Our Archives

Call 09159097300, or 09067754232 for any enquiries.

Project Topic:

THE IMPACT OF GOVERNMENT FUNDING ON THE PROMOTION AND DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 54 ::   Attributes: Questionnaire, Data Analysis,Abstract ::   7,744 people found this useful

Project Body:

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The production of goods and services in the most efficient manner has continued to be the only viable and reliable option for development, growth and survival of any economy. SMEs have been fully recognized by government and development experts as the main engine of economic growth and a major factor by extension in promoting the realization of the financial systems strategy 2020.

 

This is because the development of this sub-sector is an essential element in the growth strategy, not only in contributing to improved standard of living; they also bring substantial local capital formation and achieve high level of productivity and capacity.

From a planning stand point, SMEs are increasingly recognized as the principal catalysts for achieving equitable and sustainable industrial diversification and dispersal and in most countries SMEs account for well over half of the total share of employment, sales and value added (Udechukwu, 2003). This is not surprising because the industrial sector in Nigeria has no significant record of meaningful contribution to economic development since independence in 1960 because it has not experienced any notable growth, traceable to indigenous industrial entrepreneurship (Adewale, 2007). The Nigerian economy, since the early seventies, has been dependent on oil products. As a result of the enormity of revenue generated from oil, very little attention has been paid to proper development of the industrial sector. The reason for the lacklustre performance of the industrial sector is mostly associated with the poor attention paid to the promotion and development of the small and medium scale sub-sector, which is accepted worldwide to be the engine of economic growth and the basic foundation for the industrialization process of any nation that desires to experience solid development. This is more so because entrepreneurship development is a critical aspect of skills development and keystone for economic revival and growth.

Furthermore, the vital role of small and medium scale enterprise (SMEs) as the only authentic foundation for accelerated industrialization, growth and development, as witnessed in all the Newly Industrialized Countries of South East Asia, referred to as Asian Tigers, is recognized for its accelerative effect in achieving macro-economic objectives such as full employment, income distribution, development of local technology and stimulation of indigenous entrepreneurship, mitigation of rural-urban migration, support and linkage of the entire industrial sector by training of semi-skilled and non-skilled manpower as well as the manufacturing and supply of spare parts and raw materials to large scale industries.

 

1.2 STATEMENT OF THE PROBLEM

Several studies have identified financial constraint as the major obstacle to Small and Medium Scale Enterprises Development in developing countries including Nigeria. For instance, Adelaja (2003) argued that the access to institutional finance has always constituted a pandemic problem for SME development in Nigeria. He recalled that in the past, a number of schemes have been put in place to provide special credit lines/windows for SMEs but this achieved very limited impact.

The primary focus of this study emanates from the fact that small scale enterprises owners do not have sufficient finance to carry on their due to the low saving culture of the people in this part of the world. The reason for this is not far fetch: low level of income basically. While it is an established fact that Small and Medium Scale Enterprises face financial challenges, no research has been conducted to investigate the effect the financial problem on their contribution to economic development. Asaolu et al (2005) and many other authors and researchers have deduced that the financial challenges mar the developmental role of Small and Medium Scale Enterprises. But this may not be true especially in the case of Nigeria where the informal sector, which is constituted largely by the Small and Medium Scale Enterprises play a very important role in the development of the nation’s economy. Therefore, this study seeks to evaluate the impact of government funding in the promotion and development of Small and Medium Scale Enterprises (SMEs) in Nigeria.

 

1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to critically examine the impact of government funding on the promotion and development of SMEs in Nigeria. Specific objectives of the study are:

  1. To appraise financial challenges of Small and Medium Scale Enterprises in Nigeria.
  2. To appraise the effectiveness of various SME agencies set up by the federal government to promote activities of SMEs in Nigeria.
  3. To examine the impact of government funding on Small and medium scale enterprises in Nigeria.
  4. To recommend various strategies that can be adopted by the government to promote and develop SMEs effectively.

