ABSTRACT
A significant
aspect of small and medium scale enterprises is in the following developing
areas, creation of employment, stimulation of indigenous entrepreneurship,
transformation of traditional industry, linkage effort, contribution to
regional activities or cooperation, utilization and multinationalisation of
indigenous enterprises. Thus, government, agencies, corporate organizations,
international sponsors, etc are expected to adequately provide or empower SMEs
for sustainable economic (activities that guarantees) development and growth.
This study therefore seeks to address the following issues – The enabling environment
by government to small and medium scale enterprises are not always complete in
any particular empowerment. In other words, transport and electricity may be
available while water, communication, educational infrastructure, etc may not
be available or inadequate. Thus, no environments are comprehensive or complete
in any small and medium scale industry. Hostility in an operating environment
(by government, or communities) often make the efforts and expectation of tile
small and medium scale enterprises unrealistic. Other problems in realizing the
objectives of government’s empowerment to small and medium scale enterprises
are unregulated competition and inconsistencies in policies and programmes. The
major data collection instrument to be use is the questionnaire. It will be
structured with a four point likert scale to determine responses to the
objective of the study. At the end of the study it was observed that, resources
available for empowering SMEs in the Nigerian economy may not be considered
adequate, that stringent regulatory controls of government on SM Es may affect
their growth and development, that inability of SMEs to loans and other
financial assistance may cause their failure, that absence of research and
development on the activities of SMEs may affect their growth and development.
it was therefore recommendations that, every effort should be given to
discourage the difficulties of access to funds set aside for SMEs by financial
institutions or the direct loans occasionally extended to them by the
government by way of empowerment for stainable development, regular training
and retraining should be provided, for SMEs to reduce the perennial problems of
inadequate managerial capacity and poor quality services and products. To this
regard, facilities should be adequate for training and developing the human
resources (managers) needed in translating business in the right question in an
empowerment for stainable development.
TABLE OF CONTENT
Cover page i
Title Page ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vi
Table of Content vii
List of Tables x
CHAPTER ONE – INTRODUCTION
1.1
Background of the Study 1
1.2 Statement of the Problem 3
1.3
Research Questions 4
1.4
Objectives of the Study 4
1.5
Research Hypotheses 5
1.6
Significance of the Study 6
1.7
Limitations of the Study 6
1.8
Scope of the Study 7
1.9 Definition of Operational Terms 7
Reference 8
CHAPTER TWO – REVIEW OF RELATED LITERATURE
2.1
Small and Medium Scale Enterprises Defined 9
2.2
Historical Development of Small and Medium Scale Enterprises in
Nigeria 9
2.3
Small and Medium Scale Enterprises and the Nigerian Economy 13
2.4 The Objectives and Targets of SMEs Policy 15
2.5
Concept of Government Empowerment Defined 18
2.6 Review of Special Support Programmes
for SMEs Development in
Nigeria 20
2.7 Evaluation of SMEs Performance 26
2.8 Sources of Financing Small and
Medium Scale Enterprises as
Government’s Empowerment Technique 29
2.9 The Impact of Government
Empowerment to Small and Medium
Scale Enterprises 33
2.10 Impediments to Government
Empowerment of Small and Medium
Enterprises 34
2.11 Ways to Improve Government
Empowerment to Small and Medium
Scale Enterprises 34
2.12 Causes of Small and Medium Scale Enterprises Failure 35
2.13 National Economic Empowerment
and Development Strategy (NEEDS)
and Small/Medium Scale Enterprises (SMEs) in Nigeria 36
