AN INVESTIGATION INTO THE STUDY OF THE MARKET FOR BUSINESS DEVELOPMENT SERVICES (BDS) FOR SMALL SCALE ENTERPRISES (SSE)
ABSTRACT
This research was carried out in order to examine the role of market for Business Development Service (BDS) for Small Scale Enterprises (SSE) in Nigeria.
This study becomes indispensable due to the drastic halt in the economic growth and development, which has affected the Gross Domestic Product (GDP) of the economy. Therefore, this study elucidates the roles of market for Business Development Services (BDS) for small scale enterprises in Nigeria in order to bring a smooth balance and equality in the economy, and enhance the high standard of living due to availability of resources.
The bone of contention is that; to what level or extent has market for Business Development Service been able to energize the economy with its capacity in nation economic growth and development?
The method used for data collection is questionnaire, interview, text books and journals.
From the data collected and analyzed, the researcher found out that the government and financial institution have a lot to do by providing adequate fund for and attention to investment activities in order to stimulate growth and development of Small Scale Enterprises (SSE) in Nigeria.
The researcher, therefore, concludes that necessary steps be taken so as to re-direct the investment pattern and restructured the Small Scale Enterprises (SSE) in Nigeria.
TABLE OF CONTENTS
Title page
Approval page
Acknowledgement
Abstract
Table of contents
CHAPTER ONE: INTRODUCTION
1.1 Objective of the study
1.2 Significance of the study
1.3 Scope and limitations of the study
1.4 Statement of the problem
1.5 Formulation of Hypothesis
1.6 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.1 History of small scale enterprises in Nigeria
2.2 The impact of small scale enterprises in Nigeria economy
2.3 Meaning of small scale enterprises
2.4 Small scale enterprises modalities for implementation
2.5 Government impact on small scale enterprises
2.6 Institutions impact on small scale enterprises
2.7 Financial impact on small scale enterprises
2.8 Constraints to the development of small scale enterprises
2.9 Contributions of small scale enterprises to the Nigeria economy
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research design
3.2 Description of population
3.3 Sample size
3.4 Method of Data collection
3.5 References
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 Summary
5.2 Recommendation
5.3 Conclusion
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
Marketing, in a simple sense of view, could be seen as an interaction between the seller of goods and the buyer who demands for goods it is basically on satisfaction of domain. While business has to do with the transaction of items such as money and goods with legal entity, justify and acceptable by all, for the growth and development of economy.
This study based on the roles and impact of the market for business development services (BDS) for small scale enterprises (SSE) in Nigeria. In any enterprises, investment is one of the most important components of aggregate demand. In formal term, investment is defined as the purchase of output (in the form of capital goods) in order to produce additional output in future. Mean while, investment is defined as a total commitment of resources made in hope of realizing benefits that are expected to accrue over a reasonable period of time in the future.
This study involved structured interaction with ninety small scale enterprises and a dozen of Business Development Services provider in Nigeria.
On the demand side, it was found that the small scale enterprises seek two basic types of services; first, the transaction related services refer to such things as assistance in keeping account, labour records, filing of returns, complying with regulations which are time bound and rigid. The out come in this category are more tangible.
Secondly, the strategic services refer to non-immediate issues that would have lasting impact on the future of the business of the small scale enterprises (SSE).
Government, Non-governmental organization, private and corporate bodies have a lot to contribute to the growth and development of small scale enterprises which will strongly analyzed before the end of the pages of mine.
We can also look at the concept of small scale enterprises itself as one of the enterprises that has to do with small capital to start with, or the type of enterprises which require small amount of money to start with; on the other hand, it can be defined as a business of average class of people; a drop of water make an ocean, through the help and assistance of corporate, government and other bodies can elevate and turn SSE to standard height in the growth of economy.
More so, Business Development Services (BDS) have important and positive contribution to the growth and health of the Small Scale Enterprises (SSE) using profession business development services would help them to access better terminology, technology, finance and infrastructure and to manage their overall policy of the government ant the trust on the small industries.
Furthermore, Business Development Services have a long was to cover, in developing small scale enterprises in that nation as a whole; business itself can therefore be defined according to R. F Abban as an institution or organization established to supply good and services to the public to satisfy human wants. The aim of the organization or institution may be either public. This organization should always be there as intermediary between the public i.e. entrepreneur and the material (Resources) so as to enhance the productivity.
Also, the study of small scale enterprises is in various modules. First module used structured but detailed informal discussions with owner – manager of two small enterprises. On the second module, four field investigators were used to conduct interview as per the formalized scheduled while the third module, is the business development services ere interviewed in order to understand the segment of the market. Commercial enterprises, s shop or a company undertakes business activities as a means of helping to convert the materials made available by nature to satisfy the many needs of man, man’s need are many, innumerable and insatiable. These small scale enterprises should be properly taken care of, in order to satisfy human need for the betterment of the people and growth of the economy.
This work is divided into five chapters of the following: the introductory part, review of literature, research methodology, data presentation and the summary.
1.1 OBJECTIVE OF THE STUDY
This research is being done with the intention of achieving some set aims, and objective and it is appropriate, that at this junction, those aims would be made known so that they would be able to serve as yardstick that would determine what and what would be and would not be in the work.
Therefore, the objectives of this study are as highlighted below:
(a) To reveal that small scale enterprises as a business enterprise has an impact not only on the banking sector, but the overall economy development of a nation.
(b) To examine critically the role of principal safety net for the bulk of the population in developing economies.
(c) To also recognize their labour intensity structure account as a job creation avenue.
(d) To use this work to make appropriate recommendations that might be found useful by policy makers in the country.
(e) To make it known to public that investment has a great impact on the economic growth of a nation.
(f) To know the concept, scope and the significant role being played by the business development services on small scale enterprises in Nigeria.
(g) To expatiate the role of government and non-governmental bodies in development of small scale enterprises in Nigeria.
(h) To elucidate vividly the problems facing or the challenges encountered by the NGO and government of the nation in developing small scale enterprises.
1.2 SIGNIFICANCE OF THE STUDY
The result of the research work can help to address the problems affecting the development of small scale enterprises in Nigeria and to throw more light on the activities of Business Development Services (BDS) on the promotion of Small Scale Enterprises to standard level.
As a result of improvement in the activities of Business Development Services on Small Scale Enterprises in Nigeria the economic growth development escalates.
Almost all the available works on small scale enterprises and there impacts on an economy have always focused their attention on the developed economy, with little recognition being accorded the developing countries. Thus, the significance of this work lies in the fact that at successful completion, would have added to the libraries on works that relate small scale enterprises to the developing nation.
1.3 SCOPE AND LIMITATIONS OF THE STUDY
As a result of the size of the population and number of organizations involved, the researcher bent on using personal interview, journals and desk research as the main method of gathering the data needed.
Due to the economic depression which the country is presently facing, the research could go no further due to huge financial involvement.
The researcher was not opportune to interview as many officers of these organizations concerning their motive toward the development of small scale enterprises in Nigeria as possible due to the time factor and financial constraints.
There are also few textbooks from which the researcher could draw references and sufficient magazine and journal which could throw more light on the analysis of the data.
Finally, the researcher was able to conclude her research work with the help of the available materials at her possession.
1.4 STATEM ENT OF THE PROBLEM
There are various problems facing the development of small scale enterprises in Nigeria today. The major problem among others is capitalization. Insufficiency of human and natural resources play another major role in hindering the development of small scale enterprises. Political instability, inconsistence and negative attitude of investors coupled with poor government policies militate against the development of SSE in Nigeria.
The analysis of the problem at hand requires that one gives a concise definition of the major term of the paper “Small Scale Enterprises” therefore, we define it as any enterprises with a maximum assets base of million including land and working capital and with the number of staff employed not less than ten (10) or more that three hundred (300) small medium enterprises (SME) have been defined along a broad continuum of size and type in terms of size, measure used to classify SME’s including employment, asset and revenue.
In Nigeria, there are always changes in rules and regulations that govern this establishment (SSE). Political instability also affect the wide spread of enterprises in Nigeria, people i.e. investors are afraid of lost at the end of the day.
In conclusion, the negative attitude of government, non-government bodies, investors, constitute to the major problem faced by the small scale enterprises in Nigeria.
1.5 FORMULATION OF HYPOTHESIS
HO – The small Scale Enterprises (SSE) does not have an adverse effect on the Nigeria economy. Government do not provide adequate fund necessary to promote small scale enterprises in Nigeria in order to stimulate economic growth and development.
HA – Small Scale Enterprises (SSE) has an adverse effect on the Nigeria economy.
HO – An under developed financial sector in an economy such as bankrupt, some banks closed down due to mismanagement of fund and put many stakeholders into mess, government should set up certain commission to look into that area right from Central Bank of Nigeria (CBN) in order to promote economic growth and development of nation.
HA – An under developed financial sector in an economy is an impediment against small scale enterprises.
HO – The persistence economy crisis in Nigeria is not a cog in the wheel of the Small Scale Enterprises.
HA – The persistence economic crisis in Nigeria is a cog in the wheel of the Small Scale Enterprises.
1.6 DEFINITION OF TERMS
Business: According to R. F. Abban (1989:2) defined business as an institution or organization established to supply goods and services to the public to satisfy human wants. The aim of the organization may be either to make profit or to provide certain services to the people. Also, business is exchange of goods, money or services for mutual benefits.
Market: According to Hnson Ugoji Anyaele (1990; pg 298) defined market as any place at a point in time where buyers and sellers meet for the exchange, buying and selling of goods and services. As far as economics is concerned, market can take place anywhere, not any particular place. However, we have what we call market place where buyers and sellers meet for the purposes of exchange, buying and selling of goods and services.
Economy Development: According to R. O. Ezeokonkwo (1998:pg 72) saw it as the step taking by the government of a particular nation or the corporate bodies to enhance and promote the economy of a nation by establishing more and more firm which can create job opportunities for the citizenry, in order to promote and develop the available resources within their disposal for the benefit of their country and outside the work, therefore, the steps taken by the government to promote their economy is what is known as economy development.
