The Nigerian Medium Scale Businesses: Issues, Challenges And Prospects

The Nigerian Medium Scale Businesses: Issues, Challenges And Prospects

Abstract

The exploration work aimed at examining the issues, challenges and prospects of the Nigerian Medium Scale Businesses. The main instrument used to induce data for the study was the questionnaire.

The crucial issues uncovered by the exploration study are that repliers agreed that medium scale enterprises have played a significant part in the Nigerian frugality. Also utmost of the walls to the growth of medium scale businesses include poor directorial skill, lack of feasibility studies, lack of timely information, inconsistent government programs and shy infrastructural installations.

still, the findings of the study, the ensuing recommendations are proffered. The Federal Government should give enabling terrain like the provision of architectures similar as good roads, electricity force, water to enable the operations of SMEs in Nigeria.

Bank officers should be mobilised to base investment on implicit rather than security and collateral only. The nation’s government should guarantee both political and profitable stability which will help in the growth of survival and expansion f medium scale enterprise.

Eventually, Government regulations should be similar that from time to time won’t hamper the establishment of new and growth of being small and medium scale enterprise in any part of the country.

Table Of Contents

CHAPTER ONE

Preface

Background to the Study

Statement of the Problem

objects of the Study

Significance of the Study

exploration Questions

exploration thesis

compass and Limitations of Study

description of terms

silhouettes of Other Chapters

References

CHAPTER TWO LITERATURE REVIEW

Preamble

literal Background of Medium Scale Enterprises in Nigeria

Review of Applicable Entrepreneurial propositions

Meaning and description of Medium Scale Business

Characteristics of Medium Scale Business

operation and Operations of Medium Scale Businesses

A Review of the Nigerian profitable – Buoyant and Depressed

Buoyant Frugality

Depressed frugality

Problems of Medium Scale diligence in the Nigerian Frugality

Prospects of Medium Scale Businesses

Some Development Programmes aiding the Development of Medium Scale Enterprises in Nigeria

Medium Scale Business Success in Nigeria

References

CHAPTER THREE EXPLORATION METHODOLOGY

Preamble

Research Design

exploration Methodology

compass of Data

Data Collection styles

Questionnaire

Interview

Population and Sample Size

Filed Work

Analytical Procedure

References

CHAPTER FOUR DONATION AND ANALYSIS OF DATA

Preamble

Analysis of Bio-Data

Analysis and Interpretation of Responses to Questions

in the Questionnaire

Testing and Interpretation of thesis

Findings

CHAPTER FIVE SUMMARY

Preamble

Summary of Findings

Conclusions

Recommendations

Suggestion for farther Studies

Bibliography

excursus

Chapter One

Preface

Background To The Study

literal data has show that previous to the late 19th century, cabin diligence, substantially small and medium scale businesses controlled the frugality of Europe. The artificial revolution changed the status quo and introduced mass product. The binary oil painting shocks during the 1970s undermined the mass product model, which touched off an unanticipated retrospection of the part and significance of small and medium sized enterprises in the global frugality. Findings by economists over the times show that small enterprises and entrepreneurships play a much more important part in frugality growth and development.(www.wiki.answer.com).

numerous husbandry, developed and developing, have come to realize the value of small businesses. They’re seen to be characterized by energy, facetious inventions, effectiveness and their small size allows for faster decision- making process. Government each over the world have realized the significance of this order of companies and have formulated comprehensive public programs to encourage, support and fund the establishment of SMEs. Developments in small and medium enterprise are a sin quo non for employment generation, solid entrepreneurial base and stimulant for the use of original raw accoutrements and technology. Giving sapience into the SME miracle, a paper delivered at a forum by Mallam Mohammed Hayatu been, named “ Stakeholders places and the development benefits in a mannish small Enterprise Sector’s, refocused out that small business operations are propelled by the dynamic proposition, which makes them effective and prone to constant change. He gave a relative statistics using 9 developed countries on how SMEs produce employment, increase job growth, induce change, invention and competitions.(www.wiki.answer.com).

The benefits of SMEs, to any frugality are fluently conspicuous, they include donation to the frugality in terms of affair of goods and services, creation of jobs at fairly low capital cost, especially in the fast growing service sector, give a vehicle for reducing income difference, develop a pool of professed andsemi-skilled workers as a base for the unborn artificial expansion; ameliorate forward and backward liaison between economically, socially and geographically different sectors of the frugality, give openings for developing and conforming applicable technological approaches; offer an excellent parentage ground for entrepreneurial and directorial gift, the critical deficit of which is frequently a great handicap to profitable development among others.(www.wiki.answer.com).

Now government has seen the significance of small and medium scale enterprise in the period of profitable development of the nation and employment generation. As a result of these consummation, programs and institutions were established for the development of small and medium scale enterprises. Some of these programmes includes, National Economic Reconstruction Fund( NERFUND). Small Scale Industry Credit Scheme( SSICS), Nigerian Bank for Commerce and Industry( NBCI), Directorate for Food, Roads and pastoral structure( DFRRI). The Structural Adjustment Programme( SAP) which was aimed principally at restructuring the frugality of the country during General Ibrahim Babangida’s administration was a tremendous help in agitating matters concerning medium scale enterprises.( Ojo, 1995; 248).

Despite all these programmes by the Federal Government to prop the growth and development of small and medium scale enterprises, these businesses haven’t reached the anticipated capabilities in the country. Why? This is because there’s no effective and effective policy phrasings, perpetration and clear frame work of the programmers.

