ABSTRACT
This
write-up is to show how government industries foster economic development. This project aims at examining various
government policies and their effects on the survival and growth of small and
medium scale enterprises, it is crucial for us to understand and appreciate
what constitution a small or medium scale enterprises, what factor militate
against their survival growth, and proliferation for which government policies
have been formulated to address or for us to understand and appreciate what
constitute a small scale.
This
paper structurally based or grouped into section namely:
i. Section one is the introduction of the
topic
ii. Section two contains the definition and
characteristics
iii. Section three contains the role as well as
recognized problem
iv. Section four contains government policies on
the small and medium scale enterprises.
v. Section five contains the summary,
conclusion and reformation
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1
Background of study
1.2
Statement of the
problem
1.3
Objective of the
study
1.4
Research Questions
1.5
Research Hypotheses
1.6
Significance of the
Study
1.7
Scope of the Study
1.8
Limitation of the
study
1.9
Definition of Terms
References
CHAPTER TWO
LITERATURE REVIEW
2.1 Recognition of the Small and Medium Scale
2.2 Definition of Small Scale Business
2.3 Characteristics of Small and Medium Scale
2.4 The Role of Small and Medium Organization
2.5 Strategic Importance of Small and Medium
2.6 Problems of Small and Medium Scale
2.7 Promotion of Small and Medium Scale
2.8 Fiscal Policy Measures
2.9 Budget Measures
Reference
References
CHAPTER THREE
RESEARCH DESIGN AND
METHODOLOGY
3.1 Introduction of the study
3.2 Research Design
3.3 Area of Study
3.4 Population of the Study
3.5 Sample Size Determination
3.6 Instrument for Data Collection
3.7 Validation of the Instrument
3.8 Reliability of the Instrument
3.9 Method of Data Collection
3.10 Method of Data Analysis
3.11 Questionnaire Distribution and Retrieval
CHAPTER FOUR
Data presentation and
Analysis
4.1 Data
presentation and Analysis
4.2 Testing of Hypothesis
4.3 Summary of Results
CHAPTER FIVE
Discussion,
Conclusion and Recommendation
5.1 Introduction
5.2 Discussion of Results Findings
5.3 Conclusion
5.4 Implication of the Research Findings
5.5 Recommendations
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 Background of the
Study
The
role of the small and medium enterprises (SME) as a catalyst for economic
growth and development has been well documented in the economic literature and
recognized in most countries. For
example, in many of the newly industrialized nations, more than Ninety eight
(98) percent of all industrial enterprises belong to the small and medium
enterprises sector and account for the large mass of the labour force.
Small and medium enterprises enjoyed
competitive advantage over large enterprises in serving dispersed local
market. Knowledge of this fact,
programmes of assistance especially in the area of finance extension and
advisory services, as well as provision of infrastructure have been designed by
the Nigerian government for the development of small and medium enterprises.
Specially, successive government in
Nigeria have in the last three decades shown interest in ensuring satisfactory
financing for small and medium enterprises (SMES), by establishing various
schemes and specialized financial institution to provide suitable financial to
the sub-sector.
The role of small and medium enterprises
in fostering economic development has also been well activated in different
forms of this nature. The specify
attention on them is based on their expected impact and potential contribution
on board and diversified production base as well as their accelerative
effective in achieving macro objectives pertaining to full employment, income
distribution and the development of local technology. They are particularly most conducive for
diffusion of management skills and stimulation of indigenous entrepreneurship
overtime.
Effective role in promoting the growth
of small and medium scale enterprises in recognizing the flexible and adaptive
nature as well as the economic development in believing that a dynamic and
growing small and medium manufacture sub-sector can control significantly to
the implementation of a wide various policies to encourage their proliferated
and make them credible engine grown and development.
The basic objective of growth and
development policies as contained in the monetary policies are fiscal policy
measures to improve financing and other supportive service to small and medium
scale enterprises by expanding and improving their access to credit and infrastructural
facilities reducing their production costs, boosting their profitability,
enhancing by making their products competitive in the export market. This seminar aims at examining various
government policies and their effects on the survival and growth of small and
medium scale enterprises. It is important for us to understand and appreciates
what constitutes of small or medium scale survival, growth and proliferation
for which government policies have been formulated to address.
1.2 Statement
of Problem
An
important feature associated with small and medium scale industries, which is
particularly relevant to our economic problem, is that these industries
characteristically depend less on imported inputs relatively to their local
capital investment than large firm.
In view of the economic situation and
alarming rate of the unemployment in society, it is important to determine the
effective of government policies on small and medium enterprises have on our
economic development and their impact on the society at large.