Investor: According to (Idris 1984) defined investor as a person, persons, firm or company that took up security with a firm or company in anticipation of future returns.
Development: According to Aliukama promotion and achievement, which has to do with the efforts being put for the success of certain project and the positive outcome of certain instance?
Investment: According to Aguolu (1999:3) it is branch of finance that deals with any activity that requires commitment of funds in the present time with the hope of return may be realized over a period of time in future.
Risk: According to Aguolu (1994:8), this is the probability or possibility that the expected outcome varies from real income.
CHAPTER TWO
2.0 LITERATURE REVIEW
A project of this nature will completely lose its unique objectives and the efforts of the researcher will not be accredited if attempts were not made into the past related issues to deduce and highlight people’s expressions and idea which are relevant to the topic.
The study is basically on the efforts of the market for business development services (BDS) for small scale enterprises (SSE) in Nigeria. Meanwhile, small scale enterprises therefore, can be defined as any enterprises with small assets to start with its operation., it is involve the buying and selling of goods on the street, road side and manufacturing of local items and materials.
According to Aguolu (1999:6) it is a part of economy that deals with any activity that requires commitment of funds in the present time with the hope of return may be realized over a short period in the future.
Aduba, O. N (1997) Business Finance and Insurance) described Business Development Services (BDS) as a constituted body with the aim and focus to restructure and promote the economy depreciation of the nation to standard height.
It is under this definition that the researcher proceeds to highlight the historical background of small scale enterprises in Nigeria.
2.1 HISTORY OF SMALL SCALE ENTERPRISES IN NIGERIA
Prior to the late 19th century, cottage industry, mostly small and medium scale business controlled the economy of Nigeria. The industrial revolution changes the status quo and introduced mass production. The oil during the 1970’s underdetermined the mass production model which triggered the unexpected reappraisal of the role and importance of small and medium sized enterprises in the global economy. Findings by economist over the years show that the small firms and entrepreneurship play a much more importance in economic growth and development, (Ralph O. Ezeokonkwo, 1972).
Many economies, developed and developing have realizes the value of small business they are characterized by dynamism, with innovation and efficiency. Their small size allow for faster decision making process. Governments all over the world have realized the importance of this category of companies and have formulated comprehensive public policies to encourage, support and fund the establishment of small scale enterprises.
Development in small scale and medium enterprises are a sin quo non for employment generation solid entrepreneurial base and encouragement for the use of local raw materials and technology.
Since the attainment of independence in Nigeria, every known regime recognized the importance of promoting small scale enterprises as the basis of economic growth as a result of several institutions were established to enhance the development of small scale enterprises such micro credit institutions include the Nigeria Bank for Commerce and Industry (NBCI) National Economic Reconstruction Funds (NERFUND), The People’s Bank of Nigeria (PBN), the Community Bank (CB) and the Nigeria Export and Import Bank (NEXIM) and the liberalization of the banking sector. However, the banks in operation in the county and about (89) eighty-nine with more that fifty (50%) per cent having capital base of less that US $10 million and about 3,300 branches from records, the performance of small scale business in Nigeria has not justified their establishment, but credit were made available to the manufacturing of gross domestic product (GDP) was only 7 per cent between 1970 and 1979, due to the lack of necessary facilities needed for the production which adversely affect the economic growth and development of nation.
In 20th century, a study identified poor access to finance as the most critical constraint on small scale enterprises in Nigeria, in fact 50 per cent of the surveyed enterprises received external finance while 79 per cent indicate lack of finance resources as a major constraint. (Guardian Nov. 26, 2001).
Conclusively, some external bodies, non-governmental organizations, government etc have ready to render as assistance for the promotion of small scale enterprises in Nigeria for the betterment of all and free flowing of economic growth and development.
2.2 THE IMPACT OF SMALL SCALE ENTERPRISES ON NIGERIA
ECONOMY
Small scale enterprises have numerous impacts on Nigeria economy which would be highly emphasized. These enterprises have been identified as the means through which the rapid industrialization and other developmental goals in Nigeria can be realized. This particular project explores the achievement of the small scale enterprises (SSE) sector in Nigeria and the impact of government, internal and external support institution have played in promoting the sector. The policy will assist policy makers, development agencies and business organizations to ascertain the appropriate strategy to improve the small scale enterprises sector.
Small scale enterprises in developing countries, such as Nigeria, Ghana, Ivory coat etc serves as engine through which the growth objectives of developing countries can be achieved has long been recognized. It is estimated that small scale enterprises employ 22 per cent of the adult population in developing countries. The sector employs about 49.5 per cent of higher employment growth than macro and larger scale enterprises. In Nigeria the sector output as a percentage of GDP accounted for 16 per cent of GDP in 1998.
This project seek to identify the achievement of the small scale enterprises sector, to consider the constraints to the development of the sector and to highlights the role of government, internal and external support institutions have played in promoting the sector in Nigeria. Section one reviews the macro-economic background of Nigeria – this will be followed by definition and basic concepts, the role and characteristics of small scale enterprises and constraints to small scale enterprises (SSE) development in Nigeria, while, the next section discusses the various policies put in place by government and other support institutions to promote small scale enterprises sector in Nigeria.
MACRO ECONOMIC BACKGROUND
Nigeria as a nation have common macro-economic trail in 1991 with less than $400 as it per capital income (PCI). Some analyses indicated that the per capital income of a nation decline between 1965 and 1991.
Nigeria faced with a deteriation in term of trade due to weak market condition for key export commodities beside the increase in its import price. These developments had repercussion on the country balance of payment. In Nigeria, the cost insurance and freight (CIF) free on board (FOB) many rose from an average of 15 percent in the early 1970’s to 40 per cent. During the early 1980’s, following the re-routing of the country’s external trade through the post of Nigeria but also suffered the adverse effects of the global debt crisis of the early 1980’s. Since Nigeria had contracted some commercial debt in the 1970’s particularly for infrastructural investment it experiences a massive increase in its debt obligations. Internally, problems such as large inefficient public sectors, policy biases that favoured industry over agriculture, over valued exchange rate and inflation were dominant.
2.3 MEANING OF SMALL SCALE ENTERPRISES
If you were to conduct a survey on the street asking the above question, the general response from most people would be that they had no idea yet, there are various definitions by different authors available which describe the phrase ‘small scale enterprises’. By the Bolton Committee (1971) when they formulated an “Economic” and a statistical definition.
Under the economic definition, a firm is regarded as small if it met the following criteria:
(a) It has a relatively small share of their market place.
(b) It is managed by owner or part of owner in a personalized way, and not through the medium of a formalized management structure.
(c ) It is independent, in the sense of not forming part of larger enterprises.
A shortcoming of the Bolton Committee’s economic definition is that it consider small firm to be operating in perfectly competitive market. However, the ides of perfect competition may not apply here. Many small firms are unable to practice actively under this dispensation.
Alternatively, Wynarczyk et al (1993) identified the characteristics of the small other than size. They argued that there three ways of differentiating between small and large firms. The small firms have to do deal with:
(a) Limited customer and product base.
(b) Uncertainty associated with being a price taker
(c ) Uncertainty associated with greater diversity of objectives a compared with large firms.
According to Storey (1994) stated, that, there are three keys distinguishing feature between large and small firms.
Firstly, the greater external uncertainty of the environment in which the small firm operates and the greater internal consistency of its motivations and action. Secondly, they have a different role in innovation. Thirdly, small firms are able to produce something marginally different, in terms of products or services, this differ from the standardized product or service provided by the large firms.
The European commission also, defined small scale enterprises as:
(a) Firm with 0 to 9 employees; micro enterprises
(b) 10 to 99 employees, small enterprises
(c ) 100 to 499 employees, medium enterprises.
The small scale enterprises are comprised of enterprises (except Agriculture, Hunting, forestry and Fishing) which employ less that 5oo workers. In effect, the European Commission definitions are based on employment rather than a multiplicity or criteria. Secondly, the use of 100 employees as the small firm’s upper limit is more appropriate given the increase in productivity over the last two decades.
(Storey 1994) finally, the definition did not assume small scale enterprises group is homogeneous, that is, definitions makes a distinction between micro, small and medium sized enterprises.
2.4 SMALL SCALE ENTERPRISES MODALITIES FOR
IMPLEMENTATION
As I rightly said earlier about the efforts of Business Development Services (BDS) on the implementation of small scale enterprises (SSE) in Nigeria, have a long range to cover for the growth, development and betterment of the people as a whole.
To safeguard the absence of the scheme, the following modalities should be properly put in right place:
(i) Fund invested by participating banks should be in the form of equity
investment ineligible industries
(ii) Equity investment may be in the form of fresh cash injection and/or
conversion of existing debts owned by participating banks in equity investment.
(iii) A participating company may obtain more funds by way of loan from banks
in addition to equity investment under the scheme.
(iv) Membership of recognized organization, that is “Non-Governmental
Organization” should, engaged in entrepreneurial development and promotion of small scale business will also be an advantage.
(v) The recommendations of industrial associations; for instance, MAN, NACCIMA, NASSI, NASME and so on, will be mandatory for members of those association, where applicable.
2.5 GOVERNMENT IMPACT ON SMALL SCALE ENTERPRISES
Government, in an attempt to strengthen the response of the private sector to economic reforms undertook a number of measures. Prominent among them is the setting up of Private Sector Advisory Group and the abolition of the Manufacturing Industries Act 19791 (Act 356) which repeated a number of price control law, and the investment code of 1985 (PNDC LAW 116) which seek to promote joint venture between foreign and local investors. In addition to the above, legislative instrument on immigration quota which grant automatic immigrant quota for investors has been enacted. Beside, certain Technology transfer regulations have been introduced.
Government also provided equipment leasing, an alternative and flexible source of long term financing of plants and equipment for enterprises that cannot afford their own. A mutual credit guarantee scheme was also set up for entrepreneur who have inadequate or no collateral and having limited access to bank credit. To complement these effects, a rural finance Project aimed at providing long term credit to small scale farmers and artisans was set up.
