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A COMPARATIVE STUDY OF THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES IN THE ECONOMIC GROWTH OF AN ECONOMY.  A CASE STUDY OF ENUGU STATE

 

 

ABSTRACT

          This study was aimed at examining the role being played by the small and medium scale enterprises towards economic growth of an economy with E-nugu state as our case study.  From the study, it was observed that indeed, small and medium scale enterprises contribute to the economic development of Enugu state.

          Lack of adequate finance was identified as one of the mayor problems hampering the development of small and medium scale enterprise in Enugu state.

          In order to provide a sound theoretical framework and sound judgement for the work, the work of other researchers in the same issue were reviewed.

          The use of Taro-Yamani Statistical formular was used in selecting an adequate sample size for the study from the population.

          A total of six hypothesis were formulated and also tasted using the chi-square method of hypothesis testing.

          In order to elicit proper information from the respondents who are both illitrate and litrate, the researcher utilized both questionnaire and interview.  The data collected were properly analyzed using the table and simple percentage response formular.

          In the final analysis, the research work found out that small and medium scale enterprises affects the economic growth of the Enugu State Economy.

 

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

 

The term business, has over the years turned out to be a house hold name.  In different places and under different circumstances, people have tended to give the term “business” different definitions and meanings.  However, it is also important to note, that in some instances, the dimension and size of an organization or an enterprise can determine the order of its definition.

          In some instances, business can be regarded as the performance of the entrepreneurial function of co-rdination of all the factors of production – labour, capital, natural resources and management to provide goods and services which may be sold at a profit.

          It therefore follows that business entails the proper coordination of the various factors of production with a view of utilizing them in the production of the necessary goods and services in order to maker prodit.

          Business enterprises have also been identified to operate of the basis of different levels and capabilities.  These ranges from small privately owned enterprises to large organizations that are either privately or publidy owned.