2.14 Outstanding Problems and Prospectus 41
References 45
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Research Design and Instrumentation 47
3.2 Reliability and Validity of Test Instruments 47
3.3 Population and Sample 48
3.4
Data Collection 49
3.5
Data Analysis 49
References 50
CHAPTER FOUR – PRESENTATION AND ANALYSIS OF
DATA
4.1 Testing of Hypotheses 62
CHAPTER FIVE –
SUMMARY OF FINDINGS, CONCLUSION, RECOMMENDATIONS AND SUGGESTIONS FOR FURTHER
STUDIES
5.1 Summary of Findings 71
5.2
Conclusion 71
5.3 Recommendation 72
5.4 Suggestions for Further Studies 73
Bibliography 75
Appendices 78
LIST OF TABLES
Table 4.1: Distribution and Receipts of Questionnaire 51
Table 4.2: Sex Distribution of Respondents 52
Table 4.3: Age Range of Respondents 52
Table 4.4: Showing Marital Status of Respondents 52
Table 4.5: Academic Background of Respondents 53
Table 4.6: Showing that there is no Significant
Relationship between
Government Empowerment and Growth of SME 53
Table 4.7: Showing that Resources Available for
Empowering SMEs in the
Nigeria Economy may not be Considered Adequate 54
Table 4.8: Showing that Stringent Regulatory Controls of
Government on SMEs may affect their Growth and Development 54
Table 4.9: Showing that Inability of SMEs to Loans and
other
Financial Empowerment may cause their Failure 55
Table 4.10: Showing that Absence of
Research and Development on
Empowerment
Programme of SMEs may affect their Growth
and Development 55
Table 4.11: Showing that Information
Technology play Significant Role
in
the Practice of Empowerment Programme for SMEs in
Nigerian Economy 56
Table 4.12: Showing that Unregulated Competition may Discourage the Growth and Development of SMEs in an Empowerment 56
Table 4.13: Showing that Poverty and
Low Income of Investors and
Organizations
affect the Establishment of SMEs and their Growth
in an Economy 57
Table 4.14: Showing that
Inconsistencies in Policies and Programmes
of
Governments and their Agents affect Negatively the
Empowerment Programme SMEs in Nigeria 57
Table 4.15: Showing that Illiteracy
among Entrepreneur may Hinder Optimal use of Resources in an Empowerment for the Development and Growth of SMEs in Nigeria 58
Table 4.16: Showing that Absence of a
Developed Market and Storage Facilities may Hinder Development and Growth of SMEs in an Economy Response 58
Table 4.17: Showing that SMEs are
often known for Serving as the Engine
for
Growth and Development in any Economy. Hence
their Empowerment 59
Table 4.18: Showing that SMEs
Provided Jobs and Income for Different
Individuals
in Different Sectors of an Economy and so should
be Empowered 59
Table 4.19: Showing that
Infrastructural Facilities as Provided by
Government
is Inevitable as an Empowerment to the Growth of
SMEs 60
Table 4.20: Showing that Improper
books of Accounts Serve a Major Set
Back
to Growth of SME in Nigeria through Subsidies of
Empowerment 60
Table 4.12: Showing that Improper
books of Accounts Serve a Major Set
Back
to Growth of SMEs in Nigeria through Subsidies of
Empowerment 61
Table 4.22: Showing that failure of
some SMEs Results from their not given a
Legal Entities as an Empowerment 61
Table 4.23: Testing Hypothesis 62
Table 4.24: Calculation of Chi Square (X2) for Hypothesis I 64
Table 4.25: Testing Hypothesis II 65
Table 4.26: Calculation of Chi Square (X2) for Hypothesis II 67
Table 4.27: Testing Hypothesis III 68
Table 4.28: Calculation of Hypothesis III of Chi Square (X2) 70
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
There is no
doubt that small and medium scale enterprises constitute the real fabric of a
nation’s economy. Ever since the country’s (Political) independence, this has
been so, and even today the entire economic system is exclusively held in place
by small and medium scale enterprises, Owualah (1998:8). However, the
environment in which this sector operates is both challenging and rewarding.
The fact that SMEs forms the engine for industrial growth and development in
the economy recommends efforts that could make them strive.
