THE IMPACT OF COOPERATIVE SOCIETIES ON ECONOMICS

SUSTAINABILITY IN KWAMI L.G.A GOMBE STATE

BY

SALIHU AHMAD BELLO

HND/CEM/021/051

A PROJECT SUBMITED TO THE DEPARTMENT OF COOPERATIVE

ECONOMICS AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF HIGHER NATIONAL DIPLOMA IN
COOPERATIVE ECONOMICS AND MANAGEMENT

OCTOBER, 2023

i
 CERTIFICATION
I am here by declare that this project is written by me, under the supervision of Mrs. Hassan

Adesina Akinlara, the information derived from the literature has been duly acknowledge in

the text and list of reference. No personal part of this project has been personally presented

in any previous study.

Salihu Ahmad Bello Sign………………. Date ………………..

(Project Student)

ii
 APPROVAL PAGE
This is to certify that this project was carried out by Salihu Ahmad Bello

HND/CEM/020/051 in the Department of Cooperative Economics and Management, Federal

College of Horticulture Dadin-kowa, Gombe State.

________________________ _____________________

Mrs. Fatima Salihu Date

Project Supervisor

________________________ _____________________

Mr. Yakubu Sadiq Abubakar Date

Project Coordinator

________________________ _____________________

Mr. Isiaka Ibrahim Date

Head of Department

________________________ _____________________

Name:……………………………………….. Date

External Supervisor

iii
 DEDICATION
I dedicate this research work to the Almighty Allah and to my Family.

iv
 ACKNOWLEDGEMENT
My profound gratitude is to Almighty Allah for his guidance, protection, direction,

wisdom ,and divine health, throughout this research work. His divine grace upon me

towards the successful completion of this work.

Also want to thank my supervisor Mrs. Fatima Salihu, for his relentless effort to guide,

instruct and counsel towards the success of this project.

A special appreciation goes to my head of department Mr. Isiaka Ibrahim and my research

coordinator Mr. Yakubu Sadiq Abubakar , and the entire academic staff of Cooperative

Economics and Management for their immense efforts and the knowledge impacted .

I want to appreciate the encouragement of my co-researchers, classmates (course mates) and

friends, Allah bless you all. My warmth gratitude goes to my family especially my mum

(Hajiya Hauwa’u ) whose effort on me is relentless., My siblings not forgetting my nephew.

For their support and prayers during the academic terrain.

v
 ABSTRACT
The study assessed prospect and technique for improving a viable economy, through
cooperative societies in Kwami Local Government Area of Gombe State. The specific
objectives is to determine the socio-economic characteristics of the respondent assess a
prospective technique for improving a viable economy, through cooperative society.
Prospective ways and effect for improving a viable economy. Major constraint associated
with economic inviability and to proffer solution to the challenges. Descriptive and
inferential statistics was employed for the analysis through the use of frequency table and
percentage. A simple random sampling techniques was used to select 120 respondents from
the total population. Structure questionnaire and interview were used to collect data and
elicit information from the respondent. The result proved that there is positive relevance as a
way of improving a viable economy, base on socio-economic distribution such as(gender,
age, marital status, education, years of experience and type of business) to the economic
viability. Also creativity, innovation, fiscal policy and employment were some techniques
denoted. Negative assertion such as unskilled personal, lack of research, lack of succession
plan, in experienced, lack of proper record keeping are the major bankrupt.

vi
 TABLE OF CONTENTS
TITLE PAGE …………………………………………………………………………………i

CERTIFICATION.....................................................................................................................ii

APPROVAL PAGE..................................................................................................................iii

DEDICATION..........................................................................................................................iv

ACKNOWLEDGEMENT.........................................................................................................v

ABSTRACT..............................................................................................................................vi

TABLES OF CONTENTS …………………………………………………………………...vi

CHAPTER ONE........................................................................................................................1

INTRODUCTION......................................................................................................................1

1.1 Background of the Study................................................................................................1

1.2 Statement of the Problem...............................................................................................3

1.3 Research questions.........................................................................................................4

1.4 Objectives of the study...................................................................................................4

l.5 Justification of the study....................................................................................................4

1.6 Significant of the Study..................................................................................................4

1.7 Scope of the study..........................................................................................................5

1.8 Definition of Terms........................................................................................................5

CHAPTER TWO.......................................................................................................................6

2.1 LITERATURE REVIEW................................................................................................6

2.2 The Concept of Small and Medium Entrepreneurship...................................................6

2.3 Significances of Cooperative to Small and Medium Enterprises...................................7

2.4 Assessing the Contribution on Various Sectors.............................................................8

2.5 Challenges of Small and Medium Enterprises...............................................................9

2.5.1 Bribery and corruption.............................................................................................10

2.6 Solutions to the challenges faced by SMes..................................................................14

CHAPTER THREE..................................................................................................................18

vii
RESEARCH METHODOLOGY.............................................................................................18

3.1 The Study Area............................................................................................................18

3.2 Method of Data Collection...........................................................................................19

3.3 Sources of Data Collection...........................................................................................19

3.4 Sampling Procedure.....................................................................................................19

3.5 Analytical Technique...................................................................................................20

3.6 Limitation of the Study................................................................................................20

CHAPTER FOUR....................................................................................................................21

4.0 Result and Discussion...................................................................................................21

4.1. Demographic Characteristic of Respondent..................................................................21

CHAPTER FIVE......................................................................................................................28

5.0 Summary, Conclusion and Recommendation...............................................................28

5.1 Summary.......................................................................................................................28

5.2 Conclusion....................................................................................................................28

5.3 Recommendation..........................................................................................................29

REFERENCES.........................................................................................................................30

APPENDIX..............................................................................................................................31

QUESTIONNAIRE..................................................................................................................32

viii
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Nigeria’s economy is dominated by small and medium scale enterprises in area of

agriculture, manufacturing, commerce and industry etc. the historical background

of small and medium scale enterprises in Nigeria can be traced back to 1946 when

the essential paper number 24 of 1945 on a 10-year plan of development and

welfare of Nigeria was presented (ever since SME’s have gained prominence and

mentioned as seed bed of innovations, inventions and employment generations or

creation Aremu and Adeyemi 2010). SME’s in Nigeria are seen as the backbone

of the economy and are key source of economic growth dynamism and flexibility.