 

1.4 RESEARCH QUESTIONS

In-order to achieve the objectives of the study, the following research questions will guide the study:

  1. What financial challenges are faced by Small and Medium Scale Enterprises in Nigeria?
  2. How effective are various SME agencies set up by the federal government to promote activities of SMEs in Nigeria?
  3. What impact government funding had on Small and medium scale enterprises in Nigeria?
  4. What strategies can be adopted by the government to promote and develop SMEs effectively?

 

1.5 RESEARCH HYPOTHESES

1. Ho: Government Agencies set-up to promote and develop SMEs have not been effective in the discharge of their duties.

Hi: Government Agencies set-up to promote and develop SMEs have been effective in the discharge of their duties.

2. Ho:  Government funding on SMEs does not have a significant impact on the promotion and development of SMEs in Nigeria.

Hi: Government funding on SMEs has a significant impact on the promotion and development of SMEs in Nigeria.

 

1.6 SIGNIFICANCE OF THE STUDY

Small and Medium scale Enterprises (SMEs) in Africa rely largely on own savings, not only to grow but also to innovate, firms often need real services support and formal finance assistance, failing which under-investment in long term capabilities (training and R&D) may result, (Oyelaran-Oyeyinka, 2003). Besides finance, there are critical elements (including: knowledge, skills and experience of staff; capacity and quality of internal facilities; information and knowledge of market; intellectual and managerial leadership; external infrastructure and the incentive system at the micro and macro levels) that lacking within technology support institutions themselves. These undermine the effectiveness of their support to Small and Medium scale Enterprises (SMEs). This study is significant because it would help to evaluate the operations of a vital segment of the industrial sector – Small and Medium Scale Enterprises (SMEs) , which have been identified as having very high potential in promoting economic growth and development (Oni and Daniya, 2012). The evaluation shall be done with special focus on their financing thereby adding to the existing literature on the subject matter.

 

1.7 SCOPE OF THE STUDY

This research work focuses on the impact of government funding on the promotion and development of Small and Medium Scale Enterprises (SMEs) in Nigeria paying special attention to the impact the government of Nigeria has on the development of Small and Medium Scale Enterprises through the establishment of SMEDAN. The research intends to study the essential problems encountered by Small and Medium Scale Enterprises and suggest ways by which they can be adequately and efficiently financed.
Most of the information and data needed for the study would be gathered from existing literature and from relevant government agencies such as the  National Bureau of Statistics (NBS) and Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) etc.

 

1.8 LIMITATIONS OF THE STUDY

The only limitation faced by the researcher in the course of carrying out this study was the delay in getting data from the various respondents. Most respondents were reluctant in filling questionnaires administered to them due to their busy schedules and nature of their work. The researcher found it difficult to collect responses from the various respondents, and this almost hampered the success of this study.

 

1.9 DEFINITION OF TERMS

Business: The Oxford Learner’s Dictionary defines business as a commercial activity, a means of live hood, a trade, profession, occupation, etc.

Capital: capital can be defined s man-made productive asset that are set aside for the production of other assets. In other restricted cases, it is defined as money set aside to start business.

Economic Development: it can define as the process whereby a country’s real per capital gross national product of income increases over a sustained period of time through continuing increases i.e. per capital productivity.

 

 

Economic Growth: Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to obviate the distorting effect of inflation on the price of the goods produced. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment".

 

Economy: the word is used to mean a particular system of organization for the production, distribution, and consumption of all things people use to achieve a certain standard of living. .

Entrepreneurship: The willing and ability of an individual to seek out investment opportunities in an environment, and an environment, and be able to establish and run an enterprise successfully based on the identified opportunities. 

Role: according to Merriam-Webster’ dictionary is defined a function or part performed especially in a particular operation or process or major.

SMEs:Small and medium enterprises or small and medium-sized enterprises (SMEs, small and medium-sized businesses, SMBs, and variations of these terms) are companies whose personnel numbers fall below certain limits. The abbreviation "SME" is used in the European Union and by international organizations such as the World Bank, the United Nations and the World Trade Organization (WTO). Small enterprises outnumber large companies by a wide margin and also employ many more people. SMEs are also said to be responsible for driving innovation and competition in many economic sectors.

