Mitigating the Challenges Faced by Small and Medium Sized Companies in Makurdi
CHAPTER ONE
Objectives of the Study
The main purpose of this study is to identify and consequently analyze the most effective and efficient way through which small and medium scale enterprises (SMEs) could be financed and promoted, thereby taking into consideration of various conditions such as economic, political, social, psychological etc. under which small and medium scale enterprises are encouraged to operate. In so doing this the researcher intends giving and in-depth information and analysis on the various strategies through which small and medium scale enterprises can be developed and encouraged.
In view of the above the researcher intends to:
(i) Assess the role played by government towards Mitigating the challenges faced by small and medium sized companies in Makurdi. Nigeria.
(ii) To identify the economic potential of small and medium scale enterprises in Nigeria.
(iii) To identify the constraints confronting the development of small and medium scale enterprises in Nigeria.
(iv) To examine the financial support given to small and medium scale enterprises by government and other individual bodies.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
According to Ihua (2009), the performance and effectiveness of small and medium scale enterprises (SMEs) as an instrument of economic growth and development in Nigeria has long been under scrutiny. This intense scrutiny has been against the backdrop of the low performance and inefficiency that characterized small and medium scale enterprises (SMEs). Small and medium scale enterprise has fallen short of expectations. This has generated serious concern and scientism on whether small and medium scale enterprise can bring about economic growth and national developments in Nigeria. The concern is even more disturbing when comparing small and medium scale enterprise (SME) in Nigeria with other countries particularly where small and medium scale enterprise has become harbinger of economic reconstruction and transformation. Ireghah (2011) opines that in the case of Nigeria, that small and medium scale enterprises (SMEs) had performed at very abysmal level. This low performance has further exacerbated poverty, hunger unemployment and low standard of living of people in a country whose economics is ailing.
The current problems of hunger, poverty and unemployment have undermined the capacity of the economy and small and medium scale enterprises (SMEs) are seen as mechanism for intervention to addressing these long term problem of the economy. Unfortunately, small and medium scale
enterprises (SMEs) have not been able to propel economic growth and development which are quintessence of mitigating the effect of poverty, hunger, unemployment, and low standard of living on the economy. The challenge of addressing the problem of hunger, poverty and unemployment is even more worrisome when considering the actualization of the millennium development goals by the country 2015. If Nigeria is to achieve the millennium development goals by 2015, one of the sure ways is to enhance the capacity of its small and medium scale enterprises (SMEs). The core issues identified by the millennium development goal such as hunger, poverty, literacy, material and mortality rate would not be achieved unless the problems of small and medium scale enterprises are clearly tacked.
Omotola (2008) stipulates that the challenges and the problem of small and medium scale enterprises are tied to some economic variables and the challenges that generally characterized the nation’s economy. Some of the challenges and problems include high level of unemployment, high poverty incidence, and low industrialization capacity, lack of finance, inconsistent government policies and inadequate infrastructure and insecurity of the business climate among others. Nevertheless, the internal characteristics of small and medium scale enterprises (SMEs) too have also interact with some economic variables to undermine the capacity of the economy. Issues of low level of entrepreneurial skills, poor management practice, inadequate equity capital and lack of information among other problems.
In spite of these problems and challenges, the current economic reform process ongoing in Nigeria aimed at reducing poverty, unemployment and strengthening of basic institutions and sub-sector of the economy target at improving and enhancing the capacity of small and medium scale enterprises (SMEs) is beginning to show a renew optimism on small and medium scale enterprises as instrument of economic growth and development.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
Design simply means the plan or blue-print on how to go about data collection and analysis, all aimed at providing solutions to the problem under investigation. Broadly speaking, it entails the specification of procedures that would be deployed in the field work (Chukwuemeka, 2002). The specific purpose of research design is to obtain data that will enable the researcher to test the pre-set hypotheses or answer research questions of the study (Asika, 1991). In particular, research design seeks to answer the questions about the what, where, when, how and by what means data would be generated to provide the solutions under investigation (Eboh, 2009).