The study of intents to examine
constraints encountered by small and medium scale industries. Hence, the federal government continues to
lay emphasis on self-reliance industrialization through the encouragement of small
and medium scale industrial development. New lending schemes and credit
institution at both local and federal levels has been establishing to encourage
the development.
They include the national economic
reconstruction fund (NERFUND), the national, Directorate of Community Bank and
other Development Bank.
Inspite of these measures, small and
medium scale industries in all parts of the federation has continued to face
high rate of business failures because of their reliance of foreign raw
material imputs.
Small and medium scale industries are
the pivoted on then which any developing economy like Nigeria stands.
They creates more jobs per units of
investment then large scale ones the there is a problem as to whether their
poor performance in as a result of dependence of foreign raw material
inputs. This problem raised this
question, will the establishment of small and medium scale raw material
processing industries such as palm oil processing plant help to boost the
development of small and medium scale enterprises in Nsukka zone in particular
and the country in general it is the answer to this question that is focus in
this research.
1.3 Objective
of the Study
The
objectives of this study are as follows:
1. To find out the commercial banks that assist
small and medium scale enterprises as stipulated by the government.
2. To find out if government policies
affect the production of palm oil at Nsukka.
3. To determine the attitude of people
towards innovation and how it affect the source of raw material for production.
4. To determine if the small scale
industries can produce at a large commercial quantity.
5. To make general and specific
recommendation based on the finding of the study.
1.4 Research
Questions
In
order to facilitate the study, the following basic questions will be reflected
in the interview.
1. Can government polices affect the
production of palm oil at Nsukka?
2. Can the attitude of Nsukka people toward innovation affect the
source of raw material for production?
3. Does SABGO palm oil processing
industries produce palm oil at commercial quantity.
4. Have the industry ever encountered any
environmental constraints?
5. Do the commercial banks in the area
assist small and medium scale enterprises as stipulated by the government?
6. Will there be adequate finance and
manpower around the Nsukka area to help raise the industry production
capacities.
1.5 Hypothesis
Formulation
H0: Commercial banks in the area do not assist
regulatory as stipulated by the government as regards to small and medium scale
industries.
H1: Commercial banks in the area assist regularly
as stipulated by the government as regards to small and medium scale
industries.
H0: There is no enough manpower around the area
of help raise the industry’s production capacity.
H2: There is enough manpower around the area of
help raise the industry’s production capacity.
1.6 Significance
of the Study
In realization of the advantages of promoting small and
medium scale enterprises the federal government has countries to play
pioneering and active roles since 1970’s in stimulating small and medium scale
enterprises .
Its policy objectives in this context could be summarized
as:
1. Provision of greater employment
opportunities
2. Industrial development and natural
integration through industrial dispense
3. Increased production of manufactures
exports
4. The development of indigenous
technology.
The
government has according employed combination of monetary and fiscal measures
as well as industrial incentive to enhance the achievement of the desired
goals.
1.7 Scope
of the Study
This
study aims at examining various government policies and their effects on the
survival and growth of small and medium scale enterprises in Nigeria.
It is important to understand and
appreciate what constitute a small and medium scale enterprises, what factors
militates against their survivals, growth and proliferation for which
government policies have been formulated to address.
It also examines how government policies
can help small business, owners in Nigeria, with reference to SABGO oil Enugu.
1.8 Limitations
of the Study
A
research in this nature cannot be carried out without some constraints and
possible witcher, which made the work highly demanding and difficult.
It was therefore common that the
researcher found conducting of this research on uphill task.
As any other researchers in the society
such as ours, lot of problems was encountered in the process of conducting this
research.
Some of these limitations include the
finance required to carryout the research project that was really enormous some
of these limitations include the finance required to carryout the research
project that was really enormous.
This was as a result of high cost of
producing the questionnaires, typing and binding its and of course
transportation expenses. The researcher
could have been extended but fro time and huge financial requirement involved
in running about for the required information, the researcher decided to settle
for one location only.
The researcher also had problems in
getting literature material treated on topics that are related.
However, inspite of the numerous
constraints encountered in the course of this study the researcher believed
that on appreciable work was finally carried out.
1.9 Definitions
of Terms
1. Policy:
Policy
is the guideline laid down in general or specific terms to make a company or
other organization to reach the long range target or targets bet by the
objectives.
2. Fiscal
Policy: This
is a macro-economic tools which involves the used of government spending and
taxes in guiding the nature economy to achieve pre-determined economic goals.
3. Monetary Policy: This is the attempt to
regulate the economy by regulating the supply of monetary and terms
availability of credit.
4. Finance: This is the activity of
managing money, especially by the government or commercial organization.
5. Budget:
This
is financial statement items and amount of expected expenditure are source
amount of expected revenue of economic unit over a period ahead, usually one
year.