APPLICATION OF STATISTICAL TECHNIQUES IN EXAMINING THE BENEFIT OF SMALL AND MEDIUM ENTERPRISE DEVELOPMENT AGENCY OF NIGERIA (SMEDAN) ON ENTREPRENEURS ACROSS 36 STATES OF NIGERIA

APPLICATION OF STATISTICAL TECHNIQUES IN EXAMINING THE BENEFIT OF SMALL AND MEDIUM ENTERPRISE DEVELOPMENT AGENCY OF NIGERIA (SMEDAN) ON ENTREPRENEURS ACROSS 36 STATES OF NIGERIA

CHAPTER ONE

1.0 INTRODUCTION

In recent years, statistical analysis tools have proven to be invaluable. It is now an indispensable tool for investigation and research in almost every aspect of human activity. The majority of statistical analysis methods are concerned with drawing conclusions from observed data. That is, drawing valid conclusions from sample data.

1.1             BACKGROUND INFORMATION

The Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) is a major structure that provides institutional support for small and medium-sized businesses in Nigeria. It was founded in Nigeria in 2003.

SMEDAN’s Responsibilities

Initiating and articulating policy ideas for SMEs
Supervising, monitoring, and coordinating the growth of the SME sector.
Promoting and making industrial infrastructure, such as layouts, available.
Policy formulation.
One of the major impediments to developing a strategic action plan for an efficient and sustainable MSME sector is the scarcity of credible and reliable MSME databases.

This survey, conducted by the Small and Medium Enterprise Development Agency of Nigeria in collaboration with the National Bureau of Statistics, covers Nigerian businesses employing fewer than 200 people (Micro, Small, and Medium Enterprises).

The survey was carried out in all 36 states of the Federation as well as the Federal Capital Territory of Abuja. The pre-test was held in the states of Lagos and Kano. Data for micro enterprises (employing 1-9 people) were gathered using the National Integrated Survey of Households (NISH) Schedule. The National Integrated Survey of Establishment (NISE) Module also covered rural and urban areas where small (employing 10-49 people) and medium (employing 50-199 people) businesses are located.

Thirty Enumeration Areas were chosen per state and FCT, Abuja, with three replicates each containing ten Enumeration Areas. These replicates are subsets of twenty (20), with each state of the Federation and the Federal Capital Territory, Abuja, having ten micro enterprises that were systematically selected per Enumeration, Area, making a total of twenty (20). A total of 300 micro enterprises were visited in each state and the Federal Capital Territory, Abuja.

1.2             STATEMENT OF THE PROBLEM

The research question arising from the above experience is thus: has SMEDAN, with the aforementioned benefits, significantly aided small and medium-sized entrepreneurs across the 36 states? Is this to checkmate their contribution to Nigeria’s economic growth?

1.3 OBJECTIVES OF THE STUDY.

The study’s main goal is to use statistical techniques to examine the impact of the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) on entrepreneurs in 36 states. This is to determine how small and medium-sized enterprises have contributed by utilizing the available services made available by SMEDAN in order to achieve gradual formalization in the pursuit of National Economic Growth. Meanwhile, the specific goals are as follows:

a. To ascertain the extent to which SMEDAN services benefit Nigerian states.

b. To investigate the impact of poor financing/monitoring of small and medium-sized enterprises on the Nigerian government.

c. To propose potential measures to support the growth of MSMEs in rural and urban areas.

1.4 STATEMENT OF HYPOTHESIS.

The following hypothesis was developed for the purposes of this study.

H0: There is no statistically significant difference in the level of benefit derived from SMEDAN services by entrepreneurs in Nigerian states.

H1: The level of benefit from SMEDAN services to entrepreneurs varies significantly across Nigerian states.

1.5 SIGNIFICANCE OF THE STUDY

The study’s significance is to determine the extent of growth and development, as well as to highlight the enormous benefits derived from small and medium-sized businesses.

This research will also help to dispel popular belief that small and medium-sized businesses can drive economic and development in Nigeria.

1.6     SCOPE OF THE STUDY.

By providing an expository analysis of the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and its benefit as a Government institution to Nigeria’s economic growth, the study will broaden the researcher’s knowledge as well as contribute to the existing literature on the subject. This, in turn, will improve policy formation in the country and address the economic challenges of MSMEs in general.

It will also serve as an individual resource for students, academic institutions, and individuals interested in learning more about SMEDAN’s roles, contributions, and benefits to the Nigerian economy in the 36 states of the federation. This project is limited to data from the National Bureau of Statistics.

1.7     DEFINITION OF TERMS

SME – Small and medium-sized enterprise

SMEDAN is Nigeria’s Small and Medium Enterprise Development Agency.

MSME stands for Micro, Small, and Medium Enterprise.

NBS stands for National Bureau of Statistics.

NISH stands for National Integrated Household Survey.

NISE stands for National Integrated Establishment Survey.

EA stands for Enumeration Area.

Small and Medium Industry Development Agency (SMIDA)

NERFUND stands for National Economic Reconstruction Fund.

Nigerian Export Import Bank (NEXIM)

BSCs are Business Support Centres.

BICs are Business Information Centres.

NOTAP is an abbreviation for the National Office for Technology Acquisition Promotion.

NEPC stands for National Export Promotion Council.