ABSTRACT
This project work focuses on role of small and medium scale in revamping the Nigeria economy.
The small and medium scale enterprises are essential element in providing a solid base for a country economic development, unfortunately, these enterprises have been facing a lot of problem from government, policies and funding facilities available to them.
Chapter one of this research work deals with the background of the subject matter and defines small and medium scale enterprises after which it present a very clear development.
Chapter two also deals with the meaning and definition of small and medium scale enterprises its role which among others includes; production of good and service for both end and intermediate users, and also utilizes low capital cost for creating job especially in a past growing service sector of the economy. It also highlights the contributions of these enterprises to Nigeria economy.
Chapter three of the research work deals with the methodology and design as well as population and population simple, it also deals with the method of data collection and method of data analysis used in the research.
Chapter four deals with the presentation and analysis of data and also a test only deals with discussions, recommendations, conclusion, and suggestion for further research.
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
CHAPTER TWO
LITERATURE REVIEW
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
REFERENCES
CHAPTER FOUR
DATA PRESENTATION AND ANALSYSIS
REFERENCES
CHAPTER FIVE
DISCUSSION, RECOMMENDATION AND CONCLUSION
BIBLIOGRAPHY
APPENDIX.
CHAPTER ONE
Small and medium scale enterprises play a crucial role in providing a solid base for a country’s socio-economy development. According to Nwankwu (1992) in a speech delivered on the financing opportunities of small and medium scale enterprises. It is estimated that probably up to 90% (ninety percent) of all registered categories of business organization in Nigeria are in the category of small and medium scale (SMSE).
The small and medium scale enterprises produce goods and services for both end and intermediate users and also utilize low capital cost for creating jobs especially in a first growing services sector of the economy. Lied Holm and mend (1987) in their contribution have also agreed with the above facts. When they argued on the role of small and medium scale enterprises in providing productive employment and earning opportunity. Small and medium scale enterprise serves as vehicle through which ideas for new products and services fund their way to the consuming public.
Most countries in the world have attained advanced stage in industrial development because they started their industrialization process with programs in the small and medium scale enterprises (SMSE). Through the provision of efficient banking services and infrastructure facilities like portable drinking water, electricity, good road and communication network.
Given the forgoing, an important factor for making a striking impression on the development of these categories lies in the abilities to generate enough fund to business expenditure. The small and medium scale enterprises have also been regarded as an affective way of developing countries of Africa, Asia, and Latin America. The government of these countries have also realized that the large scale industrialization of the past has failed, generally to solve the problem of global under employment and object poverty.
Realizing the great potentials of small and medium scale enterprises, the federal government Nigeria has through its agents such as the Nigeria bank for commerce and industrial development (NBCI), the commercial bank, Nigeria industrial development bank. (NIDB) people bank of Nigeria etc. has consistently continued to play pioneering and active roles in stimulating the small and medium scale enterprises in Nigeria. The activities of financial institutions as directed by the government are a clear manifestation of government active participation in the promoting of small and medium scale enterprises development from the forgoing so far the question is how effective is the role-played by the small and medium scale enterprises in revamping the Nigeria economy? It is the aim f this research work to give solutions or near solution to the aforementioned problem.
1.1 BACKGROUND OF THE STUDY
Star line Nigeria limited started as a sole proprietorship in the mid fifties, making pharmaceutical product under the name of Owumma and sons co. and founded by Chief (DR) Peter Owunna (Late) it metamorphosed into star line Chemist and company in 1962 under the leadership of the founder. Star line just prior to the outbreak of hostilities (Civil war) in 1967 became a lender in the importation and marking of pharmaceutical products in Nigeria
Activities however resumed after cessation of the civil war in (1970) with every thing lost, the founder guiding principle of perseverance handwork honesty and integrity helped set star line Nigeria limited on the fort path to resumption of business once again from his humble beginning and strong belief in the Almighty he nurtured star line through him into industry.
In 1973 star line Nigeria limited has incorporated and together with their enormous trading experience and distributive network started the same year. Determination led to the establishment of pilot cosmetics, factory in 1975 and 1978. a pharmaceutical factory was established in 1985 and chemist shops modernized to present a credible outlet for her ever increasing range of product. It is important to not that a vertical system exist between the cosmetics, plastics and pharmaceutical factories whereby all needed packing materials are supplied by the plastic factory.