In recent years economic activities have been faced with militating factors that

have hindered or reduced the growth and development of business and national

economy. It is in view of this the research is to be conducted in other to find a

preferable solution to this issue. When the first cooperative society was

established in 1752 in Philadelphia by B. franklin as contribution ship for the

insurance of houses from lost by fire and other natural disasters.

According to van Dan Ban and Hawkins (1998) says that the roles of small and

medium Entrepreneur in organization are to help trader’s men and women

especially in the area of experiment with new technologies or with new Business

system. Gain access to relevant information from varieties of information sources;

evaluate and interpret this information for their own situation and learning from

their experiences.

1
The history of cooperative societies in Nigeria in particular cannot go without

reference to the pioneering efforts of great men such as C. F. Strickland, Major F.

G. Haig. Captain W. J. W. Chessman, Captain A. G. C. Stainforth, Chief Akinpelu

Obiasesan, O. Bateye, J. U. Eka (MBE), Chief A. A. Laditan and R. M. Leslie –

the first registrar of cooperative societies in the Eastern region of Nigeria (Ikon,

2011). It is interesting to note that after thirty years and more, the benefits and

progress of corporations have tremendously affected all the facets and segments of

the Nigerian society and economy. Nigeria is an agro-based economy, and it is

only natural that agricultural cooperatives should precede any other type of

business enterprise in the country. Anytime cooperatives are being mentioned, it

starts and ends with Agro allied and agricultural produce. The Agricultural

Department with its headquarters in Ibadan organized the Western Region Cocoa

Farmers into a group through which better planting and processing methods were

taught. In the year 1936, these groups were taken over by the newly formed

Cooperative Division of the Agricultural Department for the purpose of organized

marketing. In the same year, for the same reason, some other groups engaged in

the production of palm produce in Eastern Nigeria were also taken over by

cooperatives. The first Thrift and Loan Society was organized by the Abeokuta

Catholic Teachers, and the first Thrift and Credit Societies also came into

existence during the same period. By the end of 1943, there were already 180

registered cooperative societies, and by the end of the first ten years of inception,

cooperative societies had taken firm roots in the country (Aremu, 2010).

Cooperative society is seen from different perspectives by various scholars,

writers, policy makers and operators. Some of these writers are of the view that

the cooperative is a strong organization where different entrepreneurs of

2
 cooperators pool their resources together with the view of making profit. Others

see it as voluntary economic institution in which members share the earned

dividends – the financial benefit that results from doing business with or without

profit (Arokoyo 2005). Sees this organization as an industrial organization where

a number of people may combine as consumers to produce a commodity, the

proceeds of which are distributed among the participants. Basil (2005), thinks of

cooperative society as a business organization in which a group of individuals

who have a common interest, mutually agree to join together to establish this

business in order to promote their economic activities like production, distribution

or marketing of goods and services, and for the provision of welfare benefits to

their members. Of all these definitions, it could be argued that the most embracing

of them all is that given by the International Labour Organization – ILO which

states that, “cooperative is an organization of persons, usually of limited means

who have voluntarily joined together to achieve a common economic end through

the formation of a democratically controlled business organization making

equitable contribution to the capital required, and accepting fair share of the risks

and benefits of the undertaking (Uzorka).

The background of the study is to help there searcher to analyse the contribution

of cooperative societies to small scale businesses sustainability in Kwami.

1.2 Statement of the Problem

Generally cooperative societies have been involved in the activity of funding

(facilitating its members with incentives) which is expected to build and sustain

their business in other to improve their socioeconomic status in the local

community as well as the country at large. However, this contribution has been

limited by factors that are militating against their function. The problem could be

3
 of different types which often lead to their dissolution. It is in this light that the

research seeks to assess the contribution of these cooperative societies in ensuring

the sustainability of cooperative societies.

1.3 Research questions

i. What are the socioeconomic characteristics of the respondent?

ii. In what ways do cooperative societies contribute to the development of small

scale business?

iii. How sustainable and effective has cooperative societies contributed to small

scale business?

1.4 Objectives of the study

The central objective is to assess the contribution of Cooperative societies to small

scale business while the specific objectives were to:

i. To determine the socioeconomic Characteristics of the respondent.

ii. To identify the contribution of cooperative of society to small scale business.

iii. To access the sustainability of small scale businesses.

l.5 Justification of the study

The research will be of paramount importance to small scale business owners in

encouraging them to join cooperative societies as a means of ensuring their

sustainability. It will also help the government with more knowledge on the

importance of cooperative societies in ensuring business growth and economic

development.

1.6 Significant of the Study

The study would serve as a guide for marketers in the area, improve their

businesses, its would also serve as a references point for policy makers.

