to the Study
is a matter of fact that there are a lot of things in which large companies are
experts while the small firms can better do some things also. If both, small
and large firms do their business in which they get advantage, the welfare of
the economy can be maximized and the state of specialization can be attained.
When we focus on the effect of small as well as medium firms on the whole
economy, it is difficult rather impossible for us to segregate their effects
from the effect of large corporations.
issue remained a hot topic for centuries. Economists were of the view that it
is a large firm, which participates actively in the economy and also shares a
large amount of foreign exchange earnings. But their point of view changes when
the countries like Taiwan, Japan and Korea developed on their small and medium
based business. It is the crystal clear that these economies developed through
the grass root level as small and medium enterprises belong to grass root.
Those who believe that the large firms are only responsible for economic growth
should keep in mind that the small vendors and small suppliers contribute
heavily in the production of large firms. The reality on ground is that small
firms are held responsible for making large firms to attain their targets.
progress and prosperity, which take place from the lower level, benefit all the
classes of the society. The spill over effects of SMEs proves to be ever
lasting on the world’s economy.
situation differs in Pakistan. It is not more that 10 years that Govt. of
Pakistan has established an institution named small and Medium Enterprise
Authority (SMEDA) which is considered responsible to promote small and medium
enterprises. SME sector is being neglected in Pakistan and so as the effects of
small and medium firms of Pakistan’s economy. Pakistan is very potential market
for SMEs and if undertaken in systematic way can prosper economy within no
time. Pakistan has a considerable advantage in some areas which needs to be explained
quickly to reap the benefits of exports. Such benefits can increase foreign
exchange rates very positively to develop a favorable framework in all areas of
awareness like fishing, education, fruit, crops, garments, cotton, sugar cane,
dates ginning, wood, auto and many other areas are the basic startups for many
people. This research explains the potentialities of some areas and knowledge
of how these areas can contribute towards Pakistan’s economy by increasing the
foreign exchange rates with reference to Sindh province. The high authorities
and ministry of development and product should formulate some strategies to
design practical policies with the cooperation of stakeholders, such policies will
be flexible in enhancing the SMEDA plans and flourish SMEs activities at the
larger scale. This will give a big boost to startup ideas and create cordial
atmosphere of businesses. This will aid a lot more in understanding the export
of Pakistan specially Sindh sector and improve our foreign exchange earnings.
role of Small and Medium-Scale Enterprise (SMEs) in the national economy cannot
be underestimated. These enterprises are being given increasing policy
attention in recent years, particularly in third world countries partly because
of growing disappointment with results of development strategies focusing on
large scale capital intensive and high import dependent industrial plants. The effect
of SMEs is felt in the following ways: Greater utilization of local raw
materials, employment generation, encouragement of rural development,
development of entrepreneurship, mobilisation of local savings, linkages with
bigger industries, provision of regional balance by spreading investments more
evenly, provision of avenue for self-employment and provision of opportunity
for training managers and semi-skilled workers. The vast majority of developed
and developing countries rely on dynamism, resourcefulness and risk tasking of
small and medium enterprises to trigger and sustain process of economic growth.
In overall economic development, a critically important role is played by the
small and medium enterprises. Small and medium enterprises advocates, firstly,
it endurance competition and entrepreneurship and hence have external benefits
on economy wide efficient, and productivity growth. At this level, perspectives
are directed towards government support and involvement in exploiting countries
social benefits from greater completion and entrepreneurship.
proponents of SME support frequent claim that SMEs are generally more
productive than large firms but financial market and other institutional
improvements, direct government financial support to SMEs can boost economic
growth and development.
