THE DEVELOPMENT OF SMALL SCALE INDUSTRIES AS AN

INSTRUMENT FOR CONTROLLING UNEMPLOYMENT

PROBLEMS IN KWARA STATE.

(A CASE STUDY Of OLAIYA METAL WORK, ILORIN)

BY
ADEYEMI ABIODUN ABDULRAFIU
HND/21/BAM/FT/452

BEING A RESEARCH PROJECT SUBMITTED TO THE

DEPARTMENT BUSINESS ADMINISTRATION AND
MANAGEMENT, INSTITUTE OF FINANCE AND
MANAGEMENT STUDIES KWARA STATE POLYTECHNIC,
ILORIN.

IN PARTIAL FULFILLMENT FOR THE AWARD OF

NATIONAL DIPLOMA IN BUSINESS ADMINISTRATION
AND MANAGEMENT

JULY, 2023

1
 CERTIFICATION

This is to certify that this project has been read and approved as

meeting the requirement for the award of Higher National Diploma (HND) in

Busienss Administration and management by the Department of Business

Administration, Institute of Finance and Management Studies, Kwara State

Polytechnic, Ilorin.

_____________________ _____________________

MR. JIMOH S.M DATE

Project Supervisor

_____________________ _____________________
MR. JIMOH S. M DATE
Project Co-Ordinator

_____________________ _____________________
DR. ABDULSALAM F.A DATE
Head Of Department

______________________ _____________________

EXTERNAL EXAMINAL

2
 ACKNOWLEDGEMENT

I give thanks to almighty Allah the source of knowledge for his

protection and for seeing me through the period of writing this project and
all that I have accomplished in life I believe by grace given unto me to
complete this programme in Kwara state polytechnic, Ilorin

Alsomy sincere thanks goes to my project supervisor, MR. JIMOH

S.M and to all noble lecturers may God bless you all.

I will like to express my gratitude to my lovely parents MR. &

MRS. ADEYEMI for the support and constitution for making my
education successful, and to my lovely siblings,I say a big thank You.

3
 DEDICATION

I dedicate this project to Almighty God, the giver of life, the Author and the

finisher of my faith, the one who was, who is and who is to come.

4
 TABLE OF CONTENTS

Title i
Certification ii
Dedication iii
Acknowledgement ` iv
Table of contents v-vi
CHAPTER ONE
INTRODCUTION
1.1 Background of the study 1
1.2 Statement of the problem 2
1.3 Aims & Objectives of the study 3
1.4 Significance of the study 4
1.5 Scope of the study 5
1.6 Limitations of the study 4
1.7 Definition of Terms 5
CHAPTER TWO

2.1 Introduction 7

2.2 Strategic marketing planning 9

2.3 The element of strategic marketing planning 12

2.4 The essential aspect of strategic marketing planning 13

2.4 Roles of strategic marketing planning in an organization 14

2.5 Benefit of strategic marketing planning 15

2.6 Limitation of strategic marketing 16

5
2.7 An analytical to formulating strategic marketing planning product

marketing growth matrix 18

2.8 Strategic for m marketing share companies 18

2.9 Product, policy, planning and development 20

2.10 What is new product development? 21

2.11 What is new product? 21

2.12 What reasons for a new product development? 21

2.13 New product development process 22

2.13 Reasons why new products fail 24

2.15 Product life cycle 25

2.16 Product and branding strategy 27

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction 30

3.2 Research Design 30

3.3 Population 30

3.4 Data Types And Method of Data Collection 30

3.5 Research Instrument 31

3.6 Method of Data Analysis 31

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CHAPTER FOUR: DATA PRESENTATION ANALYSIS

4.1 Introduction 34

4.2 Analysis questionnaire 34

4.3 Analysis hypothesis 39

4.4 testing of hypothesis 40

4.5 Discussion o research findings 45

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Introduction 47

5.2 Summary 47

5.3 Conclusion 48

5.4 Recommendation 49

References

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 CHAPTER ONE

1.1 BACKGROUND TO THE STUDY

Business involves activities embarked upon for livelihood and for

the purpose of profit making for any pursuit or activity to be legally recognized

as a business, some type of economic activities must be involved and a profit

motive must be present. An activity is considered a business it is entered into

and carried out in good faith for the purpose of making profit and for its material

contribution to the welfare of the community. Having decided to start a business,

an initial or early consideration which should be in mind is what type of business

entity is to be set up? This is an area where professional assistance should be

sought as there are legal matters to be considered in making this decision. For

anybody embarking on business venture, following should be considered.

1. Sole proprietorship

2. Partnership

3. Corporation

Partnership or sole proprietorship does not pay only federal income

taxes, but sole proprietorship which is considered in most cases small scale

involves. The profit and losses from business on their own income take return.

Corporate profit on the other hand are levied on both the corporation and the
8
individual share holders when the profit are distributed as dividend losses by the

corporation and stock holder would not have dividend for what period, (Usman,

K, 2000).

Sole Proprietorship

Sole proprietorship is a one business which stands the advance of

sample formation with less legal requirement. Individual who engage in business

on their own account are referred to as sole proprietorship more than seventy

five percent of small scale businesses in the country are sole proprietorship. In

this firm, the business has no legal existence apart from the owners, its liabilities

are the personal liabilities of the proprietor and death of the proprietor

automatically brings the business to an end.

The proprietorship undertakes all the risks of the business to the full

extent of all his assets. The income from sole proprietorship is exported as part

of the owners total gross income and cash asset in a sole proprietor is treated

separately for tax purposes.

Partnership

A partnership represents the relationship that exist between two or

more persons who team together to embark on a business with each contributing

money, property, labour, or skill and each expecting to share in the profit or
9
losses of the business either or not a partnership agreement has been drawn up.

Though a partnership is not a taxable entity, it must determine its income and

file on income tax return in the same manner as an individual except for certain

items that must be stated separately. Each partnership agreement specifically

limits the liabilities of certain partners. In partnership the business stand a better

chance in raising capital because it will have more input from other partners

rater one – man business, (Osoba, 2015).

Corporation

The formation of a corporation involves the transfer of money and

property or both by the prospective shareholders in exchange for capitals stock

in the corporation. It costs a lot more to set up a corporation and its profits to

corporate profit are tax to the corporation, when the profits are distributed as

dividends, the dividends are taxed to the individual shareholders, (Osoba, 2015).

In competing its taxable income, a corporation officially can take the same

deduction allowed to individual in addition to some special deductions available

only to corporations.

Every corporation must file an income tax return regardless to the amount

of its income. The personal liabilities of the individual involved in the

corporation – unlike sole proprietorship or partnership are limited to their

10
investment, the corporation is treated like an individual. However, it can due end

can be sued.