Statement Of The Problem

The challenges facing the growth and survival of Small and Medium Scale Enterprises( SMEs) in numerous developing countries are monumental. The most worrying among these challenges is funding. utmost new small business enterprises aren’t veritably seductive prospects for banks, as they want to minimize their threat profile. The low position of SME development in Nigeria was generally attributed to the poor perpetration of government programs aimed at SME support installations and impulses, including loans, training facilitates, artificial estates, structure and the provision of raw accoutrements at subsidized rates for SMEs not until lately when the Banker’s commission interposed in 2001 with a scheme themed the small and Medium diligence Equity Investment schemes( SMIEIS). The scheme relegated to the background government credit schemes that aren’t well allowed out and enforced.(www.wiki.answer.com).

The profitable terrain under SAP had nearly clearly increased poverty situations and redounded in a reduction in overall consumer spending as well as a decline in savings and capital investment( Awoniyi 1996, Hambagda 1987). This in turn had undermined plans for farther accumulation and capital conformation especially for capital- ferocious SMEs. The problem of an unstable political terrain( especially during ages of choices and after the annulled presidential election results of 1993) was another factors. The politically threat climate made numerous entrepreneurs especially foreign bones , decreasingly uncertain of the business terrain and of their prospects.(www.allbusiness.com).

The lack of good entrepreneurs and employers in the absence of well- established training centre are also impediments to the development of SME’s in Nigeria, especially technically complex gambles aren’t likely to be sufficiently competent in operation, association and quality product to cleave to internationally competitive norms and similar SME’s thus can not survive without government protection from significances. There’s also lack of acceptable information concerning areas of business in the sectors generally. utmost people with finances tend to use them in well- established sectors rather than seeking new product and new request niches.(www.allbusiness.com).

still, not all of the responsibility for the difficulties of SME’s in general can be placed on the Nigerian government or on the small businesses. Nigeria’s fairly short history of experience in artificial, mechanized and fairly high- tech product is typical of utmost African husbandry and could regard for important of the lack of moxie in policy timber and in operation and manufacturing operations. The present technological and scientific reliance on the West should be seen as a heritage of the social history, and it’ll clearly take eventually to develop competitive domestic product of ministry and capital goods. Some long- term strategies pretensions are important in this content, as well as the tolerance and determination to see similar programs through to the end, and this would bear a high position of thickness in policy timber.(www.allbusiness.com).

Objects Of The Study

The objects of the study are to

Determining the performance of medium scale businesses in Nigeria.

relating the problems faced by businesses and the prospects of these businesses.

Proffering results by making necessary recommendations of reducing and barring the problems that will be stressed.

Significance Of The Study

It’s anticipated that the outgrowth of the study would be useful in the ensuing areas

i. The study would be salutary to individualities, especially those who may want to set up their own businesses and also entrepreneurs who may want to ameliorate the survival rate of medium scale diligence in a depressed frugality like Nigeria.

ii. To give an indepth information and analysis on the causes of their problems with a view to suggesting and developing ways and other druthers aside their prospects which shall also be critically viewed to insure the success of medium scale enterprises in Nigeria.

iii. It would also be an effective way to find lasting result to the problem of severance is for the government to encourage the growth and expansion of small and medium scale business.

Exploration Questions

The following exploration questions were addressed drawn from the exploration work

– How are medium- scale businesses successful in Nigeria?

– Can government help medium- scale diligence in developing nations?

– Can medium- scale businesses serve as incubators to larger diligence?

– Do medium scale enterprises have access to acceptable capital?

– Are there any profitable benefits derivable from the operation of medium scale businesses?

Exploration Thesis

The following suppositions are supposed from the study;

Thesis One

Ho Medium- scale business can not be successful in Nigeria

H1 Medium- scale business can be successful in Nigeria

Thesis Two

Ho Medium- scale enterprises can not be salutary to profitable growth.

H1 Medium- scale enterprises can be salutary to profitable growth.

Thesis Three

Ho Medium- scale enterprises can not gain acceptable capital to operate.

H1 Medium- scale enterprises can gain acceptable capital to operate.

Compass And Limitations Of Study

The compass of the study would cover the medium scale business challenges, prospects as well as the issues with respect to the Nigerian frugality. The findings of this study may be applicable to other forms of incorporating or retaining a business in Nigeria.

Also entrepreneur in Nigeria may find applicable or not to the findings of this exploration. This may not be in consonance with some people’s peculiar exposure and culture vis- à- vis the country’s distribution the position of relations between entrepreneur, their workers and the government and also the privileged class.

Eventually, since the Nigerian frugality is a bit advanced, coupled with fiscal constraints, the experimenter might not have had access to applicable documents that may maybe have contributed in one way or the other to their exploration.

Delineations Of Terms

The following terms considered applicable to the study are explained therefore

Business Any bid engaged in aimed at making private profit.( Lawal; 1993228)

profitable growth An increase in the profitable conditions in any country characterized by increased in per capital income.( Lawal 199813)

Growth of medium scale enterprise Determined by the rate of expression or increase in the total income earned per annum.( Ojo, 199582)

fiscal institutions Established institution to help and support small and medium enterprises in backing and furnishing advice.( LawalA.A 199813)

Silhouettes Of Other Chapters

The remaining corridor of the study is carried out as therefore;

Chapter Two This chapter considers the applicable write- ups to the study. It involves the review of former literatures on the study as well as the current bones .

Chapter Three This chapter addresses about the exploration methodology used in collecting and assaying necessary data.

Chapter Four This chapter is each about the donation and analyses of data collected in chapter three.

Chapter Five This chapter presents a comprehensive summary of findings of the study and a conclusion which shall be drawn from the findings and it also includes the experimenter recommendations of the study.