Small Scale Enterprises And Economic Development
(A Case Study Of Enugu State Nigeria)
In the intricate landscape of economic development, small-scale enterprises play a vital role in fostering growth, especially in developing nations. These enterprises, often characterized by their limited size and workforce, contribute significantly to job creation, innovation, and poverty alleviation. The resilience and adaptability inherent in small-scale businesses make them crucial agents in enhancing economic stability. By fostering entrepreneurship and local initiatives, these enterprises catalyze community development, addressing specific needs and challenges. Additionally, they promote inclusivity by providing opportunities for marginalized groups, thus contributing to a more equitable economic landscape. Recognizing the symbiotic relationship between small-scale enterprises and economic development is imperative for crafting policies that nurture and sustain these businesses, fostering a robust and dynamic economic ecosystem.
The study focused on the small scale enterprise and economic development of Nigeria. Along the line, problems hindering the expansion of small scale enterprises in Enugu State were identified
For guidance on the study, the research formulated hypothesis based on which questions where designed.
The purposes of the study was stated, statement of problems made, and related literature reviewed. Out of the existing small scale industries located in Enugu State, some of them were selected for the research work through random sampling technique. Data were obtained by means of questionnaire, also personal observation was made, the data collected were analyzed using the chi-square (X2), a non parametric test since the questions death with attributes.
It was indicated from the study that small scale enterprises have indeed made useful contributions to the economic development attainment of Nigeria in such a ways as providing employment’s import substitutions improvement technology and etc.
In the process of the study too, it was realized that they have impediments in their contributions to economic development.
Conclusively, economic development can be achieved by establishment of small scale enterprise.
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
Problem Identification and Purposes of Study
Rationale of the study
Significant of the study
Definition of terms
CHAPTER TWO
LITERATURE REVIEW
2.1 Theoretical Review
2.2 Empirical Review
CHAPTER THREE
HYPOTHESIS, RESEARCH TOOLS, RESEARCH PROCEDURE, SOURCES OF DATA AND LIMITATIONS OF THE STUDY.
3.1 Hypothesis of the study
3.2 Research tools and research procedure
3.3 Sources of data
3.4 Limitations of the study
CHAPTER FOUR
ANALYSIS
4.1 Presentation of Data
4.2 Analysis of Data / Testing of hypothesis
4.3 Analysis of the result
CHAPTER FIVE
SUMMARY CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of the study
5.2 Conclusion
5.3 Recommendation for further study
INTRODUCTION
1.1 PROBLEM IDENTIFICATION AND PURPOSE OF THE STUDY
Nigeria Government joined other countries of the world in emphasizing the establishment of small-scale enterprises which is characterized by small scale industries which size would not all for elaborates administrative structure to play observation role in economic development. Consequently, those roles are feel only little due to insufficient capital, lack of vital business information, lack of education and technology, deteriorating and incompatible controls etc.
The problem in the study therefore is to determine the extent of the contribution of small-scale enterprise towards the economic development in Enugu State and Nigeria.
The purpose of this study there is to analytically appraise the contribution to economic development of the small-scale enterprises in Enugu State.
In order to critically carry out this purpose, the researcher’s primary concern are to.
(1) Examine the type of contribution which small-scale enterprises are expected to make in economic development.
(2) To create an awareness among the citizenry of the importance of small-scale enterprises in Enugu State and Local Government area.
1.2 RATIONALE OF THE STUDY
The rational of the study is to ascertain whether small scale enterprises contribute to the economic development of Nigeria and to what extent.
Different commentators and critics have held contrary views about the contribution of small scale enterprises toward economic development. Some see it as a worthless project that should not be ventured into some as a drain of pipe, a problem to economic developments because it is characterized by problems of small capital, lack of government support, internal control etc. yet, some others see it as the engine for economic growth and development. Because of these alivergent views, it becomes logically reasonable to really examine the contributions of these small scale enterprises in economic development of Nigeria which will help all concerned to understand clearly that through small scale enterprises in inherent with many problems, yet its contributions to the nations economic development cannot be equaled.