By definition,
Small and Medium Scale enterprises are business with investments in fixed
assets (excluding land) of not more than #10 m (Ten Million Naira). There are
several other criteria by different authors and scholars to describing Small
Medium Scale enterprises. A significant aspect of small and medium scale enterprises
is in the following developing areas, creation of employment, stimulation of
indigenous entrepreneurship, transformation of traditional industry, linkage
effort, contribution to regional activities or cooperation, utilization and
multinationalisation of indigenous enterprises. To Adewolu (2005:43) small and
medium scale enterprises are activities undertaken by a person or group of
persons for the provision of goods and services to meet the present and future
needs of third parties at a price and for a profit through the management of
available resources. To him, small and medium scale enterprises could be found
in the following areas; marketing of goods, provision of services, manufacturing
of goods/products, cultivation of land and dissemination of
information/knowledge. On the strength that small and medium scale enterprises
are formed on the basis of partnership between owner(s) and the providers of
conducive environment (i.e. the government), suggests that encouragements and assistance
(i.e. empowerment) are usually expected from the government and her agents.
To Balogun
(2004:22) some of the empowering factors from government to SMEs include;
electricity, transportation, communication, water supply, financial
infrastructure and educational facilities among others. Thus, government,
agencies, corporate organizations, international sponsors, etc are expected to
adequately provide or empower SMEs for sustainable economic (activities that
guarantees) development and growth. Trade policies and barriers are other
critical areas to which government empowerment are needed for small and medium
scale enterprises to effectively and efficiently accelerate or sustain the economy.
To Daniju (2007:54) finance and skills acquisition which cut across all ages forms
the key to empowerment of small and medium scale enterprises. A typical
empowerment banks initiative to small and medium scale enterprise is the small
and medium scale industry equity investment scheme (SMIEIS) and bank of
industry (1301). Similarly the National Economic empowerment and development
strategy (NEEDS) by the federal government addes as path of sustainable
economic growth and development for small and medium scale enterprise in
Nigeria.
The said NEEDS
initiatives were borrowed from the programmes of the new partnership for
African Development (NEPAD) in African Union. The government through NEEDS is a
facilitator, providing the enabling environment for a free-maker system. Other
areas of special empowerment of small and medium scale enterprises are;
research institutions provision of industrial estate, protective benefit laws
(i.e patents, copy right, trade marks and farm close), etc. Infact from forgoing
analysis it could be understood that empowering small and medium scale
enterprises as given by government and institutions is favourable as it
reflects all sector of the economy, hence even or sustainable economic growth.
A more result oriented step about developing small and medium scale enterprises
in Nigeria is the focus on initiating and practicing courses on small and
medium scale enterprises in the educational systems (at all levels) in Nigeria.
This step is capable of expanding the entrepreneurship and the production of
goods and services in the economy. It is strongly believe that if business
owner(s) could respond according to the various ‘empowerments, small and medium
scale enterprise will continue to occupy their pride of their place as
“bedrock” for national development and growth. Moreso, it need be emphasize
here that empowerment of small medium scale enterprises and their operations
are limited to market forces, information and knowledge available to operators,
technological innovations, international standards and financial I resources
available.
1.2 STATEMENT
OF THE PROBLEM
Empowering small
and medium scale enterprises for sustainable economic development could have
been very much appreciated and practiced if not for certain deficiencies, hence
the need to tackle the following problem areas:
Businesses
owners often times fall short of the required information and knowledge, as to
when, where and to whom to refer to in time of empowerment in their businesses.
Small and medium scale enterprises report show that failure usually result from
their inability at identifying accurate and reliable marketing, financial and
information technology facilities available in their operating environment(s).
Other reasons
for small and medium scale enterprises not developing and growing in
empowerment includes;
THE EMPOWERING OF SMALL AND MEDIUM SCALE ENTERPRISES FOR SUSTAINABLE DEVELOPMENT – A STUDY OF SMALL AND MEDIUM ENTERPRISES IN LAGOS