The government also proposed the establishment of an Export Development and Investment fund (EDIF). Operational under the exim guarantee company scheme of the bank of Nigeria. This was aid of industrial and export services within the first quartet in 1998. to further improved the industrial sector, according to the budget statement, specific attention will be giving to the following industries for support in accessing the EDIF for rehabilitation and retooling. Textiles/garments, wood and wood processing. Food and food processing and packaging.
It was highlighted that government would support industries with export potentials to overcome any supply-based difficulty by accessing EDIF and rationalize the tariff regime in a bid to improve their export competitiveness. In addition, a special monitoring scheme/mechanism has been developed at the Ministry of Trade and Industries. In a bid to improve trade and investment, particularly in the industrial sector, trade and investment facilitate investors and tourists were issues on arrival at the port of entry while the custom exercise and service at the port were made proactive, operating 7 days a week.
The government continued supporting programmes aimed at skills training, registration and placement of job seekers, training and re-training of redeployees, this resulted to the rise of enrolment in the various training institute, such a s, the National vocational and training Institute (NVTI), Opportunity Industrialization Centre (OIC) and so on. As a result of the above mentioned training centers and with the support of the government redeployees who were re-trained under master craftsmen have been provided with tools and have become self-employed.
Recently, government of Nigeria has gone a long way to re-formalized our economy, few years ago, government of Nigeria joined hand together with the rest of African countries and formed on organization known as NEPAD, this organization have covered a wide range in restructuring African economy to standard height, which every citizens of the continent are benefiting from it. The following are their focus:
(i) to promote unity among the member state
(ii) to promote standard of living of their people
(iii) to protect the interest of their people from being exploited by outsiders (foreign countries)
(iv) to promote their economic and conserve their natural resources, and making use of them judiciously
(v) to alleviate the poverty among the people.
(vi) To reduced the level of employments among the people and so on.
2.6 INSTITUTIONS IMPACT ON SMALL SCALE ENTERPRISES.
The motion of small scale enterprises promotion has been in existence since 1970 though very little was done at the time. Key institutions were set up to assist small scale enterprises and prominent among them is the Office of business Promotion, presently known as Enterprises Development Commission (EDC), it aims at assisting businessmen to enter into fields where foreigners mainly operated but which became available to Nigerians after the Alliance Compliance Order in 1970. EDC also, has package for strengthening small scale industries in general, both technically and financially.
The Economic recovery programmes instituted has broadened the institutional support for small scale enterprises. The National Board for small scale industries (NBSSI) has been established within the Ministry of Industry Science and Technology to address the needs of small business. The NBSSI established an Entrepreneurial Development Programme intended to train and assist persons with entrepreneurial abilities into self employment. The industrial sector also witnessed the coming into operation of the Appropriate Technology industrial service (ATIA) it was to supervise the operation of Intermediate Technology transfer Unit (ITTU) in the country. (ATIS) aims at upgrading small scale industrial concerns by transferring appropriate technology to small scale informal industries at the grass root level. ITTU in the regions are intended to develop the engineering abilities of small scale manufacturing and service industries engaged in vehicle repairs and other related trade. They are also to address the need of non-engineering industries. With the above points of view, various institutions are playing a vital role in development of small scale enterprises in Nigeria (SSE).
2.7 FINANCIAL IMPACT ON SMALL SCALE ENTERPRISES
A number of government parastatals and private sector organization provide financial support for small scale enterprises, institutions such as, the Development of Enterprises Trust (DET), the National Association of Small and Medium Scale Enterprises (NASME) has received financial support from the Reserve Bank of Nigeria to establish credit programme for the rural small scale enterprises (SSE). Access to credit has been one of the main bottlenecks to small enterprises development.
Most small and medium enterprises (SME) lack the necessary collateral to obtain bank loan. To address the issues, the Central Bank of Nigeria (CBN) has established a credits guarantee scheme to underwrite loans made by commercial institutions to small scale enterprise.
2.8 CONSTAINTS TO THE DEVELOPMENT OF SMALL SCALE ENTERPRISES
Despite the wide ranging economic reforms instituted in the region, small scale enterprises face a variety of constraints owing to the difficulty of absorbing large fixed cost, the absence of economic of scale of providing services to smaller firms.
Input Constraints
Small scale enterprises face a variety of constraints in factor market. However, factor availability and cost were the most common constraint. The specific problem varies but according to whether the business perceived that their access availability or cost was the most important problem and whether they were based primarily on imported or domestic input.
Finance
Access to finance remained a dominant constraint to small scale enterprises considering the wide spread unemployment or underemployment pertaining to the working capital and raw materials were cited by respondent as a constraint both locally and internationally in part, because of the perception of higher risk and the higher cost of intermediation for smaller firm. As a result of small and medium scale enterprises often cannot obtain long term finance in the form of debt and equity.
Labour Market
This seem a less important constraint of small and medium enterprises considering the wide spread unemployment or underemployment in Nigeria. Small and medium enterprises generally use simple technology which does not required highly skilled workers. However, where skilled workers are required, an insufficient supply of skilled workers can limit the specialization opportunity, raise cost and reduce flexibility in managing operation.
Lack of Entrepreneurial Business Management Skills
Lack of Managerial know-how place significant constraint on small and medium enterprises development in Nigeria, even though small and medium enterprises tend to attract motivated managers, they can hardly complete prevalent in most countries in the region, has a magnified impact on small scale enterprises. The lack of support services of their relatively higher unit cost can hamper small and medium enterprises effort to improve their management, because consulting firms often are not equipped with appropriate cost effective management solution for small and medium scale enterprises.
Furthermore, absence of information and time take advantage of existing services result a weak demand for them.
Despite the numerous institutions providing training and advisory service, there is still a skill gap among the small and medium scale enterprises sector as a whole. A lot has actually been achieved in this regard, though there is still room for improvement.
Institutional constraints
The lack of cohesiveness and the wide range of small scale enterprises in Nigeria interest limit their capacity to depend their collective interest and their effective participation in civil society.
Association and Collection Action
Association providing a voice for the interest of small and medium scale enterprises in the policy making, process have had a limited role compared to those of larger firm, many of the entrepreneurs association have yet to complete their transaction of their goal from protectionism to competitiveness (World Bank 1993).
Additionally, the potential economics of collaborative arrangement in production and sales among small scale enterprises have not been adequately explored. It is reported that about 93% of all small and medium enterprises in Nigeria sell their products to the final consumer with the exception of chemical, plastic and wholesale trade which sell to their commercial or manufacturing enterprises. There were very few forward linkages. However backward linkages were common with 71% on enterprises procuring unprocessed, semi-processed or finished products.
The dependent of the small scale enterprises in Nigeria on large scale enterprises as purchasers of output either for sale, a final goal or to be used as intermediate inputs, is very limited. Only 13% of firm produce any item for a component for larger firm’s interdependence among small scale enterprises is very minimal.
Finally, the Developers of small scale enterprises have a long way to cover in order to structure SSE to greater level, for the purpose of economy growth and development for better tomorrow.
2.9 CONTRIBUTIONS OF SMALL SCALE ENTERPRISES TO THE NIGERIA ECONOMY
Small Scale Enterprises (SSE) is believed to be the engine room for development of an economy. Because they form the bulk of business activities in a growing economy like that of Nigeria, this is manifested in the following ways:
(a) Employment generation
30% generation capacity of about 58% of global working population
(b) Small and Medium Scale enterprises also play a critical role of principal safety net for the bulk of population in developing economies.
(c) Their labour intensive structure account for their recognition as a job creation avenue.
(d) Rural Development
Small and Medium Scale Enterprises constitute major avenue for income generation and participation in economics activities in the lower income and rural brackets of developing societies, especially in agriculture, trading and services and the employment opportunities offered apparently reduces rural-urban migration and allow for even development.
Economics growth and Industrialization
National economic development prospect hinge on entrepreneurial of vibrant small and medium enterprises as most big business concerns grow from small scale to big icon.
Better Utilization of indigenous resources
The considerable low capital outlay required for setting up small and medium scale enterprises enable them to convert minimal resources into productive avenue.
Conclusively, the above factors contributing to the growth and development of Nigeria economy through small and medium scale enterprises, if it is properly managed.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN: The main purpose of this research work is to identify the extent to which the market for Business Development Service (BDS) for small scale enterprises in Nigeria had contributed to investment in Nigeria and the extent to which it had stimulate growth and economic development.
This study was taken as a case study to the entire Nigeria economy as a whole. It was designed in such a way that it should resolve the conflicts between Government, Non-governmental Organizations’ attitudes and small scale enterprises so as to stimulate increase in investment activities on the part of developing small and medium scale enterprises in Nigeria.
3.2 DESCRIPTION OF POPULATION: Since the study was based on an investigation into the role of marketing for business development service (BDS) for small and medium scale enter[rises in Nigeria. It covers small scale enterprises in Nigeria but concentrates mostly in Lagos and Ibadan respectively which are notable commercial centres in the country.
3.3 SAMPLE SIZE: Obviously, not every member of the population could be considered because of time and financial constraints. Out of over thousands of small and medium scale sectors in Lagos and Ibadan, only fifty were randomly selected.
3.4 METHOS OF DATA COLLECTION: In collecting the data and answering the research questions, the Researchers administered the questionnaire to some small scale companies that were randomly selected.
Also, the researchers made use of both primary and secondary method of data collection to gather appropriate information on the study.
The secondary source of collecting data involved the use of conference journals students pas project, textbooks and newspapers. There was a systematic search through these above so as to reveal useful information of interest.
Below are sampled small and medium scale enterprises selected:
A. CO-OPERATIVE SOCIETIES: Royal Nigeria Insurance co-operative society Ltd, NPF co-operative society Ola-Oluwa Thift and Credit society, Cocoa Processing, Co-operative Society Ltd, Acil Cooperative Investment Ltd.
