1.1 BACKGROUND TO 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), 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.
l.2 PROBLEMS IDENTIFICATION
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:
Lack of collateral
Lack of adequate
Lack of monitoring
of loan to SME, by Bank Limited market.
l.3 AIMS AND OBJECTIVES OF THE STUDY
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.
There are the basic aims and objectives of the research.
That is, the mentioned above.
1.4 THE STATEMENT OF HYPOTHESIS
These are the hypothesis tested in this research.
Ho: There is no significant relationship between the
small and medium scale enterprises and the Nigeria economic development.
Hi: There is a significant relationship between the small
and medium scale enterprises and the Nigerian economic development.
Ho: The existing of small and mediums scale enterprises
in the Nigeria economic development is in-effective.
Hi: The in-effectiveness of the sectors in the Nigerian
economic development is as a result of inadequate of fund, poor
management and the limited market.
1.5 RESEARCH METHODOLOGY
The bulk of the data that would be used in this research
are secondary data. These are sourced from the publication of institutions such
as; the Federal Office of Statistics (FOS) and the Central Bank of Nigeria
The date shall be analyzed with the use of the
correlation and regression statistical analysis, which shall be run on a
computer system using the SPSS, (Statistical packages for Social Science).
l.6 SIGNIFICANCE 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
1.7 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.
According to the research, it is difficult to get the
accurate and reliable information about the sectors. Therefore, the research
findings are only workable within the framework of simplified assumptions.
It is particularly difficult to sample the entire
management functionary that constitutes the sectors.
Another limitation to the study is the time limited and
the financial constraint.
1.8 THE PLAN OF THE STUDY
This research is divided into five chapters. In Chapter
One is the background of the sectors, the statement of the problems, the aims
and objectives, the statement of hypothesis, the research methodology, the significant
of the study, the scope and limitation and the references.
In Chapter Two, the frame work of the sectors will be
developed and details about the certain theories on the sector and the
definition of terms.
In Chapter Three, the method of collecting data will be
highlighted. It will also entail the strategy and approach of the study.
Chapter Four, will deal with the analysis of research
finding and the interpretation and the evaluation of data.
In Chapter 5, are the Summary, Conclusion and Recommendation
1.9 RESEARCH QUESTIONS
(1) How adequate and effective is the impact of
small and medium scale enterprises felt in the Nigeria economic development.
(2) What do you think is responsible for the
poor performance of the sectors in the Nigeria economic development in the
(3) How can the non-challant attitude of the
government and the management in not promoting the sectors enough be corrected?
(4) What conclusion can you draw from your analysis according to the study?
Central Bank of Nigeria
Department, Tinubu, Lagos.
STEVE E. EIGBE, Financing
Small and Medium Scale
ANDRE VAN STEL, The
effect of entrepreneurship on National
M. ADE ADEJUGBE the
impact of Small Scale Industries on the
CENTRAL BANK OF NIGERIA JORNALS, 2008-2010.