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FINANCIAL INTERMEDIATION AND MICRO SMALL AND MEDIUM SCALE ENTREPRENEURS IN NIGERIA A STUDY OF SELECTED ENTERPRISES IN KANO METROPOLIS1 INTRODUCTION1.1 BACKGROUND OF THE STUDY
The Micro Small and Medium Scale enterprises are sub-sector of the industrial sector which plays a crucial role in the industrial development (Ahmed, 2006). Following the adaptation of economic reform programme in Nigeria in 1981, there have been several decisions to switch from capital intensive and large scale industrial projects which was based on the philosophy of import development to the development of Small and Medium Scale Enterprises, which have better prospect for developing domestic economy, thereby generating the required goods and services that will propel the economy of Nigeria towards development. It is based on this premises that (Ojo, 2009), argued that one of the responses to the challenges of development in developing countries particularly, in Nigeria, is the encouragement of entrepreneurial development scheme.
Despite the abundant natural resources, the country still finds it very difficult to discover her developmental bearing since Independence. Quality and adequate infrastructural provision has remained a night-mare, the real sector among others have witnessed downward performance while unemployment rate is on the increase. Most of the poor and unemployed Nigerians in order to better their lots have resorted to the establishment of their own businesses. Consequently, Entrepreneurship is fast becoming a house hold name in Nigeria. This is as a result of the fact that the so called white collar jobs that people clamour for are no longer there. Even, the touted sectors (Banks and companies) known to be the largest employer of labour are on the down-turn following the consolidation crisis and fraudulent practices of the high and mighty in the banking sector. The companies of course are folding up as a result of erratic power supply, insecurity and persistent increase in interest rate which has lead to high cost of production and undermines profit making potentials of companies operating in Nigeria. As a result of banking sector practices and continuous folding up of companies, a lot of Nigerians are thrown into unemployment which inevitably detriment the economic situation of the country.
Since the office jobs that people desire are no longer there for the teeming population, and the few ones that succeeded in getting the jobs are thrown out as a result of the factors identified above, the need for the government and the people to have a rethink on the way- out of this mess became imperative. Hence, the need for Micro Small and Medium Scale Enterprises (MSMEs) became a reality as a means of ensuring self independent, employment creation, import substitution, effective and efficient utilization of local raw materials and contribution to the economic development of our dear nation (Nigeria). All the afore stated benefits of Micro Small and Medium Scale enterprises cannot be achieved without the direct intervention of the government and financial institutions (Financial Intermediaries). Over the years a number of policies have been formulated by the government with a view to developing Micro Small and Medium Scale Enterprises. The Nigerian government under the then leadership of Chief Olusegun Obasajo promulgated micro-finance policy and other regulatory and supervisory frame work in 2005.
This paper will therefore examine the Financial Intermediation and Small and Medium Scale Enterprises roles played by the government as well as the programs formulated in achieving MSMEs development in Nigeria.
FINANCIAL INTERMEDIATION AND MICRO SMALL AND MEDIUM SCALE ENTREPRENEURS IN NIGERIA A STUDY OF SELECTED ENTERPRISES IN KANO METROPOLIS
FINANCIAL INTERMEDIATION AND MICRO SMALL AND MEDIUM SCALE ENTREPRENEURS IN NIGERIA A STUDY OF SELECTED ENTERPRISES IN KANO METROPOLIS
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