Key Features:
- No of Pages: 74
- No of Chapters: 5
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Abstract:
The study aims at assessing the problems and prospects of small and medium enterprises (SMEs) in Nigeria. The objectives of the study are to: identify and assess the key factors responsible for the relatively low performance and failure of the SMEs survival; investigate the reasons why programmes designed by government to boost manufacturing SMEs performance do not effectively achieve its role; make appropriate recommendation towards alleviating the problems facing SMEs; identify ways and means, which will establish and sustain the vibrancy for Nigerian SMEs. Primary sources of data collection where questionnaire was distributed to respondent which was used to test the hypothesis of the study using chi-square. The study revealed that policies implemented for SMEs have a positive relationship on the survival of SMEs in Nigeria and there is prospect in SMEs in Nigeria. It is recommended that: the government should establish SME clusters in relevant sectors in areas that have comparative advantage for such sectors such as Auto Parts Cluster in Nnewi, Leather Products Cluster in Kano, Apple Processing Cluster in Plateau, Export Clusters for Cocoa in Ondo, Cashew Crushing Plant in Oghe, etc; the government through the Central Bank of Nigeria should establish the much-awaited National Credit Guarantee Scheme for SMEs, which should guarantee at least 80 percent of loans needed by small and medium enterprises in Nigeria; the government should tackle accelerated development and upgrade of rural/urban road and rail network, water and air transport system and other infrastructural facilities head on and review tariff in favour of local manufacturers especially the SMEs.
Table of Content:
Title Page ----------------------------------------------------------------------- i
Declaration --------------------------------------------------------------------- ii
Certification -------------------------------------------------------------------- iii
Dedication ---------------------------------------------------------------------- iv
Acknowledgement ------------------------------------------------------------- v
Abstract ------------------------------------------------------------------------- vi
Table of Content --------------------------------------------------------------- vii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study ---------------------------------------------- 1
1.2 Statement of the Problem---------------------------------------------- 3
1.3 Objectives of the Research -------------------------------------------- 4
1.4 Research Questions ---------------------------------------------------- 4
1.5 Research Hypothesis --------------------------------------------------- 5
1.6 Significance of the Study ---------------------------------------------- 5
1.7 Scope of the Study ----------------------------------------------------- 5
1.8 Definition of Terms/Acronyms----------------------------------------- 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction------------------------------------------------------------- 9
2.2 The Concept of SMEs-------------------------------------------------- 9
2.3 Role of the SMEs Sub-Sector in the Economy----------------------- 12
2.4 Significance of the SMEs Sub-Sector in the Nigerian Economy---- 14
2.5 Characteristics of SMEs in Nigeria------------------------------------ 16
2.6 Prospects of SMEs in Nigeria------------------------------------------ 17
2.7 Problems and Challenges of SMEs in Nigeria------------------------ 20
2.8 The Importance of SMEs access to Finance for Nigeria‟s----- Devt24
2.9 The State of Microfinance in Nigeria---------------------------------- 25
2.10 The State of SMES Finance in Nigeria-------------------------------- 26
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction ------------------------------------------------------------ 31
3.2 Research Design ------------------------------------------------------- 31
3.3 Population of the Study------------------------------------------------ 32
3.4 Sample Size and Sampling Technique-------------------------------- 33
3.5 Sources of Data Collection--------------------------------------------- 33
3.6 Method of Data Analysis ---------------------------------------------- 35
3.7 Justification of Method Used ----------------------------------------- 36
CHAPTER FOUR: DATA PRESENTATION, AND ANALYSIS
4.1 Introduction ------------------------------------------------------------ 37
4.2 Data Presentation and Analysis --------------------------------------- 37
4.3 Testing of Hypothesis -------------------------------------------------- 48
4.4 Summary of Findings -------------------------------------------------- 57
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary---------------------------------------------------------------- 59
5.2 Conclusion -------------------------------------------------------------- 63
5.3 Recommendations------------------------------------------------------- 67
References---------------------------------------------------------------- 69
Appendix I--------------------------------------------------------------- 77
Introduction:
1.1 Background to the Study
Small and Medium Enterprises (SMEs) as defined by the National Council of Industries refer to business enterprises whose total costs excluding land is not more than two hundred million naira(N200,000,000.00)only. It has been argued that SMEs are effective instrument for economic growth and development in Developed and Less Developed Countries (Beyene, 2002; Nitani, 2005). This is because SMEs contribute significantly to the Gross Domestic Product (GDP) and produce substantial amounts of locally consumed products (ECA, 2000; Wattanapruttipaisan, 2003; Tagoe et al, 2005; Saleh and Ndubisi, 2006). According to Mojmir (2000), SMEs play an important role in the economic growth of any country including industrialised countries because they account for more than half of a country’s output and employment (Hussain et al, 2008). In the same vein, Udechukwu (2003) asserts that the development of SMEs is an essential element in the growth strategy of most economies, which holds particular significance for developing countries like Nigeria. SMEs are a vital part of any market economy because they are represented in all major branches of manufacturing and service sectors (Obokoh, 2008c). This is in addition to their role in job creation for the unemployed, provision of goods and services within and across national boundaries of countries (Saleh and Ndubisi 2006; Woldie et al, 2008).
Due to their small size, SMEs are flexible and are more able to adapt to changes within the market environment than large firms (Mazzarol, 2000; Udechukwu, 2003; Aryeetey, 2005). However, the small size of SMEs and their small capital base also constitutes an obstacle to their access to funds for their operations (Obokoh, 2008). It is expected that SMEs, with ready and willing entrepreneurs, can succeed in an increasingly competitive world, especially if there are enabling and supportive government policies (Briggs, 2007). In this vein, Berry (2002) asserts that the flexibility of SMEs operations persuades business analysts to believe in their strategic role towards future industrial growth of developing nations. Despite this flexibility, SMEs are also exposed to external environmental risks such as government policies and competition from MNCs (Watson and Everett, 1999; Abonyi, 2003). Some of these environmental factors often hinder SMEs from gaining the necessary international exposure for achieving large scale production for the efficient utilisation of resources (Mambula, 2004). Given favourable policy environment and support, it is believed that SMEs can achieve an efficient production process that would enable them to compete successfully in the global market (Briggs, 2007). Therefore, government policies should be directed towards improving the economic environment in which SMEs operate (Fredland and Morris, 1976; Everett and Watson, 1998). There is now a re-newed emphasis on the development of SMEs especially in LDCs (ECA 2001). This is in view of LDCs governments‟ formulation of policies that would create the enabling environment for the establishment and the operation of SMEs (Agboli and Ukaegbu, 2006).
This research is thus intended to critically appraise the circumstances of SMEs in Nigeria with a view to actually identifying and assessing the bottlenecks militating against the effective performance of SMEs and also seek to investigate the reasons why programmes designed by government to boost SMEs performance are yet to fully achieve their desired objectives (Mambula 2002).
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