Background integration saw the company going into palm oil plantation 1988 star line Nigeria limited senior management is structure in such way as to give defined function and levels of accountability, influence and power to cope with it. The thrust is to position the company and ensure that it moves through the 90’s (Nineties) into the new millennium (2000) from a position of strength, innovation growth and diversification will continue to be an internal part of its corporate policy and star line Nigeria limited is well poised to meet the challenge of the future. An organizational structure of star line Nigeria limited revenues assigns certain well defined work area to specialist. A production specialist many be used to supervise marketing and it an be diagrammatically represented thus:
Star line is a market leader in the manufacturing of cosmetics and toiletries pharmaceuticals and plastics in Nigeria, its range of pharmaceutical, cosmetics and plastics have become an important need for Nigerians growing population over 60% of it product ranging from cosmetics pharmaceuticals and plastics are currently in the market, the product are also distributed in the west African countries. The company factories and corporate headquarter is located at number 114/116 Aba Owerri road umuanagasi Aba P.M.B 7376 Aba Abia state and is widely acclaimed the Japan of Nigerian.
Star line Staff strength is about 300 (three Hundred) workers and some of the activities carried out by it includes:
Tetracycline HCL BP /1000 capsules 250mg stamicillin Ampicillin BP/1000 capsules (100*10) in sachets.
Other household product of star line Nigeria limited includes.
i. Candles
ii. Air fresher
iii. Camphor bull
Despite the concerted efforts of both the and state government through its agents (NBCI, NIDB and state chamber of commerce and industry) in promoting small and medium scale enterprise. The small and medium scale enterprises still rule certain major problem, which sometimes arises from the nature and characteristics of the enterprises. These nature and characteristics are summarized below.
i. There is low employee turnover with higher labour investment ratio.
ii. There is less organizational differentiation.
iii. Decision making process are more often subjective rather than on any national analysis (he takes decision of own).
iv. There is mobility of the proprietor to separate his private fund from the company fund.
Arising from the nature and characteristics of the small medium scale enterprises, their problems can be categorized into two viz.
a. Those inherent in the small and medium scale enterprises (SMSE) most significant among these includes:
i. poor Management: So many small and medium scale enterprises in Nigeria have been crippled by poor management resulting from poor control system, improper keeping of financial. 01 records and lack of technical and economic counseling.
ii. Shortage of skilled labour: Due to inadequate financial resources, many small and medium scale enterprises relly on semi-skilled labour. This also account for their low productivity limits their expansion and competitiveness.
iii. Indiscipline: In many case, loans obtained for projects support are deliberately diverted to other uses. Small and medium scale enterprises though may not divert loans, return to service such loans more so when obtained from government owned financial institution which they misconceived as their share of national cake performance.
iv. Low productivity: As profit is the outcome of sales and cost, the volume produced influence cost and profit. Consequently as a result of low productivity the small and medium scale enterprises find it difficult to survive under been competition.
b. Those arising from break institutional support to the small and medium scale enterprises (SMSE).
i. These among others include, infrastructure inadequacies, the vision of essential service such as telecommunication, access road electricity water supply is one of the biggest headache of the industrial sector in Nigeria, most small and medium scale enterprises cannot afford the financial resources to put in place the above mentioned infreastructural facilities. The absence of these facilities has negative impact on production capabilities.
ii. Restricted access to market: The product of most of the small and medium scale enterprises are not standardized which inevitably restricts their access to nation wide market. It’s a result of this fact large scale enterprises prefer to import them to buy small bits and piece of scale enterprises.
iii. Restricted access to institutional credit: Adakunye (1990) regards an average Nigeria small and medium scale enterprises proprietor as a very high investment risk with inadequate collateral to ensure the much sought fund. Consequently many of them are unable to meet the lending requirement of both the commercial and merchant banks owing to improper record keeping and inadequate capital.
1.3 PURPOSE OF THE STUDY
From all that has been written above, it is the aim of this study to take a segment of the small and medium scale enterprises and study its roles in revamping/uplifting the Nigeria economy. Such role among others include:
i. Production of goods and services for both end and intermediate users.
ii. Creation of employment/job opportunities.
iii. Serving as local ground for entrepreneurs.
iv. intensive users of basic raw materials.
To this end the researcher will also make recommendation that would be effective to the small scale and medium scale enterprises to the Nigeria economy.
| 1 - 5 of 96 Reviews |