4
 Administrators, specialist and developments who want to carry out further

research in similar aspect

1.7 Scope of the study

The research work is to be carried out in Kwami L.G.A of Gombe State. And to

access the small and medium enterprises services. The factor that may limit the

study are inaccessibility of some of the Local Government (L.G.A) due to

required for answering some question, while home trader in the area would not

like to answers question because they assume is a mean of increasing tax which

they referred to as (Haraji) in their local officials in the Local Government Area

(LG.A) and some business officials in the areas impedes access to some vital

records and information for the study.

1.8 Definition of Terms

a. SMEs: Small and medium scale enterprises: As enterprises with total cost of

(including working capital but including cost of land) above 31 million but not

exceeding 50 million with a labour size of between 11 and 100 employees .

b. LSE: Large Scale Entrepreneur

c.

5
 CHAPTER TWO

2.1 LITERATURE REVIEW

This chapter deals with the works of Authors on the contributions of cooperative

societies on the development in small and medium of enterprises.

2.2 The Concept of Small and Medium Entrepreneurship

Ogunbameru (2001) said that, small and medium entrepreneur is important in

developing. Business market in rural areas; where more than 85% (eighty five of

Nigerian reside in rural area operates petty trading activities. Small and medium

Entrepreneur as a formal indoor-of- school system of education designed to help

(particularly small skill enterprises) to satisfy their needs, interest and desires. The

main aim of business as an educational process is to help traders to make a decent

living by mastering the best way of managing their commodities in order to

improve their transition level of their goods and services in the area. Reviews by

the National Council on industrial Standards have defined small and medium scale

Enterprise (SMEs) as enterprises with total cost of (including working capital but

excluding cost of land) above 31 million but not exceeding 50 million with a

labour size of between 11 and 100 employees. It is clear that SMEs are usually

small own or family managed business with its goods services being basic. SMEs

also tend to lack the organization and Management structure, which characteristic

large –scale entrepreneur (LSE). Urban SMEs tend to be more structured than

their rural counterpart. SMEs contribution to Economic Development Even if

there are controversies on condition, what is not constable is to contribution SMEs

6
 are making to the economy. About 10% of total manufacturing out put and 70% of

industrial employment re by SMEs. (Osuagwu, 2001).

According to van Dan Ban and Hawkins (1998) says that the roles of small and

medium Entrepreneur in organization are to help trader’s men and women

especially in the area of experiment with new technologies or with new Business

system. Gain access to relevant information from varieties of information sources;

evaluate and interpret this information for their own situation and learning from

their experiences.

2.3 Significances of Cooperative to Small and Medium Enterprises

An important objective small and medium entrepreneur is to improve the

productivity of Business and brings sufficiency and security among rural

marketers. Arokoyo (2005) and Ogunbameru (2001) indicate that in order to

accomplish these cardinal objectives, small and medium. Entrepreneur as one of

its important tasks, are to exchange and sharing of information, knowledge and

skills to its follows marketers. The core factor of small and medium Entrepreneur

therefore, is very essentially s communication is effective. One of the key factors

here is that, small and medium Entrepreneur are process whereby various joint

ventures participants are linked and exchanged information, which is critical

requirement for suitable Business stock runners and development. It is interesting

to note that, the concept of small and medium Entrepreneur its depends on the

purpose of the subject- mattered to be expand cited in the location so as to burst

the economy.

There are numerous forms of business men. Especially for rural small scale

business. Some of these include: business education, health education, legal and

retailer extension. These forms extension in the rural areas are closely inter-related

7
 and none of them should be ignored because collectively, they help to improve the

farmers’ physical and mental well-being as well as their productivity.

2.4 Assessing the Contribution on Various Sectors

The report of the National technical working group on SMEs towards the

achievement of Vision 2020 (2009) identified various opportunities available to

the sector which if adequately harnessed will make SMEs to serve as a resource

base for multinationals, a potential channel for mobilizing local savings to ensure

a more equitable distribution of income and a means to reduce urban-rural

migration and arrest the brain drain syndrome affecting Nigeria. These

opportunities include:1. Factor endowment: The Nigerian economy is factor-

driven based on its large population and natural resources. Revenues from oil

ensure there are budget surpluses which go to swell external reserves. These

factors tend to promote macroeconomic stability which is critical for all

businesses, including SMEs.2.Large market: Nigeria’s large population, coupled

with rising, albeit slow, living standards provide a huge growing market for

SMEs.

3. Kwami strategic location: Nigeria is so strategically located it can conveniently

tap the regional market potentials of West and Central Africa and with access to

seaports SMEs should find it easier to participate in export markets

4. Penetration of ICT, innovation and other technologies: The penetration of ICT

in Nigeria is remarkable. The country is one of the fastest growing in terms of

GSM utilization. This and recent investments in space technology will bring in

their wake great technological advancements that will benefit SMEs.

5. Research Institutes: Efforts in research and development provide great

opportunities for production of innovative and more competitive products and

8
 services. SMEs are needful of the numerous R&D efforts of various research

institutes however, to turn them into opportunities, special funds are required to

commercialize and utilize any findings.

6. Size and spread of tertiary institutions: With the large number of tertiary

institutions spread throughout the country, the training and dissemination of

entrepreneurial skills can be facilitated to the advantage of SMEs 7. International

SME support organizations: The importance of SMEs to the global economy is

illustrated by the emergence of organizations around the world devoted to helping

them thrive. Bodies like the Organization for Economic Cooperation and

Development, the U.S. Small Business Administration, the World Bank, the

UNDP and others, are all dedicated to helping existing SMEs in Nigeria grow into

bigger employers with higher turnovers by helping with areas of particular

challenge for SMEs, such administrative costs, bureaucratic burdens, and

financing of new initiatives.