Further, the survey method was useful in describing the characteristics of a large population and no other method of observation can provide this general capability. On the other hand, since the time duration to complete the research project was limited, the survey method was a cost effective way to gather information from a large group of people within a short time. The survey design made feasible very large samples and thus making the results statistically significant even when analyzing multiple variables. It allowed for many questions to be asked about a given topic giving considerable flexibility to the analysis. Usually, high reliability is easy to obtain by presenting all subjects with a standardized stimulus; observer subjectivity is greatly eliminated. Cooper and Schindler (2006) assert that the results of a survey can be easily generalized to the entire population.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
The relevance and usefulness of data presentation and analysis in the research work cannot be over emphasized. The objective of this chapter is to present and analyze the data collected during the research survey and to show the findings resulting from the data collected. The data will be tabulated and the relationship/among items in the table will be tested in order to prove their validity or otherwise. It should be noted however, that questions related to the testing of the hypothesis will be analyzed.
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of Findings
On the analysis relating to the responses on Mitigating the challenges faced by small and medium sized companies in Makurdi.
However, the analysis showing responses on whether small and medium scale enterprises contribute to global economic growth and development, reveals that majority of respondents agreed on that.
Analyses of the research statement reveal that frequent changes and sometimes conflicting government monetary policies have in any way tend to hurt small and medium scale enterprises (SMEs) in Nigeria.
It discovers from the analysis that Government neglect small and medium scale enterprises in the area of incentive and infrastructural development of facilitate business entity as majority of respondent strongly agreed on that.
The analysis of the responses also discloses that government and other individual bodies have given small and medium scale enterprises (SMEs) in Nigeria financial support in order to thrive.
Lastly, the hypotheses tested in the table 18 shows that majority of the respondents strongly agreed that there is significant relationship existing between government, Mitigating the challenges faced by small and medium sized companies in Makurdi.
Table 15 indicates from the analysis of responses that small and medium scale enterprises have immensely contributed to the economic growth in Nigeria.
Table 21, shows that there are confronting constraints to the development of small and medium scale enterprises (SMEs) in Nigeria as the majority of respondents strongly agreed on the statement.
Conclusion
This study has been an attempt to examine the prospects of Mitigating the challenges faced by small and medium sized companies in Makurdi. The following conclusions are hereby drawn that the role played by government towards Mitigating the challenges faced by small and medium sized companies in Makurdi is highly effective, in the sense that government supported small and medium scale enterprises (SMEs) through favourable investment policies, institutional and fiscal policy, protective business law and financial incentives to encourage the national development and indigenization policy which small and medium scale enterprises (SMEs) are very central to. Several micro-lending institutions were established to enhance the capacity and development of small and medium scale enterprises and liberalization of the banking sector to enhance the banking institutions for effective participation in the growth and capacity building of small and medium scale enterprises in Nigeria.
That small and medium scale enterprise has immensely contributed to the economic growth and development in Nigeria, in the sense that they have been recognized as indispensable components of national development in both developed and developing economies. This sector of the economy acknowledged to contribute substantially in enhancing employment creation, poverty alleviation, equitable distribution of resources, income distribution, technical and technological innovation, entrepreneurial skills development, more uniform industrial and economic region.
There is significant support given to small and medium scale enterprises in Nigeria by government and other individual bodies in order to thrive.
Recommendations
The impact of small and medium scale enterprises in Nigeria cannot be overemphasized, hence it has been seen, has a pivotal instrument of economic growth and development either in developed or developing economic. In the lights of the above analysis, the researcher recommend government should ensure that there will be no improper implementation of its policies towards small and medium scale enterprises and should not in the area of incentive and infrastructural development neglect business activities to facilitate small and medium scale enterprises. The researcher also recommends that government should also adequately support small and medium scale enterprises financially, to avoid lack of capital, perhaps by creating lending institutions to enhance the capacity of small and medium scale enterprises.
Moreover, small and medium scale enterprises should ensure that they resolve their internal problems which hinder the success of the small and medium scale enterprises. For instance, they should ensure that there effective management practices or expertise effective accounting standards, adequate manpower and avoid financial indiscipline and corruption in order to boost the performance of the small and medium scale enterprises in Nigeria.
Area for further study
Though, the researcher has undertaken a research work on the problems and prospects of small and medium scale enterprises here in Nigeria in which findings and recommendations have been drawn. But that should not solve the same problems in which other small and medium scale enterprises in other countries of the world are encountering. Therefore, it should be an area of further study for the future researchers to follow the same procedure or step to find out similar problems and prospects of small and medium scale enterprises in other countries of the world, so that the study would be universally and globally accepted.
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