ABSTRACT
The
main purpose of this research project is basically to determine whether small
business enterprises contribute to the growth and development of Nigerian's
economy and to identify the problems and challenges of small businesses in Nigeria.
It also identifies the extent of government financial assistance to the small
business enterprises.
The
core research questions and hypotheses for this study were: are small
businesses contributing towards improving the Nigeria's economy? To what extent
is the availability of credit facilities contributing to the survival of small
business enterprises, small business enterprises do not contribute towards
improving the Nigeria's
economy, the availability of credit facilities do not contribute to the
survival of small business enterprises.
A
hundred and ten questionnaires were distributed randomly to stratified groups
within Ikeja Local Government Area. Hundred respondents duly filled and
returned the questionnaires. This constitutes the sample size. Out of this
number, eighty-seven were male while thirteen were female. A 5 - point likert
scale was developed and validated to collect information from the respondents.
The
data collected was analyzed with basic descriptive statistics such as frequency
and simple percentages. Chi-square analysis was also made. The core findings
from the results obtained show that small business enterprises are faced with
numerous problems like inadequate capital, inadequate raw materials,
inconsistency in government policies and a host of others. It was discovered
that there is a prospect for the small business enterprises because of various
schemes put in place by the government and also if government's good policies
are well implemented, the sky will be the limit for small businesses enterprises
in Nigeria.
A survey was carried out by means interviews and questionnaire. This showed
that the contributions of small business enterprise to the growth and
development of Nigeria's
economy is positive. There are also various remarks and recommendations in the
study and if all these are strictly adhere to there will be a great improvement
in the performance of small business enterprises which will be for the
betterment of all.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1
Background of the Study
1.2
Statement of the Study
1.3
Purpose of the Study
1.4
Significance of the Study
1.5
Scope of the Study
1.6
Research Questions-
1.7
Research Hypothesis
1.8
Research Methodology
1.9
Organisation of Study
1.10
Definition of Terms
References
CHAPTER TWO: LITERATURE VIEW
2.0 Introduction
2.1 Theoretical Framework
2.2 Conceptual Framework
2.2 Definition and Concept of Small Business
Enterprises
2.3 Small Scale Enterprises (SMEs) and Economic Growth
2.4 The
Problems Facing SMEs.
2.5 Characteristics of Small Business
Enterprises
2.6 Benefits of Small Business Enterprises
2.7 Demerits of Small Business Enterprises
2.8 Problems of Small Business Enterprises
2.9 Government
Efforts in Promoting and Financing Small
Business
Enterprises In Nigeria
2.10 Needs of Small Business Enterprises in
Nigeria
References
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Population of Study
3.4 Sampling Procedure
3.5 Data Collection Instrument
3.5 Method of Data Collection
3.6 Method of Data Analysis
3.7 Limitation of Study
CHAPTER FOUR: DATA PRESENTATION AND
ANALYSIS
4.1
Introduction
4.2
Characteristics of Sample
4.3
Analysis of Respondents Personal Data
4.4
Analysis of Research Question
4.5
Testing of Hypotheses
CHAPTER FIVE
SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 Introduction
5.2 Summary
5.3 Recommendation
5.4 Conclusion
5.5 Suggestion for Further Study
Bibliography
Appendix
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The
impact of Small Scale Enterprises to the development cannot be neglected in
every economy, more especially developing nations where sustainable economic development
is highly desirable small business enterprises have such a crucial impact to
play in the development of an economy in such a way that they cannot be ignore
(Lawal, 1993).
According
to Osuagwu (2001) small business enterprises involves the use of human and
non-human resources towards the achievement of set goals and objectives. Small
business enterprises should form one of the development objectives they can
serve as a source of impact for multinational, thereby replacing existing
foreign resources, they are also training ground for local skill ensuring a
more equitable distribution of income and reducing the migrating of manpower
from the rural to the urban areas.
Small
scale enterprises are crucial for economic growth, poverty alleviation and
wealth creation. In an economy like Nigeria, small business enterprises has
always been faced with credibility problems, planners experience frustrations
when they make their forecast (Owualah,
1999).
(Essang , 1994) Economic history
is well stocked with enough it sights into the humble beginnings of present
great corporation, evidence abound that almost all of the multinational giant
corporation in America Europe and even Nigeria were cottage enterprises,
growing as their industry grew and through their own sheer ability, marketing
skills, and effort to reproduce and produce existing products better cheaply. Japan's economy
was dominated by traditional industries, cottage firms and by many SMEs, who
drew their strength, not only from the abundance of capital, but from the role
of marketing in guaranteeing the growth of small scale enterprise.
Small
scale enterprises contributed greatly to Nigerians development by the provision
of employment, marketing of goods and services and the growth and development
of the rural areas. It has also brought about the growth of indigenous
entrepreneurship in Nigeria.