2.5 Challenges of Small and Medium Enterprises

World Bank report pointed out that there is lack of Synchronization between

institutional physical research development which exists between man power

development and the construction of research facilities. The report also asserted

that such research facilities were under-utilized due to the death of qualified

manpower and physical structure such as living quarters for staff, research

equipment and mobility. World Bank report (1985). A major problem of nepotism

in all its. Respect for Age and Seniority Orientation Nigeria is a seniority

consciousness society. There is over-deepness on seniority and age even at the

places of work. The general pressures are to place premium on seniority, the status

of an officer and date of appointment are usually most important in consideration

for promotion than demonstrated efficiency even the order in which a person’s

9
 name comes on the staff list is joyously guarded and watched because this tends to

be a critical factor when consideration for promotion comes up. This deep seated

observance of seniority rule conflicts with the nation of selection and promotion

by merit. It has an undesirable effect on moral and technical efficiency.

The concept of time. There is the Nigerian time. This implies that time is an

important Nigerians are not conscious of time. As long as Nigerians are not time

conscious, they cannot exacted to be result-oriented.

2.5.1 Bribery and corruption.

The problem of bribery and corruption. The problem of bribery and corruption is

widespread in Nigeria. It is a tradition too often totaled by average citizens of

supplementing low government pay with gifts and bribes in order to expedite

routine processes. The problem of bribery and corruption is not peculiar to Nigeria

but an exit in all secretes to a greater less extent. Lit is generally argued that SMEs

have certain deficiencies because of intangible assets that drive their

competitiveness in marketing, management of production, innovation and

information technology. Among the support institutions, business advisory,

counseling and information centre have proved to the particularly effective

instruments for assisting entrepreneurs in starting and businesses, strengthening

existing enterprises and helping their survival during the start-up period. Observed

that between the periods of 1992-1996, large enterprises generated only 7000 jobs

while SMEs generated nine times more opportunities (CBN 2003).•Thailand:

Small and Medium Enterprises constitute more than 90.0 percent of the total

number of establishments in the manufacturing sector in Thailand. They employ

about 65.0 percent of industrial workers and contribute about 47.0 percent of the

total manufacturing value added. The policy of the Thai government is to use

10
SMEs as instrument to create employment, to harness and effectively use given

natural resources and to narrow income gap. The policy measures provide by

government for the promotion and support of SMEs can be classified into three

key areas, namely: investment promotion; financial assistance; and technical

training and consultancy through various administrative organizations dealing

with SMEs promotion activities. Industrial subcontracting is one of the strategies

used to help SMEs development and to encourage the growth of supporting

industries in Thailand (Emmanuel,2003). •Malaysia: Malaysia has transformed

from a commodity producing nation to a manufacturer of industrial products,

geared towards exports. The small and medium industries account for more than

80.0 per cent of the total manufacturing establishments in the nation. The SMEs

also helped the county’s industrialization programme through the strengthening of

both forward and backward industrial linkages. The government encouraged the

sector through policies and programmes that integrate the SMEs into the main

stream of industrial development (CBN 2003). Philippines: SMEs comprises 99.0

per cent of the total manufacturing establishment in the country. The sector

contributes 54.9 per cent in employment generation and per cent of value –added

production. There exist a variety of support programmes and services offered by

both government and community volunteer groups that address the compelling

concerns of the Philippines (Emmanuel, 2003). Pakistan:

SMEs constitute 90.0.per cent of business in the country and account for 80.0 per

cent of the total employment and contribute 30.0 per cent to the GDP. The SMEs

are primarily in the informal sector and rely on traditional technology and are

linked to the large scale industries and generate 25.0 per cent of the export

earnings of the country (Emmanuel, 2003). China: In China, SMEs account for

11
60% of industrial output, 55% of its GDP and 75% of employment. The most

remarkable aspect of China's small and medium enterprises is their rapid growth

despite their inability to tap the official financial system. An SME promotion law

has been instituted codifying the official definition of SMEs and clarifying what

support government will be making available to them. In the 1990s the

Government created a network of credit guarantee agencies for SMEs which

ensures loan repayment to banks and assisting them in relaxing their financial

constraints (Global Competitiveness Report 2008 -2009). India: In laying a solid

base for industrial development, the Government of India directed a reasonable

part of policy on the development of small scale industries. It provided the small

scale industries necessary policy support, needed protection, facilities and

incentives. As early as the 1950s and 1960s, through the Industrial Policy

Resolutions, the government provided support for small scale industries on a

protective basis by providing subsidies, concessions, small scale industry

reservations and direct government support. With the changes that took place

since 1991 when the Government of India announced the Small Scale Industries

(SSI) Policy Statement, a great deal of entrepreneurial spirit has emerged, which is

being nurtured for future growth. Many of the older restrictions on business

ownership have been removed and fewer clearances are now required for foreign

partnership and direct investment.( Global Competitiveness Report 2008 -

2009).•United Kingdom: The UK has a well-developed SME sector. Most of the

businesses are SMEs providing 54.1% of employment and contributing over 50%

of the country’s annual GDP. There are 3.7 million SMEs in the UK, that is, one

enterprise for every ten people of working age. From 1983 to 1988, the British

Government administered a credit guarantee scheme of 750 million pounds in

12
business expansion and tax relief to entrepreneurs in quoted companies; and

effectively linked SMES with appropriate technologies and educational

institutions. 19,000 SMES benefited from the program (Global Competitiveness

Report 2008 -2009). South Korea: The Korean government initially placed the

burden of industrial development on the giant industries, but over time the

government realized the importance of a dynamic, flexible and efficient SME

sector that can provide specialized subcontracting services to the large firms.

