IMPACT OF SMALL AND MEDIUM SCALE ENTERPRISES ON NIGERIA ECONOMY DEVELOPMENT.
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IMPACT OF SMALL AND MEDIUM SCALE ENTERPRISES ON NIGERIA ECONOMY DEVELOPMENT.
Chapter one
1.1 Introduction
1.1 Background of the Study
This research project investigates the effects of small and medium-sized firms on Nigerian economic development with the goal of determining the effect on the Nigerian economy as a whole.
The Nigerian economy is mostly composed of enterprise sectors that share the production of products and services.
The enterprise sectors include individuals, households, commercially oriented firms, and some other governmental organisations whose major goal is to build the Nigerian economy by providing vital goods and services.
Recognising small and medium-sized firms serves as a stimulant for every country’s socioeconomic development. These are viable vehicles for achieving national macroeconomic goals such as job creation at a reasonable cost and the development of entrepreneurial capabilities and indigenous technologies.
Small and medium-sized firms have played important roles in many countries. Small and medium-sized enterprises have made significant contributions to these countries’ GDP, export profits, and job prospects.
The Federal Government of Nigeria has long recognised the importance of promoting the development of small and medium-sized businesses in order to stimulate employment, mobilise local resources, reduce migration from rural to urban areas, and more evenly distribute industrial enterprises across the country.
This is why the government has set up institutions to provide financial and non-financial services to small and medium-sized businesses. The institutions include the National Directorate of Employment (NOE), the People’s Bank of Nigeria (PBN)
the National Economic Reconstruction Fund (NERFUND), the Nigerian Bank for Commerce and Industry (NBCI), the Nigerian Industrial Development Bank (NIDB), and the Nigerian Export-Import Bank (NEXIMB).
Furthermore, many state governments have formed development finance institutions (DFIs) to provide financing for small and medium-sized businesses.
Furthermore, the Central Bank of Nigeria’s lending standards require banks to lend at least 20% of their total loans and advances to small-scale firms.
l.2: Statement of the Problem
Despite the government’s efforts to foster and promote small and medium-sized enterprise development in Nigeria, due to the dynamic nature of the environment, the sectors are frequently confronted with the following problems:
1. Poor feasibility studies.
2. Insufficient funds.
3. Poor management.
4. Loan Default.
5. Lack of collateral.
6. Lack of adequately trained people
7. Insufficient infrastructure.
8. The Bank Limited market does not oversee loans to SMEs adequately.
l.3 PURPOSE AND OBJECTIVES OF THE STUDY
1) To determine the influence of small and medium-sized firms on Nigerian economic development.
2) To assess the economic impact of small and medium-sized firms in Nigeria.
3. Determine the contribution of small and medium-sized firms to Nigeria’s economic development.
4. To investigate the potential for improvement in Nigeria’s small and medium-sized firms.
5. Encourage and promote small and medium-sized firms in Nigeria’s economic development.
The basic research aims and objectives are as follows. That is, the one listed above.
1.4 The Statement of Hypothesis
These are the hypotheses tested in this study.
Hypothesis 1.
Ho: There is no significant association between small and medium-sized firms and Nigeria’s economic progress.
Hi: Small and medium-sized firms play an important role in Nigeria’s economic development.
Hypothesis II:
Ho: The present small and medium-sized firms in Nigeria’s economic development are ineffective.
Hi: The ineffectiveness of sectors non Nigerian economic development is due to a lack of funding, poor management, and a limited market.
1.5 Research Methodology
The majority of the data that will be used in this study is secondary. These are based on the publications of agencies such as the Federal Office of Statistics (FOS) and the Central Bank of Nigeria (CBN).
The data will be analysed using correlation and regression statistical analysis on a computer system running SPSS (Statistical Packages for Social Science).
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