1.2 STATEMENT OF PROBLEM OF THE STUDY

Despite direct government allocation to small scale industries at both

federal and states levels through agencies like small scale credit scheme

(S.S.C.E) coupled. With directives the all commercial banks and other financial

institutions to extend certain percentage of their loans and involves to small

scale business owners the sector is still crumbling and unable to find its fact due

to inability to secure founds for their growth.

1.3 RESEARCH QUESTIONS

 What are the role and establishment of small scale industries helped in

reducing unemployment problem of the indigenes of kwara state?

 To what extent people who intend to start up this small scale business have

the necessary skills to properly manage the business?

 What are the problems of securing founds for the local industries and

getting useful advice to the intending local industrialist in order to be able

to manage their enterprise effectively and efficiently.

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 1.4 RSEARCH AIM AND OBJECTIVES OF THE STUDY

The objectives of this study is the critically analyze and highlight the

development of small scale industry as an instrument for controlling

employment problems in Nigeria.

 To discover the role of small scale industries helped in reducing

unemployment problem of the indigenes of kwara state.

 To evaluate the necessary skills to properly manage the business, for those

that intend to start.

 To identify the problems of securing funds for the local industries and

getting useful advice to the intending local industrialist.

1.5 RESEARCH HYPOTHESIS

With reference to the study which is to remain on how the

establishment of small scale industries have influenced the unemployment

problem in kwara state.

In this study, hypothesis claims will be used to prove authentically the

research question repose. Three hypothesis will be used in reducing its

hypothesis assumptions.

H0: Establishment of small scale industries does not help in reducing

unemployment problem in kwara state.

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 H1: Establishment of small scale industries help in reducing

unemployment problem in kwara state.

H02: Small scale industries does not require necessary skills to properly

manage the business.

H12: Small scale industries require necessary skills to properly manage the

business.

H03: The people who intend to start up small scale business in Kwara

State could not generate fund for the establishment.

H13: There is no basic infrastructural facilities that will give comfort to

those that are coming into kwara state to patronize small business.

1.6 SIGNIFICANCE OF THE STUDY

This research work on “reducing unemployment through the role and

establishment of small scale industries. A study of OLAIYA METAL WORK in

kwara state” will be useful to the government, unemployed, small scale industry

operators, banks, other researchers and the public as well.

In this manner, the importance of small scale industries will be

appreciated and used by all and sundries for the minimization of unemployment

problem in the state and beyond.

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 This will be seen in the following ways:

(a) Creation of employment.

(b) Manpower training
(c) Contribution in local and regional development.
(d) Waste utilization
(e) Promotion of completion.
(f) Encouraging and sustaining self-reliance.

1.7 SCOPE OF THE STUDY

The result of the study would be of importance to the people in

Kwara State in general because the study would reveal various avenues of

finding industries. The research considers small scale industries which are

randomly selected. These considered for selection must have been in existence

for at least five years. This is a result, enables the researcher to get the true

picture of the problem of study and not a problem caused as a result of infancy

of industries.

1.8 DEFINITION OF TERMS DEVELOPMENT

Development should be perceived as a multi dimensional process

involving the reorganization of entire economic and social systems in addition to

14
improvements in income and outputs, it typically involves radical changes in

institutional, social administrative structure, as well as in popular attitudes and

sometimes even custom and believe.

Small Scale Industries

Small scale industries in Nigeria can be simply defined as the

business or investment of not more than N600,000 are referred to as small scale

and the labour fource to Ten (10) workman.

According to the third national development plan (Vol. 1. P 3530

manufacturing establishments employing and equipment do not exceed six

hundred thousand naira (N600,000) are referred to as small scale in Nigeria.

Instrument

The world instrument can be defined as a tool or implement for

precise work. It can also be described as a measuring device but in terms of

small scale industry it describe small scale industries as a tool implement for

controlling unemployment problem in Nigeria.

Controlling

Controlling work plan must be critically and quickly monitored to

ensure strict compliance to stated objectives. control is all about performance

measurement result comparisons with standard and identification of deviation.

15
 The workforce needs to be properly monitored in order to enhance

and ensure work progress.

Unemployment

The world unemployment can be simply defined as the scarcity of work or

a situation whereby there is no work to do in a country and it is major problem

that Nigeria is facing nowadays.

So therefore, I will advice Nigeria to stop relying on seeking for job and

act them in small scale business to maintain their living.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 INTRODUCTION

According to Ihua (2009), the performance and effectiveness of small and

medium scale enterprises (SMEs) as an instrument of economic growth and
development in Nigeria has long been under scrutiny. This intense scrutiny has
been against the backdrop of the low performance and inefficiency that
characterized small and medium scale enterprises (SMEs). Small and medium
scale enterprise has fallen short of expectations. This has generated serious
concern and scientism on whether small and medium scale enterprise can bring
about economic growth and national developments in Nigeria. The concern is
even more disturbing when comparing small and medium scale enterprise
(SME) in Nigeria with other countries particularly where small and medium
scale enterprise has become harbinger of economic reconstruction and
transformation. Ireghah (2011) opines that in the case of Nigeria, that small and
medium scale enterprises (SMEs) had performed at very abysmal level. This low
performance has further exacerbated poverty, hunger unemployment and low
standard of living of people in a country whose economics is ailing. The current
problems of hunger, poverty and unemployment have undermined the capacity
of the economy and small and medium scale enterprises (SMEs) are seen as
mechanism for intervention to addressing these long term problem of the
economy. Unfortunately, small and medium scale 17 enterprises (SMEs) have
not been able to propel economic growth and development which are
quintessence of mitigating the effect of poverty, hunger, unemployment, and low
17
standard of living on the economy. The challenge of addressing the problem of
hunger, poverty and unemployment is even more worrisome when considering
the actualization of the millennium development goals by the country 2015. If
Nigeria is to achieve the millennium development goals by 2015, one of the sure
ways is to enhance the capacity of its small and medium scale enterprises
(SMEs). The core issues identified by the millennium development goal such as
hunger, poverty, literacy, material and mortality rate would not be achieved
unless the problems of small and medium scale enterprises are clearly tacked.

Omotola (2008) stipulates that the challenges and the problem of small and
medium scale enterprises are tied to some economic variables and the challenges
that generally characterized the nation’s economy. Some of the challenges and
problems include high level of unemployment, high poverty incidence, and low
industrialization capacity, lack of finance, inconsistent government policies and
inadequate infrastructure and insecurity of the business climate among others.
Nevertheless, the internal characteristics of small and medium scale enterprises
(SMEs) too have also interact with some economic variables to undermine the
capacity of the economy. Issues of low level of entrepreneurial skills, poor
management practice, inadequate equity capital and lack of information among
other problems.

In spite of these problems and challenges, the current economic reform

process ongoing in Nigeria aimed at reducing poverty, unemployment and
strengthening of basic institutions and sub-sector of the economy target at
improving and enhancing the capacity of small and medium scale enterprises

18
(SMEs) is beginning to show a renew optimism on small and medium scale
enterprises as instrument of economic growth and development.