B. UNIT TRUST: Are under different individual banks management.
C. LAGOS MARKET CENTRES: Obalende Market Sellers’ Association of Nigeria, Tinubu Traders Association, Oshodi Market Dealer Association; National Union of Road Transport Workers (SAUDI, OSHODI BRANCH) e.t.c.
D. IBADAN METROPOLISH: New Gbagi Market Association of Nigeria, Agodi Community Bank, Dugbe Market Association e.t.c.
3.5 METHOD OF DATA ANALYSIS: For the purpose of this study, the data required for testing of the hypothesis were analyzed using simple statistical techniques like percentages and tables. This test enables the researcher to determine the variability between the actual outcomes from the expected out come.
3.6 RESEARCH QUESTIONS: The following were the research questions based on which the work’s hypothesis were formulated.
1. Does small scale enterprise have a negative or positive effect on the Nigeria banking sector?
2. Is an underdevelopment financial sector of the economy a threat to the small scale enterprises?
3. Does small scale enterprises have any impact on the Nigeria insurance sector?
4. Are the persistence economic crises in Nigeria an hindrance to a successful promotion of small scale enterprises?
5. Does skills has to do with the effectiveness of production?
6. Does the factors of production have to do with the problems facing small scale enterprises in Nigeria? Etc.
3.6 REFERENCES
Akuezulo E.O. Research Methodology and Statistics (1995). Nuel Censti Nigeria Publishers Ltd; Awka.
Osuala E.C. (1992), Introduction to research methodology, African – FEP Publishers Ltd; Onitsha.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
The topic of this research is one that requires a comprehensive analysis of view of those who are extremely knowledgeable of what is being studies. Hence, deciding on who and who should constitute the population of the study was a Herculean task. After much deliberation and experimentation through test, interviewed, we eventually settled for bank manager, draw from 75 bank in Lagos State and Small scale enterprises in Nnew, park of Nigeria.
For the purpose of our study, we shall first use tables to present employment creation by small scale enterprises in Nnew, Eastern part of Nigeria, and we shall thereafter analyze the data using the simple frequency count.
Table 1
Analysis of Employment Creation By Small and Medium Scale Enterprises in Nnewi
Industrial Group& Start Year Initial No of Worker No of workers in 1991, 1994
Firms
Jimex Groups 1967 20 250 220
Aruchukwu & Sons Ltd. 1983 4 15 12
Cento Groups 1984 65 120 165
Adtec Limited 1984 30 - -
Aswitch Plc 1985 - 45 45
Ebunso Ltd 1986 3 20 20
Ejiamatu Igbokwe Group 1986 80 23 82
S & M Ind. Ltd. 1987 12 70 -
Mebro’s Ind. Ltd. 1987 56 80 198
John White Ind. Ltd 1987 30 55 71
Christomex Ind. 1987 23 295 330
Edison Auto Ind.Ltd. 1988 40 65 75
DTC Ltd. 1987 15 75 40
Eckulumili Ind & Co 1998 24 120 200
G.O.D. Brothers Group 1988 7 10 10
John Ray Ltd 1990 8 58 62
Silver Sun ltd. 1991 - 14 15
PMS Groups 1994 - - 120
From the table, it can be noted that most of the entrepreneur in Nnew, Cluster have little knowledge of production skills. On the other hand this does not means, that production activities cannot be effective because technical skill is a necessary condition but not sufficient in production organization. The managerial competence and organization ability an important role in production function. The managerial and natural organizational ability of an entrepreneur demand sociological enquires.
Table 2
Analysis of data based on research hypothesis : Does small enterprises negatively affect the performance of bank in Nigeria?
Response Type Response No Percentage of Total
Yes 63 84%
No 4 5.3%
Undecided 8 10.6%
Total 75 100%
Table 3
If answer to the preceding question is Yes, to what extent is the degree of the Negative Impact?
Degree of Impact No of Respondent Percentage of Respondent
Very High 23 30.7%
High 30 40%
Moderate 5 6.7%
Low 3 4%
Very Low 2 2.6%
Interminable 12 16%
Total 75 100%
An analysis of the above reveal that a preponderance of the bank managers, if the opinion that small scale has a negative effect on the economy 63 of the respondent take this stand while 4 of them does not, while the remaining 8 respondents were undecided.
This figure represent 84%, 5.3% and 10.7% respectively (Table II). Furthermore, it is reveal that of those who opine that small scale enterprises affect the banking sector 30.7% hold the opinion that the negative effect is very high, while a significant 40% subscribe to the view that it is just high 6.7%, 4% and 2.7% of the respondent choose moderate how and very low respectively. The remaining 16% representing 12 of the respondents and being the number of those who choose “No” and “ undecided” in the preceding question opine that the effect is interminable. Here, a consistency is observed on the part of those who choose “No” in the preceding question.
Table 4
Is the financial sector in Nigeria an underdeveloped one.
Response Type Response No Percentage Total
Yes 65 86.7%
No - 0%
Undecided 10 13.3%
Total 75 100%
Table 5
Does the underdeveloped nature of the Nigeria financial sector constitute an hindrances to the fight against small scale enterprises?
Response Type Response No Percentage Total
Yes 68 90.7%
No 2 2.7%
Undecided 5 6.7%
Total 75 1005
The table above are meant to determine if the under developed nature of the financial sector in Nigeria is an impedance to the fight small scale business in Nigeria.
ELUCIDATION OF FINDINGS.
In this chapter, we are essentially concerned with the determination of the following items:
a. Are Nigeria bank adversely affected by small scale activity?
b. Is the fight against small affected by the underdeveloped nature of the financial sector in Nigeria?
c. Also, is same affected by the persistent economic crisis?
Analysis of the data gathered through the administration of questionnaire revealed that 84% and 64% of the respondent affirm that
a. Nigeria banks are adversely affected by small scale activity,
b. The fight against small scale is affected by the underdeveloped nature of the financial sector in Nigeria.
c. And also, that same is affected by the persistent economics crisis.
Among other useful findings made in the work are the following:
- The degree to which small scale activity negatively impact of Nigerian banks is a high one;
- The Nigerian financial sector is an underdeveloped one.
All the above findings should be properly look into and thoughly addressed by those who are in charge of economy renovation for the growth and development of small scale enterprises in Nigeria.
Finally, it is cleared that government, Non-governmental bodies, and individuals have a lot to do in developing small scale enterprises in Nigeria.
CHAPTER FIVE
SUMMARY, RECOMMENDSTION AND CONCLUSION
5.1 SUMMARY
This study has to a large extent attempted to evaluate the impact of small scale enterprises in an economy (Nigeria) and it development to the entire economy as a whole;
The first step was to make a broad analysis on the definitions of small scale enterprises from different perspective, numerous concepts of small and medium scale enterprises in Nigeria was fully elucidated, vividly expatiated, based on the Africa contest, where institutional frame work and infrastructure are poorly developed.
We further considered competition and learning as two important elements needed in African because they are the benchmark for the small scale enterprises development in the region.
Furthermore, the analytical approached was also used to make indepth explanation on the concept and these was further related to the scenarios in Africa.
In this context however, it was analyzed how the impact of small scale enterprises play an important role in development, this was followed by th problems, constraints formulation of hypothesis, definition of terms used in this study to facilitate more understanding of readers, economic impact and industrialization, including the government functions and the roles of non-governmental organization in the development of small scale enterprises in order to stimulate the growth and development of small and medium scale enterprises in Nigeria.
This project also analysed the activities covered by small and medium enterprises as well as the activities that was unable to covered. This paper furtherly lay emphasis on the contribution of small scale enterprises to the entire economy which was sub-divided into three parts (a) Employment generation (b) Rural development and (c) Economic growth and industrialization, as well as better utilization of indegeneous resources and it was concluded, in this paper part four, the data presentation and analysis was introduced on how the source of data were been gathered and analysed.
This course is also analysis the restatement of hypothesis, method of analysis, population and sapling procedure, method of administration, Analysis of employment creation, and analysis of data based on research hypothesis and it was concluded. And the whole responsibilities is on government, non-governmental bodies and individuals citizen to make the Nigerian economy great.
From the data collected and discovered from the analysis, the researcher als found out that there are other factors militating against the growth and development of small scale enterprises in Nigeria, such as:
i. Embezzlement of fund as a result of improper management.
ii. Problem of leadership.
iii. Frand
iv. Insufficient capital
v. Instability of political decisions
vi. Negative attitude of customers toward the growth and development of small scale enterprises.
Conclusively, Government, non-governmental organization and financial institutions should provide adequate fund for investment programs necessary to stimulate the economy and promote growth and development of small scale enterprises in Nigeria.
5.2 RECOMMENDATIONS
In order to ensure effectiveness in operation and development of small scale enterprises in Nigeria under review, the researcher hereby make the following recommendations:
1. Government and quasi-governmental bodies should grant financial subventions to the small scale enterprises in Nigeria, since inadequate fund is their major problem.
2. To set up on economic commission that will oversee the activities and operations of all small scale enterprises in order to model and design it to be growth oriented.
3. Adopting a stable political system preferable democracy – since frequent change of government affects the economy adversely leaving economic activities and investment program of enterprises, individuals unattainable.
4. That small and medium scale enterprises should establish in tangible assets that are of a long term in order to help stabilize the economy.
5. Banking and other financial institutions should rise up and assist financially in form of loans for the development of small scale enterprises in Nigeria.
6. Resources must be made available at lower cost for the effectiveness of local productions for small scale enterprises.
7. Seminars, workshops and training should be provide for workers in order to update their skills in state of production etc.
5.3 CONCLUSION
The foregoing, clearly indicate that there is need for effective improvement in small scale Enterprises in Nigeria. This is acknowledged to stimulate economic growth and development of small scale unit in Nigeria.
Generally, the role of government and non-governmental organization is not encouraging, so there is a great need to achieve a sustainable economy of small scale enterprises in Nigeria.
Commitment and willingness toward the hard work by the entrepreneur is very essential in order to persuade effectiveness in the state of production was also elaborated.