This
Research Work Tends Examine the Contributions of Small Business Enterprises to
the Growth and Development of Nigeria’s Economy
1.2 STATEMENT OF PROBLEM
Small business (small scale) enterprises are
faced with some problems such as low productivity
among the small business enterprises. As a result of poor financial base
and smallness of their market share, the productivity is very low. Therefore it
is hard for them to compete effectively.
Another problem being faced by small business
(small scale) enterprises is undercapitalization.
Most of the small business enterprises are financed by the owners capital,
which is never sufficient for the business.
This then leads to death of tangible assets which is usually caused by the fact that
they don't posses enough tangible assets which could serve as collateral to
secure loans from credit institutions.
1.3 OBJECTIVES OF THE STUDY
The main purpose of this research project is
basically to evaluate the contributions and performance of small business
enterprises in the Nigerian economy by giving primary consideration to the
various socioeconomics in the country. It also to identify the problems of
small business enterprises and offer suggestions on how to improve their
performance to improve Nigeria's economy.
Other objectives are:
i.
To identify
the problems of small business (small scale) enterprises and efforts made
towards eliminating those problems.
ii.
To examine the
performance of small business (small scale) enterprises, their characteristics
and mode of operations.
1.4 RESEARCH QUESTIONS
This research tends to provide answer to the following
questions.
1. Are small business enterprises contributing
towards improving Nigeria's economy?
2. To what
extent is the availability of credit facilities contributing to the survival of
small business enterprises?
3. What are the roles of small business enterprise
in economic development?
4. What is the impact of government policies on
the performance of small business enterprises?
1.5 RESEARCH HYPOTHESES
Ho: Small business enterprises
do not contribute towards improving Nigeria's economy
H1: Small business enterprises
contribute towards improving Nigeria's economy.
Ho: The availability of credit
facilities do not contribute to the survival of small business enterprises.
H1: The availability of credit
facilities contributes to the survival of small business enterprises.
1.6 SIGNIFICANCE OF STUDY
The study is being carried out in order to
appraise the performance of small business enterprises in Nigeria's economy.
This study is also expected to be of benefit to the government as it will
enlighten the tiers of government on the problems facing the small business
(small scale) enterprises and the provision of suggestions to eliminate such
problems.
This research will also enable small business
(small scale) enterprises to appreciate the importance of their business to the
nation and gear them towards improving performance through the identification
of business opportunities and the efficient distribution of resources towards
such opportunities.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
This research covers some selected small business
enterprises in Ikeja Local Government Area of Lagos State. These enterprises
which vary in size, in the style and forms of management will be in the area of
single product, multi-product and service enterprises and would be expected to
serve as a microcosm of small business enterprise in the country.
In
the course of conducting this research work it is expected that the following
will constitute impediments to the effective conduct of the study
a) Time constraint within which the study
must be completed.
b) Financial constraint
c) Inaccessible and inadequate data
Nevertheless,
I believe the above limitations will in no way affect the reliability and validity
of the research study.
1.8 RESEARCH METHODOLOGY
This research shall be using primary data for
proper and reliable presentation of information.
The primary data shall include questionnaire
administration. The Questionnaire shall include a list of questions designed
for the purpose of collecting data with the view to testing the research
hypothesis. It shall be simple and easy to understand by the respondent.
1.9 PLAN OF THE STUDY
For each presentation, this study will be divided
into chapters. Chapter One will give the introduction to the topic; Chapter two
will be based on literature review, looking into the characteristics of small
business enterprise, Merits and demerits of small business enterprise and the
need or importance of small business enterprise in Nigeria: Chapter three will
give the research methodology and the data requirement; Chapter four will present
data gathered from respondents on tables and percentage, test the hypotheses
formulated and interpret the analysis; Chapter five will summarize the study,
draw conclusions and proffer recommendations.
1.10 DEFINITION OF TERMS
The several terms and acronyms used in this
research work shall have the following meaning:
SMALL
BUSINESS (SMALL SCALE) ENTERPRISES:
The Central Bank of Nigeria (CBN) 1996 Monetary Policy guidelines defined small
business enterprises as those whose total cost excluding cost of land including
working capital does not exceed ten Million Naira.
ENTREPRENEUSHIP: This is the ability to discover investment
opportunities couple with the ability to organize the enterprise.
SSICS: Small Scale Industries Credit Scheme. This was
introduced in 1971 as a resolving grant by the Federal and State Governments to
assist in meeting the Credit needs of small business enterprises.
NEXIM: Nigerian Export and Import Bank. This was
established in January 1990 to manage a number of credit facilities introduced
specifically to boost Nigeria's non-oil export sector.
NERFUND: The National Economic Reconstruction Fund. This
was also established in 1990 to provide relatively long term loans to small and
medium business enterprise at relatively concessionary rate of interest.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment