THE FACTORS THAT HAVE IMPACTED GROWTH AND DEVELOPMENT IN SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

ABSTRACT

Policy objectives of Nigerian government aimed at promoting and eloping small and medium scale enterprises since 1970’s.

Government played significant roles in providing management support service, credit facilities to small scale enterprises, but these are inadequate because each one of the aforementioned has their own stipulated policies guiding them in rendering these services.

The problems under the sub-topic can be viewed:

(1)             Little access to low information and technology.

(2)             Insufficient business connections.

(3)             Inability to draw business plans.

The importance of the factors that have impacted growth and development in small scale enterprises and the topic has an organizational medium enterprises to function effectively and efficiently, it will require competent entrepreneurs.

Small scale firms are mostly financed by personal savings. Loans from Banks carries the highest sources of fund, despite the fact that Banks are not willing to give loans to small scale  businesses due to the fear of risk and uncertainty. Petrin, (1991)

Moreso, entrepreneurs must always be aware of economic situation in the country.                    

CHAPTER ONE

INTRODUCTION

1.0            GENERAL  BACKGROUND OF THE STUDY  

Small and medium enterprises play a significant role in world economy. Historically, small business entrepreneurship has its origin in the Eastern Mediterranean Siropolis, (1977). According to Tuteja (2001), business enterprises all over the world are divergent array of business concerns involved in economic activities spanning micro and rural enterprises and contemporary industrial organizations that use sophisticated technologies.

The breakthrough in Nigeria entrepreneurship and small business development came about through the Nigerian indigenization Decree and later the Nigerian Enterprises promotion Decree. There were attempts by Federal Government decision makers to make sure that Nigerians play a worthwhile and active role in the development of the country’s economy.

Generally, the success of any nation’s self-reliant economic strategy and policy (including small and medium scale business and entrepreneurship policies and programs) is mainly a function of its people’s positive attitude towards entrepreneurship, in addition to the extent to which the right incentives and infrastructure are adequate enough to make risk worth – taking in business entrepreneurship. The federal and state government in Nigeria have both contributed to the growth and development of entrepreneurship, and small and medium – scale industries in Nigeria, especially in the rural areas of the country.

1.1     PURPOSE OF THE STUDY                                                          

The main purpose of this study, was to find out the factors that have impacted growth and development in small-scale enterprises in Nigeria.

1.2            STATEMENT OF PROBLEMS

Problems in small and medium scale enterprises can be seen as those things which hinder the smooth running of the organization. They include:

–              Lack of infrastructural facilities.

–              Lack of adequate capital

–              Poor management

–              Lack of resources i.e Raw materials, money, and machines.

–              Lack of manpower