TABLE OF CONTENTS
TITLE
PAGE -------- i
APPROVAL PAGE -------- ii
DEDICATION - - - - - - - - iii
ACKNOWLEDGEMENT
-------
iv
ABSTRACT - - - - - - - - - vi
TABLE OF CONTENT - - - - - - - vii
CHAPTER ONE
1.0
INTRODUCTION - - - - - - 1
1.1
BACKGROUND OF THE STUDY - - - - 2
1.2
STATEMENT OF THE PROBLEM - - - - 8
1.3
OBJECTIVES OF THE STUDY - - - - 9
1.4
STATEMENT OF HYPOTHESIS - - - - 10
1.5
SIGNIFICANCE OF THE STUDY - - - - 10
1.6
SCOPE AND LIMITATION OF THE STUDY - - 11
CHAPTER TWO
2.0
LITERATURE REVIEW ------ 12
2.1
THEORETICAL LITERATURE ----- 12
2.2
EMPIRICAL LITERATURE - - - - - 14
2.3
LIMITATION OF PRECIOUS STUDIES - - - 41
CHAPTER THREE
3.0
RESEARCH METHODOLOGY - - - - - 49
3.1
RESEARCH DESIGN - - - - - - 49
3.2
METHODOLOGY - - - - - - - 49
3.3
MODEL SPECIFICATION - - - - - 50
3.4
METHOD OF EVALUATION - - - - - 52
3.5
DATA REQUIRED AND SOURCE/SOFTWARE PACKAGE 55
CHAPTER FOUR
4.0
PRESENTATION AND ANALYSIS OF RESULT - - 56
4.1
PRESENTATION OF REGRESSION RESULT - - 56
4.2
RESULT INTERPRETATION - - - - - 58
CHAPTER FIVE
5.0
SUMMARY, RECOMMENDATION AND CONCLUSION - 70
5.1
SUMMARY -------- 70
5.2
CONCLUSION - - - - - - - 70
5.3
RECOMMENDATIONS ------ 72
BIBLIOGRAPHY - - - - - - - 74
APPENDIX
CHAPTER
ONE
1.0
INTRODUCTION
1.1
BACKGROUND OF THE STUDY.
In recent time, the fortune of small scale
and medium scale Industries attracted the attention of government world-wide
and thus has been the focus of general interest and research, especially in
developing Countries due to the importance of small scale and medium scale
Industries.
Their importance cannot be over emphasized
as they constitute a whole virile vehicle for the generation of vast production
of outputs and job creation. They are also act as catalyst for restructuring
and diversifying the productive base of an economy and for the Industrial
economy and for the Industrial economy take-off and growth of such an economy.
The small and medium scale Industries are seen to hold the key to future
expansion of the Industrial sector.
In Nigeria, evidence has shown that in
1986, small scale and medium scale Industries accounted for 70% of all firms,
employing millions of Nigerians (first Bank of Nigeria report, 1987). By the
end of 1979, over 80% of all establishments licensed under the factory act were
small and medium scale Industries (Onwuala, 1987). This made the importance of
this economic unit to be unelectable.
Small scale and medium scale Industry in
its widest sense implies the urgent response to the challenges of developing
countries, of which Nigeria is not an exception. Small and medium scale
Industries should be practiced with due regards to the importance of available
local raw materials in its environs because the challenges facing small and
medium scale Industrialist are enormous.
The importance of small and medium scale
Industries to the economic development of any country, whether developing or
developed, have been widely acknowledged and acclaimed. They are considered as
there stimulate to private ownership and entrepreneurial skills, generate
employment, promote industrial dispersal and rural- urban migration.
Clive carpenter (2001), said that across
the world, small businesses are crucial for economic growth, poverty
alleviation and wealth creation.
Uayatudeen (2001) said that across the
world, small businesses have such a crucial role to play in the development of
an economy and that cannot be ignored. According to William and David, most
firms and small and medium scale Industries are compared with companies that
economist usually study. But economists have concentrated on large scale
Industries. The leading textbooks in economics have title discussions on small
and medium scale business or entrepreneurs.
The partial combinations of small and
medium scale Industries on the Nigerian economy are; creation of wealth,
poverty eradication and employment generation as encapsulated in the national
economic empowerment development strategies (NEEDS)
However small and medium scale Industries
are bedeviled by numerous challenges which have hampered its development and
growth and also its combination to national development. To this end, government
has instituted various programs to address the challenges and constraints
facing small and medium scale industries growth. The programs and institutions
Include:
a.
Setting up and founding of industrial estates.
b.
Establishment of national directorate of employment
(NSE)
c.
Establishment of the Nigerian bank of
commerce and industry (NBC),
the national economic re-construction fund
(NERFUND),the Nigerian Industrial bank (NIDB) which has merged in to one agency
in the bank of industry, the world assisted small scale enterprises loan scheme
(SNEX), the Nigerian export and import bank (NEXIN) etc.
d.
Setting up a small and medium scale
enterprises development agency of Nigerian (SMEDAN); an agency which Co.
ordinates development in small business sector.