Laws were passed to promote SMEs, leading to a perceptible rise in their share of

economic activities. The system of policy support was crucial to the reversal in

their performance. The policy options covered the setting up of specialized banks

to finance SMEs and the promotion of subcontracting by large-scale industries

(Global Competitiveness Report 2008 –2009).

8. Financial sector reform and funding: The initial reform and successful

consolidation that have taken place in the financial sector could provoke yet

another reform that would boost financial intermediation and open new windows

for SME funding. Financing options are now diversified with the capitalization of

commercial banks and setting up of a number of micro finance banks (MFBs).

Similarly, development finance institutions (DFIs) and bank of industry in

particular are making funds available to SMEs for their growth and development.

Despite the global economic meltdown, the Nigerian capital market is still vibrant

enough for SMEs to play a major role.

9. Pooling of resources: SMEs can reduce infrastructure and operating costs by

pooling their resources in industrial clusters and enterprise zones clustering e.g.

Clusters in Aba and Nnewi.

13
 10.Vast and rich agricultural and mineral resources: Nigeria possesses vast

agricultural and mineral resources to provide abundant raw materials in various

SME sub-sectors including: agricultural production, processing and storage;

industrial manufacturing; culture and tourism; estate and urban development;

mining, metals and fabrication; and professional services delivery.

11. Business Development Services (BDS) : In developing the required

capacities among SMEs to meet new challenges, the government, private

institutions and NGOs should devise appropriate mechanism to deliver business

development services (BDS) to a large percentage of SMEs so that they continue

to grow and develop, contributing to both the economic and social goals of a

nation. Business development services should focus on supporting self-

employment and facilitating the running of businesses, thus discouraging the

eternal dependence of SMEs on private/government institutions’ assistance. Some

of the new forms of BDS that could help improve the competitive strength of

SMEs are technical assistance with quality improvement and technology use,

marketing advisory services and awareness building on issues affecting SME

businesses.

2.6 Solutions to the challenges faced by SMes

 Employment of Skilled personnel like accountants and managers that are meant to

be employed by SMEs.

 Provision of Loans is to be provided more sufficient for small and medium

enterprises’ for growth and development in Kwami town.

 Provision of more business innovation it can also brings rapid development to

small and medium enterprises.

The capital base of would be entrepreneurs in Nigeria is very low because of the

poverty rate and most SMEs find it difficult to access loans from banks. As a

14
result, many of them are undercapitalized. To Lam in Abeh (2017a), SMEs are

expected to introduce innovation into their business in order to create sustainable

SMEs business solutions.

Innovation is a process that creates knowledge, which is collected, shared and

integrated. In other words, it takes the form of new technology or new product or

services. Thus, innovation is related to change that can be integrated or

incremental. Commonly innovation can be considered as implementation of

exploration and process that shapes outcomes and products. Political and

Religious. The present political dispensation in Nigeria since independence does

not allow for favorable and conducive environment for SMEs to operate. Quacked

in the passing of national budgets both in the states and federal levels are a major

example of bringing solution to the problems of small and medium enterprises in

Kwami Town Party wrangling and agreements takes months and years to settle.

Favourable policies, laws and implementation of the national budgets stall proper

planning of SMEs in Nigeria.

According to Ololube and Uzorka (2008), the political atmosphere in Nigeria does

not support to favour SMEs.

Politicians have the zeal to help the small and medium enterprises for better life in

business enterprises.

The evidence according to Ololube and Uzorka (2008) include peaks in the age

profile of the self-employed: the interaction of personal and social factors is

illustrated by the data on ages of the self-employed. One of such studies according

to Ololube and Uzorka found that SME starters were aged between 30-45 years.

Most SMEs follow from social marginalization and it is more common in some

ethnic groups and some parts of Nigeria. It is predominantly evidenced that the

15
Ibo speaking ethnic group tends to venture into business more than other ethnic

groups in Kwami. In the same degree of measure, they also have the propensity to

sustain and grow in their businesses. This is because they grasp every opportunity

that comes their way in business. Most of the northern part of Kwami do supposed

to allow female to partake in business activities. Rather they prefer women to be

full house wives.

Government Efforts in the Growth and Development of SMEs in Nigeria

Governments in Nigeria have consistently made efforts towards the growth and

development of SMEs in the country. However, in spite of these efforts, the

expected results in terms of solving the challenges of facing SMEs still persist.

According to Anochie, Ude and Egbo (2015), the efforts of governments can be

identified as: Small and Medium Industries Equity Investment Scheme (SMIEIS)

The Federal Government approved the setting up of SMIEIS to promote SMEs.

Bankers Committee in December 1999 approved the scheme, which required

setting aside 10% of their profit after tax for investment in SMEs.

However, the federal government scheme has not been able to attract the expected

patronage from the target group amongst the SMEs. This is evidenced in the

relatively low patronage drown from the large pool of investible funds (Central

Bank of Nigeria, 2003). The setback is as a result of the lack of national spread.

