ROLES IN EMPLOYMENT GENERATION AND ECONOMIC GROWTH (A Case Study of Selected Small Business in Lagos Sub-Uban)
In both developed and developing
countries, the government is turning to small and medium scale industries and
entrepreneurs, as a means of economic development and a veritable means of
solving problems. It is a seedbed of innovations, inventions and employment.
Entrepreneurship is as old as Nigeria
and had contributed to the growth of the economy. Presently in Nigeria, SMEs
assist in promoting the growth of the country’s economy, hence all the levels
of government at different times have policies which promote the growth and
sustenance of SMEs.
This paper identifies the orientation
of SME’s and entrepreneurial trends in Nigeria, tackles the operational
definition and scopes, and describes the role of the Nigerian government as a
participant, regulator and facilitator, both legally and politically in the
growth of SMEs and entrepreneurship. It identifies the marketing problems of
SMEs and entrepreneurships in Nigeria,
the provision and enactment of beneficial and supportive laws, the provision of
infrastructural facilities, constant man-power and development, direct
financial assistance to SMEs and the establishment of finance institutions to
support SMEs. It identifies the roles of SMEs in Nigeria’s development and growth.
It discusses the entrepreneurial thoughts, problems and advance practical
It concludes by clearly specifying the
role of marketing to the survival of SMEs and entrepreneurship in Nigeria,
and relevant recommendations. For SMEs to survive marketing practice and
principles must be given prominence.
TABLE OF CONTENTS
CHAPTER ONE :
1.1 Background of the Study
1.2 Objectives of the Study
1.3 Statement of the Problems
1.4 Research Question
1.5 Statement of Hypothesis
1.6 Methodology of the Study
1.7 Significant of Study
1.8 Scopes and Limitation
1.9 Organization of Work
1.10 Definition of Terms
2.2 Entrepreneurship Thoughts and Philosophy in the Developing World
thoughts of Entrepreneurship in Nigeria
Problems of Small Business Enterprises
Support Strategies in Nigeria
2.5.1 Participation Strategy an Opportunity for Marketing in Nigeria
2.5.2 Credit Support Strategy
2.5.3 Extension Service Strategy
2.5.4 Industrial Estates Strategy
2.5.5 Private-Led Market Strategies
2.5.6 Privatization Strategy
2.5.7 Delegation Strategy (Empowerment)
2.5.8 Partnership Strategy
2.5.9 International Strategy
Scale Industry – Its Role in the Economic Development in Nigeria
to Entrepreneurship Development
2.7.1 Economic Obstacles
2.7.2 Technological Backwardness
2.7.3 Political Legal Obstacles
2.7.4 Managerial Obstacles
2.7.5 Behavioural Obstacles
2.7.6 Production Operation Problems
2.7.7 Finance and Accounting Problems
Strategies to SMES Problems
2.8.1 Government Related Solution
2.8.2 SMES – Oriented Solutions
2.8.3 Society Oriented Solution
2.8.4 Bank Oriented Solution
3.2 Restatement of the Research Hypothesis
3.3 The Population of the Study
3.4 Sample Size and Sampling Procedure
3.5 Source of Data/Method of Data Collection
3.6 Method of Data Analysis
DATA PRESENTATION AND ANALYSIS
4.1 Presentation and Analysis
4.2 Testing of Hypothesis
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
1.1 BACKGROUND OF
Small scale enterprises are catalyst in the socio-economic
development of any country. They are a veritable vehicle for the achievement of
national macroeconomic objective in terms of employment generation at low
investment cost, the catalytic roles of SSEs have been amply indigenous
technology. The catalytic roles of SSEs have been amply displayed in many
countries such as Malaysia, Japan, South Korea, India etc. SSEs
contribution substantially to the Gross Domestic products (DGP), export
earnings and employment opportunities of these countries.
Using the definition of central Bank of Nigeria (1993),
SSEs can) be defined as an enterprise, whose total cost, excluding cost of land
but including working capital, is above N10 million.
Financial growth on the other hand may be defined as a
gradual and steady change in the long-run which comes about a gradual increase
in the rate of savings and population (Schumpeter 1934).
Simply put, Economic Growth is an increase in per capital
income over a long period of time or over a business cycle.
A person is said to be
unemployed if a job is not available
when he is willing and able to work at the prevailing wage rate.
The Federal Government of Nigeria
has long recognized the need to promote the development of SSEs in order to
stimulate employment, mobilize local resources, reduce migration from rural to
urban area and disperse industrial enterprise more evenly across the country.
This is why the government has established institutions to provide both
financial and non financial services to SSEs. The roles of SSEs will be
examined in this work in relation to employment generation and financial growth
in comparison to that of large scale.