SMEDAN: This isThe short form for Small and Medium Enterprises Development Agency of Nigeria. (SMEDAN) was established by the SMEDAN Act of 2003 to promote the development of the MSME sector of the Nigeria Economy. The Agency positions itself as a One Stop Shop for MSME Development. Micro Enterprises are included in the clientele of the Agency since they form the bedrock for SME's 

REFERENCES

  • Adebusuyi, B. S. (1997). Performance Evaluation of Small-medium Enterprises (SMEs) in Nigeria. Bullion, 21 No. 4 Central Bank of Nigeria.
  • Adewale, A.(2007). Promoting medium and small scale industries in Nigeria. The Nigerian Banker,April/June, p. 6-11.
  • Asaolu, T. O.; Oladoyin, A. M. and Oladele, P.O. (2005) A consideration of the problems and prospects of revitalising the Small-Scale Sector in Nigeria. European Journal of Scientific Research. Vol. 7, no. 3, pp. 5-11.
  • Ayesha, B. (2007) Entrepreneurship Development for competitive Small and Medium Enterprises. Tokyo: Asian Productivity Organization.

Get The Complete Project »

Project Department:

MORE SMES & ENTREPRENEURSHIP FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED SMES & ENTREPRENEURSHIP FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

A CRITICAL ANALYSIS OF THE ROLE OF BANK OF INDUSTRY TOWARDS THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 65 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   4906 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY The study of the role of government agencies towards the development of small scale enterprises is quite interesting. These enterprise have a...Continue reading »

AN APPRAISAL OF MATERIAL MANAGEMENT CONCEPT AS A STRATEGY FOR ACHIEVING HIGHER PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 63 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   12460 engagements

CHAPTER ONE INTRODUCTION 1.1 Background of the Study The Need for Appraisal of Material Management Concepts as a strategy for achieving higher productivity and to make up with the growing complexi...Continue reading »

AN ANALYSIS OF THE IMPACT OF NAPEP ON ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA (A CASE STUDY OF ABIA STATE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 82 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5002 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the Study Poverty and unemployment represent the biggest challenges to government in Nigeria. Unemployment rate continue to rise alarmingly, poverty has...Continue reading »

AN ANALYTICAL STUDY OF CREDIT FACILITIES TO SMALL SCALE FARMERS IN NIGERIA (A STUDY OF SMALL-SCALE FARMERS IN OHAOFIA LOCAL GOVERNMENT AREA OF ABIA STATE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 84 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   3955 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY Agriculture according to Longman Dictionary of Contemporary English (New Edition) is the science or practice of farming. Agriculture has a ke...Continue reading »

EFFECT OF CAPITAL ALLOWANCES ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (A CASE STUDY OF SELECTED CONSTRUCTION COMPANIES IN NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: N/A ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7891 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Historically, Nigeria’s experience of taxation predates the colonial period. The Hausas of Northern Nigeria were paying taxes, though in...Continue reading »

EFFECTS OF MULTIPLE TAXATIONS ON BUSINESS SURVIVAL IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 59 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7657 engagements

CHAPTER TWO 2.1. REVIEW OF RELATED LITERATURE Taxation is one of the major fiscal policies the government of any nation such as Nigeria can use to achieve economic stability and in the financing of ...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Jayone from FPA said " I had a wonderful experience using UniProjectMaterials,though they did not deliver the material on time, but the content had good quality. I recommend UniProjectMaterials for any project research work.".
    Rating: Very Good
  • 2. Mugisha R from B.U, UGANDA said "Wow, this is great, your materials has helped me alot. Many blessings. I will inform my friends. Thanks. ".
    Rating: Very Good
  • 3. Nwachukwu Ruth Chinyerr from Michael okpara university of Agriculture,umudike said "I really appreciate this. Materials like this are good guides to writing a researchable project.".
    Rating: Good
  • 4. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 5. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 6. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good

Paper Information

Format:MS word
Chapter:1-5
Pages:54
Attribute:Questionnaire, Data Analysis,Abstract
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives