ABSTRACT
The research work was aimed at investigating the growth of small and medium scale enterprises in relation to economic development and to analyze the effect of small and medium scale enterprises in the Nigerian economy development.
Starting with a general recourse to study the small and medium scale enterprises at its root; the essay attempted to study institutions responsible for the growth of small and medium scale enterprises in Nigeria.
Regression analysis was done on the Gross Domestics Product (GDP) and small and medium scale enterprises and the findings shows that 5% level of significance, the constant term and the estimates of ISSP are both statistically significant.
On the basis results obtained, it is recommended that Nigeria must henceforth take bold steps with regards to our small and medium scale enterprises to ensure the growth of the sub-sector. I hoped that the recommendations will be useful for the improvement of small and medium scale enterprises towards economic development.
CHAPTER ONE
1.1 INTRODUCTION
1.1 BACKGROUND TO THE STUDY
This research project pries into the impact of small and medium scale enterprises on Nigeria economic development with a view to establish it effect on the Nigeria economic as a whole.
The Nigeria economic is basically made up of the enterprises sectors which share the production of goods and services.
The enterprises sectors comprises of individual, household, commercially oriented firm and some other governmental organizations which the primary object is developing the Nigeria economy through the provisions of necessary goods and services.
The recognition of the small and medium scale enterprises are catalysts in the socio-economy development of any country. These are veritable vehicle for the achievement of national macroeconomic goals in terms of employment generation at low investment cost and the development of entrepreneurial capabilities and indigenous technology. The catalytic roles of the small and medium scale enterprises have been amply displayed in many countries. The small and medium scale enterprise has really contributed immensely to the gross domestics' products, export earnings and employment opportunities of these countries.
The Federal Government of Nigeria has long recognized the need to promote the development of the small and medium scale enterprises in order to stimulate employment, mobilize local resources, reduce migration from rural to urban areas and disperse industrial enterprises more evenly across the country. This is why the Government has established institutions to provide financial and non-financial services to the small and medium scale enterprises. Among the institution are the National Directorate of Employment (NOE), the People's Bank of Nigeria (PBN), National Economic Reconstruction Fund (NERFUND), Nigerian Bank for Commerce and Industry (NBCI), Nigerian Industrial Development Bank (NIDB), Nigerian Export Import Bank (NEXIMB).
Also, many State Government have established development finance institutions (DFIs) to provide credits for the small and medium scale enterprises.
In addition, the central Bank of Nigeria's credit guidelines to banks to lend a minimum of 20 percent of their total loans and advances to small scale enterprises.
l.2 PROBLEMS IDENTIFICATION
Despite Government's effort in order to encourage and promote small and medium scale enterprises development in the Nigeria economic, as a result of the dynamic nature of the environment, the Sectors are often faced with the under mentioned problems:
1. Poor feasibility studies
2. Inadequate funding
3. Poor management
4. Loan Default
5. Lack of collateral
6. Lack of adequate trained personnel
7. Inadequate infrastructure
8. Lack of monitoring of loan to SME, by Bank Limited market.
l.3 AIMS AND OBJECTIVES OF THE STUDY
1) To determine the impact of small and medium scale enterprises in the Nigerian economic-development.
2) To determine the effectiveness of small and medium enterprises in Nigeria economic.
3. To ascertain the contribution of small and medium scale enterprises in the Nigeria economic development.
4. To find out the possible improvement of small and medium scale enterprises in Nigeria.
5. To encourage and to promote small and medium scale enterprises in the Nigeria economic development.
There are the basic aims and objectives of the research. That is, the mentioned above.
1.4 THE STATEMENT OF HYPOTHESIS
These are the hypothesis tested in this research.
Hypothesis 1
Ho: There is no significant relationship between the small and medium scale enterprises and the Nigeria economic development.
Hi: There is a significant relationship between the small and medium scale enterprises and the Nigerian economic development.
Hypothesis II:
Ho: The existing of small and mediums scale enterprises in the Nigeria economic development is in-effective.
.