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EFFECT OF SME IN NIGERIA

Format: MS WORD  |  Chapter: 1-5  |  Pages: 76  |  1129 Users found this project useful  |  Price NGN5,000

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ABSTRACT

The main purpose of this study is to investigate small and medium scale enterprises in Nigeria in order to identify their problems and prospects in Enugu metropolis. Sample size of 270 was drawn from the population of 828 registered companies in Enugu State in which a total of two hundred and seventy (270) copies of the questionnaire were administered out of which two hundred and forty (240) copies representing (89%) of the questionnaire were properly completed and retrieved while thirty (30) copies representing (11%) were not retrieved. The instruments used to gather information for this study includes both primary and secondary sources. The main instrument of data collection was the questionnaire. The data were presented in tables as frequency distribution in the data analysis, the techniques of percentage frequencies were used. The hypothesis was tested with chi-square method at 5% significance level. Having analysed the data, the following were the major findings, that there is improper implementation of its policies towards small and medium scale enterprises in Nigeria; that small and medium scale enterprises provide effective means of stimulating indigenous entrepreneurship; that poor management practices, financial problems, lack of capital, lack of infrastructural facilities etc, hinder the performance of small and   medium   scale   enterprises   in   Nigeria.   The   study   concludes that the role played by the government towards promotion and development of small and medium scale enterprises in Nigeria is highly effective, in the sense that government supported small and medium scale enterprises through favourable investment policies, institutional and fiscal policy, protective business law and financial incentives; that small and medium scale enterprises had immensely contributed to the economic growth and development in Nigeria for they have been recognized as indispensable components of national development in both developed and developing economies; that there are various confronting constraints to the development of small and medium scale enterprises such as lack of planning, inimical government regulations, poor marketing strategies etc; that there is significant support given to small and medium scale enterprises in Nigeria by government and other individual bodies. Hence, it therefore recommends that government should ensure that there will be no improper implementation of its policies towards small and medium scale enterprises and should not in the area of incentive and infrastructural development neglect business activities to facilitate small and medium scale enterprises in Nigeria. That government should also adequately support small and medium scale enterprises financially to avoid lack of capital. Moreso, small and medium scale enterprises should ensure that they solve their internal problems which hinder the success of the small and medium scale enterprises. For instance, they should ensure that there is effective management practices or expertise, effective accounting standards, adequate manpower and avoid financial indiscipline and corruption in order to boost their performances.

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EFFECT OF SME IN NIGERIA

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