2.2 CONCEPTUAL FRAMEWORK

According to Ayyagari (2007) and World Bank (2001), small and medium
scale enterprises have been long recognized as an instrument of economic
growth and development. This growing recognition has led to the commitment
of World Bank group on small and medium scale enterprises (SMEs) sector as
core element in its strategy to foster economic growth, employment and poverty
alleviation. In the year 2004 the World Bank group has approved roughly $2.4
billion in support of micro small and medium scale enterprises (SMEs). While
the importance of small and medium scale enterprises has not been in doubt,
unfortunately classifying businesses into large and medium scale is subjective
and premised on different value judgement. Such classification has followed
different criteria such as employment, sales or investment for defining small and
medium scale enterprises (SMEs). According to extant literature the definition
vary in different economies, but the underlying concept is the same. Ayyagari et
al (2003). Buckly (2004), contend that the definition of small and medium scale
enterprises varies according to context, author and countries”. In 19 country,
such as USA, Britain and Canada small scale business is defined in terms of
annual turnover and the number of paid employees. Ekpeyong and Nyang,
(2002), in Britain for example small scale business is conceived is conveived a
that industry with annual turnover of 2 million pounds or less with fewer than
200 paid employees (Ibid;4). In the case of Japan, it is conceptualized as type of
industry, paid up capital and number of employees.

19
 Consequently, small and medium scale enterprises (SMEs) are defined as
those manufacturing with 100 million yen paid up capital with 300 employees.
Those in wholesale trade with 300 million paid up capital with 100 employees
while those in retail trade with 100 million paid up capital with 50 employees.
(Ibid;4). In the case of Nigeria, hardly do you see a clear-cut definition that
distinguishes between small and medium scale enterprises. However, the Central
Bank of Nigeria in its monetary policies circular No.22 of 1988 view small scale
industry are those ding 500,000 naira (CBN;1988).

Similarly in 1990 the Federal Government of Nigeria defined small scale

enterprises for the purpose of commercial Bank loans as those enterprises whose
annual turnover does not exceed 500,000 thousand naira and for merchant bank
loan those enterprises with (excluding the cost of land) or a minimum of 5
million naira. Ogechukwu (2006) contends that in the wake of SFEM and SAP
era in 1993, this value has now been reviewed and subsequently increased to 5
million naira. Since this happened, there may be a need to classify the small
scale industry into micro and super-micro business, with a view to providing 20
adequate incentives and protection for the former. In that context, any business
or enterprise below the upper limit of N250,000 and whose annual turnover
exceeds that of a cottage industry currently put at N5,000 per annum is a small
scale industry. (Ibid:5).

The National Directorate for Employment (NDE) concept of a small scale

industry has been fixed to a maximum of N35,000. (Ibid:5). In other words a
business unit of not less than $240 dollar is characterized as a small scale
business in Nigeria, that may not be the same in other countries, but that

20
classification may be useful in developing countries, because of the low capacity
of its small scale industry. That is why Kozak (2007) argues that we cannot
explain small and medium scale enterprises (SMEs) other than to say they are
companies with metric (usually number of employees or annual turnover that
fall below certain threshold). It is these indicators, number of employees and or
rate of turnover that tend to define the context within which different countries
and economics situate their understanding of small and medium scale
enterprises.

This is to say that, even though small and medium scale enterprises
(SMEs), is definable with much or less the same indicator (No. of employees,
rate of turnover etc) the indicators are not the same in all countries all the time.
In other words, while number of employees and rate of turnover are the
indicator, the number of employee and total amount of turnover for defining
small and medium scale enterprises (SMEs) in different countries are certainly
not the same. For instance, the employee requirement Britain is 200, with
2million pound turnover, the same cannot be said of Japan with 100 million
Japanese yen as paid up capital and 21 300 paid employees. While in Nigeria,
the paid employees are usually not considered important, but more importantly
is the turnover of 500,000 especially for the purpose of commercial and
mortgage bank loans. Balunywa (2010) however, affirms that the number of
employee may not be a good indicator, especially where the company is labour
intensive.

This is true in country like India, where labour intensive is a policy

approach to industrialization. However, that is not to say that in some cases,

21
trading organization cannot transact big business, but yet employed few
employees. In that case, capital employed may be used as indicator for defining
small and medium scale enterprises (SMEs). In countries where the number of
employees is an indicator, the number of employee required differs from country
to another. In Uganda, the figure of employees for small and medium scale
enterprises (SMEs) is between 5-50, in India, it is 30-100, while in the US, is
less than 500. In Kenya, 10 or fewer people are called micro business, while 11-
50 are referred to small enterprises and 51-100 are called medium enterprises.
That is why in the United State of America, small business administration is
defined as one that is independently owned and operated, is not dominant in its
fields and meet up employment or sales standard developed by thee agency. This
shows the same trend with other countries like Nigeria and Japan except that the
exchange value differs in the financial criteria. 22 In a more general and
comprehensive term, Ogechukwu (2006) chronicles a general criteria for
defining small and medium scale enterprises in different countries. These
includes number of employees, annual turnover, local operations, sales volumes,
financial strength, managers and owners autonomy, relatively small markets
compared to their industries and capital usually supplied by individual or
shareholders etc.

There are so many small scale business units in Nigeria which qualifies
within this context most of them are in the commercial sector. However, a
common trend in Nigeria today is the gradual classification of service provider,
hotels, fast food and restaurants as small and medium scale enterprises. As a
result of this definitional differences and lack of universal definition, the
European Union in 2003 adopted a universally accepted definition of small and
22
medium scale enterprises and micro business as companies with less than 250
employees, with respect to financial criteria, revenues must not exceed 50
million Euro (measure as turn over) or 43 million Euro (measure as balance
sheet). In addition, the European commission specifies term of ownership stating
small and medium scale enterprises (SMEs) must be independent with less than
25 being owned by outside interest, (European Commission, 2007). In a report
of enterprises association (Macqueen, 2004), conceive of small and medium
scale enterprises (SMEs) as enterprises employing 10-99 full time employees or
with a fixed capital investment of US $1000-500,000. Small and medium scale
enterprises are certainly not transnational company, multinational cooperation,
publicly owned enterprises or large 23 facility of any kind. However, they can
depend on business and ownership structure to become a large business unit
(Macqueen, 2006). While it can be argued that 80% of the financial of small and
medium scale enterprises (SMEs) come from owners, friends and families,
business form can take different form including private ownership, limited
partnership, contract and sub-contracts, cooperatives or associations Kozak
(2007) small and medium scale enterprises (SMEs) have a narrow context within
which its operation is carried out.

However, where it is effectively operated it has capacity to sprout the

economic growth and national development.

2.3 THEORETICAL FRAMEWORK

2.3.1 The growth imperative

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 It a realistic assumption? Any strategy to stimulate small-firm growth must
explicitly recognize that many small manufacturing companies (perhaps the
majority) possess neither the inclination, the expertise, nor the resources to
grow. Whether their desire to remain small is a rationalisation of their lack of
capability and resources is not of crucial importance; they are content to stay
small, and policy instruments designed to aid the process of growth in small
businesses are likely to have little or no impact upon such firms. A high
proportion of small firms are more interested in maintaining their current level
of profit than in expansion. One reason for firms wishing to stay small is that the
ownership and the management reside in the same person, or persons; so future
company goals are determined not only by commercial considerations but by
personal life-styles and family factors. Independence is the primary aim of most
entrepreneurs (see O'Farrell, 1986a); it is not readily relinquished. Consequently,
a policy of survival is frequently preferred to one of growth. Furthermore, a
growth strategy almost inevitably involves dilution of ownership through
external equity investment, a price which many owner-managers and
partnerships are not prepared to pay in order to secure growth (O'Farrell, 1986a).
Other factors which discourage many small firms from seeking growth include
the fear of takeover, and the possibility that expansion would attract attention
from larger competitors and unions.

A further disincentive identified by Scase and Goffee (1980) is the extent

to which the owner feels personally competent to deal with the organisation and
supervision of labour. Many craftsmenentrepreneurs wish to continue to exercise
their own trade skills and may be reluctant or unable to become more heavily
involved in administration and paperwork (OTarrell, 1986a). Expansion may
24
also mean not only an increase in the number of customers but a change in the
type of customer; possibly a shift from old and well-established clients, obtained
through personal recommendation, to large-scale organisations. Some may be
reluctant to exchange their personal relationships with old customers for more,
anonymous interactions with companies and institutions (Scase and Goffee,
1980, page 77).

Hence, it is important to note that there is an inherent preference and

propensity not to expand in many small businesses, and there are well-
documented additional barriers to the growth of the small enterprise. However,
even if the firm achieves growth, it may lead to the eventual demise of the
enterprise if the entrepreneur remains rigid in his attitudes, refuses to formalise
the organisation, delegate authority, change decision making patterns, and
develop new relationships with employees (Kets de Vries, 1977. If the firm
continues to grow without any organisational change away from the 'spider's
web' model, with the entrepreneur at the centre, the effectivensss of this
organisational structure and mode of decision making becomes increasingly
insufficient to cope with the complexities of the external environment. An
obsession with control, an aversion to structure, a preference for personalised
relationships with employees, and an unwillingness or inability to delegate may
constitute major impediments to long-term growth and may even threaten
survival.

Furthermore, the formulation and implementation of a growth strategy

requires a strategic planning capability which lies beyond the range of expertise
of many small-firm entrepreneurs. In addition, the entrepreneurially oriented

25
founder may not wish to take on new specialised management staff; and
indivisibilities may mean that it is not possible to keep them fully employed.

2.3.2 A Social Perspective On Small-Firm Growth

Stanworth and Curran (1976), in a seminal paper, offered a new

perspective on the social processes involved in the growth and development of
the small firm. Their social action view of the small firm concentrates on
providing us with an understanding of the internal social logic of the small
enterprise as a social grouping. They argue that the key to growth lies in the
meanings attached to participation in the firm by the actors involved; a social
action perspective links the meanings and actions of participants in the small
firm with their wider social environment (Stanworth and Curran, 1976, page
157).

Using the concept of latent social identity, they suggest that three such
identities occur: the artisan identity, the classic entrepreneur, and the manager
identity. These identities are linked to the processes of growth through the
internal social logic generated out of the ways in which the situation is perceived
by those involved and the actions which follow on from these perceptions.
Reluctance to grow is viewed as much more to do with the consequences, in
social terms, of growth than with the reasons frequently articulated by
entrepreneurs in surveys; the social action perspective offers reasons why
growth is, on the whole, much less common than the prevalent growth ideology
would indicate (Stanworth and Curran, 1976, page 164). Stanworth and Curran's
interpretation is incomplete insofar as it does not devote detailed attention to the
social orientation of other participants in the firm and to the key outsiders whose
26
orientations and actions have crucial implications for social relations within the
firm.

However, this work is an important contribution to improving our

understanding of the small-firm growth process; and focusing upon the
entrepreneur and his influence upon the social character of the firm may be
justified because his role is normally decisive. The entrepreneurial personality
and growth Empirical studies of the entrepreneurial personality have not
excelled in theoretical clarity (Kets de Vries, 1977, page 36). There is confusion
in the definition of entrepreneurs and managers (O'Farrell, 1986b). For example,
some studies have concentrated on specific personality characteristics that might
contribute to successful company performance. Kets de Vries (1977) has
reviewed the sometimes conflicting evidence concerning attempts to link
personality characteristics of founders and company performance, and he cites
Hornaday and Aboud's (1971) study of successful entrepreneurs which found
that, compared with the population in general, entrepreneurs scored higher on
scales reflecting need for achievement, independence, and effectiveness of
leadership, and low on the scale of need for support. Personal values may be
effective in distinguishing successful entrepreneurs from the general population.

2.3.3 The Spatial Dimension In Small-Firm Growth

Mason and Harrison (1985, pages 4-5) have identified the "need for some
detailed studies of the ... role and growth of new and small firms in contrasting
regional environments" and have called for "an examination of the locational
and structural characteristics of 'successful' small firms". They have also argued
that, whereas there is now substantial research on the process of formation of
27
new firms, equivalent research on the relative performance of small firms in
different regions is virtually nonexistent. Small firms frequently need to address
corporate-level strategic issues (what business should the firm begin?), and a
wide range of functional area strategic problems (financial, marketing,
personnel, production, etc), in addition to those of business-level strategy (for
example, should the firm develop and launch a new product and gradually phase
out an existing one?). The prescriptive literature on small-business planning
emphasises the key role of 'outsiders' in improving the effectiveness of strategic
planning in small firms. Hence, although managerial deficiencies may frequently
cause problems in the development of small firms, many of these problems arise
as a consequence of firm - environment relationships, for the growth of
industrial concentration means that the external environment is 1378 P N
O'Farrell, D M W N Hitchens increasingly structured by and for large firms.

Furthermore, small firms, as a consequence of their limited managerial

resources, are more dependent upon their external environment than are larger
companies, and their growth may be constrained by the lower quantity and
quality of public and private services available in peripheral regions. The local
milieu may be an important influence upon the prospects for smallfirm growth
and expansion; impediments to growth are likely to vary in nature and scale
between different regions. Venture capital availability is more limited in
peripheral areas owing to the centralisation of the lending institutions and the
distorted perception of risk by banks. Lower rates of economic growth and lower
levels of income inhibit the opportunities for small-firm expansion based upon
local and regional markets. Small firms in peripheral regions also suffer

28
technical impediments to growth, as reflected in the lower rates of innovation
compared with similar sized firms in core regions (Oakey et al, 1980).

