TABLE OF CONTENT
CHAPTER ONE: Introduction - - - - - - 1
1.1 Background of the Study - - - - - - - 1
1.2 Statement of the Problem - - - - - - 3
1.3 objective of the Study - - - - - 4
1.4 Research Question - - - - - - - 6
1.5 Research Hypothesis - - - - - - 7
1.6 Significance of the Study - - - - - - 8
1.7 Scope and Limitation of the Study - - - - - 8
1.8 Definition of terms - - - - - - - 9
CHAPTER TWO: Literature Review - - - - - 10
2.1 Introduction - - - - - - - - 10
2.2 Role of the small and medium enterprises
sub-section
in the economy
- - - - - - - 10
2.3 Objective of Small and Medium Enterprises
in Nigeria - 10
2.4 Significance of the Small and Medium
Enterprises - 10
2.5 Characteristics of Small and Medium
Enterprises - - 11
2.6 Institutions and Opportunities Created by
the Government
to enable small and medium
enterprises access funding - 11
2.7 Problems of small and medium enterprises
in Nigeria - 11
2.8 Prospects
of small and medium enterprises in Nigeria - 11
2.9 A
comparative analysis between indias small scale Industries
(SSI) and
Nigerians small and medium enterprises
- - - 11
CHAPTER
THREE: Research Methodology - - - - 12
3.1 Research
Design - - - - - - - 12
3.2 Source
of Data - - - - - - - 12
3.3 Population of Study - - - - - - - 12
3.4 Method of Data Collection - - - - - - 13
3.6 Method of Data Analysis - - - - - - 13
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Small and medium enterprises (SMEs) as defined by the
National Council of industries refers to business enterprises whose total cost
excluding land is not more than two million naira (N2,000,000) only.
A lot has been said and written
about Small and Medium Enterprises the world over. It has also formed the
subject of discussion in so many seminars and workshops both locally and
internationally. In the same token, government at various levels (local, state
and federal) have in one way or the other focused on the Small and Medium
Enterprises. While some governments had formulated polices aimed at
facilitating and empowering the growth and development and performance of the
Small and Medium Enterprises, others had focused on assisting the Small and
Medium Enterprises to grow through soft loans and other fiscal incentives.
International agencies and
Organization World Bank, United Nations
(UN), Industrial Development Origination (UNIDO),International finance
corporation (IFC), United Kingdom
Department for International Development (DFID), European Investment Bank (EIB)
etc are not only keenly interested in making Small and medium enterprises
robust and vibrant in developing countries but also heavily invested in them.
Locally, the several non governmental organizations such as fate foundation Support
and Training Entrepreneurship Programme (STEP), the Nigerian investment
promotion commission (NIPC), the Association of Nigerian Development Finance
Institution (ANDFI), as well as individual Development Finance Institutions (DFIs)
have been promoting the growth of Small and medium enterprises in Nigeria
through advocacy and capacity-building initiatives, and have continued to
canvass for better support structure for operators in the Small and medium
enterprises sub-sector, yet it seems that all these effort by different
organization, agencies and individual has not been yielding positively as it
ought to be - its objectives for creating it has not been achieved, the
problems the polices was mapped out to solve has not been solved, many question
being asked by investors and the masses has not been answered by government and
fund raisers very well and that is why the researcher intends to enter into
this research to know why this policy is not working well.
Firstly, the researcher will find
out the objective of the study, the significance of the study ,problems associated
with the proposed topic to be researched on. Then try to provide answer to the
question being asked by people then test the hypothesis of the study.
Secondly, the researcher will study
what other writers has written about the subject matter to be studied by him
and then give his own view of the matter.
Thirdly, the research will test the
hypothesis of the study using the research method and tools he will use in the
study in other to help him in his findings and enable him make recommendation
on what he has find.
1.2 STATEMENT
OF PROBLEM
In fact that Small and medium enterprises have not
made the desired impact on the Nigerian economy inspite of all the efforts and
support of succeeding administrations and governments gives a cause for concern. Below are some statement of problem to be
studied
(i)
Why is there lack
of easy access to funding/credits
(ii)
Why is there high
cost of packaging appropriate business proposal
(iii)
Why does bank
discriminate in lending to small and medium enterprises Small and medium
enterprises especial start-ups
(iv)
Why should
government force Small and medium enterprises in Nigeria to provide some
utilities such as road, water, electricity, transportation and
communication etc knowing fully well
that there is inadequate, inefficient and at times non functional
infrastructural facilities in Nigeria which tends to escalate the cost of
operations
(v)
Why should there
be even tariffs on produced goods in Nigeria and imported goods which most at
times favour imported finished product.
