The Impact of Government Policy on the Growth of Small and Medium Scale Business in Nigeria
CHAPTER ONE
Objective of the Study
The objectives of this study are as follows:
- To find out the commercial banks that assist small and medium scale enterprises as stipulated by the government.
- To find out if government policies affect the production of palm oil at Nsukka.
- To determine the attitude of people towards innovation and how it affect the source of raw material for production.
- To determine if the small scale industries can produce at a large commercial quantity.
- To make general and specific recommendation based on the finding of the study.
CHAPTER TWO
LITERATURE REVIEW
Recognition of the Small and Medium Scale Enterprises
For an adequate discussion on government policies and their impacts on the small and medium scale industrial enterprises, it is necessary to state what constitute small and medium scale enterprises.
The essence of the definition and classification is to enable government and the promotion agencies to differentiate while giving specific small and medium scale enterprise necessary facilities and assistance due to them.
Often, there is no single criterion for classifying business unites, as small or medium scale industries, the term small, medium and large are relatively different from industry to industry, country to country and there is no unique or universally accepted definition of these terms.
It is also important to recognize that definition change over a period of time and depend to a large extent on a country’s level of development, what was large scale in the 1950’ may now be regarded as small scale today.
Some industries are typically small (poetry, craft etc) while others are typically large scale (Iron and steel manufacturing for example) in terms statement and invested to different in policies.
Definition of Small Scale Business by Various authors and some institutions promoting small enterprises in Nigeria
Ogundile (2000), defined small and medium scale enterprises as an organization employing a minimum of five employees and with a minimum initial capital outlay of not less than N5,0000 (Five thousand naira) when such organization were established between 1972 and 1986.
Osuagwu (2001) notes that an additional requirement to be tagged small scale enterprises is not greater than 50 in any situation and the financial capital outlay is not more than N150,000 (One hundred and fifty thousand naira).
Okongwu (2001) states that small business enterprises in Nigeria are classified with regard to employed labour force, and capital investment by the National Council industry.
In credit guidelines to banks, the Central Bank of Nigeria states that the case of commercial banks, small scale enterprise are those with annual turnover not exceeding N500,000 (five hundred thousand naira). In the case of merchant banks, they are enterprises with capital investment not exceeding N2million excluding cost of land or with maximum turnover not more than N5million (five million naira).
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
Introduction of the Study
In this chapter, the researcher will present the system of data collection because there are different methods of data collection, where some will be selected and adopted to bring out relevant but viable information that deals with this research work.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
The simple percentage methods is used by the researcher to analyzed data according to research questions, and the chi-square approach to used to test the role of government industrial policies on small and medium scale/industrial development in Nigeria.
CHAPTER FIVE
DISCUSSION, CONCLUSION AND RECOMMENDATION
Introduction
This chapter deals with the discussion of result of the study as presented in chapter four and conclusion is drawn on the basis of this result. Recommendation is based on the study high-lighted.
Discussion of Result Findings
The following findings were made after the interpretation of data collected.
- That the government policies affect the production of palm oil at Nsukka but there is no enough finance to expected their projects.
- Over 60%of their customers could not get to the industry easily for lack of good roads and this made them increase the price of oil in the market.
- It was also observed that the commercial banks in the area do not give them loan in other to carryout their project effectively let alone achieved their aims and objectives.
- It was also known that there are no essential infrastructures like water, electricity etc to help aid their work.
- Lack of good roads also made it impossible for them to procure raw materials and other inputs easily.
Conclusion
From the findings that were using the various research approaches, it has been proved that the project is not going to be that viable.
It is obvious that those policies government implement on small and medium scale industries do not really affect the production. This is because they do not provide enough funds and other infrastructures to help boost their production.
However, the researcher will make some recommendations which if adopted will help the small scale industries in a greater way. At the same time, the market for the product (palm oil) is boundless, it was observed that the one and only palm oil processing plant in Nsukka local government area (SAGBO INDUSTRIES LTD) does not provide enough palm oil to satisfy the users within the vicinity and let alone seeks recognition beyond the locality due to financial constraints.
Implication of the Research Findings
Some of the implication of the research findings includes;
That the small and medium scale enterprises plays a very important role in the Nigeria economy out of which this roles have being stipulated.
Moreso, this research work also mitigates the problem which the small and medium scale enterprises faces which is sub-divided into two viz: those inherent in them, which ranges from subjective decision making, inability to separate funds among others, those which are not inherent in them which includes use of relative and the use of authority by its top management.
Recommendations
Based on the findings and conclusion, the following recommendations are hereby made;
It is believed that those recommendation would help alleviate the problems faced by small and medium scales industries in Nigeria.
- Government banks and other financial institution should lay a lending hand on the small and medium scale industries by giving them loans to finance their project and other helps necessary.
- The prospective investor into the country is advised to provide enough funds for the procurement of raw materials and other.
- Government should also provide the essential infrastructures in the industries layout and rural area to aid industrial development.
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