Labour-supply bottlenecks —especially shortages of apprentice-trained

craftsmen and managerial staff—vary between regional and subregional
economies and may be a serious constraint upon growth. Hitchens and O'Farrell
(1985) have reported that the quality of labour skills is the major factor
underlying the poor performance of a sample of small firms in Northern Ireland
—the region with the highest unemployment in the United Kingdom—compared
with similar matched firms in the South East of England. Furthermore,
peripheral economies such as South Wales, which are dominated by large firms
such as the British Steel Corporation, BP, and Ford, are not an ideal source of
skilled labour for small firms. Skilled personnel recruited from such enterprises
tend to be more orientated towards maintenance than production, to be more
narrowly specialised, and to lack the flexibility necessary for working in a small-
firm environment (Hitchens and O'Farrell, 1986).

2.4 EMPIRICAL REVIEW

The argument on the role of small and medium scale enterprises in

ameliorating the menace of unemployment in national economy has been in the
front burner for years and this has geared many scholars on the subject to
conduct researches that could beam light on the issue. It is in the same spirit that
reviewing past research studies on the subject becomes imperative. Considering
a study conducted by Lawal, (2011) which was basically a survey of small and
medium scale enterprises in local government in Lagos State and the purpose
was to assess the strategic role of participating SMEs in economic development.
29
Data for this study was generated from both primary and secondary sources
through the use of self administered questionnaires and structured interview.

Content analysis of records particularly financial record of some

participating SMEs were undertaken to obtain the secondary data. For this
particular study, a total population of 2,670 was used among which stratified
sampling techniques was employed to select 1,000 SMEs upon which the
research instruments were administered. The result of the analysis conducted
sequel to the study shows that international SMEs contributed more than
domestic SMEs in all dimension of strategic importance.

In other words, SMEs with international presence are stronger and perform
better than those 53 without international presence therefore making the former
to be more of strategic importance to development than the latter. In a similar
study carried out by Okpetu (2002) in which key success factor in SMEs were
researched since success is a measure of effectiveness of the sector and the
impact of the sector on the overall development of participating firms and by
extension national economy at large. In that study, the researcher adopted a cross
sectional survey of small and medium enterprises in Lagos.

The primary data were gathered through a selfadministered questionnaire

and complemented with content analysis of some published reports on small and
medium enterprises. A sample of 200 entrepreneurs selected across different
industries was selected for the study. The choice of industries and selection of
samples were based on accidental sampling method. Participating respondents
were operators of small and medium enterprises who volunteered to respond to
our questionnaire.
30
 The sampling method was adopted due to lack of comprehensive
information on the population of small and medium enterprises operating in
Lagos. The main instrument used was a self-administered questionnaire divided
into two main sections. Section A contained questions on success factors.
Respondents: were provided with following options: Critically important coded
5 points, very important coded 4 points, important coded 3 points, somewhat
important coded 2 points, and least important coded. 54 Section B of the
questionnaire requested for the background information of the entrepreneurs and
the organization. To empirically answer the research questions, descriptive
statistics such as mean, mode median and standard deviation were employed in
analyzing the responses of participating respondents. Out of the 2000 firms and
entrepreneurs that participated usable and complete data were obtained from
195. The findings of this study reveal that considerable percentage of Nigerian
working population (that id 20-49 years) is increasing seeking for self-
employment.

This age group constitutes responsible men who have attended higher
institutions. The survey of these entrepreneurs also indicate that technology
proper planning, financial survival of Nigerian small and medium enterprises. In
the contemporary business environment technology is a vital factor that must be
reckoned with. Lack of technology will result from absence of research and
inability to adopt modem techniques, thereby resulting into low productivity.
Hence, there is no gainsaying in the fact technology is one of the challenges in
the growth of Nigerian small and medium enterprises. The significance of
finance in small, and medium, enterprises development is well established and
generally accepted, successive governments over the years have implemented
31
various financing arrangements at the micro level to assist small and medium
entrepreneurs.

Nigerian is blessed with vast natural, human and material, resources, which
implies that she has great potential for emergence of a vibrant industrial sector,
particularly in small and medium enterprises. 55 The role of small and medium
enterprises in the technological and industrial development of any nation
justifies the need for greater attention to this sector. The foundation of growth in
developed countries of the world is usually attributed to the contribution of the
small and medium enterprises. In Nigeria, the successive administrations have
adopted various policy measures aimed at stimulating, sustaining and supporting
entrepreneurship, development in small and medium enterprises.

The success of these measures will be dependent on the presence of some

key factors such as technology, financial control, proper planning and
productivity of labour force. All these factors attest to the fact that creation of
enabling environment and effective management will assist in the growth and
development of small and medium enterprises. Relating the study conducted by
Lawal (2011) to the one conducted by Okpetu (2002) it therefore follows that for
SMEs irrespective of the nature of their business ideology, key success factors
such as proper planning, good financial control, technology, sustainable
improved employee productivity are germane to success of the organizations
whether such SMEs are with international presence or only domesticated in
Nigeria. In a similar study conducted by Ojodu (2005) on SMEs as a sustainable
development strategy in Nigeria in which random sampling techniques was used
to select 200 respondents out of a total population of 350 SMEs within Mushin

32
local council development area of Lagos State with the adoption of 56
questionnaire and interview as research instrument it was discovered that
majority of this respondents see their businesses (SMEs) as a way out of endless
unemployment meaning SMEs is a singular and unmatched strategy of
combating underdevelopment occasioned by the menace of unemployment with
attendant predicament associated with it.

Considering the above reviewed empirical studies, SMEs no doubt is an

indispensable factor to ensure sustainable growth and development in an
economy characterized by incessant kidnapping, political thougery, harm
robbery and other socio vises brought about by unemployment. However, SMEs
will not record speedy development even to going international if major success
factors such as technology application, proper planning, adequate finance, good
infrastructures among others are not provided as at when needed as supported by
Okpetu (2002).

2.5 GAPS IN REVIEWED LITERATURE

This study seeks to investigate small and medium scale enterprises to

come up with a set of potential determinates that affect the adoption of small and
medium scale enterprises and set of potential supporting activities to influence
economic development in Nigeria. Many authors have concentrated in giving
out solutions to the problems of small and medium scale enterprises, but have
also neglected some vital solutions to the problems in which the researcher tends
to disclose with the believe that it will close the gaps and will also contribute to
the effectiveness and efficiency of the small and medium scale enterprises in
Nigeria. These solutions include: Government should ensure that there will be
33
no improper implementation of its policies towards small and medium scale
enterprises and should not in the area of incentive and infrastructural
development neglect business activities to facilitate small and medium scale
enterprises. Government should also adequately support small and medium
scale enterprises financially, to avoid lack of capital, perhaps by creating 73
lending in institutions to enhance the capacity of small and medium scale
enterprises. Small and medium scale enterprises should ensure that they resolve
their internal problems which hinder the success of the small and medium scale
enterprises.

