The Role of Small Scale Enterprises in Economic Development of Enugu State

Abstract

The main purpose of this study is to identify and investigate the role of small scale enterprises in economic development of Enugu State.

This will help in assessing their performance and as well identifying factors that hinders their operations. The methodological approach adopted is the survey method of research.

The research looks at the contribution of the small scale enterprises in economic development of Enugu State and its contributions to improving the standard of living, promotion and developing indigenous manpower and helping the large industries.

Literature review was made from work done by eminent scholars, professionals, government blue prints on small scale enterprises, and other management practioners.

Secondary data was used too and primary data for this study was gathered from questionnaires sampled and oral interview administered to the target population.

The data collected were tabulated and analyze using chi-square statistical tools where X2=0-E2 S

The findings of this research shows that

• Small scale enterprises contribute to  the economic development of Enugu
• The operators of small scale enterprises contribute to improvement in the standard of living.
• Most established   small   scale   enterprises promote and develop indigenous
• Finally, the existence of some small scale enterprises has been a source of supplies to most of some large

Introduction

Background Of Study

A business whether small or big, simple or complex, private or public is created to provide competitive prices. Businesses in Nigeria are classified as small, medium and large.

Small scale business is also seen as one which is owned, managed, controlled by one or two persons, it is family influenced in decision making, has an undifferentiated organizational structure, has relatively small share of the market and employ less than 50 people.

Big business can hardly survive without the small scale enterprises as they give important links between the big business and the consumers.

Before the advent of small scale business enterprises, Nigeria’s economy from 1970-1979 was grossly over-dependent on the drilling of crude oil.

The oil boom of the 1970s offered an opportunity for true national economic development.

References

Abdulahi Taiwo Co. Solicitors (1993): “Establishing a Business in Nigeria”. 4th Edition Lagos Academy Press Plc.

Adebusuyi, B. S. (1997): “Performance Evaluation of Small- Medium Scale Enterprises (SME) in Nigeria” CBN Bullion vol. 21, No. 4 October/December.

Adegbite E. O. (1995): Effective Growth and Survival of Small and Medium Scale Enterprises in the 1990s and beyond. The role of policy in Ade T, Ojo (eds) Management of SMEs in Nigeria (Lagos Punmark Nigeria Ltd).

African Marketing Development Foundation Enugu.

Ahigbo, C. C. (2005): A practical guide to project writing credo publication, Owerri-Imo State, Nigeria.