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The role of small and medium

sized enterprises for economic
growth.

The role of small and medium sized enterprises

for economic growth, was undertaken to find out
how SME sub-sector in Nigeria has performed
and its impact on the economic growth of the
country.

Small and medium-sized enterprises (SMEs) are the

backbone of economies in advanced industrialized
countries, as well as emerging and developing
countries, as they are a key source of economic
growth, innovativeness, and poverty reduction.
SMEs constitute the dominant form of business
organization, accounting for over 95% and up to
99% of enterprises depending on the country.

OBJECTIVES

THEORITICAL FRAMEWORK

Over the years, having worked for different

successful companies in Nigeria which are
considered small players in the industry, I have
developed a keen interest in understanding how
these small businesses actually affect our
economy. The growth of SMEs have been said to
combine the strategies of poverty alleviation and
industrialization into a unique package that is
beneficial not only to entrepreneurs but to the
country at large.

Therefore SME can be seen as a tool for both

national development and personal growth. As a
person who would love to become an entrepreneur
in future, I believe that the knowledge gained from
this research would not only help me better
understand the status of SMEs in Nigeria but would
also equip me in strategizing when I intend to start
up.

PARADIGM OF THE STUDY

This thesis is sectioned into Three chapters as

shown in Figure 1 below. Chapter one introduces
to us the trends in Nigerian economy since
independence. Chapter two provides extensive
literature on small business from global to the
Nigerian economy, their form of organization
and current status. Chapter three contains details
of the study location, research methodology and
findings. Chapter four contains my
recommendations and concluding remarks.

STATEMENT OF THE
PROBLEM

This thesis would investigate the answers for the

following questions.
1. Has the presence of Matori SME village
brought economic growth and infrastructural
development to Matori community?
2. Is doing business at SME level profitable in
Matori community?
3. Are SMEs significant employers of labor in
this community?
4. Is the Profitability of SME business in this
community independent of the nature of goods
and services on sale?

5. Has the profitability of small businesses in

Matori led to increased presence of banks and
financial institutions and subsequent increase in
SME loans and incentives by the Banks?
6. Is the presence of Matori SME village directly
linked with increased number of IT based
business in the Matori community?
7. Is there need for the government to encourage
and develop more opportunities for SME level
business elsewhere in Lagos State?
8. Do my findings support the existing theory in
the field?

LITERATURE
and
Study Source

This chapter presented professional literature and studies

reviewed to give insights to the content of the study. Literature
and researches that yield implications and relevance to the
subject matter being investigated were also included in this
chapter.
Several literature and studies have been made in the Philippines
and outside the Philippines with direct and indirect bearing on
the subject to be studied in this investigation.

Foreign Literature

FOREIGN
ARTICLES
LOCAL ARTICLES

FOREIGN
READINGS

Http//.com.ph

Google.com

Internet

Book's

Library

RESEARCH DESIGN

Matori is a community in Mushin Local Council

Development Authority in Lagos state. It is a middle to
low class community and thrives on the merchandise
offered for sale and services rendered by small
business holdings. Most businesses are strictly retail
outlets, however some involved in the manufacture of
leather sandals, vulcanizing of tyres, metal fabrication,
carpentry, tailoring rendering of computer services, just
to mention but a few.

RESPONDENT

Primary data for this thesis was obtained through

questionnaires designed and administered to
small business owner in Matori SME village and
spare parts market in Matori. 200 questionnaires
amounting to about 25% of the sample size of
business in the area (806) was administered to
business owners in this community

RESEARCH
INSTRUMENT

The Package has the capabilities of executing such high-level

analysis as analysis of variance (ANOVA), chi-square tests,
multivariate analysis, correlation and regression analysis, tests
of statistical hypotheses, time series analysis, estimations,
confidence interval estimation, comparison of several means,
goodness of fit tests and analysis of contingency table, etc.
Considering that the data collected are largely categorical in
form, the chosen SPSS package the researcher considered was
very ideal for use in the data processing and analysis 3.4
Limitations of The study Certain Limitations were encountered
in the course of this study.

Key among these includes: Unavailability of Data: One of the

greatest challenges the researcher encountered in this study
relates to access to and collection of hard data due to extreme
data gaps and paucity. This compelled the researcher to limit
the study to Small and Medium Scale Enterprises thus
excluding Cottage and Micro Enterprises whose challenges
though comparable, could be fundamentally different from
those of SMEs.

The Cottage and the Micro Enterprises have been acclaimed to

have significantly impacted on the grassroots by way of
poverty alleviation and reduction. On a quite related note, there
also appears of late to be a lot of Non- Governmental
Organizations, Bilateral and Multilateral Agencies and
Organizations, which focus their attention on and channel their
support and donations towards the Micro and Cottage
Enterprises in order to contribute towards poverty reduction.
Research
has
also
proved that Micro and Cottage Enterprises have a better credit
rating than the SMEs. In some places Micro Credits have less
than one percent (1%) average default rate while the same
cannot be said of SMEs.

THANK YOU!!