TABLE OF CONTENTS
Abstract
CHAPTER ONE
1.0 Introduction
1.1 Background of Study
1.2 Statement of Problems
1.3 Research Objectives
1.4 Research Question
1.5 Research Hypothesis
1.6 Scope of Study
1.7 Significance of study
1.8 Limitation of study
1.9 Definition of terms
CHAPTER TWO
2.0 Literature Review
CHAPTER THREE
3.0 Research methodology
3.1 Research Design
3.2 Population of study
3.3 Sampling Design and Procedure
3.4 Data Collection Instrument
3.5 Administration of Data Collection Instrument
3.6 Methods of data analysis
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Data Presentation
4.2 Test of Hypothesis
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Small scale industries are vital sources of employment generation, development of indigenous technology; even dispersal of industrial set-ups if increases production of manufacturing exports, and increasing local content of industrial output by fostering forward and backward industrial linkages to enhances the general level of economic activity.
Since the second National Development Plan (1970 – 1974) and third National Development (1975 – 1980), emphasis has been placed on the development and proliferation of small-medium scale enterprises (SMEs) for the purpose of using them as veritable engines for economic growth and development.
From the 1970s, therefore different definition have been given as to what should be regarded as a small of medium scale industry. The Central Bank of Nigeria (CBN) discuses small scale enterprises, in its credit guidelines to banks as those enterprises with annual turnover not exceeding N500.000 in the guidelines to commercial banks and enterprises with capital investment not exceeding N2 million excluding cost of land; or with a maximum turnover not exceeding N5 million in the’ case of guidelines to’ merchant banks. Similarly, the federal ministry of industry’s guidelines to the Nigerian bank for commerce and industry (NBCI) regard small scale industries as those enterprises cost of land, but including working capital. In practice, the Nigerian Bank for Commerce and Industry accepts small scale industries as those enterprises with capital not exceeding N750,000 excluding the cost of land but including working capital.
The Nigerian Industrial Development Bank (NIDB) regards small scale enterprises as those project cost, i.e. investment and working capital not exceeding N750,OOO and medium scale enterprises as those with project cost ranging between N750,000 and N3 million.
The Center of Industrial Research and Development (CIRD) at the Obafemi Awolowo University, Ile-Ife defines small scale enterprises as those with total assets in capital not exceeding N250,000 and employing not more than 50 full time workers.
From the various definitions one will notice that emphasis has often been placed on certain financial ceilings in capital investment. The frequency of formation (and death) of small-scale enterprises are usually explained by the desires of the owner-manager to own his personal business. Thus, the small-scale enterprises being the lengthened shadow of its owner reflect his or her strength as well as weaknesses. Thus; the small-scale enterprises entrepreneur begins to its unique animation, abilities, work experience, advantages and attitudes. In tum, the performance of the small scale is determined by the personality characteristics of the owners, viz responsibility, vigour, initiative, persistence and health thinking ability, human relation ability, communication ability and technical knowledge.
Government in both industrialized and developing countries provide a wide variety of programmes to assist small and medium scale enterprises. Despite the success of SME strategies in a few countries (e.g. Taiwan Northern Italy and Ireland), and majority of developing countries have found impact of their SME development programs on enterprise performance has been less satisfactory. Underlying the search for best practice are some basic question:
i. What is the justification for pubic intervention on the first place?
ii. Why should SMEs be singled out for assistance?
iii. If there is justification for government intervention, what form should that intervention take?