As at 2009, only twenty eight billion Naira (N28 billion), amounting to (67%) of

the N42 billion set aside under the scheme was accessed (Central Bank of Nigeria,

2009; Anochie et al.2015). Bank of Industry (BOI) The Federal Government of

Nigeria in 2000 established the Nigerian Industrial Development Bank (NIDB),

the Nigerian Bank f or Commerce and Industry

16
(NBCI) and National Economic Reconstruction Fund (NERFUND) to address the

shortages in the finances of SMEs and Industries. Specifically, NERFUND was

established to cater for SMEs in Nigeria by providing medium and long term

credit to SMEs. Nigerian Agricultural Cooperative and Rural Development Bank

(NACRDB). These include a combination of three development financial

institutions established by the Federal Government of Nigeria to cater for the

needs of SMEs in Nigeria. They include: The Nigerian Agricultural Cooperative

Bank (NACB) and the Peoples Bank and the aim of the framework was to

strengthen the financial incapability of the community banks to microfinance

banks and meeting their specified requirements to solve the problem of urban bias

and the provision of affordable financial services to SMEs (Central Bank of

Nigeria, 2011). Nevertheless, the urban bias have not been successfully addressed

because large segments of the targeted SMEs are actively poor in the rural areas

and do not have access to microfinance services. The National Directorate of

Employment (NDE) The National Directorate of Employment (NDE) was legally

empowered by NDE Act, CAP 250 of the Law of the Federal Republic of Nigeria

(formally Decree No 34 of 1989) the Directorate has responsibility to design, and

implement programmes to combat mass employment in Nigeria. The NDE

programmes include vocational skills acquisition training, employment

counselling and job linkages, entrepreneurial training and enterprise creation,

amongst others.

17
 CHAPTER THREE
RESEARCH METHODOLOGY
Information for the study was collected through the use of both primary and

secondary source of data collection. The primary source of data collection

include the use of well-structured questionnaire which was administered

randomly to respondent in the selected wards, and oral interview will be

conducted to those who could not read or write while the secondary source of

data collection include the use of textbooks, journals, magazines, published and

unpublished thesis and the internet.

3.1 The Study Area

Kwami is a Local Government Area of Gombe State, Nigeria. It has its

headquarters in the town of Mallam Sidi. Kwami is bordered in the east by Lake

Dadin Kowa, in the north by Funakaye and Gombe in the south. The postal code

of the area is 760.

Location in Nigeria Coordinates: 10°30′N 11°15′E its Headquarters is Malam

Sidi, Local, the Area is about total of 1,787 km2 (690sq mi)

The population of Kwami in 2006 census is 195,298, Kwami LGA has a total area

of 1,787 square kilometres and lies on the banks of Lake Dadin-kowa. The area

witnesses two major seasons which are the dry and the rainy seasons. The average

temperature in Kwami LGA is 32 °C

18
 The dwellers of Kwami engaged in many different economical activities but the

most common one is farming and fishing. In December 2022, Gombe State

Governor Muhammad Inuwa Yahaya reiterated the state government's plan to

begin construction of the road connecting Kwami and Malam-Sidi, the LGA's

headquarters, to reduce administrative challenges and bring economic and social

prosperity to the people of the LGA.

3.2 Method of Data Collection

Data were collected through well-structured questionnaire to elicit information

from the respondent. Questionnaire was designed in line with objective of the

study. Information sought bordered on socio-economic characteristics of

respondents.

3.3 Sources of Data Collection

Primary and secondary source of data was used in this study. The primary data

were collected from the farmer selected from Kwami Town. This data were

collected from the responded by means of well constructed questionnaires.

Secondary data were collected from the respondent by means of well-constructed

questionnaires. Secondary data were obtained from review relevant literature,

project reports, document, and text books, through browsing and journals etc.

3.4 Sampling Procedure

The population study, were Small and medium Enterprises multi stage random

sampling techniques was used to draw samples, size. The first stage involved a

random selection of fives {5} wards out of the wards in the study area, the second

stage was to estimate the sampling frame of one hundred twenty {120} farmers in

the five {5} selected wards, from this frame, 5% of the respondents in each wards

is selected given the total sample size of 120 respondents.

19
3.5 Analytical Technique
The analyses employed were descriptive and inferential statistics. The descriptive

statistics were frequencies and percentage. These were employed to analyze the

relationship between the responder chi-square test. The formula is stated thus.

X2 = ∑ (0-£) 2

Where x 2 =chi-square to be computed

0= observed frequency

£=expected frequency

3.6 Limitation of the Study

The work was limited to Malam sidi, Bojude, and Daban fulani town of Gombe

State due to time and financial constraint language barrier between the traders,

especially the less literate, were reluctant to respond to questionnaire.

20
 CHAPTER FOUR

4.0 Result and Discussion

4.1. Demographic Characteristic of Respondent

The Socio- Economic Characteristics of the respondent play a vital role in

influencing the decision making with regard to the new technology. The socio-

economic parameters in this section were sex, age, marital status, educational

qualification, family size and years 2of experience in farming.

Table 4.1.1 Sex

AGE FREQUENCY PERCENTAGE

Male 63 52.5%

Female 57 47.5 %

Total 120 100

Source: field survey 2023

Table 4.1.1 Revealed that the majority of the respondents were male (52.5%) and

(47.5%) were female. This shows that the male are engaged in small and medium

enterprises than the female inn most of the Business enterprises in the area,

because of their relatives access to produce resources, such as land, labour and

other material needed for Business expansion.

21
Table 4.1.2: Age Distribution of respondents

Age (year) Frequency Percentage (%)

18 – 27 20 16.7%

28-37 42 35%

38-47 30 25%

48-57 16 13.3

58 and above 12 10

Total 120 100

Source: field survey 2023

The above table shows that majority of the respondents represent 16.7% people

between the Age Range of 35 and above. While 25% represents 30 respondents

with age range of 26 – 36 and 25% representing 10 respondents are between the

ages of 18 – 25 Thus, the analysis of this table shows that majority of members

are people between the age of 36 and above. And those between 18 – 25 do not

often join cooperatives in the area.

22
 Table 4.1.3 Marital Status of Respondent

Marital Status Frequency Percentage (%)

Single 26 21.7

Married 58 48.3

Widow 20 16.7

Divorce 16 13.3

Total 120 100

Source: Field survey, 2023

Table 4.1.3 revealed that 21.7of the respondents were single while 48.3 were

married, 16.7 of the respondents were widow, only 13.3 of the respondents were

divorce. This implies that the majority of the respondents were married. Marital

status is a situation with regard to whether one is single, married, widow, or

divorce. Marriage is one of the important institution which make on individuals

responsible and taking relative technical decision more accurately.

23
 Table 4.1.4 Educational Qualification of Respondent

EDUCATIONAL QUALIFICATION RESPONDENTS PERCENTAGE

Post primary school 49 40.8

Diploma/NCE 28 23.4

B.S.C 18 15

HND 25 20.8

TOTAL 120 100%

Source: Field Survey, 2023

Table 4.1.4 above depicts that, the majority 40.8 of the respondents attended post

primary (secondary school), 23.4 of the respondents attended diploma/N.C.E

while 15 percent of the respondents attended B.S.C and only 20.8 of the

respondents attended HND. This means that the education level of the respondents

is low, this is in accordance with the survey conducted, by Beyen Gundi (2009)

that inadequate education has been a limiting factor of stock-taking and exchange

of goods and services. Education level is a time commonly used by the statistical

to refer to the highest degree of education an individual has completed.

4.2 Contribution of cooperative societies to the sustainability of SSB

24
Response No. of people % of number

Business men 40 33.4

Civil servants 28 23.3

Proprietors 20 16.7

Students 10 8.3

Unemployment 22 18.3

Total 120 100

Survey: field, 2023

From the above table 4.2 revealed that businessmen are 40 respondents at 33.4%

and 28 respondents were civil servant which tolled at 23.3%. And proprietors are

20 respondents at 16.7 % which resulted students 10 respondents at 8.3 % and

employment which is 22 respondents based on 18.3. According to this table that

whose contributed were businessmen and 28 civil servants has the higher

percentage in the tabulated.

Table 4.3 The Challenges of Small Scale Business

25
 Problems RESPONDENTS PERCENTAGE

Lack of finance 23 19.17

Lack of succession plan 30 25

In experience 26 21.67

Inadequate market research 22 18.33

Lack of proper record 19 15.83

Total 120 100

Source: field survey 2023

Table 4.3 revealed the result on lack of finance 23 respondents 19.17 and lack of

succession plan 30 of the respondent received large people in the world, the

results indicates that 19.17 of the respondents received experience 22 and 21.67.

While, inadequate market research 18.33. Lack of proper record.

4.4 Solutions to the challenges of small Scale Business

PROBLEMS RESPONDENTS PERCENTAGE

Employment 40 33.33

Provision of loan 50 41.67

Provision of more Innovation 30 25

Total 120 100

Survey: Field Survey, 2023.

Table 4.4: Show that 40 respondent are employment these indicated that 33.33%

has an important number value while the provision rate fall in line with 50

respondent were loan earners which resulted 41.67% Hence, provision of

26
innovation has the 30 responded which tolled 25%. According to analysis the

tabulated indicated that an employment and loan earner has the highest percentage

of the tabulated above.

27
 CHAPTER FIVE

5.0 Summary, Conclusion and Recommendation

5.1 Summary

The study was carried out base on the impact of cooperative economic

sustainability, in Kwami L.G.A of Gombe State. The result shows that the level of

sustainability and sex, age, marital status, education shows that there is

significance and relevance to the perception of small scale business and socio-

economic characteristics. This implies that entrepreneurs with small-scale have

higher economic sustainability with economic resources as part of land, capital

and other fixed assets for expansion. Arokoyo (2005) and Ogunbameru (2001)

validated this finding.

Study also reveals that cooperatives here contributed on the level of business

sustainability in various aspects of human endeavours that are involved in

business activities. Ekpen yong (2009) and Ikotun (2011) made this validation

which means only entrepreneurs who can manage and increase their productivity

will sustain their business.

Analysis reveals that there is negative significant in the level of sustainability over

the year, because of lack of research Basil (2005) and Omobolanle (2009) it seems

clear that the combination of these challenges can lead to declining nature of

business in the state. Thus Kwami L.G.A of Gombe State is not an exemption.

5.2 Conclusion
Haring examine the nature of small scale business SSB’s and the trending

challenge that militates against the sustainability of small scale business, and

having understand that cooperative societies have positive effect and impact not

only on the activities of small scale business entrepreneurs only, but also on the

28
 members to the general public. The result reveals that cooperative growth and

sustainability not only for the present but to the generation to follow.

5.3 Recommendation
Base on the finding of the study, the following recommendation were made:

i. The State Government in conjunction with the Federal Government should

contribute their quota of fund to the programmer on time for their activities to run

on schedule.

ii. The big marketers must be accommodated in a living quarters, issued with means

of mobility and should not be left to his or her own devices but must be monitored

by higher officers to ensure that he operate based on his schedule of duties.

iii. Both the local and state government should provide adequate financial support to

cooperative members to enable them to perform well.

iv. Government should build well constructed shops for easy indication of

apprentices members identification of opportunities members in Kwami Town.

v. The management of SMEs should educate their member by sending them to

various places of workshop and seminars when the above recommendation are

taking in serious in the small and medium enterprise in Kwami L.G.A of Gombe

State will become the best not only in Northern parts of Nigeria but in the country

at large.

vi. To shows the business cooperation, need may arise to all markets to identify

themselves, by ability to based in the company interest and capability.

vii. Government should ascertain many ways for the cooperative societies to help

improved their business opportunity in the Rural Areas for better standard of life.

29
 REFERENCES
Arokoyo, T. (2005); information communication Technology Service (ICTS)

Application in Agricultural activities in Nigeria Published by the Agricultural exte

nsion society of Nigeria (AESON) pp 245-251.

Aremu (2010).‘’the financing need of the firms: the banker and small businesses ‘’ institute

of bankers. Adeyami (2010). How to organize and operate a small business,

London: prentice hall international inc. publisher burt,. ‘’ An accounting for the

growth of interest in small business’’ the accounting Journal, vol 62 no.7

carpenter, C. (2006). Small and medium scale enterprises (SMEs) finance in

Nigeria.

Basil (2005): The practice of Agricultural Extension: A Training Manual Development Bank

of southern Africa, Halfway House, pp. 34 - 51

Adejuyigbe (2010). ‘’ the strength of weak ties’’ amerian Journal of sociology.78:1360-

1380. Dahunsi (2010). Small business and enterpreneuship management surulere,

lagos: grey resources

Uzorka. on ‘’making small business‘’the efficacy of small – scale enterprise (SMEs):as a

catalyst for economic growth the Nigerian business environment.

Ikotun (2011). Teaching /learning process as it affects adults.

Ogunbameru, B.O (2001): practical Agricultural communication,

Darly Grraphics (Nigeria) ltd, Ibadan.

Roling, N, Ogunbameru, B.O, and Ani, A.O (2009); perspective in Agricultural Extension,

University of Ibadan press.

Van den Ban, (1998): Agricultural Extension, 2nd Edition Blackwell science Publications,

oxford; pp267-268.

30
 APPENDIX
QUESTIONNAIRE FEDERAL COLLEGE OF HORTICULTURE TECHNOLOGY P.M.B,

DADIN-KOWA, GOMBE STATE

IMPACT OF COOPERATIVE SOCIETIES ECONOMICS SUSTAINABILITY IN

KWAMI L.G.A GOMBE STATE

Department of Cooperative

Economic and Management

Federal College of Horticulture,

Dadin-kowa, P.M.B 108

Gombe State.

17TH JUNE, 2023

Dear respondent,

I am a final year student of the above name institution conducting a research on

the topic” Contribution of cooperative societies to the sustainability of small scale

business in Kwami Local Government Area of Gombe State”.

Attached is a questionnaire designed to seek your opinion on the topic under

study. The information received shall be treated confidentiality and will be used

for the purpose of this study only.

Thanks for your cooperation.

Yours faithfully,

Salihu Ahmad Bello

31
 QUESTIONNAIRE
INSTRUCTION

Please tick ( ) items representing your responses and comments freely where necessary.

Section 'A'

1. Socio-economic background of the respondents.

a. Less than 20 ( )

b.20- 30 ( )

c.30- 40 ( )

d. 40- 50 ( )

e. 50 and above ( )

Marital status.

a. Single ( )

b. Married ( )

C. Widowed ( )

d. Divorced ( )

Sex of respondents.

a. Male ( )

b. Female ( )

Educational background.

a. Primary ( )

b. Secondary ( )

C. Tertiary ( )

d. Non formal education ( )

Years of business experience (sustainability)

a. 1-5 ()

32
b. 5-10 ()

C. 10- 15 ( )

d. 15 and above ( )

Average running capital (naira).

a. Less than 30,000 ( )

b. 30,000- 60,000 ( )

c. 60,000- 90,000 ( )

d.90,000- 120,000 ( )

e. 120,000- 150,000( )

Major source of capital.

a. Personal savings ( )

b. Bank loan ()

C. Cooperative society ( )

d. Borrowing from friends and family ( )

e. Government and NGO's ( )

Type of business.

a. Manufacturing ( )

b. Trading ()

c. Services ()

d. Combined ( )

e. Others ()

Section 'B'

Factors that influence the sustainability of small scale businesses.

1. What benefits have you enjoyed from dealing with cooperative society?

a. Beneficial ( )

33
b. Highly beneficial ( )

C. Not beneficial ( )

d. Partially beneficial ( )

2. What is the major environmental problem that affect your business?

a. Lack of infrastructure ( )

b. Lack of government attention ( )

c. Unfavourable government tax( )

3. What is the socio-cultural problems do you experience that affect your business

sustainability.

a. Religious restrictions ( )

b. Marital issues ( )

C. Societal norms ( )

d. Gender biasness ( )

4. Do you encounter any problem in getting approval for loan?

a. Yes ( )

b. No ( )

5. What is your view about the rate of interest charged by cooperative societies?

a. High ( )

b. Low ( )

C. Moderate ( )

d. Average ( )

6. What is the major customer's/suppliers related problem?

a. Non repayment of debt by debtors ( )

b. Un favourable price variation of supplied goods( )

c. Low demand ( )

34
Section 'C'

Major strength and opportunities that leads to the sustainability of small scale business.

1. What motivate(lead) you to establish a business?

a. Lack of employment ( )

b. Loss of job ( )

C. Poor salary ( )

d. Economic demand/imbalance ( )

2. Do you have another source of fund apart farm Cooperative societies support?

a. Banks ( )

b. Microfinance ( )

C. NGO's. ()

d. Government ( )

e. Farming. ()

3. Do you have the desire to expand and increase business.

a. Yes ( )

b. No ( )

4. Would you advice other small scale business owner a a little to join cooperative societies?

a. Yes ( )

b. No ( )

35