The Relevance Of Information Technology (IT) In The Management Of Small And Medium Scale Enterprises In Nigeria

The Relevance Of Information Technology (IT) In The Management Of Small And Medium Scale Enterprises In Nigeria

Abstract

This exploration design examine the applicability of Information Technology to the operation of Small and Medium Scale Enterprises in Nigeria with reference to Card Centre Nigeria Limited.

The exploration design took both an deducible and a descriptive approach. A sample size of fifty( 50) was drawn from the population. A hundred questionnaires were distributed aimlessly to stratified groups among the staff ofDe-United Food diligence Plc. A 5- point likert scale was developed and validated to collect information from the repliers.

The data collected was anatomized with introductory descriptive statistics similar as frequence and simple probabilities. Chi­-square analysis was also made. The core findings from the results attained show that that Information Technology play significant part in the conditioning and operations of Small and Medium Scale Enterprises( SMEs), that Information Technology has impacted appreciatively on the directorial practice of SMEs and that Information Technology has bettered the performance of SMEs.

Conclusion was draw from the summary of the result. colorful reflections and recommendations were proffered to the association of study.

Table Of Contents

CHAPTER ONE

Preface

Background to the Study

Statement of the Problem

Objects of the Study

Exploration Questions

Exploration Hypotheses

Significance of the Study

Compass of the Study

Description of crucial Terms

References

CHAPTER TWO LITERATURE REVIEW

Preface

Delineations of Small and Medium Scale Enterprise

Meaning and elaboration of Information Technology

The part of Information Technology in Small And Medium Scale Enterprises

Theoretical Framework

REFERENCES

CHAPTER THREE EXPLORATION METHODOLOGY

Preface

Research Design

Population of Study

Sampling Procedure

Research Instrument

Research Instrument

Confirmation of Research Instrument and Testing

Data Analysis fashion

CHAPTER FOUR DATA DONATION AND ANALYSIS

Preamble

Detail Profile of Card Centre Nigeria Limited

Donation ofBio-Data of Repliers

Suppositions Testing suppositions

Interpretation and Analysis of Results

CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS

Summary

Conclusion

Recommendations

References

Excursus Questionnaire

Chapter One

Preface

Background To The Study

The dynamic part of Small and Medium Enterprises( SMEs) in developing countries as machines through which the growth objects of developing countries can be achieved has long been honored and stated in the literature. The advantages claimed for Small and Medium Enterprises( SMEs) are colorful, including the stimulant of entrepreneurship( Olorunshola, 2003); the lesser liability that SMEs will use labour ferocious technologies( Salami, 2003) and therefore have an immediate impact on employment generation( Udechukwu, 2003, Ogujiuba et.al., 2004, Henriques and Klock 1999); they can generally be established fleetly and put into operation to produce quick returns; SMEs development can encourage the process of both inter- andintra-regional decentralization( Ogujiuba et.al., 2004); and, they may well come a countervailing force against the profitable power of larger enterprises( Salami, 2003). More generally the development of SMEs is seen as accelerating the achievement of wider profitable and socio- profitable objects, including poverty relief( Udechukwu, 2003).

Notwithstanding the recognition of the important places SMEs play in these countries, their development is largely constrained by a number of factors, similar as lack of access to applicable technology; limited access to transnational requests, the actuality of laws, regulations and rules that stymie the development of the sector; weak institutional capacity, lack of operation chops and training, and most importantly finance. While some of these factors similar as backing have entered acceptable attention in the literature, some of them, similar as technology, have not.

Investment in technology and keeping up with information technology( IT) is decreasingly important to all enterprises( Farag et al, 2009). Technology plays a pivotal part in the development of new SMEs. Technology not only helps in evolving amulti-pronged strategy but also in maximising business openings. IT is perceived as essential to achieve deals. Alter( 2002) noted that information has the loftiest liability of making a difference if it’s integrated into structured business processes and used by people with the knowledge and training demanded to interpret it and apply it rightly. Opara et al( 2010) assert that the influence of technology goes beyond insulated behavioural changes for the optimization of organizational productivity; it also, affects the culture current in the association.

still, the use of technology involves cost. Computer tackle and software need to be bought and installed. SMEs without access to capital may find it delicate to buy necessary technology. The rising cost of product inputs in Nigeria especially the cost of electricity and other operating costs can constrain growth. It’s thus material to examine the applicability of information technology to the operations of Small and Medium Scale Enterprises in Nigeria in the face of the grueling business terrain.