1.2 OBJECTIVES OF
The objectives of
the study are:
1. To evaluate the performance
of small scale industries.
2. To assess the roles of small
scale enterprises in employment generation.
3. To determine the extent at
which small scale enterprises contribute to financial growth.
4. To identify the major
constraints hindering the operations of small scale enterprise
5. To make suggestions on how
the performance of small scale enterprises could be improved.
1.3 STATEMENT OF
Nigeria is a country with increasing labour force. She
lacks capital as well as foreign investment into the country as a result of
political instability and other reasons. Therefore, a proper and efficient way
of utilizing her scarce other resources must be found in order to reduce
unemployment and increase economic growth. it must be noted that unemployment is not only an
economic problem but also a social problem. This means, it does not only under
growth, it also gives room for social problems such as robbery, arson, suicide
The key problem facing most
small-scale enterprises is lack of finance whether for the establishment of new
industries or to carry out expansion plans. The inability to attract financial
credit or resources has hindered or stifled the growth of small scale
enterprises. The reasons for the lack of fund include the following:
High rate of inflation that led to the vast depreciation of the naira
exchange rate, thus making it difficult for most small and medium enterprises
to obtain the required input for
Low level of savings in the economy, which leads to low capital formation
High rate of interest charged on loan, which scares off potential small
and medium scale entrepreneurs
The unwillingness of retail
banks to grant credit to small and medium scale enterprise because of the low
creditworthiness of these enterprises has also hampered their growth over the
i. Do small scale enterprises play any role
in employment generation?
ii. Do small scale enterprises contribute to financial growth?
ii. what are the major constraints hindering the
activities of small scale enterprises in Nigeria.?
1.5 STATEMENT OF
In order to achieve the above stated objects, the
following hypotheses shall be tested:
Ho: Small-scale enterprises do not play
significant roles in employment generation.
H1: Small-scale enterprises play significant roles
in employment generation.
Ho: Small-scale enterprises do not play
significant roles in financial growth.
H1: Small-scale enterprises play significant roles in financial growth.
1.6 METHODOLOGY OF
The study will base its data
collection on both the primary and secondary sources. The secondary
source shall include, textbooks, journal, speeches delivered in various
seminars, information from Federal Offices of Statistics, CBN Annual Report
etc. The primary source is through the use of questionnaire, which will be used
to obtain information from the respondents that from the sample of the study.
Data obtained through the
questionnaires shall be presented through the use of simple frequency
distribution table. The data shall be analyzed through the use of chi-square
distribution, which is the statistical method use to test for the difference of
two independent statistics.
1.7 SIGNIFICANCE OF
The study is significant in that
it will show how SSEs may be used to generate more employment, improve
financial growth and help the country from her present recession if not
depression as it has done in many other countries mentioned in the
1.8 SCOPES AND LIMITATION
The study will be limited to SSEs as defined. Also the
study shall limit five (5) SSEs in Lagos state, the selection of these Small Scale
Enterprises will be done by the use of strategic sampling method that would
represent the entire population of Small Scale Enterprises in Lagos.
1.9 ORGANIZATION OF
The study will be divided into five main chapters. Chapter
one will cover the general introduction into the study under which introduction,
statement of problems, objectives of the study, statement of the study are
discussed. Chapter two will focus on literature review, which has to do with a
general presentation of views by former researchers as well as scholars on the
main variables of the study. Chapter three will contain the structural
composition of the study under which the sources of the finance of small scale
enterprises are discussed. Chapter four will be devoted to data presentation
and analysis and chapter 5 will be used for summary, conclusion and
1.10 DEFINITION OF TERMS
ENTERPRISE: An enterprise is an
entity engaged in an economic activity.
is an enterprise which is not classified as a partner.
SMALL SCALE ENTERPRISE (SME): is
regarded as small or medium sized if it has not more than 250 employees and not
more than 50 Million Euro turnover respectively a balance sheet total of less
than 43 Million Euro and if not more than 25% of the shares of such an
enterprise are in the ownership of another enterprise.
SMEs: Small and Medium Enterprises are those firms, which satisfy the
definitions given above
SMEDAN: Small and Medium Enterprises Development Agency of Nigeria
BOI: Bank of Industry, which provides
medium or long-term loans to enterprises
CBN: Central Bank of Nigeria,
the apex bank in Nigeria,
which supervises other banks
Quality Management (TQM): This is a concept in
management which says that every individual and division in an organization
should emphasize the satisfaction of customers and client
A type of plan that specifies anticipated result in numerical terms and serves
as control device for feedback evaluation and follow-up.
A method of predicting future business conditions for the purpose of
establishing goals and budget.
Policy: A general guide to
thinking and action or decision of people to do something through certain ways