EFFECT OF GLOBALIZATION ON NIGERIA SMALL AND MEDIUM SCALE INDUSTRY
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
EFFECT OF GLOBALIZATION ON NIGERIA SMALL AND MEDIUM SCALE INDUSTRY
Chapter one
1.1 Introduction
Early views on globalisation were produced by classical economists who focused on a nation’s political economy rather than international trade. Duyile (2004) explained that “after the industrial revolution, trade, primarily exports and imports between nations, expanded.”
As information and communication technology advanced and production became more sophisticated, academics and researchers began writing about businesses, producers, and marketing methods.
Companies began producing for global markets, with increasingly complicated items launched. Lilus (2001) described the system as “mass production for the mass market”.
Control and coordination efforts resulted in international organisations engaged in the production and delivery of goods and services across national borders.
International business study has focused on globalisation and its effects on national economies. As a result, a variety of contentious viewpoints have been expressed.
Questions included the impact on economic growth and development, the introduction and expansion of small and medium-sized businesses, and the political and social lives of developing and underdeveloped countries.
Political, economic, and complicated social linkages all have an impact on how local or indigenous organisations operate. Schults (2004) put it this way: ”
Business activities are rapidly becoming internationalised as trade becomes more global and products seek wider and international markets for their goods and services” .
Small and medium-sized businesses in Nigeria engage in a variety of business activities, and their volume is heavily influenced by a number of factors. The extent of engagement and impact from global operations can determine the success, survival, growth, and development of small and medium-sized enterprises (SMEs).
According to Wore (2004), entrepreneurship in SMEs plays an important role in the economic development of any country. The role entails more than just raising per capita productivity and wealth. It entails initiating and implementing changes to the structure of business and society.
The transition is accompanied with expansion and increasing output. Globalisation can be considered to have influenced Nigerian small and medium-sized businesses either favourably or badly, with no substantial effect or relationship.
1.2 Background of the Study
According to Ajayi (2005), economic growth is the “increase over time in a country’s real output of goods and services”. Output is quantified in terms of gross national product or national income, with SMEs making substantial contributions.
Economic development entails not just increased output but also changes in the structure of a country’s economy. This includes the structure of commercial organisations, national political and social structures, and the technical and institutional arrangements used to produce and distribute product as part of economic development.
In some cases, reliance on globalisation may not be conducive to SMEs’ development if poverty rates rise. Vernon (2001) argued that “it is possible to have growth without development because growth and development of business organisations are not exactly the same.”
According to Osuji (2005), “no nation has ever developed without an appreciable growth and involvement of international trade and relations”. The role of globalisation in the national economy also has an impact on the rate of expansion of business organisations, particularly SMEs.
International or global activities have an impact on finance growth through direct foreign investment, fiscal and monetary policies, money and financial institutions, as well as a country’s small and medium-sized businesses.
Buckley and Ghauri (1999) describe technology and production processes as “determinants of the rate at which productivity capacity and income can grow.”
According to studies, developing nations have more advanced industrial technology than underdeveloped nations. Interdependence and globalisation contribute to faster growth, more investment, and the expansion of SMEs.
Globalisation promotes economic growth by increasing organisational productivity. According to Prahalad (2005), “SMES activities are significantly higher in growing economies, especially in European and American nations”. This implies a relationship between economic development and SMEs.
The examination of the relationship between globalisation and SMES differs, and the impact can be streamlined based on entrepreneurial skills, funding sources, training and personnel development, government policies, and job creation.
However, the scope of this research would be streamlined. Several authors and scholars have studied globalisation, including Mckinnon (1973), Gupta (1984), Vernon (2001), and Prahalad (2005).
According to the studies, globalisation improves a country’s economic development by increasing production and distribution efficiency through technology transfer, cost reductions, and the availability of funding, material, and financial resources from more developed economies.
Ajayi (2005) quotes Dr. Kwame Nkrumah, Ghana’s then-leader, as saying, “African political and economic interdependence will be worthless unless we use it to achieve economic and financial independence.”
Governments around the world have taken the required steps to guarantee that economic activities are better integrated into the machinery of implementing SME policy.
A variety of factors influence globalization’s effects on SMEs and a country’s economy. These include the characteristics of the country’s monetary system, the organisation of institutions and markets, political and economic contexts, and the level of economic progress.
From the pre-colonial era to the present, the Nigerian education system has been designed on general education, with the primary goal of providing Nigerians with an education that will prepare them to become employees. According to Onoh (2004), schools “do not equip individuals to cope with the demands and problems of an emerging technological society”.
Political and opinion leaders, as well as students, have discovered that Nigeria’s educational system is bookish and restrictive. It may be considered irrelevant to the nation’s critical economic, social, cultural, and entrepreneurial demands.
A study on the impact of globalisation on Nigeria. Small and Medium Scale Industry is to investigate the education component, the impact of globalisation through education, training, and development of SMEs in Nigeria.
The study’s goal is to identify and assess the impact of globalisation as a means of cross-fertilization of ideas on Nigerian SMEs. To understand how globalisation efforts have aided in the promotion of functional education for SME entrepreneurship, creativity, marketable and salable skills, education for self-reliance and self-actualization, and complete independence.
1.3 Scope of the Study
Since political independence, Nigeria’s underdeveloped economy has had a significant impact on the development of small and medium-sized firms. Most critics of Nigeria’s economic policies cannot help but blame the problems on the educational system.
Olannye (2002) is of the opinion that “teaching and learning of entrepreneurship assist in the production and distribution of goods and services compared to over dependence on imported products” . Since 1999, under a democratic system of government, Nigeria has witnessed genuine trade and investment opportunities due to globalisation.
The owner or entrepreneur of a small or medium-sized firm may be illiterate, semi-literate, or trained in a discipline other than management science. According to Steinthof (2003), an entrepreneur is “a person who starts or organises a commercial enterprise, especially one involving financial risk”.
Individuals educated in pure and applied sciences are increasingly finding themselves in corporate management roles, either on purpose or by mistake. If the organiser understands basic management principles, it is easier, takes less time, and generates less waste, all of which benefit the firm.
Need help with a related project topic or New topic? Send Us Your Topic