THE IMPACT OF ENTREPREURSHIP DEVELOPMENTS ON SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA
ABSTRACT
Entrepreneurship, otherwise called
small business management is now very popular among people as a strategy of
escaping poverty and creating an enabling environment for socio-economic
expansion and productivity. The focus on entrepreneurship development in this
21st century is not just a theoretical approach but a development
oriented action towards alleviating poverty among rural populace as well as
those living in urban slums.
With the deliberation in this
write-up, the importance and indispensability of finance with regards to
financing every form of business activities including small and medium scale business
have been made known. The data collected were analysed using frequency and
percentage table for the demographic data gathered in the study, while the chi-
square (X2) statistical techniques was used to test the hypotheses, scope of
the study, various textbooks, journals were consulted.
TABLE OF CONTENTS
Page
Title
Certification
Dedication
Acknowledgement
Abstract
Table
of Contents
CHAPTER ONE: INTRODUCTION
1.1
Background to the Study
1.2
Statement of the Problem
1.3
Objective of the Study
1.4
Research Question/Hypotheses
1.5
Statement of Hypotheses
1.6 Significance of the Study
1.7 Research Methodology
1.8
Research Instrument
1.9 Scope and Limitation of the Study
1.10
Definition of Terms
1.11
Organisation of the Study
End
of the Chapter References
CHAPTER TWO: LITERATURE REVIEW
2.1
Research into Current Literature
2.2 The contribution of Small and Medium
Enterprises to Economic Development
2.3
Constrain to SMEs Business Growth
2.4
Role and Importance of SMEs Enterprise
2.5 Small and Medium scale Strategy for
Sustainability
End
of chapter References
CHAPTER THREE: RESEARCH METHODOLOGY
3.1
Research Focus
3.2
Research Design
3.3 Research Instrument
3.4
Research Question/Hypotheses.
3.5
Description of the Population and
Sample of the Study
3.6
Source of Data Collection
3.6 Method of Data Analysis
End
of the Chapter References
CHAPTER FOUR: DATA ANALYSIS INTERPRETATION
4.1 Introduction
4.2
Presentation of Data Based on Bio
Statistics
4.3
Presentation of Data Based on Research
Question
4.4
Test of Hypotheses
End of the Chapter References
CHAPTER FIVE: SUMMARY, CONCLUSION, RECOMMENDATION AND SUGGESTION
FOR FURTHER STUDY
5.1
Summary
5.2
Conclusion
5.3
Recommendations
5.4
Suggestion for Further Study
Bibliography
Appendix A: Questionnaire
FOR COMPLETE PROJECT CALL 07064961036
CHAPTER
ONE
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The complete development of a Nation
will only be achieved when all sectors of the economy are well represented and
every desire of the populace is being answered. This entails that promotion of
skill and functions have to be done and fully supported in order for the
economies have a desirable development path with political influential side of
the story, without political support development may be hard to attain. In some
cases only political authority is only necessary and not necessarily their
intense support especially from the national budget. This comes inform of
policies at hand. On the other hand, foreign currency is very crucial in the
economy as it raises the reserve level and hence stabilizes the local currency.
Foreign currency is obtained through the Export Performance rather than being net importers.
Entrepreneurship otherwise called Small
business management is now very popular among people as a strategy of escaping
poverty and creating an enabling environment for socio economic expansion and
productivity. The focus on entrepreneurship development in the 21st
century is not just a theoretical approach but a development oriented action
towards alleviating poverty among rural populace as well as those living in
urban strums. The concept of entrepreneur in an economist perspective is one
who brings resources, labour, material and other asset into combination that
make their value gather than before. (Hisrich D.R Peter and Shepherd 2008).
Entrepreneur introduces changes,
Innovations and a new order to a phenomenon so as to arrive at an alternative
possible end. If a good/solid entrepreneurial spirit is not cultivated by
people, most of the poverty alleviation/wealth creation programmes of government
and private bodies would just be an exercise in futility.
Small and Medium enterprises (SMEs) are
considered to be one of the principal driving forces of economic development.
SMEs are defined by number of workers employed, capital employed and sales
turnover. They stimulate private ownership and entrepreneurial skills: they are
flexible and can adapt quickly to changing market demand and supply situations.
They generate employment help diversify economic activity and make a
significant path of the economy’ in fact SMEs in Hong Kong comprises 98 percent
of total manufacturing establishment. The SMEs sector consists of more than 90%
of all firms outside the agriculture sector in the region (Wattana pruttipaisan
2003).