1.3 OBJECTIVES
OF THE STUDY
The high degree of poverty and unemployment with their
attendant high crime rate in Nigeria has been of great concern to the various
governments (federal, state and local) as well as the civil society. All and
sundry have been seriously agitated as to what to do in order to reduce the
crippling poverty ,high level of ignorance, disease, high infant mortality rate
and the rather embarrassing high unemployment rate in Nigeria. Given the vital
and salutary role and contribution which Small and medium enterprises play in
other developed and developing country and considering the on-going reforms by
the government of Nigeria, which are primarily aimed at creating wealth,
reducing poverty, generating employment, re-orientating values, and stimulating real economic growth. It
becomes necessary that we should study, better still do research on how the
Small and medium enterprises in Nigeria will contribute towards the
achieving of the vision.
Therefore the objective of the above
topic to be researched on if our economy is expected to grow and develop is as
follows:-
(1)
To identity the
major problems, challenges and constraints, which have militated against the
Small and medium enterprises from playing the vital role in the Nigerian
economic growth and development.
(2)
To find out the
key causes of the low utilization or patronage by Small and medium enterprises
of the Small and Medium Industries Equity Investment Scheme (SMIEIS).
(3)
To ascertain
first hand, the opinions, feelings and the pulse of some key Small and medium
enterprises operators as well as professionals in the Small and medium
enterprises sub sector of the economy with respect to the unhealthy state of
Small and medium enterprises in Nigeria.
(4)
To make appropriate
recommendations for solving or at least alleviating the identified problems and
challenges of the Small and medium enterprises
(5)
To know the role
of CBN or the government towards the improvement of the utilization of Small
and medium enterprises fund.
1.4 RESEARCH
QUESTIONS
The proposed researcher intends to research on some
questions being asked by people concerning the overall management of the Small
and medium enterprises in Nigeria and
problems militating against the Small and medium enterprises in Nigeria, knowing
why such question is being asked and find a way of making contribution towards
the solving of those question. Such questions are as follows:-
(i)
Why is there
problems, challenges and constraints militating against the Small and Medium
Enterprises (SMEs) from playing their vital role towards the Nigerian economic
growth and development.
(ii)
What are the
causes of the low utilization or patronage by Small and medium enterprises of
the Small and Medium Industries Equity Investment Scheme (SMIEIS) fund.
(iii)
What are the
feelings and pulse being passed through by some key Small and medium
enterprises operators considering the unhealthiness of Small and medium
enterprises in Nigeria.
(iv)
What is really
the role of CBN or the government to improve the utilization of the SMIEIS fund
(v)
What are the
appropriate recommendations for solving or at least alleviate the identified
problems and challenges of the Small and medium enterprises.
1.5 RESEARCH
HYPOTHESES
(i) H0: The CBN or the government has not played a
very big role towards the utilization
of the SMIEIS fund.
Hi: The CBN or the government has played a
very big role towards the
utilization of the SMIEIS fund.
(ii) Hi: There are no cause for the low
utilization by Small and medium
enterprises of the SMIEIS fund.
Hi: There are cause for the low
utilization by Small and medium enterprises of the SMIEIS fund.
(iii) H0: There is no recommendations made so far
for solving or at least alleviate the
identified problems and challenges of the Small
and medium enterprises
Hi: There is recommendations made so far for
solving or at least alleviate
the identified problems and challenges of the Small
and medium enterprises
(iv) H0: There are challenges, problems and
constraints militating against the Small and medium enterprises playing
there vital role in ingrain economy.
Hi: There is no challenges, problems and
constraints militating against the Small and medium enterprises playing
there vital role in ingrain economy.
1.6 SIGNIFICANCE OF THE STUDY
The proposed researcher has seen that there are many
polices that the government has introduced into the economy to help redirect it
but it has not fulfilled the purpose for which it was introduced. Therefore the
proposed researcher intends to carry out a research to know why the aim for
which Small and medium enterprises which is among the policies introduced by
the Nigerian government has not been producing perfectly which it was aimed at.
Also to study its objectives, challenges, problems and constrains militating
against the Small and Medium Enterprises (SMEs) in Nigeria and find a way to
solving it having in mind that the main beneficiary of this project is the
masses of this country and the investors, though government will also benefit
from it through tax etc.
1.7 SCOPE
AND LIMITATIONS OF STUDY
The areas to be used for this
research shall be some selected small and medium enterprise in Aba, Abia State
and few from Enugu of which we will be looking at one hundred and twenty (120)
Small and medium enterprises in these areas.
The limitations or barriers that the
researcher might encounter in view of his research are on the area that their
might be unavailability of Data, Time and fund, resistance of respondents and
materials.
1.8 DEFINITION
OF TERMS
(i) SMEs - Small and Medium Enterprises
(ii) CBN - Central Bank of Nigeria
(iii) SMIEIS - Small and Medium Industries Equity
Investment Scheme
(iv) DFI - Development finance Institutions
(v) ANDFI - Association of Nigerian Development
Finance Institutions
(vi) FF - Fate Foundation
(viii) NIPC - Nigerian Investment Promotion
Commission
(ix) UN - United Nations
(x) IFC - International Finance Corporation
(xii) DFID - Department for International
Development
(xiii) EIB - European Investment Bank
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