An Empirical Examination Of The Effect Of Small And Medium Scale Development On Youth Empowerment

An Empirical Examination Of The Effect Of Small And Medium Scale Development On Youth Empowerment

Chapter One

Preface

Background to the Study

Small and Medium Scale Enterprises aresub-sectors of the artificial sector which play pivotal places in artificial development( Ahmed,S. 2006). Following the relinquishment of profitable reform programme in Nigeria in 1981, there have been several opinions to switch from capital ferocious and large scale artificial systems which was grounded on the gospel of import development to Small and Medium Scale Enterprises which have better prospects for developing domestic frugality, thereby generating the needed goods and services that will propel the frugality of Nigeria towards development. It’s base on this premise that OjoO.( 2009), argued that one of the responses to the challenges of development in developing countries particularly, in Nigeria, is the stimulant of entrepreneurial development scheme. Despite the abundant natural coffers, the country still finds it veritably delicate to discover her experimental bearing since independence. Quality and acceptable infrastructural provision has remained a agony, the real sector among others have witnessed downcast performance while severance rate is on the increase. utmost of the poor and jobless Nigerians in order to better their lots have resorted to the establishment of their own businesses. Accordingly, Entrepreneurship is fast getting a ménage name in Nigeria. This is as a result of the fact that the so called white collar jobs that people clamor for are no longer there. Indeed, the touted sectors( Banks and companies) known to be the largest employer of labour are on the down- turn following the connection extremity and fraudulent practice of the high and potent in the banking sector. The companies of course are folding up as a result of erratic power force, instability and patient increase in interest rate which has lead to high cost of product and undermines profit making capabilities of companies operating in Nigeria. As a result of banking sector practices and nonstop folding up of companies, a lot of Nigerians are thrown into severance which inescapably detriment the profitable situation of the country.

Since the office jobs that people desire are no longer there for the bulging population, and many bones that succeeded in getting the jobs are thrown out as a result of the factors linked above, the need for the government and the people to have a rethink on the way- eschewal of this mess came imperative. Hence, the need for Small and Medium Scale Enterprises( SMEs) came a reality as a means of icing tone-independent, employment creation, import negotiation, effective and effective application of original raw accoutrements and donation to the profitable development of our dear nation( Nigeria). All the aforestated benefits of Small and Medium Scale Enterprises can not be achieved without the direct intervention of the government and fiscal institutions. Over the times, a number of programs have been formulated by the government with a view to developing Small and Medium Scale Enterprises. The Nigerian government under the also leadership of Chief Olusegun Obasanjo announcedmicro-finance policy and other nonsupervisory and administrative frame in 2005.

The exploration will thus examine the impact of small and medium enterprise development on youth commission in Kaduna megalopolis.

Statement of the Problem

There has been suppressed growths and sluggish development in the small and medium enterprises( SMEs) anyhow of adding targeted government backing streamlined to profit enterprises operating in this sector. There were several programs in the history which gave precedences to entrepreneurship development, indicating the trust in government policy in support of SMEs. The government of Nigeria linked entrepreneurship development as a major thrust to achieve profitable development through SMEs growth and development.

This made Nigerian government both at National and State as well as original government to prioritize small and medium enterprises development enterprise by. As such the prioritization of the small and medium scale by government at different position is echoed in nearly every policy document.

For illustration in the artificial development policy in vision 2020, the Nigeria end is to promote and support small and medium enterprise as they’re viewed as an important machine for employment creation and profitable growth. Although the government of Nigeria has been advancing targeted support in marketing, operation and finance and worse still others collapsed. Egbe( 2004) in this regard rated Nigeria as having one of the smallest small and medium scale sector’s share of employment in the world, when “ 250 workers ” was considered the yard stick in the description of small and medium scale enterprise. Targeted government backing has been observed to play a vital part in starting, growing and medium scale enterprise in Nigeria,( Beck, 2005; Zainab, 2008; Herbert 2008 and Atino, 2001). Although some entrepreneurs in SMEs have entered both fiscal and non fiscal backing, numerous are still small or are facing viability problems. In Nigeria, the SMEs sector is facing to contribute meaningfully to the public frugality as was endured away when governments advanced target support. Targeted government support to SMEs was set up to restate into profitable development in countries like Indonesia where SMEs reckoned for 98 of employment creation and growth with Japan and Thailand having their SMEs contributing 81 and 78 to gross domestic product( GDP)( Okoh, 2009).

This discrepancy has promoted the experimenter to carryout a study to probe the impact of small and medium scale enterprise on youth commission in Kaduna. As well as to find out the forms of government support render to small and medium scale enterprises in Kaduna.

Ideal Of The Study

The central ideal of the study is to examine the impact of small and medium scale enterprises development on youth commission in Kaduna Metropolis. The specific objects are

To assess how small and medium scale enterprises development affect employment generation in Kaduna Metropolis.

To probe the forms of targeted government support rendered to small and medium scale enterprise in Kaduna Metropolis.

To dissect the efficacity of government capacity structure programmes and support to promote the development of SMEs among youth in Kaduna Metropolis.

To estimate the adequacy of youths commission through SMEs development enterprise in Kaduna and recommend possible policy adaptations.

Exploration Questions

In order to affectively probe the problem of this exploration, the experimenter formulated the following exploration questions

What are the goods of small and medium scale enterprises development on employment generation in Kaduna Metropolis?

What kind of support does the government render to small and medium scale enterprise in Kaduna Metropolis?

How effective is government capacity structure programmes and support in promoting the development of SMEs among youths in Kaduna Metropolis?

How sufficient is youth commission through SMEs development action in Kaduna Metropolis?

Statement of thesis

In order to confirm the impact of SMEs development on youth empowernment in kaduna megalopolis and completely appreciate their separate applicable significance, the following suppositions is supposed

H0 There’s no significance relationship between SMEs development and youth commission in Kaduna megalopolis.

H1 There’s significant relationship between SMEs development and youth commission in Kaduna megalopolis.

Significance of the study

The study will be salutary to entrepreneurship development; as similar Kaduna state government can use the findings of the exploration as a base for policy expression as regard entrepreneurship development.

The study will also contribute to the being knowledge on entrepreneurship development.

It’s also good to note that the study can be use as a base for farther exploration, as the exploration can be use as a spring board for farther exploration as well as a good reference material to scholars bearing analogous exploration.

Compass Of The Study

The study covers an empirical examination of the effect of small and medium scale development on youth commission in kaduna megalopolis. The study also identifies the practical approaches use in developing entrepreneurship as well as the problems militating against entrepreneurship development. The study is limited to Kaduna megalopolis.

The study covers a time from 2006 – 2011.

Limitation of the study

The study is limited to Kaduna megalopolis, as it’ll be delicate to cover other part of the state due to the duration of this study.

For the fact that a check study was used as the exploration design as well as the questionnaire as the exploration instrument, it isn’t certain if the same result would be attained if other designs and instruments were used. either, another limitation is that the repliers could have either over inflated or understate their responses while scoring the particulars in the questionnaire. Also the incurious station of some of the repliers could affect the validity of their response to the questionnaire. This limitation should be taking cognizance of other inquiries conducting analogous studies.

Description Of Terms

– Entrepreneurship is an innovative act, which includes endowing being coffers for new wealth – producing capacity( Afonja,B. 1999).

– Entrepreneur An existent that identifies develops and brings vision to life under – condition of threat and a considerable query( Bashar,O. 2005)

– Entrepreneurial Characteristic These are traits that make an existent an entrepreneur( Tonga,R. 2009).

– Business Performance The success or failure of an enterprise( Tonga,R. 2009).