The Effect of Small and Medium Scale Business on Economic Growth of Nigeria
CHAPTER ONE
OBJECTIVE OF THE STUDY
The main objective of this study is effects of small scale business on the economic development of Nigeria. But for the successful completion of the study; the researcher intends to achieve the following sub-objectives;
- To determine the roles which the small scale business have played in economic development of Lagos State
- To suggest the future prospect of small business in economic development of Lagos State
- To determine the problems small scale business are facing in Lagos State
- To ascertain the relationship between small scale business and the economic development in Nigeria
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
In the course of this study the research considered the works and ideals of many authors who have made available contributions on the on the subject matter.A growing economy tends to provide and create opportunities for the small firm. Small firms not only provide a production out let for enterprising and independent minded people, but they are also the most efficient form of business organization in industries where the option size of the production unit or sales out let is small. According to Ekeigwe (1992) a natural problem with the small business unit is that of necessity, the basic conditions of internal control must be violated.Small scale enterprises have a problem of vital business information.According to Osubor (1994) the short coming of small business enterprises are problems of gaining capital for expansion, the manager unable to meet or secure the necessary collateral for credit worthiness problems pf continuity is small business especially in Africa, the death of the owner business organizations keep untold secrets of the business, and therefore may bring abrupt and to the business.Osubor mentioned other problem as burden if bearing the entire loss of the business failure lack of mass production, the lengthy hours of work which reduce mental efficiency in production and management.Kalu (1986) said about the importance of small scale industries, “the task or role of these small scale industries is the creation of jobs. In our situation, it has to be in a move that will absorb as much of our limited capital as possible therefore small scale industries are more suited to our circumstance”.Oshunbiyi (1989) also emphasized the roles of the small scale industries in his articles, thus,
1) “Those small scale industries harness their raw materials locally and serve as raw materials inputs to the large scale industries.
2) They look inwards and identity or develop prospective products for domestic consumption and the export market as a means of earning foreign exchange for the state. Still on the importance of small scale industries, Austin (1981) said “small scale industries have the potential to assist in the objective of rural development.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to effects of small scale business on the economic development of Nigeria
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effects of small scale business on the economic development of Nigeria(a case study of Lagos State).
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of small scale business on the economic development.
Summary
This study was on effects of small scale business on the economic development of Nigeria. Four objectives were raised which included; To determine the roles which the small scale business have played in economic development of Lagos State, to suggest the future prospect of small business in economic development of Lagos State, to determine the problems small scale business are facing in Lagos State, to ascertain the relationship between small scale business and the economic development in Nigeria. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected farms in Lagos State. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up farm managers, farm officers,insect fumigators and farm supervisorswas used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Hardly can any major industry succeed without the services of small business enterprises. The relative strength of their importance varies from one industry to another. The role of small scale businesses in the development of Nigeria economy cannot be over-estimated. Firstly, the continuing growth in the economy of any nation depends to a large extent on the startups of small businesses, which depends on locally fabricated machinery and local raw material inputs. Secondly, it is a considerable solution to balance of payment problems resulting from less dependence on imported inputs and also serves as a training school for the indigenous entrepreneurs and provides grounds for the acquisition of skill for a large number of workers.
Recommendation
The researcher after discussed the findings and conclusions recommended that the small scale business contributes in strengthening industrial linkages by producing intermediate products for use in large enterprise in Nigeria. The researcher also showed that government tax policies have not been favorable in the establishment of small scale enterprises in Nigeria for many years now. So government should know how it will be amending some of these tax policies they feel is affecting the establishment of small business in order to encourage more people into venturing into it. Government should also encourage the growth of small business by giving them the necessary assistance as regards to fund raising and equally advice them on how to utilize it effectively. Also, small businesses should form mergers; by this their capital would be placed in a better position when dealing with lending institutions. Their tax burden will not be heavily felt again.
REFERENCES
- Akpata, B. (1990): The Role of Entrepreneurship in Business. Broom, and Longnecker (1972): The Impact of Entreprenuerial Development in an Economy.
- Ezeh, J. (1997): The Role of Small scale Business in Nigeria Economy.
- Feldman, C. (1989): The Importance of Small and Medium Scale Enterprises. Harper Boyd, Ralph Westfall and Stanlves (1997): Marketing Research Test and Cases (Illinois Richard D. Irwin Inc).
- Huglice, and Musselman (1973): Small scale Enterprises and the Economy. Martin, Shaw and Jack Wright (1977): Scale for Measurement of Attitude (New York: McGraw Hill book company).
- Nwakobi, E. (1985): Small scale Enterprise and the Economy. Nwobi, F.N. Statistics 1 (An Introductory Text) Bon Publishers 1998.
- Oshagbenius, J. (1985): The Impact of Small and Medium Scale Enterprises in Nigerian Economy.
- Waboi, A. (1987): The Impact of Small and Medium Scale Business in an Economy. Yewande, M. (1991): The Role of Government in the Development of Small and Medium Scale Enterprise in an Economy.
- Harper Boyd, Raph Westfall and Stanlves (1997): Marketing Research Test and cases (Illionois Richard D. Irwin Inc).
