The Role Of Federal Government In The Promotion Of Small And Medium Scale Enterprise In Nigeria

The Role Of Federal Government In The Promotion Of Small And Medium Scale Enterprise In Nigeria

Chapter One

Preface

Small and medium scale business constitute an important element of the Nigerian artificial sector. The significance of this sector can not be over emphasized, especially in a typical developing country like ours where the position of youth severance is rising beyond control. Hence small and medium scale diligence induce employment openings per unit of capital investment because they’re generally more labour ferocious which are further capital in nature. A large scale assiduity that bring N20million for case, may employ a bare 70( seventy) workers or lower. Where as a small and medium scale assiduity that bring just N 150,000( one hundred and fifty thousand naira) may employ about 20- 30 workers.

Small and medium scale business specialized in the product and marketing of colorful products and services ranging from food, potables, drinks sachet water, cosmetics, spare corridor and numerous others.

Kilby( 1969) admit the diversity of terms of the degree of specialization and division of labour and the volume of raw accoutrements and affair and the character of requests being served by small and medium scale businesses. As a result the bulk of Nigerian business falls within the small and medium scale business which regard for over 80 of the number of enterprises in the country.( Ekunna 1992 Pg.160)

Several number of small and medium scale business are successful while other fail or are staggering for survival due to poor background operation, lack of good force, poor capital base, lack of marketing exploration and applicable technology and credit standing among banks and other lenders. These problems continue to militate against the establishment, survival and growth of small and medium scale business in Nigeria. Although successful government in Nigeria have been emphasizing on the significance of small and medium scale business and have established institutional support agencies to grease industrialization.

still, small and medium scale business still operate in query and are faced with serious obstacles, this raises the questions of whether the civil government is actually over to the responsibility in the creation of small and medium scale business in Nigeria.

Ideal Of The Essay

The main objects of this study is to estimate the impact of civil government in the creation of small and medium scale business in Nigeria. This study will especially seek to achieve the following

To estimate the marketing challenges facing small and medium scale businesses.

To identify the sources of finances to the conditioning of the assiduity.

To find out the extent of government involvement in promoting the conditioning of the business.

To bring to light the donation of the assiduity to the development of public parchment in marketing.

Eventually, it’s myhope that the scholars of marketing and others in affiliated discipline will find this study veritably instructional and useful tool in their separate studies.

Compass Of The Study

As the title of this essay indicates, the study focuses its attention to civil government support to small and medium scale business enterprises in Nigeria, it causes colorful policy, guidelines, direct and circular fiscal backing and other programs and enterprise designed to promote this vital sector of the country.

Significance Of The Essay

The significance of this study lies principally on its donation to knowledge and its benefits to individual and association. The current profitable heads in Nigeria has deciminated the growth of child diligence and encourages the establishment of analogous business adventure in both small and large scale proportions.

Although successful governments have pledged to support individualities and group enterprise in the establishment of small and medium scale businesses.

The current state of utmost small and medium scale business in Nigeria is a far cry particularly when structural adaptation programme( SAP) was introduced, which brought about the problem of devaluation of the naira and the failure of foreign exchange of raw accoutrements from abroad which has negatively affected product unit especially under a depressed frugality.

This study is an attempt to estimate the part of government in the creation of small and medium scale business in Nigeria as a country.

Description Of Terms

The following terms and bowdlerizations used in the extended essay are defined below

SSICS) Small and medium scale diligence Credit Scheme

NIDB) Nigerian Industrial Development Bank

NERFUND) National Economic Reconstruction Fund

NDE) National Directorate of Employment

Small and medium scale enterprise piecemeal from size, it’s a type of business that’s tone initiated, largely tone fiscal, nearly tone managed and is of fairly small in size when considered as part of the assiduity.

Operation: Is the part of lending organizing, directing and motivating others so as to enhance productivity with maximum application of available coffers and achieving the organizational pretensions or objects.

Coffers: These are the primary inputs that needs to be put together into function before the proper operation conditioning really take place. These conditioning include; men, accoutrements , plutocrat and machines.

Enterprises: This is one of the abecedarian principles of operation that’s concerned with the division of labour and assigning of liabilities with authority for the well being of business unit.