For instance, they should ensure that there are effective management
practices or expertise, effective accounting standards, adequate manpower and
avoid financial indiscipline and corruption in order to boost the performance of
the small and medium scale enterprises in Nigeria.

34
 CHAPTER THREE
METHODOLOGY
3.1 INTRODUCTION
According to, Onodugo (2010:65), it is in this section that the researcher
stamps his scientific status on the process. Consequently, it must be done in such
a way that doubting “Thomas” can repeat the process in an attempt to verify the
findings. To students, this section is very critical if their theses and dissertations
will meet the required standard and acceptability among their numerous
audiences, including their supervisors.
3.2 RESEARCH DESIGN
According to kneear and Taylor (1985), research design is basic plan
which guide the data collection and analysis phases of the research project. It is
the framework which specifies the type of information to be collected, the
sources of data and data collection procedures.
Also Boyd et al (1979) stated that every research work conducted
scientifically has a specific framework for controlling data collection. This
framework is research design. It function is to ensure that the required data are
collected accurately and economically.

This research design enables the researcher to collection the required data,
information objectively, accurately and economically. The research design used
by the researcher in carrying out this project report is the survey research.

35
 Survey research is the one in which the research selects and studies a
sample from the population using some sample technique.

The design specifies the framework on what observation to make, hoe to

make them and how to make them and hoe to analyze it quantitative aspect.

The researcher used a carefully selected sample from population for

intensive examination and classification were such a manner as to determine
findings from the sample population.
3.3 POPULATION OF THE STUDY

Due to the large size of the population chosen and taking cognizance
of time and money constraints the target population size of the study consist of
thirty was selected.

3.4 SOURCES OF DATA COLLECTION

Onodugo (2010) simply defines data as facts and figures. That it is the
major pillar of research work. It is what differentiates research from guess work,
imagination, myths and other sources of knowledge. Data can be obtained from
two major sources, viz: primary and secondary. Both are extensively used in this
work, for the purpose of drawing an empirical conclusion or analysis of the
study so as to come up with fairly objective findings.
Primary Source of Data
These are original data collected basically for the purposes of the problem
under investigation. According to Uzoagulu (1998), it contains the data
originally assembled by the person who actually observed the phenomenon.
Primary data mainly come from direct observation of event, manipulation of
36
 variables, contrivance of research situations including performance experiments
and responses to questionnaire. Therefore, in this study data were obtained
through distributed questionnaires designed for this purpose, in addition, oral
interview were conducted briefly to supplement the information derived from
the questionnaire. This is aimed at reducing the rigidity associated with the
designed questionnaire and also to give the respondents the opportunity of
supplying those information that the structured questionnaire did not
accommodate.
Secondary Source of Data
These comprise sources of data which, though needed for the current
study, were collected primarily for another study. Data from these sources were
not original to the researcher; they were assembled by another person. In this
study secondary data collected include: University Library, textbooks, journals,
newspapers, magazines, encyclopedias, other people’s project reports, and
websites in the internet (electronic sources).
3.5 INSTRUMENTS FOR DATA COLLECTION
The generic tools for data collection are questionnaires, interviews and
documentary or publications. A brief description of each shall be made
hereunder as follows:
Questionnaire: A Questionnaire is a list of question designed to elicit information from specified target
respondents. This, they do, by filling in answers in spaces provided for that purpose. This is the most
widely used tool especially for surveys covering a wide range of sample population. This is a set of
questions relating to the aims and objectives of the research study to which the respondents are
required to answer by writing in their responses. It is usually used when factual information is desired
about the past, present and anticipated event and also the prevailing conditions and practices.

(a) Oral interviews: This is a question and answer situation between

the researcher and the respondent with a view to eliciting relevant data for the
37
study being carried out. Interviews could be done between the interviewer and
the interviewee on one-on-one basis. It could also take place between the
interviewer and a group of respondents. In this study, the structural interview
was prepared for he SME owners, ME operators, investors and all the SME
interest group who are directly involved in the growth of SME.
(b) Documentary Research: This involves the location and
examination of available data relevance to the research study. The research
employed this method in locating information from libraries, journals lecture
notes, and some were sources from publication in the internet.
3.6 SAMPLE SIZE
This consists of Forty (40) respondents of the staff of Central Bank
of Nigeria, Ilorin which questionnaire were administered to in order to fetch and
response to be used for the research.

3.8 METHOD OF DATA ANALYSIS

The data collected from interview and questionnaires were presented in
tables. The data collected were analyzed by using percentage and inferential

statistics. The chi-square (x2) distributed was the statistical tool used in testing
the acceptability or otherwise of the hypothesis posed for this study. The
calculated values were compared with the tabulated values. The null hypothesis
(Ho) is accepted, when the calculated value is less than the tabulated value and
equally the alternative (Hi) is accepted, on the rejection of the null hypothesis
that is when the calculated chi-square value is greater than the tabulated value.
The calculated values used with the following formula.

38
 OF–EF

X2 = 

EF

Where x2 = Chi-Square

O = Observed
F = VFrequency
E Expected
F Frequency
 = The Sum
Expected value of classes of response level of significance ( α ) of
freedom, (df)
= (r-1) (c -1)

W df =degree of freedom
here
r = number of rows
c =number of columns

39
 CHAPTER FOUR
DATA ANALYSIS INTERPRETATION AND DECISION OF
FINDINGS
4.1 INTERPRETATION OF ITEMS
This chapter gives a full descriptive analysis of data collected to gives
validity to the hypotheses as well as provided answers to the research work; it
built on the assertion of the preceding chapter through a well presentation of
data collected through the medium of questionnaire. The data collected will be
analyzing with statistical concept to gives relatives variables such as mean,
standard deviation and the percentages.
4.2 DATA PRESENTATION
It should however be emphasized that the analysis of the
methodology is based on some assumption due to civilization in previous
chapter, these is to enable statistical and quantitative evolution of data feasible.
However, out of the 50 questionnaires printed for distribution all were return by
the respondents due to the personal efforts of people within kwara State.
QUESTIONNAIRES RESPONSE RATE
S/ QUESTIONNAIRE NUMBERS PERCENTAGES
N %
1 Returned 50 100
2 Un-Returned 50 0
Total 50 100

40
 Source: Research survey (2023)
4.3 ANALYSIS OF DATA
Data collected were sorted out and analyzed using chi-square test, as well
as simple percentage, chi- square is used to test of goodness of fit were the
population are the sample were classified on the basis of a single attribute. This
type of testing is useful for testing the response of questionnaires.
SECTION A: BIO DATA OF RESPONDENTS
TABLE 1: GENDER DISTRIBUTION OF RESPONDENTS
S/N SEX FREQUENCY PERCENTAGES %
1 Male 32 64
2 Female 18 36
Total 50 100
Research survey (2023).
Interpretation: Table 1 shows the sex distribution of the respondents in
which 64% of them are male and 36% are female. The above show the level of
business entrepreneur in the economy system.
EDUCATION
TABLE 2:EDUCATION QUALIFICATION OF THE
RESPONDENT
S/N QUALIFICATION FREQUENCY PERCENTAGES
%
1 OND 5 10
2 BSC 21 54
3 MBA 10 20
4 PHD 8 16