Finally, this study vividly expatiates the importance and the roles of business development service (BDS) on the growth and development of small scale enterprises in Nigeria.
This research was carried out in order to examine the role of market for Business Development Service (BDS) for Small Scale Enterprises (SSE) in Nigeria.
This study becomes indispensable due to the drastic halt in the economic growth and development, which has affected the Gross Domestic Product (GDP) of the economy. Therefore, this study elucidates the roles of market for Business Development Services (BDS) for small scale enterprises in Nigeria in order to bring a smooth balance and equality in the economy, and enhance the high standard of living due to availability of resources.
The bone of contention is that; to what level or extent has market for Business Development Service been able to energize the economy with its capacity in nation economic growth and development?
The method used for data collection is questionnaire, interview, text books and journals.
From the data collected and analyzed, the researcher found out that the government and financial institution have a lot to do by providing adequate fund for and attention to investment activities in order to stimulate growth and development of Small Scale Enterprises (SSE) in Nigeria.
The researcher, therefore, concludes that necessary steps be taken so as to re-direct the investment pattern and restructured the Small Scale Enterprises (SSE) in Nigeria.
TABLE OF CONTENTS
Title page
Approval page
Acknowledgement
Abstract
Table of contents
CHAPTER ONE: INTRODUCTION
1.1 Objective of the study
1.2 Significance of the study
1.3 Scope and limitations of the study
1.4 Statement of the problem
1.5 Formulation of Hypothesis
1.6 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.1 History of small scale enterprises in Nigeria
2.2 The impact of small scale enterprises in Nigeria economy
2.3 Meaning of small scale enterprises
2.4 Small scale enterprises modalities for implementation
2.5 Government impact on small scale enterprises
2.6 Institutions impact on small scale enterprises
2.7 Financial impact on small scale enterprises
2.8 Constraints to the development of small scale enterprises
2.9 Contributions of small scale enterprises to the Nigeria economy
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research design
3.2 Description of population
3.3 Sample size
3.4 Method of Data collection
3.5 References
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 Summary
5.2 Recommendation
5.3 Conclusion
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
Marketing, in a simple sense of view, could be seen as an interaction between the seller of goods and the buyer who demands for goods it is basically on satisfaction of domain. While business has to do with the transaction of items such as money and goods with legal entity, justify and acceptable by all, for the growth and development of economy.
This study based on the roles and impact of the market for business development services (BDS) for small scale enterprises (SSE) in Nigeria. In any enterprises, investment is one of the most important components of aggregate demand. In formal term, investment is defined as the purchase of output (in the form of capital goods) in order to produce additional output in future. Mean while, investment is defined as a total commitment of resources made in hope of realizing benefits that are expected to accrue over a reasonable period of time in the future.
This study involved structured interaction with ninety small scale enterprises and a dozen of Business Development Services provider in Nigeria.
On the demand side, it was found that the small scale enterprises seek two basic types of services; first, the transaction related services refer to such things as assistance in keeping account, labour records, filing of returns, complying with regulations which are time bound and rigid. The out come in this category are more tangible.
Secondly, the strategic services refer to non-immediate issues that would have lasting impact on the future of the business of the small scale enterprises (SSE).
Government, Non-governmental organization, private and corporate bodies have a lot to contribute to the growth and development of small scale enterprises which will strongly analyzed before the end of the pages of mine.
We can also look at the concept of small scale enterprises itself as one of the enterprises that has to do with small capital to start with, or the type of enterprises which require small amount of money to start with; on the other hand, it can be defined as a business of average class of people; a drop of water make an ocean, through the help and assistance of corporate, government and other bodies can elevate and turn SSE to standard height in the growth of economy.
More so, Business Development Services (BDS) have important and positive contribution to the growth and health of the Small Scale Enterprises (SSE) using profession business development services would help them to access better terminology, technology, finance and infrastructure and to manage their overall policy of the government ant the trust on the small industries.
Furthermore, Business Development Services have a long was to cover, in developing small scale enterprises in that nation as a whole; business itself can therefore be defined according to R. F Abban as an institution or organization established to supply good and services to the public to satisfy human wants. The aim of the organization or institution may be either public. This organization should always be there as intermediary between the public i.e. entrepreneur and the material (Resources) so as to enhance the productivity.
Also, the study of small scale enterprises is in various modules. First module used structured but detailed informal discussions with owner – manager of two small enterprises. On the second module, four field investigators were used to conduct interview as per the formalized scheduled while the third module, is the business development services ere interviewed in order to understand the segment of the market. Commercial enterprises, s shop or a company undertakes business activities as a means of helping to convert the materials made available by nature to satisfy the many needs of man, man’s need are many, innumerable and insatiable. These small scale enterprises should be properly taken care of, in order to satisfy human need for the betterment of the people and growth of the economy.
This work is divided into five chapters of the following: the introductory part, review of literature, research methodology, data presentation and the summary.
1.1 OBJECTIVE OF THE STUDY
This research is being done with the intention of achieving some set aims, and objective and it is appropriate, that at this junction, those aims would be made known so that they would be able to serve as yardstick that would determine what and what would be and would not be in the work.
Therefore, the objectives of this study are as highlighted below:
(a) To reveal that small scale enterprises as a business enterprise has an impact not only on the banking sector, but the overall economy development of a nation.
(b) To examine critically the role of principal safety net for the bulk of the population in developing economies.
(c) To also recognize their labour intensity structure account as a job creation avenue.
(d) To use this work to make appropriate recommendations that might be found useful by policy makers in the country.
(e) To make it known to public that investment has a great impact on the economic growth of a nation.
(f) To know the concept, scope and the significant role being played by the business development services on small scale enterprises in Nigeria.
(g) To expatiate the role of government and non-governmental bodies in development of small scale enterprises in Nigeria.
(h) To elucidate vividly the problems facing or the challenges encountered by the NGO and government of the nation in developing small scale enterprises.
1.2 SIGNIFICANCE OF THE STUDY
The result of the research work can help to address the problems affecting the development of small scale enterprises in Nigeria and to throw more light on the activities of Business Development Services (BDS) on the promotion of Small Scale Enterprises to standard level.
As a result of improvement in the activities of Business Development Services on Small Scale Enterprises in Nigeria the economic growth development escalates.
Almost all the available works on small scale enterprises and there impacts on an economy have always focused their attention on the developed economy, with little recognition being accorded the developing countries. Thus, the significance of this work lies in the fact that at successful completion, would have added to the libraries on works that relate small scale enterprises to the developing nation.
1.3 SCOPE AND LIMITATIONS OF THE STUDY
As a result of the size of the population and number of organizations involved, the researcher bent on using personal interview, journals and desk research as the main method of gathering the data needed.
Due to the economic depression which the country is presently facing, the research could go no further due to huge financial involvement.
The researcher was not opportune to interview as many officers of these organizations concerning their motive toward the development of small scale enterprises in Nigeria as possible due to the time factor and financial constraints.
There are also few textbooks from which the researcher could draw references and sufficient magazine and journal which could throw more light on the analysis of the data.
Finally, the researcher was able to conclude her research work with the help of the available materials at her possession.
1.4 STATEM ENT OF THE PROBLEM
There are various problems facing the development of small scale enterprises in Nigeria today. The major problem among others is capitalization. Insufficiency of human and natural resources play another major role in hindering the development of small scale enterprises. Political instability, inconsistence and negative attitude of investors coupled with poor government policies militate against the development of SSE in Nigeria.
The analysis of the problem at hand requires that one gives a concise definition of the major term of the paper “Small Scale Enterprises” therefore, we define it as any enterprises with a maximum assets base of million including land and working capital and with the number of staff employed not less than ten (10) or more that three hundred (300) small medium enterprises (SME) have been defined along a broad continuum of size and type in terms of size, measure used to classify SME’s including employment, asset and revenue.
In Nigeria, there are always changes in rules and regulations that govern this establishment (SSE). Political instability also affect the wide spread of enterprises in Nigeria, people i.e. investors are afraid of lost at the end of the day.
In conclusion, the negative attitude of government, non-government bodies, investors, constitute to the major problem faced by the small scale enterprises in Nigeria.
1.5 FORMULATION OF HYPOTHESIS
HO – The small Scale Enterprises (SSE) does not have an adverse effect on the Nigeria economy. Government do not provide adequate fund necessary to promote small scale enterprises in Nigeria in order to stimulate economic growth and development.
HA – Small Scale Enterprises (SSE) has an adverse effect on the Nigeria economy.
HO – An under developed financial sector in an economy such as bankrupt, some banks closed down due to mismanagement of fund and put many stakeholders into mess, government should set up certain commission to look into that area right from Central Bank of Nigeria (CBN) in order to promote economic growth and development of nation.
HA – An under developed financial sector in an economy is an impediment against small scale enterprises.
HO – The persistence economy crisis in Nigeria is not a cog in the wheel of the Small Scale Enterprises.
HA – The persistence economic crisis in Nigeria is a cog in the wheel of the Small Scale Enterprises.
1.6 DEFINITION OF TERMS
Business: According to R. F. Abban (1989:2) defined business as an institution or organization established to supply goods and services to the public to satisfy human wants. The aim of the organization may be either to make profit or to provide certain services to the people. Also, business is exchange of goods, money or services for mutual benefits.
Market: According to Hnson Ugoji Anyaele (1990; pg 298) defined market as any place at a point in time where buyers and sellers meet for the exchange, buying and selling of goods and services. As far as economics is concerned, market can take place anywhere, not any particular place. However, we have what we call market place where buyers and sellers meet for the purposes of exchange, buying and selling of goods and services.
Economy Development: According to R. O. Ezeokonkwo (1998:pg 72) saw it as the step taking by the government of a particular nation or the corporate bodies to enhance and promote the economy of a nation by establishing more and more firm which can create job opportunities for the citizenry, in order to promote and develop the available resources within their disposal for the benefit of their country and outside the work, therefore, the steps taken by the government to promote their economy is what is known as economy development.