Statement Of The Problem

Despite the implicit part of Small and Medium Scale Enterprises( SMEs) to accelerated growth and job creation in developing countries, their development is hampered by a number of factors. One of these factors among others is access to Information Technology( IT). SMEs frequently have difficulties in gaining access to applicable technologies and information on available ways. Despite the multitudinous institutions furnishing training and premonitory services, there’s still technology- gap in the SME sector as a whole. This is because utmost small and medium scale entrepreneurs can not go the high cost of computer tackle and software.

The attainability to applicable Information Technology places significant constraints on SME development. Indeed though SMEs tend to attract motivated directors, they can hardly contend with larger enterprises. In utmost cases, SMEs use foreign technology with a scarce specialized support. The lack of support services or their fairly advanced cost can hinder SMEs’ sweats to ameliorate their operation, because consulting enterprises are frequently not equipped with applicable cost-effective operation results for SMEs. They generally acquire foreign licenses, because original patents are delicate to gain.

Objects Of The Study

The broad ideal of this study is to examine the applicability of information technology to the operation of Small and Medium Scale Enterprises( SMEs) in Nigeria. The specific objects of the study are as follows

To estimate the part of Information Technology in the conditioning and operations of Small and Medium Scale Enterprises( SMEs);

To estimate the impact of Information Technology on the directorial practice of SMEs;

To probe the goods of Information Technology on the performance of SMEs.

Exploration Questions

According to the objects stated above, the exploration questions that would be examined in the course of the study are as follows

What part does Information Technology play in the conditioning and operations of Small and Medium Scale Enterprises( SMEs)?

How has Information Technology impacted on the directorial practice of SMEs?

How has the relinquishment of Information Technology affected the performance of SMEs?

Exploration Suppositions

Grounded on the exploration questions stated above, the suppositions to be tested in the course of this exploration are stated below

Thesis( 1)

Ho That Information Technology doesn’t play any significant part in the conditioning and operations of Small and Medium Scale Enterprises( SMEs).

H1 That Information Technology plays significant part in the conditioning and operations of Small and Medium Scale Enterprises( SMEs).

Thesis( 2)

Ho That Information Technology has not impacted appreciatively on the directorial practice of SMEs.

H1 That Information Technology has impacted appreciatively on the directorial practice of SMEs.

Thesis( 3)

Ho That Information Technology has not bettered the performance of SMEs.

H1 That Information Technology has bettered the performance of SMEs.

Significance Of The Study

Besides finance, there are other critical rudiments that are apropos to the survival and competitiveness of Small and Medium Scale enterprises( SMEs). One of similar factor is Information Technology. This study is significant because it would help to estimate the part of Information Technology in the conditioning and operations of a vital member of the real sector-Small and Medium Scale enterprises( SMEs), which have been linked as having veritably high eventuality in promoting profitable growth and development.

While several studies had been conducted on the applicability of Information Technology to large enterprises, to the stylish of my knowledge, no study has been conducted on the applicability of same to Small and Medium Scale Enterprises especially in Nigeria. thus, this study would strive to bridge this exploration gap by establishing the link between the relinquishment of Information Technology and the directorial effectiveness of Small and Medium Scale Enterprises.

Compass Of The Study

Information Technology is themulti-disciplinary study of the collection, processing and storehouse of data; of the use of information by individualities and groups, especially within an organisational environment; and of the impact, counteraccusations and operation of vestiges and technologies applied to those conditioning. It’s thus apparent that the compass of the Information Technology is broad, and encompasses both organisational and specialized matters.

This study shall concentrate on the extent to which Information Technology( IT) is applicable to the operation of Small and Medium Scale Enterprises in Nigeria. This study shall not be confined to the book- keeping and account aspects of Information Technology but shall also cover its applicability to planning and soothsaying, marketing, decision- making etc. utmost of the information and data demanded for the study would be gathered from being literature and from a check that would be conducted among named staff of Card Centre Nigeria Limited a card manufacturing company located in Victoria Island in Lagos State.

Description Of Key Terms

Data: This is any symbol, sign, image, sounds or measure which is in a form which can be directly captured by a person or a machine.

Information– This is a precious data Until it’s placed in an applicable environment, data isn’t information.

Technology– This constitute all the knowledge( know- how and know­ why), products, processes, tools, styles, and systems employed in the creation of goods or in furnishing services( Omar and Sapuan, 2010)

Information Technology- This is the tackle, software and other tools and outfit used by the actors while doing their work( Alter, 2002).

Information System- “ a work system whose business process is devoted to capturing, transmitting, storing, reacquiring, manipulating, and displaying information, thereby supporting other work systems”( Alter, 20026).