ABSTRACT
The main purpose of this research
project is basically to determine whether small business enterprises contribute
to the growth and development of Nigerian's economy and to identify the
problems and challenges of small businesses in Nigeria. It also identifies the
extent of government financial assistance to the small business enterprises.
The core research questions and
hypotheses for this study were: are small businesses contributing towards
improving the Nigeria's economy? To what extent is the availability of credit
facilities contributing to the survival of small business enterprises, small
business enterprises do not contribute towards improving the Nigeria's economy, the availability
of credit facilities do not contribute to the survival of small business
enterprises.
A hundred and ten questionnaires were
distributed randomly to stratified groups within Ikeja Local Government Area.
Hundred respondents duly filled and returned the questionnaires. This
constitutes the sample size. Out of this number, eighty-seven were male while
thirteen were female. A 5 - point likert scale was developed and validated to
collect information from the respondents.
The data collected was analyzed with
basic descriptive statistics such as frequency and simple percentages. Chi-square
analysis was also made. The core findings from the results obtained show that
small business enterprises are faced with numerous problems like inadequate
capital, inadequate raw materials, inconsistency in government policies and a
host of others. It was discovered that there is a prospect for the small
business enterprises because of various schemes put in place by the government
and also if government's good policies are well implemented, the sky will be
the limit for small businesses enterprises in Nigeria. A survey was carried out
by means interviews and questionnaire. This showed that the contributions of
small business enterprise to the growth and development of Nigeria's economy is positive.
There are also various remarks and recommendations in the study and if all
these are strictly adhere to there will be a great improvement in the
performance of small business enterprises which will be for the betterment of
all.
TABLE
OF CONTENTS
CHAPTER
ONE: INTRODUCTION
1.1
Background
of the Study
1.2
Statement
of the Study
1.3
Purpose
of the Study
1.4
Significance
of the Study
1.5
Scope
of the Study
1.6
Research
Questions
1.7
Research
Hypothesis
1.8
Research
Methodology
1.9
Organisation
of Study
1.10 Definition of Terms
References
CHAPTER
TWO: LITERATURE VIEW
2.0 Introduction
2.1 Theoretical
Framework
2.2 Conceptual
Framework
2.2 Definition
and Concept of Small Business Enterprises
2.3 Small
Scale Enterprises (SMEs) and Economic Growth
2.4 The Problems Facing SMEs.
2.5 Characteristics
of Small Business Enterprises
2.6 Benefits
of Small Business Enterprises
2.7 Demerits
of Small Business Enterprises
2.8 Problems
of Small Business Enterprises
2.9 Government Efforts in Promoting and
Financing Small Business Enterprises In
Nigeria
2.10 Needs
of Small Business Enterprises in Nigeria References
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research
Design
3.3 Population
of Study
3.4 Sampling
Procedure
3.5 Data
Collection Instrument
3.5 Method
of Data Collection
3.6 Method
of Data Analysis
3.7 Limitation
of Study
CHAPTER
FOUR: DATA PRESENTATION AND ANALYSIS
4.1
Introduction
4.2
Characteristics
of Sample
4.3
Analysis
of Respondents Personal Data
4.4
Analysis
of Research Question
4.5
Testing
of Hypotheses
CHAPTER
FIVE
SUMMARY,
RECOMMENDATION AND CONCLUSION
5.1 Introduction
5.2 Summary
5.3 Recommendation
5.4 Conclusion
5.5 Suggestion
for Further Study
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
The impact of Small Scale Enterprises
to the development cannot be neglected in every economy, more especially developing
nations where sustainable economic development is highly desirable small
business enterprises have such a crucial impact to play in the development of
an economy in such a way that they cannot be ignore (Lawal, 1993).
According to Osuagwu (2001) small
business enterprises involves the use of human and non-human resources towards
the achievement of set goals and objectives. Small business enterprises should
form one of the development objectives they can serve as a source of impact for
multinational, thereby replacing existing foreign resources, they are also
training ground for local skill ensuring a more equitable distribution of
income and reducing the migrating of manpower from the rural to the urban
areas.
Small scale enterprises are crucial for
economic growth, poverty alleviation and wealth creation. In an economy like
Nigeria, small business enterprises has always been faced with credibility
problems, planners experience frustrations when they make their forecast (Owualah,
1999).
(Essang , 1994) Economic history is well
stocked with enough it sights into the humble beginnings of present great
corporation, evidence abound that almost all of the multinational giant
corporation in America Europe and even Nigeria were cottage enterprises,
growing as their industry grew and through their own sheer ability, marketing
skills, and effort to reproduce and produce existing products better cheaply. Japan's economy
was dominated by traditional industries, cottage firms and by many SMEs, who
drew their strength, not only from the abundance of capital, but from the role
of marketing in guaranteeing the growth of small scale enterprise.
Small scale enterprises contributed
greatly to Nigerians development by the provision of employment, marketing of
goods and services and the growth and development of the rural areas. It has
also brought about the growth of indigenous entrepreneurship in Nigeria.
