CONTRIBUTIONS OF SMALL SCALE BUSINESS ENTERPRISES TO THE ECONOMIC GROWTH AND DEVELOPMENT
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CONTRIBUTIONS OF SMALL SCALE BUSINESS ENTERPRISES TO THE ECONOMIC GROWTH AND DEVELOPMENT
Chapter one
INTRODUCTION
Background to the Study
The fortunes of small-scale business enterprises have recently piqued the interest of governments all over the world, and this has become the subject of general interest and research, particularly in developing nations, due to the importance of small-scale businesses.
Their significance cannot be overstated, since they provide a viable vehicle for the generation of large outputs and employment creation. They also serve as a stimulus for the reorganisation and diversification of the state’s and country’s production bases, as well as the takeoff and growth of the industrial sector.
Small scale business companies, in their broadest meaning, suggest an immediate reaction to the issues faced by the state operating in a developing country (Nigeria).
Small and medium-sized firms should operate with adequate attention for the value of available local raw resources in their surroundings, as the problems they face are considerable.
The relevance of small-scale businesses to any state’s economic development has been extensively recognised or acclaimed. They are thought to encourage private ownership and entrepreneurial abilities, provide jobs, promote industrial dispersal, and rural-urban mobility.
According to Clive Carpenter (2001), small enterprises around the world are critical for economic growth, poverty reduction, and wealth creation. According to Uayatudeen (2001), small enterprises play an important role in economic development around the world and should not be overlooked.
According to William and David, most corporations and small businesses are compared to large-scale enterprises, which economists have focused on. The top economics textbooks feature titled discussions on small-scale business or entrepreneurship.
Small-scale enterprises contribute to the development of the Akwa Ibom State economy by creating money, alleviating poverty, and creating jobs. However, small and medium-sized firms face several hurdles that limit their contribution to national development.
To this purpose, the government has implemented a number of programmes to address the obstacles and limits that small and medium-sized firms face as they grow. Programmes and institutes include:
Setting developing and funding industrial estates
Establishment of the National Directorate of Employment (NDE).
The Nigeria Bank of Commerce and Industry (NBC), the National Economic Reconstruction Fund (NERFUND), the Nigeria Industry Bank (NIDB), which has merged into a single agency in the banking industry
the World Assisted Small Scale Enterprise Loan Scheme (SNEX), the Nigeria Export and Import Bank (NEXIN), and other institutions have been established.
Establishing the Small and Medium Scale Enterprises Development Agency of Nigeria (SWEDAN), an agency that oversees development in the small business sector.
Unfortunately, all of these formal credit schemes have failed to adequately address the fundamental issues that have limited small-scale enterprises’ access to credit. As with any other enterprise, establishing a small and medium-sized industry requires capital to take off, survive, and eventually expand.
Small and medium-sized businesses in Akwa Ibom State manufacture leather, chicken, and timber. Smaller enterprises are frequently organised around craft guides, which involve specific families who carry down the skill from generation to generation.
Small-scale business businesses are the foundation of any state’s economic growth; no state can achieve viable economic growth and development until small-scale business firms are established; they have always been at the forefront of development initiatives. Akwa Ibom State’s development must be based on industrialization.
Because of the significant role that industries play in terms of production activities, job creation, and overall improvement in quality of life, small business businesses are regarded as valuable instruments for industrial growth in Akwa Ibom State.
Industrial development entails the creation of a technical arrangement that transitions an economy from one traditional method of production to a more complex system of mass manufacturing of a variety of goods and services involving technology and management techniques (KASIMU 1998). This allows the state to fully utilise its factor endowments and rely less on external factors for growth and sustenance.
According to Mohammed (2009), small-scale businesses give employment and earning opportunities, which contribute to economic growth and raise the population’s standard of living. Orgi (2008) sees it as the driving force of development.
The Nigerian Industrial Promotion Council (NIPC) (2000:39) verifies this, stating that the promotion of small and medium-sized enterprises in Nigeria was needed by the need to stimulate the establishment and expansion of industries in order to kickstart the country’s industrial development.
Small-scale businesses provide financial opportunities and the potential to build wealth. It is a location where creative, driven individuals can fully utilise their abilities and experience, and because it provides rewarding careers and job possibilities, it is also the backbone of the global economy.
Every bid business begins as a small business, with an entrepreneur (small business) who first earns little or no profit. It was the innovative ideas that gave rise to the SIBA group of firms, Ikot Ekpene, IBOK BROTHERS, Ikot Ekpene, and many more companies throughout the state. Untested ideas create annulations, which evolve into concepts that transform the corporate world.
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