Unfortunately, all these formal credit
schemes have not been able to adequately address the fundamental problems which
have constrained small scale enterprises access to credit; and any other
enterprise establishing a small and medium scale industry requires capital to
take off survive and eventually expand.
Nigeria's major manufacturers produce food
and beverages, cigarettes, textiles and clothing, soaps and detergents,
footwear, wood products, motor vehicle parts, chemical products and metals
while small and medium scale manufacturing engage in leather making, poultry
making and wood carving. The smaller industries are often organized in craft
guides involving particular families who pass the skill from generation to
generation.
People have lived in what is now known as
Nigeria since at least 9000BC, evidence indicated that since at least 5000BC,
some of them have practiced settled agriculture. In the early (centuries (AD),
kingdoms emerged in the drier northern savanna, prospering from trade with
north Africa. At roughly the same time, the western and southern forested areas
yielded city- state and looser federations sustained by agriculture and coastal
trade. These systems changed radically with the arrival of the Europeans in the
late 15th century, the rise of the slave era in the 16th
Century through the 19th Century. Nigeria achieved independence in
the 1960, but has since been plagued by an unequal distribution of wealth and
inflation.
The first well documented kingdom was the
Yoruba kingdom, which was observed between the 11th -12th
centuries. Over the next few centuries, they spread their political and
spiritual influence beyond the borders of its small city states. Its artisans
were highly skilled, producing among other things, bronze castings of heads in
a very naturalistic style. Terra- cotta, wood and Ivory were the common media
instruments used.
Shortly after the 12th century,
the kingdom of Benin emerged in the mid-western south region. Although it was
separate from the Yoruba kingdoms; Benin legends claim that the kingdoms first
rulers were descendant from an Ife prince. By the 15th century, the
Benin kingdom was large, wood designing was what sustained the city's trade
(both within the region and later with Europe). Its legacy includes a wealth of
elaborate bronze plagues and statues recording the nation's history and
glorifying its rulers.
From the above paragraphs, it can be noted
that small and medium scale industries are indeed necessary for the development
of any economy. Small and medium scale industries act as the major stepping
stone to economic growth. In Nigeria today, small and medium scale industries
are common but have no efficiently achieved or attained her goals.
Therefore, to encourage local businessmen
and institutions in buying small and medium sized businesses, the government
established the Nigerian bank for industry and commerce, which had an initial
operating capital of 50 million naira. There was some concern in Nigeria that
Nigerians might not be able to raise enough capital to take over the foreign
owned businesses affected by the decree and that there might not be enough
Nigerians with the technical and managerial skills necessary to replace
extricate personnel.
1.2
STATEMENT OF THE PROBLEM
The small and medium scale Industries
survey conducted in 2005 by the central Bank of Nigeria (CBN) provides some
evidence that apart from the acute short of technology, managerial skills, poor
management, adverse environment, and change in policy, capital is a source of
great concern to the entrepreneur in the sector. Since one of the microeconomic
goals of the Nigerian government is economic growth, we can assume that the
government aims at the expansion of small firms.
In a continent where finance is a major
constraint on development, the problem confronting the private sector in
Nigeria above all small and medium scales Industries standout.
Most large scale industries in Nigeria
have reduced their borrowings due to high interest rates and the short term
nature of available loans. At the same time, banks are unwilling to lend to the
small and medium scale sector with its high perceived rises. In this case, lending
is not efficient to the real sector and loanable funds are currently used to
finance primary consumer imports and to separate in foreign exchange markets.
The research question from the above experience is thus; will small and medium
scale contribute much to economic growth in Nigeria when they are not properly
funded.
1.3
OBJECTIVES OF THE STUDY.
The aim of this research work is to
examine the importance of small and medium scale industries on the Nigerian
economy in order to ascertain how small and medium scale is utilized in
production using the available raw materials and resources with a view to
achieve gradual formalization in the guest for national industrialization.
Meanwhile, the specific objectives are:
a.
To determine the impact of small and
medium scale enterprises.
b.
To examine the effect of small and medium
scale enterprises.
1.4
STATEMENT OF HYPOTHESIS.
For
the purpose of this study, the research developed the following hypothesis.
Ho:
Small and medium scale industries are not catalyst for economic development and
growth in Nigeria.
Hi: Small and medium scale industries are
catalyst for economic
development
and growth in Nigeria.
1.5
SIGNIFICANCE OF THE STUDY
The significance of the study is to
establish an extent of growth and development and to expose the immense benefit
derivable from small and medium scale industries.
Also,
this study will help to redress the belief of the society that small and medium
scale industries can bring about economic and development in Nigeria.
1.6
SCOPE AND LIMITATION OF THE STUDY.
The study encompasses the roles and
contributions of small and medium scale industries on the Nigeria economy from
1986-2010. The basis of covering this period of time is to ascertain whether
there have been any significant impacts of small and medium scale industries on
the
Nigerian economy. And also, this study
does not consider the medium and large scale industries.
In writing this project, the researcher
encountered some limitations, which were; lack of information from appropriate
quarter, time constraints, transportation, lack of funds, power outrage etc.
However, in spite of all the odds, the researcher was able to come out with a
standard work. The project However, contains information which in reliable and
authentic.
Login To Comment