-sector. I hoped that the recommendations will be useful for the improvement of small and medium scale enterprises towards economic development.

 

TABLE OF CONTENTS

 

CHAPTER ONE

 

1.1     INTRODUCTION

1.1     BACKGROUND TO THE STUDY

l.2      PROBLEMS IDENTIFICATION

l.3      AIMS AND OBJECTIVES OF THE STUDY

1.4     THE STATEMENT OF HYPOTHESIS

1.5     RESEARCH METHODOLOGY

l.6      SIGNIFICANCE OF THE STUDY

1.7     SCOPE AND LIMITATION OF THE STUDY

1.8     THE PLAN OF THE STUDY

1.9     RESEARCH QUESTIONS

REFERENCES:

CHAPTER TWO

2.0     INTRODUCTION

2.1     LITERATURE REVIEW

2.2     THE EXPECTED ROLE OF SMALL SCALE ENTERPRISES TOWARDS ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA.

2.3     EXPERIENCE OF OTHER COUNTRIES: NEED FOR COORDINATION AND RELEVANCE.

2.4     SOME FEASILE SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA.

2.5                                  REFERENCES

CHAPTER THREE

3.1     RESEACH APPROACH

3.2     RESTATEMENT OF THE RESEARCH QUESTION AND HYPOTHESIS

METHOD OF DATA GATHERING (3.4)

3.5     ANALYSIS OF DATA

3.7      REFERENCES

CHAPTER FOUR

4.0     RESEARCH METHODOLOGY, DATA ANALYSIS AND DATA INTERPRETATION.

 

4.1     INTRODUCTION

4.2     RESEARCH METHODOLOGY:

4 .2.1          EVALUATION OF ESTIMATE

4 .3    MODEL SPECIFICATION

4.4     DATA ANALYSIS AND INTERPRETATION

4.5      REFERENCES

CHAPTER FIVE

5.0     SUMMARY

5.1   FINDINGS

5.2     RECOMMENDATIONS:

5.3     CONCLUSION

REFERENCES

 

 


CHAPTER ONE

 

1.1     INTRODUCTION

1.1     BACKGROUND TO THE STUDY

This research project pries into the impact of small and medium scale enterprises on Nigeria economic development with a view to establish it effect on the Nigeria economic as a whole.

 

The Nigeria economic is basically made up of the enterprises sectors which share the production of goods and services.

 

The enterprises sectors comprises of individual, household, commercially oriented firm and some other governmental organizations which the primary object is developing the Nigeria­ economy through the provisions of necessary goods and services.

 

The recognition of the small and medium scale enterprises are catalysts in the socio-economy development of any country. These are veritable vehicle for the achievement of national macroeconomic goals in terms of employment generation at low investment cost and the development of entrepreneurial capabilities and indigenous technology. The catalytic roles of the small and medium scale enterprises have been amply displayed in many countries. The small and medium scale enterprise has really contributed immensely to the gross domestics' products, export earnings and employment opportunities of these countries.

 

The Federal Government of Nigeria has long recognized the need to promote the development of the small and medium scale enterprises in order to stimulate employment, mobilize local resources, reduce migration from rural to urban areas and disperse industrial enterprises more evenly across the country. This is why the Government has established institutions to provide financial and non-financial services to the small and medium scale enterprises. Among the institution are the National Directorate of Employment (NOE), the People's Bank of Nigeria (PBN), National Economic Reconstruction Fund (NERFUND), Nigerian Bank for Commerce and Industry (NBCI), Nigerian Industrial Development Bank (NIDB), Nigerian Export­ Import Bank (NEXIMB).

 

Also, many State Government have established development finance institutions (DFIs) to provide credits for the small and medium scale enterprises.

 

In addition, the central Bank of Nigeria's credit guidelines to banks to lend a minimum of 20 percent of their total loans and advances to small scale enterprises.

