ABSTRACT
The Small
and medium scale enterprises have long been recognized as an instrument of
economic growth and development in Nigeria.
This research project is thus a search the
significance of small scale hotels in Nigeria and the challenges facing small
scale hotels in Nigeria.
Chapter one of the study lays a
framework for subsequent chapters. Following the general introduction,
the problem statement and the objective of the study which provided basis for
the significance of the study and the hypothesis were stated. The limitations
of this study were also highlighted.
In the literature review as contained
in chapter two, works of various authors, international and local journals were
reviewed to elicit views on challenges facing small scale hotels in Nigeria.
Chapter three, research methodology,
description of population and sampling procedure for data collection were
discussed. Methods of questionnaire design, determination of sampling size and
questionnaire distribution were also highlighted.
Chapter four was based on analysis of
data collected. This chapter was sub-divided into data analysis, hypothesis
testing and summary. Percentage table, figure and narration were carefully
employed for proper understanding and testing of hypothesis.
Finally, chapter five was divided into summary of findings,
recommendation and conclusion.
TABLE OF
CONTENTS
Title Page - - - - - - - - - i
Approval Page - - - - - - - - ii
Declaration - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - v
Abstract - - - - - - - - - vi
Table of Contents - - - - - - - vii
CHAPTER
ONE – INTRODUCTION
1.1 Background of the Study - - - - - 1
1.2 Statement of General Problem - - - - 5
1.3 Objective of the Study - - - - - - 6
1.4 Research Questions - - - - - - 6
1.5 Significance of the Study - - - - - 7
1.6 Scope of the Study - - - - - - 8
1.7 Definition of Terms - - - - - - 8
CHAPTER
TWO – REVIEW OF RELATED LITERATURE
2.1 Theoretical Framework of the Study- - - - 10
2.2 Current Literature on Theories Postulated on
the scope of small scale business - - - - - - - 11
2.3 Classification of small scale business- - - - 14
2.4 Factors that affect small scale businesses - - 16
2.5 The role of small scale business in economic
growth- 16
2.6 Importance of Small Scale Business
Enterprise - 17
2.7 Advantages of Small Scale Business and Self
Employment- 20
CHAPTER
THREE – RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - 32
3.2 Research Design - - - - - - 32
3.3 Area of the Study - - - - - - 32
3.4 Population of Study - - - - - - 33
3.5 Sample size and Sampling Techniques - - - 33
3.6 Instrument for Data Collection - - - - 33
3.7 Validity of the Instrument - - - - - 33
3.8 Reliability of the Instrument - - - - 34
3.9 Method of Data Collection - - - - - 34
3.10 Method of Data Analysis - - - - - 34
CHAPTER
FOUR – DATA PRESENTATION AND ANALYSIS
4.0 Introduction - - - - - - - 36
4.1 Data Presentation and Analysis - - - - 36
4.2 Characteristics of the Respondents - - - 36
4.3 Data
Analysis - - - - - - - 39
4.4 Testing Hypothesis - - - - - - 46
4.5 Summary
of Findings - - - - - - 51
4.6 Discussion of Findings - - - - - 52
CHAPTER
FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction - - - - - - - 54
5.1 Summary - - - - - - - - 54
5.2 Conclusion - - - - - - - - 57
5.3 Recommendations - - - - - - 58
References
- - - - - - - - 61
Appendix - - - - - - - - 62
CHAPTER ONE
INTODUCTION
1.1. Background of the Study
The
establishment of hotels and recreational centers in Nigeria both small scale
and large scale has ultimately helped in the socio economic development of the country.
For this development that has been as a result of the building and
establishment of these hotels to be lasting, the challenges confronting the
small scale hotels in Nigeria has to be limited as negligence of these
challenges may lead to the shutting down of the already existing ones thereby
discouraging entrepreneurs from investing this this profitable niche of
business known as the hospitality sector of Nigeria.
The
Small and medium scale enterprises have long been recognized as an instrument
of economic growth and development in Nigeria. This growing recognition has led
to the commitment of World Bank group on Small scale hotels sector, as core
element in its strategy, to foster economic growth, employment and poverty
alleviation. The World Bank group in 2004 approved roughly $2.4 billion in
support of Micro, Small and Medium Enterprises (World Bank, 2001). The Small
scale hotels have been given due recognitions especially in the developed
nations for playing very important roles towards fostering accelerated economic
growth, development and stability within several economies. Several researches
have been conducted on the prospect and challenges of Small scale hotels in
Nigeria and abroad as Small- and medium-sized enterprises (Small scale hotels) have
long been believed to be important in supporting economics development within a
country (see Akhtar& CDASED, 1999; Mazzarol, Volery, Doss, and Thein, 1999;
Al-Shaikh, 1998) while others such as Chukwuemeka (2006), Agwu and Emeti,
(2004), Arinaitwe (2006), Lundström (2005), Oboh (2002), Okpara (2000),
Wale-Awe (2000), Ihyembe (2000), Bruch and Hiemenz (1984), Binks and Ennew
(1996), Baumback (1983); and a host of others have observed various factors or
challenges that impedes the performance of Small scale hotels ranging from
inadequate finance, poor infrastructural facilities, inadequate managerial
skill, weak and instability of government policies and other presumed factors
and challenges causing premature death of Small scale hotels as Beckman (1983) classified
the problems as internal and external. Many studies have looked at the
respective factors that are germane to the success of Small scale hotels. Teoh
and Chong (2008), Ding and Li (2010) argued about that lack of access to credit
and managerial skills are the major obstacles to entrepreneurship development
and that in a knowledge-based economy, the intellectual capital is gradually
replacing the physical assets in modern enterprises. In the seminal work of
Aschauer (1989), he finds that the provision of public infrastructure is a
significant determinant of aggregate productivity of Small scale hotels.
Pointing to these different findings, it appears that empirical studies on the
prospects and challenges of Small scale hotels are still largely inconclusive
as the direction to which of these factors serve as prospects for Small scale
hotels and those which are really challenges have not been properly identified.
In tandem with the objective thrust of this study, none of these studies has
observed the ranking of these challenges in order of their importance or the
priorities on the Small scale hotels. The authors only argued on the presumed
factors that affect Small scale hotels, that is why this study intends to look
at factors that have the highest priorities or ranking order of importance
using principal component of factor analysis; being the gap existing in
empirical works. Apart from this introductory section, the remaining aspect of
this study is divided into four other sections.