An Appraisal of Performance of Small Scale Enterprises in Community Development; Evidence from Anambra South Senatorial Zone, Anambra State.
ABSTRACT
This study examines an appraisal of the performance of small scale enterprises in community development; evidence from Anambra South senatorial zone, Anambra state.
Specifically, the study provides the reasons for going into SMEs; sources of financing SMEs; the role of SMEs in community development and factors militating against SMEs in community development.
The researchers distributed 143 questionnaires to the respondents that make up the sample size. The research questions were answered using the mean rating under the modified four-point Likert scale.
Result of the investigation reveals that SMEs play the following role in community development: Generation of employment; Service provision; Improve living standards and poverty alleviation.
Consequently, this study, therefore, recommends that: government should re-introduce the small business credit scheme so that beneficiaries can use them to run the micro, small and medium enterprises.
Government, chamber of commerce and other non-governmental organization should regularly organize seminars for potential and actual small and medium enterprise operators where they should be educated on how to plan.
Organize, direct and control their businesses there should also be a re-introduction of soft loans for small and medium business by the government and financial institution to enhance the performance of SMEs in community development.
TABLE OF CONTENTS
Approval page i
Dedication ii
Acknowledgement iii
Outline page vi
Abstract 1
CHAPTER/INTRODUCTION
1.1 Background Of The Study 2
1.2 Statement of The Problem 4
1.3 Purpose of the Study/Objective Of The Study 6
1.4 Research Questions 6
1.5 Statement Of The Research Hypothesis 6
1.6 Organization Of The Study 7
1.7 Significance of the Study 7
1.8 Limitation of the Study 7
CHAPTER TWO/LITERATURE REVIEW
2.1 Conceptual Issues on SMEs 8
2.2 Government Intervention Policies 10
2.3 Reasons for Going into SMEs 13
2.4 Sources of Financing SMEs 14
2.5 Role of SMEs in Community Development 21
2.6 Factors Militating Against SMEs in Community Development 22
2.7. Theoretical Framework 23
CHAPTER THREE/METHODOLOGY
3.1 Design of Study 28
3.2 Area of Study 28
3.3 Population of Study 29
3.4 Instrument for Data Collection 30
3.5 Method of Data Collection 30
3.6 Validation of the Instrument 31
3.7 Method of Data Analysis 31
3.8 Limitation of the Study. 32
CHAPTER FOUR/DATA PRESENTATION AND ANALYSIS
4.1 Introduction 34
4.2 Respondents’ Characteristics 34
4.3 Analysis of the Research Questions 38
CHAPTER FIVE/ SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 44
5.2 Conclusion 44
5.3 Recommendations 45
References 47
Appendix 51
INTRODUCTION
Background Of The Study
SMEs have been discovered to be a key driver for a country’s economic growth (Schmiemann, 2009) hence, SMEs cannot be overlooked in the economic development of any country.
Okongwu (2001) argues that SMEs are recognized as the main source of economic growth and a major factor in promoting private sector development and partnership, in developed and developing countries.
SMEs help to create employment and are often seen as very important for the growth and innovation of dynamic economies (Mutula and Brakel, 2006). Therefore, economic growth and development in Africa can be achieved through the emergence of strong SMEs, which will later grow to become major players in the developing economy.
SMEs help to diversify economic activities that have significant contributions to imports and exports, they are flexible and can adapt quickly to changing market demands (Ongori, 2009). Thus, SMEs contribute more and more to the national and international economies of the world.
According to Wattanapruttipaisan (2003), the significance of SMEs for growth, productivity and competitiveness of the economies in both developed and developing countries is acknowledged universally, since SMEs bring about substantial local capital formation, contribute to improved living standards and achieve high levels of productivity.
SMEs are identified as a major means of achieving equitable and sustainable industrial diversification.
The contributions of SMEs to Nigeria’s economy are not contestable as about 10% of the total manufacturing output and 70% of the industrial employment are by SMEs (Aina, 2007).
Through the utilization of local resources, SMEs promote industrial and economic development and are responsible for the production of intermediate goods and the transformation of rural technology (Aina, 2007).
REFERENCES
Ariyo, D. (2008). Small firms are the backbone of the Nigerian economy. ………Africa Economic analysis.Academy of Management Journal, Vol 1, ………..No 1, pp. 109-124.
Abiola M. K. O. (1989). ‘Role of Small Scale Industries” Business Concord, 9th December, 1988 Pg. 11 (Concord Press Nigeria Limited, Lagos)
Adebusuyi, B. S. (1997). Performance Evaluation of Small-Medium Enterprises (SMEs) in Nigeria.Bullion Vol.21 No.4, Central Bank of Nigeria.
Adeyemi S. L. (2003). Entrepreneurship and Small Business A Case of a Developing Country.Department of Business Administration University of Ilorin, Ilorin.
AkalonuCanice (1989) “Lack of Marketing Skill Hinders Small Scale Business”, Guardian Financial Weekly, Guardian Newspapers Limited, Lagos.
Allal M. (1999). “Business Development Services for MSEs in Thailand” In MSE Development and Poverty Alleviation in Thailand, Finnega Gerry (ed.), ILO/UNDP Working paper.
Aluko S. O, Oguntoye A. O, &Afonga Y. A. (ed) (1992). Small Scale Industries in Western Nigeria. Ile Ife (Industrial Research Unit, ObafemiAwolowo University, Ife.
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