Investor: According to (Idris 1984) defined investor as a person, persons, firm or company that took up security with a firm or company in anticipation of future returns.
Development: According to Aliukama promotion and achievement, which has to do with the efforts being put for the success of certain project and the positive outcome of certain instance?
Investment: According to Aguolu (1999:3) it is branch of finance that deals with any activity that requires commitment of funds in the present time with the hope of return may be realized over a period of time in future.
Risk: According to Aguolu (1994:8), this is the probability or possibility that the expected outcome varies from real income.
CHAPTER TWO
2.0 LITERATURE REVIEW
A project of this nature will completely lose its unique objectives and the efforts of the researcher will not be accredited if attempts were not made into the past related issues to deduce and highlight people’s expressions and idea which are relevant to the topic.
The study is basically on the efforts of the market for business development services (BDS) for small scale enterprises (SSE) in Nigeria. Meanwhile, small scale enterprises therefore, can be defined as any enterprises with small assets to start with its operation., it is involve the buying and selling of goods on the street, road side and manufacturing of local items and materials.
According to Aguolu (1999:6) it is a part of economy that deals with any activity that requires commitment of funds in the present time with the hope of return may be realized over a short period in the future.
Aduba, O. N (1997) Business Finance and Insurance) described Business Development Services (BDS) as a constituted body with the aim and focus to restructure and promote the economy depreciation of the nation to standard height.
It is under this definition that the researcher proceeds to highlight the historical background of small scale enterprises in Nigeria.
2.1 HISTORY OF SMALL SCALE ENTERPRISES IN NIGERIA
Prior to the late 19th century, cottage industry, mostly small and medium scale business controlled the economy of Nigeria. The industrial revolution changes the status quo and introduced mass production. The oil during the 1970’s underdetermined the mass production model which triggered the unexpected reappraisal of the role and importance of small and medium sized enterprises in the global economy. Findings by economist over the years show that the small firms and entrepreneurship play a much more importance in economic growth and development, (Ralph O. Ezeokonkwo, 1972).
Many economies, developed and developing have realizes the value of small business they are characterized by dynamism, with innovation and efficiency. Their small size allow for faster decision making process. Governments all over the world have realized the importance of this category of companies and have formulated comprehensive public policies to encourage, support and fund the establishment of small scale enterprises.
Development in small scale and medium enterprises are a sin quo non for employment generation solid entrepreneurial base and encouragement for the use of local raw materials and technology.
Since the attainment of independence in Nigeria, every known regime recognized the importance of promoting small scale enterprises as the basis of economic growth as a result of several institutions were established to enhance the development of small scale enterprises such micro credit institutions include the Nigeria Bank for Commerce and Industry (NBCI) National Economic Reconstruction Funds (NERFUND), The People’s Bank of Nigeria (PBN), the Community Bank (CB) and the Nigeria Export and Import Bank (NEXIM) and the liberalization of the banking sector. However, the banks in operation in the county and about (89) eighty-nine with more that fifty (50%) per cent having capital base of less that US $10 million and about 3,300 branches from records, the performance of small scale business in Nigeria has not justified their establishment, but credit were made available to the manufacturing of gross domestic product (GDP) was only 7 per cent between 1970 and 1979, due to the lack of necessary facilities needed for the production which adversely affect the economic growth and development of nation.
In 20th century, a study identified poor access to finance as the most critical constraint on small scale enterprises in Nigeria, in fact 50 per cent of the surveyed enterprises received external finance while 79 per cent indicate lack of finance resources as a major constraint. (Guardian Nov. 26, 2001).
Conclusively, some external bodies, non-governmental organizations, government etc have ready to render as assistance for the promotion of small scale enterprises in Nigeria for the betterment of all and free flowing of economic growth and development.
2.2 THE IMPACT OF SMALL SCALE ENTERPRISES ON NIGERIA
ECONOMY
Small scale enterprises have numerous impacts on Nigeria economy which would be highly emphasized. These enterprises have been identified as the means through which the rapid industrialization and other developmental goals in Nigeria can be realized. This particular project explores the achievement of the small scale enterprises (SSE) sector in Nigeria and the impact of government, internal and external support institution have played in promoting the sector. The policy will assist policy makers, development agencies and business organizations to ascertain the appropriate strategy to improve the small scale enterprises sector.
Small scale enterprises in developing countries, such as Nigeria, Ghana, Ivory coat etc serves as engine through which the growth objectives of developing countries can be achieved has long been recognized. It is estimated that small scale enterprises employ 22 per cent of the adult population in developing countries. The sector employs about 49.5 per cent of higher employment growth than macro and larger scale enterprises. In Nigeria the sector output as a percentage of GDP accounted for 16 per cent of GDP in 1998.
This project seek to identify the achievement of the small scale enterprises sector, to consider the constraints to the development of the sector and to highlights the role of government, internal and external support institutions have played in promoting the sector in Nigeria. Section one reviews the macro-economic background of Nigeria – this will be followed by definition and basic concepts, the role and characteristics of small scale enterprises and constraints to small scale enterprises (SSE) development in Nigeria, while, the next section discusses the various policies put in place by government and other support institutions to promote small scale enterprises sector in Nigeria.
MACRO ECONOMIC BACKGROUND
Nigeria as a nation have common macro-economic trail in 1991 with less than $400 as it per capital income (PCI). Some analyses indicated that the per capital income of a nation decline between 1965 and 1991.
Nigeria faced with a deteriation in term of trade due to weak market condition for key export commodities beside the increase in its import price. These developments had repercussion on the country balance of payment. In Nigeria, the cost insurance and freight (CIF) free on board (FOB) many rose from an average of 15 percent in the early 1970’s to 40 per cent. During the early 1980’s, following the re-routing of the country’s external trade through the post of Nigeria but also suffered the adverse effects of the global debt crisis of the early 1980’s. Since Nigeria had contracted some commercial debt in the 1970’s particularly for infrastructural investment it experiences a massive increase in its debt obligations. Internally, problems such as large inefficient public sectors, policy biases that favoured industry over agriculture, over valued exchange rate and inflation were dominant.
2.3 MEANING OF SMALL SCALE ENTERPRISES
If you were to conduct a survey on the street asking the above question, the general response from most people would be that they had no idea yet, there are various definitions by different authors available which describe the phrase ‘small scale enterprises’. By the Bolton Committee (1971) when they formulated an “Economic” and a statistical definition.
Under the economic definition, a firm is regarded as small if it met the following criteria:
(a) It has a relatively small share of their market place.
(b) It is managed by owner or part of owner in a personalized way, and not through the medium of a formalized management structure.
(c ) It is independent, in the sense of not forming part of larger enterprises.
A shortcoming of the Bolton Committee’s economic definition is that it consider small firm to be operating in perfectly competitive market. However, the ides of perfect competition may not apply here. Many small firms are unable to practice actively under this dispensation.
Alternatively, Wynarczyk et al (1993) identified the characteristics of the small other than size. They argued that there three ways of differentiating between small and large firms. The small firms have to do deal with:
(a) Limited customer and product base.
(b) Uncertainty associated with being a price taker
(c ) Uncertainty associated with greater diversity of objectives a compared with large firms.
According to Storey (1994) stated, that, there are three keys distinguishing feature between large and small firms.
Firstly, the greater external uncertainty of the environment in which the small firm operates and the greater internal consistency of its motivations and action. Secondly, they have a different role in innovation. Thirdly, small firms are able to produce something marginally different, in terms of products or services, this differ from the standardized product or service provided by the large firms.
The European commission also, defined small scale enterprises as:
(a) Firm with 0 to 9 employees; micro enterprises
(b) 10 to 99 employees, small enterprises
(c ) 100 to 499 employees, medium enterprises.
The small scale enterprises are comprised of enterprises (except Agriculture, Hunting, forestry and Fishing) which employ less that 5oo workers. In effect, the European Commission definitions are based on employment rather than a multiplicity or criteria. Secondly, the use of 100 employees as the small firm’s upper limit is more appropriate given the increase in productivity over the last two decades.
(Storey 1994) finally, the definition did not assume small scale enterprises group is homogeneous, that is, definitions makes a distinction between micro, small and medium sized enterprises.
2.4 SMALL SCALE ENTERPRISES MODALITIES FOR
IMPLEMENTATION
As I rightly said earlier about the efforts of Business Development Services (BDS) on the implementation of small scale enterprises (SSE) in Nigeria, have a long range to cover for the growth, development and betterment of the people as a whole.
To safeguard the absence of the scheme, the following modalities should be properly put in right place:
(i) Fund invested by participating banks should be in the form of equity
investment ineligible industries
(ii) Equity investment may be in the form of fresh cash injection and/or
conversion of existing debts owned by participating banks in equity investment.
(iii) A participating company may obtain more funds by way of loan from banks
in addition to equity investment under the scheme.
(iv) Membership of recognized organization, that is “Non-Governmental
Organization” should, engaged in entrepreneurial development and promotion of small scale business will also be an advantage.
(v) The recommendations of industrial associations; for instance, MAN, NACCIMA, NASSI, NASME and so on, will be mandatory for members of those association, where applicable.
2.5 GOVERNMENT IMPACT ON SMALL SCALE ENTERPRISES
Government, in an attempt to strengthen the response of the private sector to economic reforms undertook a number of measures. Prominent among them is the setting up of Private Sector Advisory Group and the abolition of the Manufacturing Industries Act 19791 (Act 356) which repeated a number of price control law, and the investment code of 1985 (PNDC LAW 116) which seek to promote joint venture between foreign and local investors. In addition to the above, legislative instrument on immigration quota which grant automatic immigrant quota for investors has been enacted. Beside, certain Technology transfer regulations have been introduced.
Government also provided equipment leasing, an alternative and flexible source of long term financing of plants and equipment for enterprises that cannot afford their own. A mutual credit guarantee scheme was also set up for entrepreneur who have inadequate or no collateral and having limited access to bank credit. To complement these effects, a rural finance Project aimed at providing long term credit to small scale farmers and artisans was set up.
