Poverty Alleviation: the Role of Government and Small-scale Businesses
CHAPTER ONE
OBJECTIVES OF THE STUDY
The primary objective of this study is to assess the roles of government and small scale businesses in the alleviation of poverty. Other objectives of this study are:
- To examine the factors that influence poverty
- To examine the effectiveness of small scale businesses on poverty alleviation in Nigeria
- To examine the challenges of small scale businesses in Nigeria.
- To determine the effectiveness of government policies in the alleviation of poverty.
- To find out the current programs undertaken by government to aid poverty alleviation.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
The examination of the relationship between small scale enterprises, economic growth and poverty alleviation is an expanding field of research frequently featuring in development policy studies. It is generally agreed and well documented that small businesses have a positive role in poverty alleviation [6]. Small scale enterprises have long been regarded as crucial for the achievement of broader development objectives, including poverty alleviation, economic development and promotion of more democratic and pluralist societies [1]. People on low incomes can augment their incomes by engaging in small scaled enterprise, ownership can also facilitates greater self determination and employment of poor people as a consequence of owing and controlling resources [4]. Several studies have supported the role of small scaled business in economic growth, job creation and poverty alleviation [1,4,7]. Zupi [8] demonstrated a positive relationship between small scale enterprises and economic growth and it was found that strong relationship exists between small business and poverty alleviation. In Nigeria, small and medium enterprises estimated to account for a significant share of gross domestic product (GDP). The sector contributed 20% in GDP and employs about 35% of the labour force (National Bureau of Statistics, 2010). These results mostly lead to the conclusion that by creating jobs, small scale enterprises play crucial role in poverty alleviation. Micah and Okafor [9] evaluated how education and capital contributed to firm performance. The study revealed that the growth of firm was greater when the management or owner of the firm completed secondary education or university and it was even higher when the owner had some technical education. This dimension of knowledge displays the role of education in small scale business. In Nigeria several studies focus on Small and Medium Enterprises such as interior decoration, animal slanging, groundnut oil extraction, those local jobs and bakeries and they contribute to poverty reduction [10-12]. The findings from these studies showed significant contribution to poverty alleviation and economic empowerment. In relation to the policy environment in Nigeria, taxes and business licensing issue appear to constraint business growth and operations [13]. The policy affected the contribution of small scale enterprise to poverty alleviation. However, some studies have generated results that small business do not have positive role in economic growth and poverty alleviation. While small scale enterprises were a characteristic of fast growing economy across country, analysis did not support the view that small scale enterprise exerted any distinguish difference.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain poverty alleviation: the role of government and small scale businesses. 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 poverty alleviation: the role of government and small scale businesses.
Summary
This study was on the effectiveness of accounting software in the preparation of financial state. Three objectives were raised which included: To examine the factors that influence poverty, to examine the effectiveness of small scale businesses on poverty alleviation in Nigeria, to examine the challenges of small scale businesses in Nigeria, to determine the effectiveness of government policies in the alleviation of poverty and to find out the current programs undertaken by government to aid poverty alleviation. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected secondary schools in Kogi state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The findings have shown that small scale enterprises could play vital role in reducing the scourge of poverty among people. Also, importance of small scale business in this finding is that people who were engaged in the sector could generate relatively sustainable income to feed themselves. They could also afford to expand the size of their business to accommodate more profits. Yet, these were the people who had low economic status prior to their engagement in the small scale enterprises
Recommendation
Small scale enterprises are veritable means by which people can improve their economic status and live above poverty line. Yet there are many challenges e.g. exorbitant taxes that have threatened people in this sector to give up their economic pursuits and remain poor. It is recommended that government should review tax regime to accommodate the interest of small-scale traders. This may be in the form of tax incentive to improve the level of profitability and continuity.
References
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