The influence of the role of entrepreneurship
on economic development has been explained by a number of authors (e.g
Audretsch and ACS, 2003; Reynolds 2000). Conditioned by a number of force and
factors (ind. Legal, Institutional, cultural, societal etc.) the role of
entrepreneurship has been different across countries. Development of new member
state can be characterised as a distinctive experience that started 15years ago
and where entrepreneurship has been assessed as a driving force of
decentralization, economic restructuring and movement in the direction of
market economy, statistically, women constitute more than 50% of the Nigerian
Population and out of this only about 35% of them are involved in
entrepreneurship which can be under the form of micro small medium and large enterprises (Odoemene,2003).These
enterprises usually tend to have the flexibility and inactiveness that are
critical issues in feminism(Aburdene and Nasbitt 1992, Kerka1993). In Nigeria,
regardless of women’s physical population, Education, Economic and Social status,
they are not well represented in the policy making process, especially in
issues of business and manpower development. The relative importance of small
and medium scale enterprise in advance and developing countries has led and
would continue to lead to a reconsideration of the role of small and scale
enterprises in the economy of nations. The development of many countries is
often measure by such indices as the level of industrialization, modernization,
gainful and meaningful employment for all those who are able and willing to
work income per capital, equitable distribution of income and the welfare and
quality of life enjoyed by the citizenry.
1.2 STATEMENT OF THE PROBLEM
Entrepreneurship is concerned with all
thoughts relating to the process of starting and operating business as well as
getting results in modern enterprises by innovators through and with
subordinates. This study therefore, addressed two main question which states
that what types of innovation in SMEs.
SMEs usually face higher production cost
and hence cannot sell their product at competitive prices, especially in those
sectors where large corporations are also into play. There are factors that
cause a producer’s average cost per unit to fall as the scale of output is
increased.
13 OBJECTIVE OF THE STUDY
The broad objective of the research is
to evaluate the impact of entrepreneurship development in Nigeria. The
specific objectives are:-
i) Evaluate the factors that influence the
growth performance and development of entrepreneurship in Nigeria.
ii) Distinguish factors that hinder development
of start-up enterprises compare with those face by older enterprises.
iii) To identifies the marketing problems of
SMEs and entrepreneurship in Nigeria.
IV) To determines how assistance institutions
are contributing to the development of small and medium enterprises.
V). To examine the effect of environmental
factors on women entrepreneurship development (WED) in Nigeria.
1.4 RESEARCH QUESTION
The following question shall consider
pertinent for the purpose of this research:
a.
What are roles of
entrepreneurship in Economic Development?
b.
How small scale
industry does contribute to Nigeria
national development?
c.
What are the factors
influencing small and medium enterprises?
d.
To what extend do small
business entrepreneurs develop institutions?
1.5 STATEMENT OF HYPOTHESIS
Hypothesis is a conjectural statement
of relationship between two or more various.
They are also tentative but testable or verifiable statement about the
relationship between two or more variables.
They are statement of consumption which a researcher makes to enable his
/ her study phenomenon. The assumption
will be validated with date gathered from the field work.
The hypotheses to be tested in this
project are as follows:
Ho:
Entrepreneurial does not
influence the growth performance and development of entrepreneurship in Nigeria.
Ho: There
is no significant relationship between the environmental factors on development
of entrepreneurship in Nigeria.
Ho: There
is no significant relationship between the size of the institution and the
level of growth attained.
1.6 SIGNIFICANCE OF THE STUDY
The study is very important because it
analysis development and contribution of entrepreneurship in the economic
development during the last ten year through SMEs development as well as new
firms formation as an important indicator of entrepreneurship activity in
Estonia. This is supplemented with
the analysis of main constraints hindering new business start-ups. It plays an
important role in economic development of a country. Especially information
technologies are changing the economy and traditional business become more
dependent on new technologies. Compared with traditional business new
technologies facilitate an increased interactivity, flexibility, cheap business
transactions as well as improve interconnection with business partners and
customers.
This study observes the impact of new
technologies in SMEs. The focus on is exploring the opportunity that new
technologies present to SMEs. It indicates that growth of SMEs and possible
solution to the underlying challenges and also depends on endogenous and
exogenous variables.