The government also proposed the establishment of an Export Development and Investment fund (EDIF). Operational under the exim guarantee company scheme of the bank of Nigeria. This was aid of industrial and export services within the first quartet in 1998. to further improved the industrial sector, according to the budget statement, specific attention will be giving to the following industries for support in accessing the EDIF for rehabilitation and retooling. Textiles/garments, wood and wood processing. Food and food processing and packaging.
It was highlighted that government would support industries with export potentials to overcome any supply-based difficulty by accessing EDIF and rationalize the tariff regime in a bid to improve their export competitiveness. In addition, a special monitoring scheme/mechanism has been developed at the Ministry of Trade and Industries. In a bid to improve trade and investment, particularly in the industrial sector, trade and investment facilitate investors and tourists were issues on arrival at the port of entry while the custom exercise and service at the port were made proactive, operating 7 days a week.
The government continued supporting programmes aimed at skills training, registration and placement of job seekers, training and re-training of redeployees, this resulted to the rise of enrolment in the various training institute, such a s, the National vocational and training Institute (NVTI), Opportunity Industrialization Centre (OIC) and so on. As a result of the above mentioned training centers and with the support of the government redeployees who were re-trained under master craftsmen have been provided with tools and have become self-employed.
Recently, government of Nigeria has gone a long way to re-formalized our economy, few years ago, government of Nigeria joined hand together with the rest of African countries and formed on organization known as NEPAD, this organization have covered a wide range in restructuring African economy to standard height, which every citizens of the continent are benefiting from it. The following are their focus:
(i) to promote unity among the member state
(ii) to promote standard of living of their people
(iii) to protect the interest of their people from being exploited by outsiders (foreign countries)
(iv) to promote their economic and conserve their natural resources, and making use of them judiciously
(v) to alleviate the poverty among the people.
(vi) To reduced the level of employments among the people and so on.
2.6 INSTITUTIONS IMPACT ON SMALL SCALE ENTERPRISES.
The motion of small scale enterprises promotion has been in existence since 1970 though very little was done at the time. Key institutions were set up to assist small scale enterprises and prominent among them is the Office of business Promotion, presently known as Enterprises Development Commission (EDC), it aims at assisting businessmen to enter into fields where foreigners mainly operated but which became available to Nigerians after the Alliance Compliance Order in 1970. EDC also, has package for strengthening small scale industries in general, both technically and financially.
The Economic recovery programmes instituted has broadened the institutional support for small scale enterprises. The National Board for small scale industries (NBSSI) has been established within the Ministry of Industry Science and Technology to address the needs of small business. The NBSSI established an Entrepreneurial Development Programme intended to train and assist persons with entrepreneurial abilities into self employment. The industrial sector also witnessed the coming into operation of the Appropriate Technology industrial service (ATIA) it was to supervise the operation of Intermediate Technology transfer Unit (ITTU) in the country. (ATIS) aims at upgrading small scale industrial concerns by transferring appropriate technology to small scale informal industries at the grass root level. ITTU in the regions are intended to develop the engineering abilities of small scale manufacturing and service industries engaged in vehicle repairs and other related trade. They are also to address the need of non-engineering industries. With the above points of view, various institutions are playing a vital role in development of small scale enterprises in Nigeria (SSE).
2.7 FINANCIAL IMPACT ON SMALL SCALE ENTERPRISES
A number of government parastatals and private sector organization provide financial support for small scale enterprises, institutions such as, the Development of Enterprises Trust (DET), the National Association of Small and Medium Scale Enterprises (NASME) has received financial support from the Reserve Bank of Nigeria to establish credit programme for the rural small scale enterprises (SSE). Access to credit has been one of the main bottlenecks to small enterprises development.
Most small and medium enterprises (SME) lack the necessary collateral to obtain bank loan. To address the issues, the Central Bank of Nigeria (CBN) has established a credits guarantee scheme to underwrite loans made by commercial institutions to small scale enterprise.
2.8 CONSTAINTS TO THE DEVELOPMENT OF SMALL SCALE ENTERPRISES
Despite the wide ranging economic reforms instituted in the region, small scale enterprises face a variety of constraints owing to the difficulty of absorbing large fixed cost, the absence of economic of scale of providing services to smaller firms.
Input Constraints
Small scale enterprises face a variety of constraints in factor market. However, factor availability and cost were the most common constraint. The specific problem varies but according to whether the business perceived that their access availability or cost was the most important problem and whether they were based primarily on imported or domestic input.
Finance
Access to finance remained a dominant constraint to small scale enterprises considering the wide spread unemployment or underemployment pertaining to the working capital and raw materials were cited by respondent as a constraint both locally and internationally in part, because of the perception of higher risk and the higher cost of intermediation for smaller firm. As a result of small and medium scale enterprises often cannot obtain long term finance in the form of debt and equity.
Labour Market
This seem a less important constraint of small and medium enterprises considering the wide spread unemployment or underemployment in Nigeria. Small and medium enterprises generally use simple technology which does not required highly skilled workers. However, where skilled workers are required, an insufficient supply of skilled workers can limit the specialization opportunity, raise cost and reduce flexibility in managing operation.
Lack of Entrepreneurial Business Management Skills
Lack of Managerial know-how place significant constraint on small and medium enterprises development in Nigeria, even though small and medium enterprises tend to attract motivated managers, they can hardly complete prevalent in most countries in the region, has a magnified impact on small scale enterprises. The lack of support services of their relatively higher unit cost can hamper small and medium enterprises effort to improve their management, because consulting firms often are not equipped with appropriate cost effective management solution for small and medium scale enterprises.
Furthermore, absence of information and time take advantage of existing services result a weak demand for them.
Despite the numerous institutions providing training and advisory service, there is still a skill gap among the small and medium scale enterprises sector as a whole. A lot has actually been achieved in this regard, though there is still room for improvement.
Institutional constraints
The lack of cohesiveness and the wide range of small scale enterprises in Nigeria interest limit their capacity to depend their collective interest and their effective participation in civil society.
Association and Collection Action
Association providing a voice for the interest of small and medium scale enterprises in the policy making, process have had a limited role compared to those of larger firm, many of the entrepreneurs association have yet to complete their transaction of their goal from protectionism to competitiveness (World Bank 1993).
Additionally, the potential economics of collaborative arrangement in production and sales among small scale enterprises have not been adequately explored. It is reported that about 93% of all small and medium enterprises in Nigeria sell their products to the final consumer with the exception of chemical, plastic and wholesale trade which sell to their commercial or manufacturing enterprises. There were very few forward linkages. However backward linkages were common with 71% on enterprises procuring unprocessed, semi-processed or finished products.
The dependent of the small scale enterprises in Nigeria on large scale enterprises as purchasers of output either for sale, a final goal or to be used as intermediate inputs, is very limited. Only 13% of firm produce any item for a component for larger firm’s interdependence among small scale enterprises is very minimal.
Finally, the Developers of small scale enterprises have a long way to cover in order to structure SSE to greater level, for the purpose of economy growth and development for better tomorrow.
2.9 CONTRIBUTIONS OF SMALL SCALE ENTERPRISES TO THE NIGERIA ECONOMY
Small Scale Enterprises (SSE) is believed to be the engine room for development of an economy. Because they form the bulk of business activities in a growing economy like that of Nigeria, this is manifested in the following ways:
(a) Employment generation
30% generation capacity of about 58% of global working population
(b) Small and Medium Scale enterprises also play a critical role of principal safety net for the bulk of population in developing economies.
(c) Their labour intensive structure account for their recognition as a job creation avenue.
(d) Rural Development
Small and Medium Scale Enterprises constitute major avenue for income generation and participation in economics activities in the lower income and rural brackets of developing societies, especially in agriculture, trading and services and the employment opportunities offered apparently reduces rural-urban migration and allow for even development.
Economics growth and Industrialization
National economic development prospect hinge on entrepreneurial of vibrant small and medium enterprises as most big business concerns grow from small scale to big icon.
Better Utilization of indigenous resources
The considerable low capital outlay required for setting up small and medium scale enterprises enable them to convert minimal resources into productive avenue.
Conclusively, the above factors contributing to the growth and development of Nigeria economy through small and medium scale enterprises, if it is properly managed.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN: The main purpose of this research work is to identify the extent to which the market for Business Development Service (BDS) for small scale enterprises in Nigeria had contributed to investment in Nigeria and the extent to which it had stimulate growth and economic development.
This study was taken as a case study to the entire Nigeria economy as a whole. It was designed in such a way that it should resolve the conflicts between Government, Non-governmental Organizations’ attitudes and small scale enterprises so as to stimulate increase in investment activities on the part of developing small and medium scale enterprises in Nigeria.
3.2 DESCRIPTION OF POPULATION: Since the study was based on an investigation into the role of marketing for business development service (BDS) for small and medium scale enter[rises in Nigeria. It covers small scale enterprises in Nigeria but concentrates mostly in Lagos and Ibadan respectively which are notable commercial centres in the country.
3.3 SAMPLE SIZE: Obviously, not every member of the population could be considered because of time and financial constraints. Out of over thousands of small and medium scale sectors in Lagos and Ibadan, only fifty were randomly selected.
3.4 METHOS OF DATA COLLECTION: In collecting the data and answering the research questions, the Researchers administered the questionnaire to some small scale companies that were randomly selected.
Also, the researchers made use of both primary and secondary method of data collection to gather appropriate information on the study.
The secondary source of collecting data involved the use of conference journals students pas project, textbooks and newspapers. There was a systematic search through these above so as to reveal useful information of interest.
Below are sampled small and medium scale enterprises selected:
A. CO-OPERATIVE SOCIETIES: Royal Nigeria Insurance co-operative society Ltd, NPF co-operative society Ola-Oluwa Thift and Credit society, Cocoa Processing, Co-operative Society Ltd, Acil Cooperative Investment Ltd.
B. UNIT TRUST: Are under different individual banks management.
C. LAGOS MARKET CENTRES: Obalende Market Sellers’ Association of Nigeria, Tinubu Traders Association, Oshodi Market Dealer Association; National Union of Road Transport Workers (SAUDI, OSHODI BRANCH) e.t.c.
D. IBADAN METROPOLISH: New Gbagi Market Association of Nigeria, Agodi Community Bank, Dugbe Market Association e.t.c.
3.5 METHOD OF DATA ANALYSIS: For the purpose of this study, the data required for testing of the hypothesis were analyzed using simple statistical techniques like percentages and tables. This test enables the researcher to determine the variability between the actual outcomes from the expected out come.
3.6 RESEARCH QUESTIONS: The following were the research questions based on which the work’s hypothesis were formulated.
1. Does small scale enterprise have a negative or positive effect on the Nigeria banking sector?
2. Is an underdevelopment financial sector of the economy a threat to the small scale enterprises?
3. Does small scale enterprises have any impact on the Nigeria insurance sector?
4. Are the persistence economic crises in Nigeria an hindrance to a successful promotion of small scale enterprises?
5. Does skills has to do with the effectiveness of production?
6. Does the factors of production have to do with the problems facing small scale enterprises in Nigeria? Etc.
3.6 REFERENCES
Akuezulo E.O. Research Methodology and Statistics (1995). Nuel Censti Nigeria Publishers Ltd; Awka.
Osuala E.C. (1992), Introduction to research methodology, African – FEP Publishers Ltd; Onitsha.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
The topic of this research is one that requires a comprehensive analysis of view of those who are extremely knowledgeable of what is being studies. Hence, deciding on who and who should constitute the population of the study was a Herculean task. After much deliberation and experimentation through test, interviewed, we eventually settled for bank manager, draw from 75 bank in Lagos State and Small scale enterprises in Nnew, park of Nigeria.
For the purpose of our study, we shall first use tables to present employment creation by small scale enterprises in Nnew, Eastern part of Nigeria, and we shall thereafter analyze the data using the simple frequency count.
Table 1
Analysis of Employment Creation By Small and Medium Scale Enterprises in Nnewi
Industrial Group& Start Year Initial No of Worker No of workers in 1991, 1994
Firms
Jimex Groups 1967 20 250 220
Aruchukwu & Sons Ltd. 1983 4 15 12
Cento Groups 1984 65 120 165
Adtec Limited 1984 30 - -
Aswitch Plc 1985 - 45 45
Ebunso Ltd 1986 3 20 20
Ejiamatu Igbokwe Group 1986 80 23 82
S & M Ind. Ltd. 1987 12 70 -
Mebro’s Ind. Ltd. 1987 56 80 198
John White Ind. Ltd 1987 30 55 71
Christomex Ind. 1987 23 295 330
Edison Auto Ind.Ltd. 1988 40 65 75
DTC Ltd. 1987 15 75 40
Eckulumili Ind & Co 1998 24 120 200
G.O.D. Brothers Group 1988 7 10 10
John Ray Ltd 1990 8 58 62
Silver Sun ltd. 1991 - 14 15
PMS Groups 1994 - - 120
From the table, it can be noted that most of the entrepreneur in Nnew, Cluster have little knowledge of production skills. On the other hand this does not means, that production activities cannot be effective because technical skill is a necessary condition but not sufficient in production organization. The managerial competence and organization ability an important role in production function. The managerial and natural organizational ability of an entrepreneur demand sociological enquires.
Table 2
Analysis of data based on research hypothesis : Does small enterprises negatively affect the performance of bank in Nigeria?
Response Type Response No Percentage of Total
Yes 63 84%
No 4 5.3%
Undecided 8 10.6%
Total 75 100%
Table 3
If answer to the preceding question is Yes, to what extent is the degree of the Negative Impact?
Degree of Impact No of Respondent Percentage of Respondent
Very High 23 30.7%
High 30 40%
Moderate 5 6.7%
Low 3 4%
Very Low 2 2.6%
Interminable 12 16%
Total 75 100%
An analysis of the above reveal that a preponderance of the bank managers, if the opinion that small scale has a negative effect on the economy 63 of the respondent take this stand while 4 of them does not, while the remaining 8 respondents were undecided.
This figure represent 84%, 5.3% and 10.7% respectively (Table II). Furthermore, it is reveal that of those who opine that small scale enterprises affect the banking sector 30.7% hold the opinion that the negative effect is very high, while a significant 40% subscribe to the view that it is just high 6.7%, 4% and 2.7% of the respondent choose moderate how and very low respectively. The remaining 16% representing 12 of the respondents and being the number of those who choose “No” and “ undecided” in the preceding question opine that the effect is interminable. Here, a consistency is observed on the part of those who choose “No” in the preceding question.
Table 4
Is the financial sector in Nigeria an underdeveloped one.
Response Type Response No Percentage Total
Yes 65 86.7%
No - 0%
Undecided 10 13.3%
Total 75 100%
Table 5
Does the underdeveloped nature of the Nigeria financial sector constitute an hindrances to the fight against small scale enterprises?
Response Type Response No Percentage Total
Yes 68 90.7%
No 2 2.7%
Undecided 5 6.7%
Total 75 1005
The table above are meant to determine if the under developed nature of the financial sector in Nigeria is an impedance to the fight small scale business in Nigeria.
ELUCIDATION OF FINDINGS.
In this chapter, we are essentially concerned with the determination of the following items:
a. Are Nigeria bank adversely affected by small scale activity?
b. Is the fight against small affected by the underdeveloped nature of the financial sector in Nigeria?
c. Also, is same affected by the persistent economic crisis?
Analysis of the data gathered through the administration of questionnaire revealed that 84% and 64% of the respondent affirm that
a. Nigeria banks are adversely affected by small scale activity,
b. The fight against small scale is affected by the underdeveloped nature of the financial sector in Nigeria.
c. And also, that same is affected by the persistent economics crisis.
Among other useful findings made in the work are the following:
- The degree to which small scale activity negatively impact of Nigerian banks is a high one;
- The Nigerian financial sector is an underdeveloped one.
All the above findings should be properly look into and thoughly addressed by those who are in charge of economy renovation for the growth and development of small scale enterprises in Nigeria.
Finally, it is cleared that government, Non-governmental bodies, and individuals have a lot to do in developing small scale enterprises in Nigeria.
CHAPTER FIVE
SUMMARY, RECOMMENDSTION AND CONCLUSION
5.1 SUMMARY
This study has to a large extent attempted to evaluate the impact of small scale enterprises in an economy (Nigeria) and it development to the entire economy as a whole;
The first step was to make a broad analysis on the definitions of small scale enterprises from different perspective, numerous concepts of small and medium scale enterprises in Nigeria was fully elucidated, vividly expatiated, based on the Africa contest, where institutional frame work and infrastructure are poorly developed.
We further considered competition and learning as two important elements needed in African because they are the benchmark for the small scale enterprises development in the region.
Furthermore, the analytical approached was also used to make indepth explanation on the concept and these was further related to the scenarios in Africa.
In this context however, it was analyzed how the impact of small scale enterprises play an important role in development, this was followed by th problems, constraints formulation of hypothesis, definition of terms used in this study to facilitate more understanding of readers, economic impact and industrialization, including the government functions and the roles of non-governmental organization in the development of small scale enterprises in order to stimulate the growth and development of small and medium scale enterprises in Nigeria.
This project also analysed the activities covered by small and medium enterprises as well as the activities that was unable to covered. This paper furtherly lay emphasis on the contribution of small scale enterprises to the entire economy which was sub-divided into three parts (a) Employment generation (b) Rural development and (c) Economic growth and industrialization, as well as better utilization of indegeneous resources and it was concluded, in this paper part four, the data presentation and analysis was introduced on how the source of data were been gathered and analysed.
This course is also analysis the restatement of hypothesis, method of analysis, population and sapling procedure, method of administration, Analysis of employment creation, and analysis of data based on research hypothesis and it was concluded. And the whole responsibilities is on government, non-governmental bodies and individuals citizen to make the Nigerian economy great.
From the data collected and discovered from the analysis, the researcher als found out that there are other factors militating against the growth and development of small scale enterprises in Nigeria, such as:
i. Embezzlement of fund as a result of improper management.
ii. Problem of leadership.
iii. Frand
iv. Insufficient capital
v. Instability of political decisions
vi. Negative attitude of customers toward the growth and development of small scale enterprises.
Conclusively, Government, non-governmental organization and financial institutions should provide adequate fund for investment programs necessary to stimulate the economy and promote growth and development of small scale enterprises in Nigeria.
5.2 RECOMMENDATIONS
In order to ensure effectiveness in operation and development of small scale enterprises in Nigeria under review, the researcher hereby make the following recommendations:
1. Government and quasi-governmental bodies should grant financial subventions to the small scale enterprises in Nigeria, since inadequate fund is their major problem.
2. To set up on economic commission that will oversee the activities and operations of all small scale enterprises in order to model and design it to be growth oriented.
3. Adopting a stable political system preferable democracy – since frequent change of government affects the economy adversely leaving economic activities and investment program of enterprises, individuals unattainable.
4. That small and medium scale enterprises should establish in tangible assets that are of a long term in order to help stabilize the economy.
5. Banking and other financial institutions should rise up and assist financially in form of loans for the development of small scale enterprises in Nigeria.
6. Resources must be made available at lower cost for the effectiveness of local productions for small scale enterprises.
7. Seminars, workshops and training should be provide for workers in order to update their skills in state of production etc.
5.3 CONCLUSION
The foregoing, clearly indicate that there is need for effective improvement in small scale Enterprises in Nigeria. This is acknowledged to stimulate economic growth and development of small scale unit in Nigeria.
Generally, the role of government and non-governmental organization is not encouraging, so there is a great need to achieve a sustainable economy of small scale enterprises in Nigeria.
Commitment and willingness toward the hard work by the entrepreneur is very essential in order to persuade effectiveness in the state of production was also elaborated.
Finally, this study vividly expatiates the importance and the roles of business development service (BDS) on the growth and development of small scale enterprises in Nigeria.
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