argued that SMEs expansion boosts employment more than large firm growth
because SMEs are more labour intensive thereby subsidizing SMEs may represent a
poverty alleviation tools, by promoting SMEs and individual countries and the
international community at large can make progress towards the main goal of
halving poverty level by year 2020 i.e to reduce poverty by half and becoming among
20 largest World Economies (Nigeria Vision 20:2020). Entrepreneurial
development is therefore important in the Nigeria economy which is
characterized by the following heavy dependence on oil, low agricultural
production, high unemployment, low utilization of industrial capacity, high
inflation rate, and lack of industrial infrastructural base. These constraints
limit the rate of growth of entrepreneurial activities in Nigeria. Hence, this
paper seeks to investigate Small and Medium Enterprises as a veritable tool in
Economic Growth and Development. This paper seeks to investigate Small and
Medium Enterprises as a veritable tool in Economic Growth and Development in
scholars have written widely on entrepreneurship and its potency to generate
employment, thus, underscoring the quintessence, significance and relevance of
this sub-sector in the development of any given economy. The experiences of
developed economies in relation to the roles played by entrepreneurship
buttresses the fact that the importance of entrepreneurship cannot be
overemphasized especially among the Developing Countries. In order to highlight
its significance in relation to the growth and development of a given economy,
entrepreneurship has been variously referred to as a “source of employment
generation”. This is because Entrepreneurial activities have been found to be
capable of making positive effects on the economy of a nation and the quality
of life of the people (Adejumo, 2000). Studies have established its positive
relationship with stimulation of economic growth; employment generation; and
empowerment of the disadvantaged segment of the population, which include women
and the poor (Oluremi and Gbenga, 2011; Thomas and Mueller, 2000; Reynolds,
Given the importance of entrepreneurship in this
regard, it is somewhat surprising that in recent times few researches are
carried out about practical approaches in developing entrepreneurship in
Nigeria inspite of the fact that entrepreneurship is the engine that
entrepreneurship remains the main engine that will push Nigeria economy to it
the challenge confronting entrepreneurship in the field of entrepreneurship is
that of finding an appropriate and effective entrepreneurial approach that
could produce and assist in the nurturing and achieving a called for change in
the current approach in addressing the problems of entrepreneurial development
in Kaduna State, Nigeria.
In addition to the comparative lack of attention
given to entrepreneurship in emerging economics, particularly those in
Sub-Saharan Africa, there is also a relative lack of diversity. In theoretical
and practical approach to African entrepreneurship previous research that has
explored the variation in entrepreneurial activities in Nigeria has focus on
the standard economic and infrastructural factor as Gross Domestic Product and
Direct Fund Investment and education.
These are meaningful variable and provide scholars with a baseline knowledge
about entrepreneurship. However, this factors fail to adequately take
non-economic factors into consideration. Hence, the need to study practical
approaches that would help in addressing challenges of unemployment and
of the Study
central objective of the study is to examine the effect of small and medium
scale enterprises on economic development of Nigeria.. The specific objectives are to:
how enterprise development affects employment generation in Katsina?
Investigate the forms of targeted
government support rendered to entrepreneurial ventures in Katsina?
Analyze the efficacy of government
capacity building programmes and support to promote the development of entrepreneurship
Evaluate the sufficiency of empowerment
through entrepreneurial development initiatives in Katsina and recommend
possible policy adjustments.
order to affectively investigate the problem of this research, the researcher
formulated the following research questions:
What are the effects of enterprises development on employment generation in
What kind of support does the government
render to entrepreneurial ventures in Katsina?
How effective is government capacity
building programmes and support in promoting the development of entrepreneurship
among youths in Katsina Metropolis?
How sufficient is empowerment through
SMEs development initiative in Katsina?
order to confirm the greatest drawback for Entrepreneurship in Nigeria and
fully appreciate their respective relevant significance, we had postulated the
is no significance relationship between SMEs and Economic Growth and Development.
H1: There is significant relationship between SMEs and economic
growth and development.
of the Study
study will be beneficial to entrepreneurship development; as such Katsina state
government can utilize the findings of the research as a basis for policy
formulation as regard entrepreneurship development. The study will also
contribute to the existing knowledge on entrepreneurship development.
is also worthy to note that the study can be use as a basis for further
research, as the research can be use as a spring board for further research as
well as a good reference material to students undertaking similar research.
Scope of the Study
study covers an empirical examination of the effect of entrepreneurship on the
economic growth of Nigeria using respondents in Kastina state as case study.
The study also identifies the practical approaches use in developing
entrepreneurship as well as the problems militating against entrepreneurship
development. The study is limited to Kaduna metropolis.
study covers a time from 2006 – 2011.
is an innovative act, which includes endowing existing resources for new wealth
– producing capacity (Afonja, B. 1999).
An individual that identifies develops and brings vision to life under –
condition of risk and a considerable uncertainty (Bashar, O. 2005)
Characteristic: These are traits that make an individual an
entrepreneur (Tonga, R. 2009).
Performance: The success or failure of an enterprise (Tonga, R. 2009).
- SME; Acronym for Small Scale
Medium use to inform employees about organizational change.
- Change Management: This are
strategies formulated minimize change resistance and foster effective
reengineering of workflow.
Change: These are adjustment made in work process or reengineering of
an organizational change.
- Customer Satisfaction: These
are effort put in place through efficient serving delivery that would delight
Retention: These are strategy put in place to retain existing
Strategy: These are policy design to attract customer’s patronage.
Value: Giving priority to customers in terms of service delivery
“treating customer like Kings”.
Loyalty: Customers who stay with an organization for a long time