1.7 RESEACH METHODOLOGY
The methodology of the research work is
centred on the discussion of the various method and strategies that are to be
adopted in carrying out the research study. Fagbamigbe (1996) “research design
could be descanted as the blue print that allow a researcher to provide
solution to the problem of who to study, what to study and how to generate data
in research design population under study sampling frame, sample size, sampling
techniques sources of data analysis and method of hypothesis testing.
1.8 RESEACH INSTRUMENT
As earlier stated the main instrument to
be used in this study is primary source data, it shall be used for the purpose
of drawing conclusion of the study so as to come up with objective findings.
The primary data sources:- the
questionnaire shall be put in two part, the respondent characteristics and the
questionnaire that will be used to obtain information on the research question
and hypothesis. This also can be called interview method that is meeting with
some small and medium scale business having oral discussion with them of which
positive response were given.
Secondary data source: -Secondary data
sources were also used in which some necessary information was gathered from
text book, magazine, financial memoranda, and newspaper and so on.
1.9 SCOPE AND LIMITATION OF THE STUDY
The Small and Medium scale business
cover a wide range of industrial units and they occupy an important position in
the industrial structure of any developing country. The development of small
and medium scale industries have therefore being receiving high priority
attention in the programme of industrial development of Nigeria and there is a
new awareness for increasing the floor of assistance to the sector small and
medium scale industry which activities cover different area of human endeavour.
The limitation of the research work was
the problem of obtaining data for literature review. The researcher has to
extensively and also intensively to obtain the required data, the interview was
obtained with difficulty as interviewers were too conscious of sensitive
information.
Financial
constraint was also a very important difficulty; the cost obtaining both the
primary and secondary data from the various sources couple with the cost of
producing copies of the study was enormous. It was serious limitation.
1.10 DEFINITION OF BASIC TERMS
ASSET:
- Resources with Economic value that an
individual corporation or country
owns or controls with the expectation that it will provide future
benefit.
A balance sheet item representing what a
firm owns. Assets are bought to increase the value of a firm or benefit the
firms operations. You can think of an asset as something that can generate cash
flow, regardless of whether it’s a company’s manufacturing equipment or an
individual rental apartment.
DEVELOPMENT: - Is the process of
developing or being developed, A specified state of growth or advancement. The
act of process of developing, growth, progress, such as Children development,
Economic development and Business development.
The
process of Economic and Social transformation that is based on complex cultural
and environmental factors and their interaction.
ENTREPRENEURSHIP:-
It refers to the act of identifying business opportunities and organizing to
initiate a successful business activity.
It is also the necessary organizing skills associated with the project.
MEDIUM
SCALE ENTERPRISE:-
These are enterprises which are larger in size than to be described small
enterprises, but not as what can be described as large.
SCALE:-
Is an instrument for weighing. A graduated range of values forming a standard
system for measuring or grading something.
Scale
may be broadly classified as:-
CATEGORY
SCALE: - Sequence of numbers or words which only serve to identify certain
entities or observation and have no quantitative significance e.g. a number or
named list or number on the uniforms of the number of a team, also called
nominal scale or quantitative scale.
INTERVAL
SCALE:- sequence of number in
fixed order representing amount or numeric values e.g. a distance.
SMALL
SCALE ENTERPRISE:- This is an enterprise on whose total
cost, excluding cost of land, but including working capital, and does not
exceed Ten Million Naira (N10,000,000).
THE
IMPACT:- Is the measure of the tangible and intangible effect (consequences) of
one things or entities action or influence upon another.
1.11 ORGANIZATION OF THE STUDY
Chapter one of this study deals with the
introduction and under this introduction there were following background to the
study. Statement of the problem, Objective of the study, Significance of the
study, Research question/Hypothesis, Research Methodology, Research Instrument,
Scope and Limitation of the study, Definition of terms and References. The
research on the Literature Review will be analysed in chapter two, chapter
three will cover a theoretical frame work of Research Design, Research
Instrument, Validity and Reliability, Data collection and Method of Data
Analysis. Chapter four will be Collection Data, Analysis of such Data and
Interpretation of such Data; it will also show the result of the test of
hypothesis.
Finally, chapter five will encapsulated
the Summary, Conclusion and Recommendation on how Small and Medium Scale
Enterprises is now very popular as a strategy of escaping poverty and creating
an enabling environment for Socio Economic expansion and productivity in Nigeria.