1.3 SIGNIFICANTS OF THE STUDY
The government and people of Enugu State will have a lot of gain from this project work. Some of these gains are as follows:
(1) This study will help to smell governments efforts to boost private participation in economic activities. The government has been encouraging people to start their own business, especially now that the ban on importation of basic products is still in force and there is need to produce these things we used to import, locally in Enugu State, but because Enugu State are not fully aware of the important roles industries pay in the society (especially small scale enterprises) and the advantages that can be derived from establishing them, people tend to ignore the call of government to establish industries in the state as a way of helping to revamp our battered economy, however, with the help of this study people will become more aware of the advantages of establishing these industries (especially small-scale ones) there by leading to an increase in the member of industries in Enugu State in Particular.
(2) This study will help to increase public patronage of small scale industries by creating public patronage of small scale industries by creating an awareness about the high quality products they produce and the need to patronize our local industries but with the help of this study, Enugu people will have the confidence to patronize their industries and it will also help them to realize the fact that if they patronize or support their local industries they are paying the way of the future economic advancement of Enugu State in particular
(3) This study will also help the government and people of Enugu State to realize the problems of small scale prizes in the state (especially these located in Enugu state) and offer suggestions are regards how to tackled these problems
1.4 DEFINITION OF TERMS
ECONOMICS ACTIVITIES: Any thing that man engages in with the scale arm of earning a living.
ENTERPRISE: Means a business concern
ECONOMIC DEVELOPMENT: Involves improving the state of our cities, ways of thinking, methods of production etc. it also involves improving our general standard of living.
INDUSTRIES: They are establishment concerned with the changing of inputs or the assembling of components to form finished or semi finished goods.
CREDIT FACILITIES: They are Lump sums of money that are put at the disposal of borrowers.
SMALL SCALE ENTERPRISES: They are enterprises where there is limited skill and capital supplied and owned by person who could be the manager with a limited number of employees.
Small Scale Enterprises And Economic Development:
Small-scale enterprises play a significant role in economic development, particularly in emerging economies. They contribute to economic growth, job creation, innovation, and poverty reduction. Here are some ways in which small-scale enterprises contribute to economic development:
- Job Creation: Small businesses are often labor-intensive and can quickly create employment opportunities, especially in sectors with low barriers to entry. This helps to reduce unemployment rates and improve the standard of living in local communities.
- Innovation: Small-scale enterprises can be more agile and flexible than large corporations, allowing them to innovate more rapidly. They can introduce new products, services, and processes that can stimulate economic growth and competitiveness.
- Local Economic Impact: Small businesses tend to operate at the local level, and the money they generate circulates within the community. This “multiplier effect” can boost local economies as the income generated by these businesses is spent on local goods and services.
- Diversification: Small businesses contribute to economic stability by diversifying the economic landscape. When an economy relies heavily on a few large corporations, it’s vulnerable to shocks. Having a thriving small business sector can help buffer against economic downturns.
- Entrepreneurship Development: Small-scale enterprises provide an avenue for aspiring entrepreneurs to start their businesses with relatively low capital requirements. This encourages entrepreneurship and fosters a culture of innovation and risk-taking.
- Poverty Reduction: Small businesses provide income-generating opportunities for individuals who might otherwise struggle to find employment. This can help alleviate poverty and improve the overall quality of life in communities.
- Skills Development: Small businesses often provide on-the-job training, helping employees acquire new skills and improve their employability. This can lead to a more skilled and adaptable workforce.
- Regional Development: Small-scale enterprises can drive development in rural and less-developed areas by providing local employment options and reducing urban migration. This can help balance regional disparities.
- Support for Larger Industries: Small businesses can serve as suppliers, service providers, or distributors for larger industries, creating a symbiotic relationship that strengthens the overall economy.
- Cultural Preservation: Small businesses often reflect the cultural heritage of a region through traditional crafts, foods, and products. This can promote tourism and preserve cultural diversity.
However, it’s important to note that the success of small-scale enterprises depends on factors such as access to finance, supportive government policies, infrastructure, market access, and a favorable business environment. Governments and policymakers can play a crucial role in fostering the growth of small businesses by providing access to funding, reducing regulatory barriers, offering business development support, and promoting entrepreneurship education.
In summary, small-scale enterprises are vital contributors to economic development due to their ability to create jobs, drive innovation, stimulate local economies, and empower communities. Their role should not be underestimated, especially in the context of developing economies striving for sustainable growth and inclusive prosperity.