This Research Work Tends Examine the
Contributions of Small Business Enterprises to the Growth and Development of
Nigeria’s Economy
1.2 STATEMENT
OF PROBLEM
Small
business (small scale) enterprises are faced with some problems such as low productivity among the small
business enterprises. As a result of poor financial base and smallness of their
market share, the productivity is very low. Therefore it is hard for them to
compete effectively.
Another
problem being faced by small business (small scale) enterprises is undercapitalization. Most of the small
business enterprises are financed by the owners capital, which is never sufficient
for the business.
This
then leads to death of tangible assets
which is usually caused by the fact that they don't posses enough tangible
assets which could serve as collateral to secure loans from credit
institutions.
1.3 OBJECTIVES
OF THE STUDY
The
main purpose of this research project is basically to evaluate the
contributions and performance of small business enterprises in the Nigerian economy
by giving primary consideration to the various socioeconomics in the country.
It also to identify the problems of small business enterprises and offer
suggestions on how to improve their performance to improve Nigeria's economy.
Other
objectives are:
i.
To identify the problems of small business
(small scale) enterprises and efforts made towards eliminating those problems.
ii.
To examine the performance of small business
(small scale) enterprises, their characteristics and mode of operations.
1.4 RESEARCH
QUESTIONS
This
research tends to provide answer to the following questions.
1. Are
small business enterprises contributing towards improving Nigeria's economy?
2. To what extent is the availability of
credit facilities contributing to the survival of small business enterprises?
3. What
are the roles of small business enterprise in economic development?
4. What
is the impact of government policies on the performance of small business
enterprises?
1.5 RESEARCH
HYPOTHESES
Ho: Small business enterprises do not
contribute towards improving Nigeria's economy
H1: Small business enterprises contribute
towards improving Nigeria's economy.
Ho: The availability of credit facilities do
not contribute to the survival of small business enterprises.
H1: The availability of credit facilities
contributes to the survival of small business enterprises.
1.6 SIGNIFICANCE
OF STUDY
The
study is being carried out in order to appraise the performance of small
business enterprises in Nigeria's economy. This study is also expected to be of
benefit to the government as it will enlighten the tiers of government on the
problems facing the small business (small scale) enterprises and the provision
of suggestions to eliminate such problems.
This
research will also enable small business (small scale) enterprises to
appreciate the importance of their business to the nation and gear them towards
improving performance through the identification of business opportunities and
the efficient distribution of resources towards such opportunities.
1.7 SCOPE
AND LIMITATIONS OF THE STUDY
This
research covers some selected small business enterprises in Ikeja Local
Government Area of Lagos State. These enterprises which vary in size, in the
style and forms of management will be in the area of single product,
multi-product and service enterprises and would be expected to serve as a
microcosm of small business enterprise in the country.
In the course of conducting this
research work it is expected that the following will constitute impediments to
the effective conduct of the study
a) Time
constraint within which the study must be completed.
b) Financial
constraint
c) Inaccessible
and inadequate data
Nevertheless, I believe the above
limitations will in no way affect the reliability and validity of the research
study.
1.8 RESEARCH
METHODOLOGY
This
research shall be using primary data for proper and reliable presentation of
information.
The
primary data shall include questionnaire administration. The Questionnaire
shall include a list of questions designed for the purpose of collecting data
with the view to testing the research hypothesis. It shall be simple and easy
to understand by the respondent.
1.9 PLAN
OF THE STUDY
For
each presentation, this study will be divided into chapters. Chapter One will
give the introduction to the topic; Chapter two will be based on literature
review, looking into the characteristics of small business enterprise, Merits
and demerits of small business enterprise and the need or importance of small
business enterprise in Nigeria: Chapter three will give the research
methodology and the data requirement; Chapter four will present data gathered
from respondents on tables and percentage, test the hypotheses formulated and
interpret the analysis; Chapter five will summarize the study, draw conclusions
and proffer recommendations.
1.10 DEFINITION
OF TERMS
The
several terms and acronyms used in this research work shall have the following
meaning:
SMALL BUSINESS (SMALL SCALE)
ENTERPRISES: The Central Bank of Nigeria (CBN) 1996
Monetary Policy guidelines defined small business enterprises as those whose
total cost excluding cost of land including working capital does not exceed ten
Million Naira.
ENTREPRENEUSHIP:
This is the ability to discover investment opportunities couple with the
ability to organize the enterprise.
SSICS: Small Scale
Industries Credit Scheme. This was introduced in 1971 as a resolving grant by
the Federal and State Governments to assist in meeting the Credit needs of small
business enterprises.
NEXIM: Nigerian Export and
Import Bank. This was established in January 1990 to manage a number of credit
facilities introduced specifically to boost Nigeria's non-oil export sector.
NERFUND: The
National Economic Reconstruction Fund. This was also established in 1990 to
provide relatively long term loans to small and medium business enterprise at
relatively concessionary rate of interest.
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