The Empowering of Small and Medium Scale Enterprises for Sustainable Development

The Empowering of Small and Medium Scale Enterprises for Sustainable Development.

ABSTRACT

A significant aspect of small and medium scale enterprises is in the following developing areas, creation of employment, stimulation of indigenous entrepreneurship, transformation of traditional industry, linkage effort, contribution to regional activities or cooperation, utilization and multinationalisation of indigenous enterprises.

Thus, government, agencies, corporate organizations, international sponsors, etc are expected to adequately provide or empower SMEs for sustainable economic (activities that guarantees) development and growth. This study therefore seeks to address the following issues .

The enabling environment by government to small and medium scale enterprises are not always complete in any particular empowerment. In other words, transport and electricity may be available while water, communication, educational infrastructure, etc may not be available or inadequate.

Thus, no environments are comprehensive or complete in any small and medium scale industry. Hostility in an operating environment (by government, or communities) often make the efforts and expectation of tile small and medium scale enterprises unrealistic.

Other problems in realizing the objectives of government’s empowerment to small and medium scale enterprises are unregulated competition and inconsistencies in policies and programmes. The major data collection instrument to be use is the questionnaire. It will be structured with a four point likert scale to determine responses to the objective of the study.

At the end of the study it was observed that, resources available for empowering SMEs in the Nigerian economy may not be considered adequate, that stringent regulatory controls of government on SM Es may affect their growth and development.

TABLE OF CONTENT

Cover page i

Title Page ii

Certification iii

Dedication iv

Acknowledgement v

Abstract vi

Table of Content vii

List of Tables x

CHAPTER ONE – INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 3

1.3 Research Questions 4

1.4 Objectives of the Study 4

1.5 Research Hypotheses 5

1.6 Significance of the Study 6

1.7 Limitations of the Study 6

1.8 Scope of the Study 7

1.9 Definition of Operational Terms 7

Reference 8

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.1 Small and Medium Scale Enterprises Defined 9

2.2 Historical Development of Small and Medium Scale Enterprises in Nigeria 9

2.3 Small and Medium Scale Enterprises and the Nigerian Economy 13

2.4 The Objectives and Targets of SMEs Policy 15

2.5 Concept of Government Empowerment Defined 18

2.6 Review of Special Support Programmes for SMEs Development in Nigeria 20

2.7 Evaluation of SMEs Performance 26

2.8 Sources of Financing Small and Medium Scale Enterprises as Government’s Empowerment Technique 29

2.9 The Impact of Government Empowerment to Small and Medium Scale Enterprises 33

2.10 Impediments to Government Empowerment of Small and Medium Enterprises 34

2.11 Ways to Improve Government Empowerment to Small and Medium Scale Enterprises 34

2.12 Causes of Small and Medium Scale Enterprises Failure 35

2.13 National Economic Empowerment and Development Strategy (NEEDS)

and Small/Medium Scale Enterprises (SMEs) in Nigeria 36

2.14 Outstanding Problems and Prospectus 41

References 45

CHAPTER THREE – RESEARCH METHODOLOGY

3.1 Research Design and Instrumentation 47

3.2 Reliability and Validity of Test Instruments 47

3.3 Population and Sample 48

3.4 Data Collection 49

3.5 Data Analysis 49

References 50

CHAPTER FOUR – PRESENTATION AND ANALYSIS OF DATA

4.1 Testing of Hypotheses 62

CHAPTER FIVE – SUMMARY OF FINDINGS, CONCLUSION,

RECOMMENDATIONS AND SUGGESTIONS

FOR FURTHER STUDIES

5.1 Summary of Findings 71

5.2 Conclusion 71

5.3 Recommendation 72

5.4 Suggestions for Further Studies 73

Bibliography 75

Appendices 78

INTRODUCTION

There is no doubt that small and medium scale enterprises constitute the real fabric of a nation’s economy. Ever since the country’s (Political) independence, this has been so, and even today the entire economic system is exclusively held in place by small and medium scale enterprises, Owualah (1998:8).

However, the environment in which this sector operates is both challenging and rewarding. The fact that SMEs forms the engine for industrial growth and development in the economy recommends efforts that could make them strive.

By definition, Small and Medium Scale enterprises are business with investments in fixed assets (excluding land) of not more than #10 m (Ten Million Naira). There are several other criteria by different authors and scholars to describing Small Medium Scale enterprises.

A significant aspect of small and medium scale enterprises is in the following developing areas, creation of employment, stimulation of indigenous entrepreneurship, transformation of traditional industry, linkage effort, contribution to regional activities or cooperation, utilization and multinationalisation of indigenousnenterprises.

To Adewolu (2005:43) small and medium scale enterprises are activitiesnundertaken by a person or group of persons for the provision of goods and services to meet the present and future needs of third parties at a price and for a profit through the management of available resources.

BIBLIOGRAPHY

Abuja, I. (2006), SME, can “Revolutionise Nigerians Economy’ Financial Standard, Volume 7, No. 16, February 6th, p.40.
Adewolu, O.A. (2005), Establishing and Operating Successful SMEs in Nigeria: “The Challenges and Lessons”, Unpublished Lecture on the annual meetings of the Nigerian Society of Engineers, December 1st.
Akinlami, T. (2006), “Five Foundational Legal Issues for Entrepreneurs” Daily Independent, January 30th Monday, p.61.
Asika, N. (1990), Research Methodology in the Bahavioural Sciences, Longman Nigeria Plc Lagos.
Azuwike, M. (2006), “Betting on Microfinance to empower Microentrepreneurs”, Business Day, February 1 6th, Thursday, p.30.

StudentsandScholarship Team.

Join Our Newsletter!

Don’t miss this opportunity

Enter Your Details

Be the first to comment

Leave a Reply

Your email address will not be published.


*