 

l.2      PROBLEMS IDENTIFICATION

Despite Government's effort in order to encourage and promote small and medium scale enterprises development in the Nigeria economic, as a result of the dynamic nature of the environment, the Sectors are often faced with the under mentioned problems:

1.     Poor feasibility studies

2.     Inadequate funding

3.     Poor management

4.     Loan Default

5.     Lack of collateral

6.     Lack of adequate trained personnel

7.     Inadequate infrastructure

8.     Lack of monitoring of loan to SME, by Bank Limited market.

 

l.3      AIMS AND OBJECTIVES OF THE STUDY

1)      To determine the impact of small and medium scale enterprises in the Nigerian economic-development.

2)      To determine the effectiveness of small and medium enterprises in Nigeria economic.

3.       To ascertain the contribution of small and medium scale enterprises in the Nigeria economic development.

4.       To find out the possible improvement of small and medium scale enterprises in Nigeria.

5.       To encourage and to promote small and medium scale enterprises in the Nigeria economic development.

 

There are the basic aims and objectives of the research. That is, the mentioned above.

 

1.4     THE STATEMENT OF HYPOTHESIS

These are the hypothesis tested in this research.

 

Hypothesis 1

Ho: There is no significant relationship between the small and medium scale enterprises and the Nigeria economic development.

Hi: There is a significant relationship between the small and medium scale enterprises and the Nigerian economic development.

 

 

Hypothesis II:

Ho: The existing of small and mediums scale enterprises in the Nigeria economic development is in-effective.

Hi: The in-effectiveness of the sectors in the Nigerian economic development is as a result of inadequate of fund, poor management and the limited market.

 

1.5     RESEARCH METHODOLOGY

The bulk of the data that would be used in this research are secondary data. These are sourced from the publication of institutions such as; the Federal Office of Statistics (FOS) and the Central Bank of Nigeria (CBN).

 

The date shall be analyzed with the use of the correlation and regression statistical analysis, which shall be run on a computer system using the SPSS, (Statistical packages for Social Science).

 

l.6      SIGNIFICANCE OF THE STUDY

This research will elicit the attention of the government and the management and the capitalist within Nigerian economy not only to know the impact of small and medium scale enterprises on the Nigeria economic development but also, to realize the important of the sector and how to rise-up to the required fund and the facilities and put them into effective use to achieve the desired goals in the Nigeria economic development.

 

It is also intend to make the management focus on the sectors by promoting the goodwill of the organization which will help boast the future economic and the market value of stocks of the organizations.

 

It will also make the government, management and the public realize that the sectors are the back bone of any nation's economic development, particularly in Nigeria in terms of production capacity and the creation of genuine employment that lead to the betterment of the nation's economic development.

 

1.7     SCOPE AND LIMITATION OF THE STUDY

This research is being audited at examining the impact of small and medium scale enterprises on the Nigeria economic development.

 

According to the research, it is difficult to get the accurate and reliable information about the sectors. Therefore, the research findings are only workable within the framework of simplified assumptions.

 

It is particularly difficult to sample the entire management functionary that constitutes the sectors.

 

Another limitation to the study is the time limited and the financial constraint.

 

1.8     THE PLAN OF THE STUDY

This research is divided into five chapters. In Chapter One is the background of the sectors, the statement of the problems, the aims and objectives, the statement of hypothesis, the research methodology, the significant of the study, the scope and limitation and the references.

 

In Chapter Two, the frame work of the sectors will be developed and details about the certain theories on the sector and the definition of terms.

 

In Chapter Three, the method of collecting data will be highlighted. It will also entail the strategy and approach of the study.

 

Chapter Four, will deal with the analysis of research finding and the interpretation and the evaluation of data.

 

In Chapter 5, are the Summary, Conclusion and Recommendation

 

1.9     RESEARCH QUESTIONS

(1)     How adequate and effective is the impact of small and medium scale enterprises felt in the Nigeria economic development.

(2)     What do you think is responsible for the poor performance of the sectors in the Nigeria economic development in the recent years?

(3)     How can the non-challant attitude of the government and the management in not promoting the sectors enough be corrected? (4) What conclusion can you draw from your analysis according to the study?

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