ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES IN THE NIGERIAN ECONOMY (A CASE STUDY OF ANZY SHOES NIGERIA LIMITED ABA ABIA STATE)
ATTENTION:
BEFORE YOU READ THE
PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!
TO GET THE FULL
PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953,
08168759420
TO GET MORE PROJECT
TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
ROLE
OF SMALL AND MEDIUM SCALE ENTERPRISES IN THE NIGERIAN ECONOMY
(A CASE STUDY OF ANZY
SHOES NIGERIA LIMITED ABA ABIA STATE)
PROPOSAL
This project topic titled “The Role of
small and medium scale enterprises in the Nigerian Economy” with a case study
of Anzy shoes Nig Ltd Aba is consist of (5) five chapters:
Chapter one: Introduction
Chapter two: Literature review
Chapter three: Research design and
methodology
Chapter four: Data presentation and
analysis
Chapter five: Conclusion and
Recommendation.
The research notices that there are
significant roles played by small and medium scale enterprises to Nigerian
economy and decided to find out these roles.
Prior to the late 19th
century, cottage industries mostly small and medium scale enterprises
controlled the economy. Findings by economists over the years show that small
and medium scale enterprises play much more important roles in economic growth
and development.
i.
The researcher is intending to find out the various problems confronting small
and medium scale enterprises to Nigerian and recommended solutions to such
problems.
ii.
To find out government roles toward promoting small and medium scale enterprise
in Nigeria.
iii.
To find out roles played by the small and medium scale enterprises in the
economic development.
The researcher is intending to use two
methods of sourcing data for the research work which include the primary and
secondary sources. Primary sources include interviews; observation and use of
questionnaire while the secondary sources include the use of textbooks,
journals, newspaper etc.
It is intended that those who will
benefit from this study includes those intending to go into business ownership
and management, graduated and undergraduates from different fields of study
like marketing, Accountancy, business administration and management etc. This
study will equally be beneficial to business consultants and advisers. Banks
and financial institutions will equally find this work necessary in their
various areas of work.
Conclusively, the scope of this
research work may be limited due to some factors, which will be disclosed after
the research work.
ABSTRACT
There is no doubt that Nigeria as a
nation, since attaining independence to 1960 has tried out various economic
policies in a bid to achieve meaningful economic development. Most of these
policies, one must say, are centrally planned and government dominated. The
resultant impact of this excessive government domination of the economy left
much to be desired leading to massive divestment in the 1990’s by the
government. This is done under the economic policy of “privatization and
commercialization”.
This shift emphasis thus created a
challenge of building capable, dynamic and resourceful entrepreneurs to take
the baton of economic revitalization from government. These entrepreneurs
incidentally have to fulfill this onerous task through the establishment pf
business that could mainly be classified as small and medium scale in nature.
It is pertinent to add here that the aforementioned task is a difficult one for
obvious reasons. For one, the dwindling state of the economy has made it
difficult for people to save and thereby little capital accumulation for
investment. Further our private sector is long undeveloped making experienced
entrepreneur and small business managers scarce.
There is a growing consensus among policy
makers, academia, industrialist and economic planners, that the development of
local entrepreneur and encouragement of the establishment of small and medium
scale business is the only penance to our economic planners. The conclusion
came as a result of over three decades of positioning government as the sole
provider of all that makes life worth living, basic infrastructures, public
utilities, good roads and services. Etc.
It was discovered that the return for
the huge investments made into it are gross inefficiency massive unemployment,
dwindling foreign exchange earnings, epileptic supply of utilities etc. The
foregoing led to the adoption of structural adjustment programme (SAP) and
subsequent deregulation exercise. The later shifted it from government to
private entrepreneurs who are expected to establish small and medium scale
business as a more efficient substitute to providing the needed catalyst
towards our economic engineering.
TABLE OF CONTENT
CHAPTER ONE
1.1
Introduction
1.2
Purpose of the
study
1.3
Research
questions
1.4
Statement of hypothesis
1.5
Significance of the study
1.6
Scope of the
study
1.7
Limitation of the
study
1.8
Definition of
terms
CHAPTER TWO
2.1
Literature
review
2.2
Historical review of small and medium scale enterprises in Nigeria
(SME)
2.3
Critical definition of small and medium scale enterprises (SME).