41
 TOTAL 50 100
Research survey (2023)

INTERPRETATION
Interpretation from the table above 10% of the respondent are OND, 54%
are B.sc, 20% are MBA, while 16% are Phd, it can be showed clearly that
majority of the people into business are B.sc holder these showed level of small
scale business in the country.
TABLE 3: WORKING EXPERIENCE OF THE RESPONDENTS
NO X F FX X-X (X-X)2 F(X-X)2

0-10 5.5 25 137.5 -7 49 1225

10-20 15 16 240 2.5 6.25 100

20-35 27.5 09 247.5 15 225 2025
TOTAL 50 625 3350

When x=Midpoint i.e

n+1 = 10+1 = 11 =5.5
2 2 2

Mean =ε fx = 625 =12.5

εf 50

SD=
√ ε f (x −x)2
εf

= x= √
3350
=√ 67 =8.188
50

42
 Interpretation the table shows that the average working experience of the
people in their respective unit of business are 37% of the respondents have
spend more than years with difference business in the country.
TABLE 4: POSITION OF THE RESPONDENT
POSITION FREQUENCY PERCENTAGES%
Junior Work 35 70
Senior 13 26
Work
Others 02 04
Total 50 100

SECTION B

TABLE 1: Will survival of small scale business depend on human?

RESPONDENTS NUMBERS PERCENTAGES
%
Strongly Agree 39 78
Agree 11 22
Disagree _ _
Total 50 100
Source: Research Survey 2023.
Interpretation: from the table above showed how survival of small scale
business i.e. 78% below in the statement.

43
 TABLE 2: Can small scale Industries leads to Economy growth ?
RESPONDENTS NUMBERS PERCENTAGES
%
SA 41 82
A 9 18
DA _ _
TOTAL 50 100
Source: Research survey 2023.
Interpretation: from the table above shows how small scale business can
lead to Economy growth i.e. 82% believes that it can lead to Economy growth.
TABLE 3: Does economy system affect small-scale business.
RESPONDENTS NUMBERS PERCENTAGES%
SA 37 70
A 12 24
DA 03 06
TOTAL 50 100
Source: Research Survey 2023.
Interpretation: From the table above showed the affect of small scale
Indusries to economy growth.

44
 TABLE 4:Can low capital income lead to low business?
RESPONDENT NUMBERS PERCENTAGES%
SA 30 60
A 12 24
DA 08 16
TOTAL 50 100
Source Research Work (2023)
INTERPRETATION: From the table above of government affect the
growth rate of small scale business.
TABLE 5:Does level of production determined SSB
RESPONDENTS NOT PERCENTAGES%
RESPONDENT
SA 36 72
A 12 24
DA 02 04
TOTAL 50 100
Source: Research work (2023)
INTERPRETATION: Yes, the level of production determine the small
scale business of the country due to the percentage Rate of 72%.

45
 TABLE 6: Do you often receive regular incentive?
RESPONDENT NO OF PERCENTAGES
S RESPONDENT
SA 20 30
A 10 60
DA 10 10
TOTAL 50 100
Research work (2023)
INTERPRETATION: From the table above showed the level of incentive
issue by government i.e. 60% agree while 10% disagree.
TABLE 7: Can government encourage more participation in small
scale business.
RESPONDENTS NO OF PERCENTAGES
RESPONDENT
SA 42 84
A 08 16
DA _ _
TOTAL 50 100
Source: Research work (2023).
INTERPRETATION: Yes, government can encourage more participation
in small in scale business due to the level of respondent 84% agree on the point.

46
 TABLE 8: Small scale business improved the level of productivities in
Nigeria.
RESPONDENTS NO OF RESPONDENT PERCENTAGES %
SA 40 80
A 10 20
DA - -
TOTAL 50 100
Sources: Research work (2023)

INTERPRETATION: Yes, from the table above showed that small scale
business improved the level of productivities in Nigeria due to the level of
respondent which is 80% agree on the point.
TABLE 9: Can small-scale business developed the method of
capitalization.
RESPONDENT NO OF PERCENTAGES %
S RESPONDENTS
SA 30 60
A 10 20
DA 10 20
TOTAL 50 100
Source: Research work (2023)
INTERPRETATION:
From the table above showed that small scale business developed the
method of capitalization due to the level of respondent which is 60 %.

47
 TABLE 10: Does small scale business have impact on the capital flows
of income.
RESPONDENTS NO OF PERCENTAGE %
RESPONDENT
SA 10 20
A 30 60
DA 10 20
TOTAL 50 100
Source: Research work (2023)
INTERPRETATION
From the table above, it shows that small scale business has impact on the
capital flows i.e. 60% agree on the point while 20% disagree.
TABLE 11: Is it any relationship occurs between small scale business
and economic?
RESPONDENT NO OF PERCENTAGE %
S RESPONDENT
SA 10 20
A 40 80
DA 10 20
TOTAL 50 100
Source: Research work (2023)
INTERPRETATION: From the table above shows that there is a
relationship occurs between small-scale business and economics due to the rate
of percentage of respondent which is 80%.

48
 TABLE 12: Can small scale or infant industry promote the decision of
manager in the company.
RESPONDENT NO OF PERCENTAGES %
RESPONDENT
SA 10 20
A 10 20
DA 30 60
TOTAL 50 100
Source: Research work (2023)
INTERPRETATION: From the table above it shows that small scale or
infant industry cannot promote the decision of manager in the company due to
the percentage rate of respondent which is 60% .
TABLE 13: Can under development promote small-scale business in
the country?
RESPONDENT NO OF RESPONDENT PERCENTAGE %
SA - -
A 10 20
DA 40 80
TOTAL 50 100
Source: research work (2023)
INTERPRETATION:
From the table above shows that under development cannot promote small
scale business in the country with the level of respondent which is 80 %.

