IMPACT OF SMALL AND MEDIUM SCALE ENTERPRISE ON NIGERIA ECONOMY DEVELOPMENT

CHAPTER ONE

INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

Abstract

The research work was aimed at investigating the growth of small and medium scale enterprises in relation to economic development and to analyze the effect of small and medium scale enterprises in the Nigerian economy development. Starting with a general recourse to study the small and medium scale enterprises at its root; the essay attempted to study institutions responsible for the growth of small and medium scale enterprises in Nigeria. Regression analysis was done on the Gross Domestics Product (GDP) and small and medium scale enterprises and the findings shows that 5% level of significance, the constant term and the estimates of ISSP are both statistically significant

 CHAPTER ONE

INTRODUCTION

1.1Background of the study

This research project pries into the impact of small and medium scale enterprises on Nigeria economic development with a view to establish it effect on the Nigeria economic as a whole. The Nigeria economic is basically made up of the enterprises sectors which share the production of goods and services. The enterprises sectors comprises of individual, household, commercially oriented firm and some other governmental organizations which the primary object is developing the Nigeria­ economy through the provisions of necessary goods and services. The recognition of the small and medium scale enterprises are catalysts in the socio-economy development of any country. These are veritable vehicle for the achievement of national macroeconomic goals in terms of employment generation at low investment cost and the development of entrepreneurial capabilities and indigenous technology. The catalytic roles of the small and medium scale enterprises have been amply displayed in many countries. The small and medium scale enterprise has really contributed immensely to the gross domestics’ products, export earnings and employment opportunities of these countries. The Federal Government of Nigeria has long recognized the need to promote the development of the small and medium scale enterprises in order to stimulate employment, mobilize local resources, reduce migration from rural to urban areas and disperse industrial enterprises more evenly across the country. This is why the Government has established institutions to provide financial and non-financial services to the small and medium scale enterprises. Among the institution are the National Directorate of Employment (NOE), the People’s Bank of Nigeria (PBN), and National Economic Reconstruction Fund (NERFUND), Nigerian Bank for Commerce and Industry (NBCI), Nigerian Industrial Development Bank (NIDB), Nigerian Export­ Import Bank (NEXIMB). Also, many State Government have established development finance institutions (DFIs) to provide credits for the small and medium scale enterprises. In addition, the central Bank of Nigeria’s credit guidelines to banks to lend a minimum of 20 percent of their total loans and advances to small scale enterprises.

1.2 STATEMENT OF THE PROBLEM

Despite Government’s effort in order to encourage and promote small and medium scale enterprises development in the Nigeria economic, as a result of the dynamic nature of the environment, the Sectors are often faced with the under mentioned problems:

1. Poor feasibility studies
2. Inadequate funding
3. Poor management
4. Loan Default
5. Lack of collateral
6. Lack of adequate trained personnel
7. Inadequate infrastructure
8. Lack of monitoring of loan to SME, by Bank Limited market.

On this background the researcher wants to investigate the impact of small and medium scale enterprise on Nigeria economy development

1.3 OBJECTIVE OF THE STUDY

The objectives of the study are;

1)      To determine the impact of small and medium scale enterprises in the Nigerian economic-development.

2)      To determine the effectiveness of small and medium enterprises in Nigeria economic.

3. To ascertain the contribution of small and medium scale enterprises in the Nigeria economic development.
4. To find out the possible improvement of small and medium scale enterprises in Nigeria.
5. To encourage and to promote small and medium scale enterprises in the Nigeria economic development.

1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H₀:   There is no significant relationship between the small and medium scale enterprises and the Nigeria economic development.

H₁: There is significant relationship between the small and medium scale enterprises and the Nigeria economic development.

H₀²: The existing of small and mediums scale enterprises in the Nigeria economic development is in-effective.

H₂: The existing of small and mediums scale enterprises in the Nigeria economic development is effective.

1.5 SIGNIFICANNCE OF THE STUDY

This research will elicit the attention of the government and the management and the capitalist within Nigerian economy not only to know the impact of small and medium scale enterprises on the Nigeria economic development but also, to realize the important of the sector and how to rise-up to the required fund and the facilities and put them into effective use to achieve the desired goals in the Nigeria economic development. It is also intend to make the management focus on the sectors by promoting the goodwill of the organization which will help boast the future economic and the market value of stocks of the organizations. It will also make the government, management and the public realize that the sectors are the back bone of any nation’s economic development, particularly in Nigeria in terms of production capacity and the creation of genuine employment that lead to the betterment of the nation’s economic development.

1.6 SCOPE AND LIMITATION OF THE STUDY

This research is being audited at examining the impact of small and medium scale enterprises on the Nigeria economic development. The researcher encounters some constrain which limited the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities

1.7 DEFINITION OF TERMS

SME: The European definition of SME follows: “The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro.”

ECONOMY DEVELOPMENT: Economic development is the process by which a nation improves the economic, political, and social well-being of its people. … Consequently, as economist Amartya Sen points out, “economic growth is one aspect of the process of economic development”.

 1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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