2.4
General characteristics of small and medium scale enterprises.
2.5
Role and importance of SMEs
2.6
Problems of SMEs
2.7
References
CHAPTER THREE
3.1
Research design and
methodology
3.2
Location of
data
3.3
Population
3.4
Instrument of data
collection
3.5
Validation of
instruments
3.6
Reliability of instrument
3.7
Treatment of
data
CHAPTER FOUR
4.1
Data presentation and Analysis
CHAPTER FIVE
5.1
Findings, conclusion and Recommendation
5.2
Summaries of
finding
5.3
Conclusion
5.4
Recommendations
Bibliography
CHAPTER
ONE
1.1
INTRODUCTION
The Government both federal and state
is now placing much emphasis on the promotion of small and medium scale
enterprises (SMEs) with the view to improve the economy. To the view, the
government has a policy of providing special support and protection to these
enterprises. This is because these enterprises will produce some of the goods
that the country has until now imported, thus conserving our dwindling foreign
exchange earning. It is also hoped that these enterprises would help not only
to generated employment opportunities for our young school leavers and
university graduates but also export some of their products and earn some
foreign exchange for the country.
Over the years, there has been an
unsolved issue of a proper definition of small and medium scale enterprises.
This lack of encompassing definition emanated from the criteria employed to
characterized small and medium scale enterprises; However the main criteria
used to classify small and medium scale enterprises include initial capital
outlay, ownership structure, management style, profit level, market structure,
number of employees, total assets size, type of industry, relative position of
the industry etc. The center for management development gave the definition of
small and medium scale enterprises (SMEs) to the policy proposal submitted to
the federal government to June 1982 as a manufacturing or service enterprises
involved in a factory or production type of operations, employing up to fifty
full time workers. Investment in plant and machinery but excluding land and
building shall not exceed five-hundred thousand naira (N500,000.00) plant and
machinery is utilized in its operation. According to Drucker P.F. 1974,
maintains that there is only one criteria, which with a fair degree of reliability,
indicate whether a business is small, fair sized, medium or big. He says that a
small business requires almost one man who is not engaged in any other
functional work required. The man at the top knows who the few people are in
the organization in which responsibility for key results rest without having to
consult his records or associates.
The committee for Economic Development
(C.E.D) of the United States has given a valuable list of characteristics of
small and medium scale enterprises as follows:
i.
Managers are also owners
ii.
Areas of operation are mainly local
iii.
Owners raise the capital
iv.
Its size is relatively small when compare with large enterprises.
Above all, the objectives of every SME
should be to provide a direct service; distributing goods and services or more
basically, the satisfaction associated with them. Another objective of any SME
is also to make profit. Profit is the reward for accepting business risk and
for performing the economic service. Others are social and growth.
1.2
PURPOSE OF THE STUDY
Lots are the purposes for carrying out
this study. These are as follows:-
i.
To know the fundamental factors which restrict Anzy shoes Ltd Aba from
rendering a sound and complete services.
ii.
To make recommendations on what can be done to improve its performance or its
productivity.
iii.
To ascertain the environmental development of Anzy shoes Nigeria Limited
Aba.
iv.
To understand what small and medium scale enterprises are all about.
v.
To examine the contributions of small and medium enterprises (SME) to the
Nigerian Economy.
vi.
To know the features and characteristics of small and medium scale enterprises.
vii.
To examine the governmental aid and control towards SME.
viii.
To know the legal legislation guiding all small and medium scale enterprises.
ix.
To educate people of its relevance to the economy.
1.3
RESEARCH QUESTIONS
i.
What is small and Medium scale enterprises.
ii.
What are the likely factors militating against them.
iii.
What are the current legislations guiding SMEs.
iv.
How can SMEs positively or negatively affect the economy.
v.
What long and short – term plans do government have towards improving SMEs.
vi.
What are the likely economic environments for which SMEs can survive?
vii.
To what extent has government incentives toward SMEs influence the economic
development.
viii.
What are the things that can cause the failure in small and medium scale
enterprises.
ix.
What are the factors necessary for proper management of small and medium scale
enterprise.
x.
Is there any difference between small and medium scale enterprises.
1.4
STATEMENT OF HYPOTHESIS
i.