49
 4.4 SECTION C
ANALYSIS OF OPEN ENDED QUESTIONS
Several problems were identified by the respondents with the
corresponding suggested solutions as classified in the following sub-heading.
Stated problems Suggested solutions Frequency 20 %
Unstable electricity Improvement on electricity 10 20%
supply
Lack of Increase in technology 10 20 %
infrastructural advancement
facilities
Low Demand Improvement on product 12 20 %
quality
Financial problem Government intervention 10 20 %
through effective supply of
loan .
Unavailability of Government should 8 16 %
good road construct good road for easy
transportation
TOTAL 50 100
%
Source: Research work (2023).
The table above reveals that 50 respondents that identified their level of
management 10 (20%) claimed that there is unstable electricity supply, 10 (20%)
shows that they are unable to acquire good infrastructural facilities to work in
their business, 12 ( 24%) explaining about low demand in the business and it is

50
really affecting the progress of the business, 10 (20%) are unable to source
capital or money to run the business successfully: This implies that there is need
for government to supply loan for the entrepreneur for the effective run of the
business, 8 (16%) are unable to do the business across the city or neighborhood
town and cities because of unavailability of good road, so there is need for
Government to construct good road for easy transportation of the business in the
country.
4.5 TEST OF HYPOTHESIS
Ho: survival of small scale industries does not depend solely on human.
Hi: Survival of small scale industries depends on human, Table 5: chi_
square (x) calculation using Table 5 to test the above hypothesis at 5% level of
significant.
RESPONSES NO VALUE 0-E 0-E2 (0-E)
SA 42 25 17 289 11.56
A _ _ _ _ _
DA 8 25 17 289 23.12
TOTAL 50 50 34 578 23.12
Source: research work 2023.
X2=E(0-E)2
E
=578 =23.12
25

Degree of freedom (Df)

=(r-1) (r-1)

=(2-1) (2-1)

51
 =1

Table of x2 at degree of freedom 1, significant level 0.05 is 3.84

Decision if x2¿3.84 -------accept Ho:
X2¿3.8 -------Rejact Ho:
INTERPRETATION:
Since the computed value of x 2 =23.12 which is greater than the table
value of x2 =3.84, then Null hypothesis.
(Ho) is accepted and the alternatives hypothesis
(Hi) is rejected . Hence it can be deducted that on human.
HYPOTHESIS (i)
Ho: Small scale business cannot lead to growth of Economy.
Hi: Small scale business can lead to growth of Economy.
Table 6:Chi-square (x2) calculation using table 6 to test the above
hypothesis, at 5% level of significant.
RESPONDENT NO OF RESPONDENT EXPECTED VALUE
RESPONDENT NO OF EXPEXTED O-E O-E2
RESPONDENT VALUE
SA 12 25 169 6.76
A _ _ _ _
DA 38 25 169 6.76
TOTAL 50 50 338 3.52
Source : Research work (2023).
X2 =E(O-E)2
E
=338 =13.63

52
 25
Degree of freedom (Df)=1
Table of x2 of degree of freedom is 1, significant level of 0.05 is 3.84.
Decision: if x2¿ 3.38 -------Accept Ho
X2¿ 3.84--------Rejected Ho
CONCLUSION : Since the computed x 2 =23.12, Null Hypothesis (Ho) is
accepted and the alternative Hypothesis (H i) is rejected. Hence, it can be lead to
Economic growth of the country.

53
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1. SUMMARY OF FINDINGS
Governments in most developing countries have recognized that small-
scale industries play an important role in the acceleration of growth and
development in their economies. As a developing country, Nigeria is not an
exception. Nigeria attempted several programmes, such as National Economic
Reconstruction funds, Industrial layouts and Establishment of Nigeria bank for
commerce and Industry, etc, to improve the production and growth of this vital
sector during the colonial era as well as after the independence at 1960, however
some of these programmes succeeded in bringing little changes, while others are
unsuccessful.
The objective of this study is to assess the viability of programmes and
proffer solutions that could bring about changes in this vital sector. Secondary
data such as government publications and corporation’s annual reports as well as
interviews conducted with officials and manager were collected and statistical
techniques are used for analysis. The study reveals that small scale industries
have not seriously impacted on the areas of large scale immediate employment
of indigenous industrial sector, production of highly specialized goods and
filling in cracks between large industries in the economy. It is observed that
unless concrete steps are taking in identifying the chase shadows.
5.2. RECOMMENDATION.
Base on the findings of this paper, the following recommendations are
hereby put forward.

54
  Government and financial institution should develop a holistic
approach schemes initiated by them.
 The central Bank of Nigeria (NBN) and other financial institutions
should embark on extensive sensitization of entrepreneurs on the operation of
the banks.
 Interest which deters people with genuine business ideas should be
reduced to a bearable level so as to make borrowing cheaper.
 All administrative bottle necks which make funds inaccessible to
small medium scale Enterprises operators should be mitigated.
 The central Bank of Nigeria should as a matter of urgency compel
all other commercial banks to adhere strictly to banking policies and regulations.
 Government should engage professionally in the formulation of
policies that will standthe test of time.
 Government should develop a lasting solution to the state of
infrastructural deterioration especially electricity.
 The security situation of the country needs to be improved so as to
make business double in the country.
 Policies which are aimed at rural development should top the lists of
policies aimed at developing the already or semi-developed urban centers so as
to reduced rural –urban migration.
 Finally, for entrepreneurs that may find it difficult to choose a line of
business, the following have been recommended. Meat Retailing, Restaurant
(“Buka”) service, Growing vegetable during dry season, Backyard poultry
Raising, operating Nursery for children, Home Laundry service, Aranging funds
for parties, Racing of pets, charcoal making, sing writing, writing of books for
55
publication, Portrait of flowers, Landscaping, Making Baskes and cages from
palm fronds, making brooms, Sand Block/cocktail sticks, Selling food at
Building sites, Homemade Bread Cakes, Refuse Packing, car Washing,
Collecting Research Materials, speech Writing, Editorial work, Driving school,
clearing and forwarding, operating Grating and Grinding Machine, coaching
classes, Renting Generator Sets , Operating a Barbing Saloon, Hair Weaving,
Telephone Operation, Runing a catering institute, Tailoring, Bricklaying,
Plumbing, Rearing of Day Old Chicksto three or four weeks, Weaving
Traditional clothes, GSM Business: Selling Recharge Cards and phone
Accessories, palm kernel oil production, Soap production, Aquaculture fish
Farming, Chalk making, Nylon production,Concrete block production, Gari
Production / cassava chips Ice block production, Hair /Body Cream production,
Big time rental services, professional practices. Etc.
5.3. CONCLUSION.

There is no doubt that small that and medium scale Enterprises contribute
tremendously to the nation’s economic development. Harnessing the economic
potentials SMEs in Nigeria is still a mirage since several policies aimed at small
and medium scale Enterprises development did not stand the test of time due to
poor implementation, erratic financing of schemes initiate by the government
and other administrative bottle- necks. These have made it difficult to existing
and prospective SMEs operators
To have easy access to funds set aside for SMEs development Bank which
are suppose to complement and implement government policies also clamour for
huge collateral which prospective poor borrows usually do not have even
borrower who could afford to provide benefiting collateral are further
56
discouraged by continuous increase in interest rate which make borrowers in
Nigeria (SMIES) remains a vibrant scheme if the objective for which it was
established is implemented to the letter. Of course SMEs will never thrive if
government and financial institutions continue to pay lip services to schemes
initiated by them.

57
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