Small and medium scale enterprises leads to Economic development.
ii.
Small and medium scale enterprise creates job opportunities.
iii.
Small and medium scale enterprises at high concentration bring about a heap
cost of goods and services.
iv.
The location of small and medium scale enterprises leads to efficient usage of
raw materials which would have been waste.
v.
High concentration of small and medium scale enterprises in a place improves
the people’s standard of living.
1.5
SIGNIFICANCE OF STUDY
In the course of this study, the
researcher going to look into the various importance or usefulness of small and
medium scale enterprises to the Nigerian economy especially in Aba Abia
State.
Under this significance of study, we
have to understand that the project in conjunction with other industries will
attract or aid the infrastructural development of the rural areas and thereby
attract other amenities to the areas. This research is also of tremendous
significance especially when one realizes the contribution of small and medium
scale enterprises to the socio – economic development of Nigeria and Aba
in particular.
Below are the few listed significance:-
i.
It will enable young school leavers to embark on any enterprise of their
choice when a paid job cannot be obtained.
ii.
It will enable researchers to discover and make good use of the potentials in
the rural areas.
iii.
The availability of small and medium scale enterprises in rural areas will
definitely reduce unemployment.
iv.
It will lead to the full knowledge of the processes of establishing and
managing small and medium scale enterprises in a manner that it will be beneficial
to the state and the nation at large.
v.
It will be of great benefit to financiers, bankers, marketers, advertisers,
managers etc to have more experience in their field of study.
Conclusively, small and medium scale
enterprises has been noticed in some years back to be good in the use of local
raw material for their production unlike those of large scale enterprises which
depend mostly on imported raw material. Small and medium scale enterprises
serve as a training ground for local entrepreneurship, as many of them would
develop into large enterprise.
1.6
SCOPE OF STUDY
The scope of the research work is
limited to Anzy shoes Nigeria limited Aba in Abia state. Though it covers the
developmental strategies to the national economy of Nigeria.
This research work also covers the
history and origin or small and medium scale enterprise. Examples and its
operations. Constraints and management practices employed by the industry.
DEFINITION OF TERMS
ASSET
An asset is anything owned by a person,
company that has money value and that which may be sold to pay debts. It can be
defined as the capital of company les its liabilities. (Asset = capital –
liabilities) Asset could be in tangible form or in intangible form. It could
equally be in liquid or fixed.
BUSINESS
This is a contractual relationship
between two persons, companies or two parties of which it is for the purpose of
buying and selling.
CAPITAL
Capital can be in money form or
otherwise. It is that initial wealth, property or money that may be used for
the production of more wealth, money with which a business is started.
COMMERCIALIZATION
This is the transfer of business
ownership in hands of government for commercial purposes. Most of the ventures
in the hands of government are not for profit making but government can decide
to use the venture to make little profit.
PROFIT
Profit they say is the reward for
taking a risk. To go into business is to go into risk; for one to succeed from
the business is to the primary reason for going into business ownership and
operation.
INFRASTRUCTUTAL DEVELOPMENT
Things like good roads, electricity,
pipe-borne water, market etc assist business development. for any business
establishment to tries well in any area, there must be a developed
infrastructures.
INDUSTRIALIZATION
Industrialization is the concentration
of industries in a given area.
INVESTMENT
This is the planting of one’s wealth
into a lasting project which will be yielding its revenue as the period goes
by.
ENTERPRENEUR
An entrepreneur is one who establishes
his own business, bears the risk himself and takes his profit alone. He gives
order on what should be done in his business and what should not be done.
PRIVATIZATION
When the government has decided to sell
some venture in other care to the private hands, we say that the business is
privatized .
SOCIO – ECONOMIC DEVELOPMENT
This can be seen as the improvement or
growth in the economic aspect of living.
ORGANZATION
An organization which could be seen as
a business set-up. It could be private organization or public organization.
WEALTH
Create or valuable acquisition which
could be in money form or in other tangible form.
TECHNICAL INNOVATION
This is a new way of presenting an
existing product in such a way to attract the consumers interest.
MONETARY POLICY
This is a government measure which deal
with the discretionary control of money supply by the monetary authority with a
view to achieving the stated economic objective.
AFFILIATE LINKS:
Comments
Post a Comment