ABSTRACT
The main purpose of this study is to identify and investigate the role of small scale enterprises in economic development of Enugu State. This will help in assessing their performance and as well identifying factors that hinders their operations. The methodological approach adopted is the survey method of research. The research looks at the contribution of the small scale enterprises in economic development of Enugu State and its contributions to improving the standard of living, promotion and developing indigenous manpower and helping the large industries. Literature review was made from work done by eminent scholars, professionals, government blue prints on small scale enterprises, and other management practioners. Secondary data was used too and primary data for this study was gathered from questionnaires sampled and oral interview administered to the target population. The data collected were tabulated and analyze using chi-square statistical tools where X2=0–E2
The findings of this research shows that
(a) Small scale enterprises contribute to the economic development of Enugu State.
(b) The operators of small scale enterprises contribute to improvement in the standard of living.
(c) Most established small scale enterprises promotes and develops indigenous manpower.
(d) Finally, the existence of some small scale enterprises has
been a source of supplies to most of some large industries. It concludes that:
(1) There should be a re-appraisal of government aids to small scale enterprises and maintenance of agencies set up to support the programme.
(2) There should be government instruction to check the rising cost of imported machineries and spare parts to increase the operational efficiency of the enterprises.
(3) There should be motivation and incentives to small-scale
enterprises by governments to encourage them.(4) Government should increase and intensify them revenue drive and generation from this established small scale enterprises to enable them perform their task to increase their operational efficiency.
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
A business whether small or big, simple or complex, private or public is created to provide competitive prices. Businesses in Nigeria are classified as small, medium and large.
Small scale business is also seen as one which is owned, managed, controlled by one or two persons, it is family influenced in decision making, has an undifferentiated organizational structure, has relatively small share of the market and employ less than 50 people. Big business can hardly survive without the small scale enterprises as they give the important links between the big business and the consumers.
Before the advent of small scale business enterprises, Nigeria economy from 1970-1979 was grossly over dependent on the drilling of crude oil. The oil boom of the
1970s offered an opportunity for true national economic development. Despite the oil boom, there was massive corruption, deficient policies, poor policy implementation, favoritism and total lack of sensitivity on the part of
government culminating in the economic doldrums the country finds herself today. The oil boom could not alleviate poverty or reduce unemployment especially graduate unemployment. But this research work will show the role small scale enterprise play in reducing unemployment in the economy.
There were genuine attempts by the Federal Government to make sure that Nigerians play an active and important role in the development of the economy. In the
1970-74 National Development plan, the federal government gave special attention to the development of small scale industries particularly in the rural areas. This was in recognition of the roles of small and medium scale industries, as the foundations and training ground for entrepreneurship.
1.2 STATEMENTS OF THE PROBLEM
The small scale enterprises are expected in every economy, community or society to play a vital role toward its development. These roles include.
i. Reducing unemployment especially for people in rural areas.
ii. Promoting the development of indigenous man power as well as increasing local participation in the manufacturing sector.
iii. Reducing the dependence on government and large firm on salaried employment
iv. Meeting societal financial obligation.
In the bid to achieve these social objectives, the small scale enterprises have fair share of hindrances and problems. These problems are either internal or external. The internal problems are hinged on the incompetence and inadequacies of the entrepreneurs while external problems are environmental problems. The problems faced by small scale enterprises are: managerial problems that has to do with poor organizational skills, absence of proper control
mechanisms and record books, poor financial management, lack of good planning.
Technical problems: These problems are also inherent in the entrepreneur either because of lack of training in skill acquisition or absence of requisite education. Financial/logistic problem is rated as the biggest problem to the entrepreneurs; for instance, shortage of investment capital, lack of collateral for bank loans, classification by banks as high risk borrowers.
As a result of these lapses, it became difficult to monitor the activities of the small scale industrialists, their achievement, their needs and their influence(s) on the surrounding environment.
1.3 OBJECTIVES OF THE STUDY
The purpose of this study is to investigate small scale enterprises, with the view of finding out.
1. The contribution of small scale enterprises in economic development of Enugu State.
2. The role small scale enterprises play in supplying the needs of large industries who have to rely on the small scale operators for business success.
3. The role small scale enterprises play in promoting the development of indigenous manpower as well as increasing local participation in the manufacturing sector.
4. The achievement of the small scale industrialists in terms of improving the standard of living of the population.
1.4 RESEARCH QUESTIONS
1. Do small scale enterprises contribute positively towards economic development in Enugu State?
2. How do small scale enterprises contribute in supplying the needs of large industries?
3. Do small scale enterprises play any role in promoting indigenous man power?
4. How do small scale enterprises help in improving the standard of living in the State?
1.5 RESEARCH HYPOTHESIS
In this study, the following hypothesis will be examined:
Ho: Small scale enterprises do not contribute positively towards economic development of Enugu State.
HI: Small scale enterprises do contribute positively towards economic development of Enugu State.
Ho: Small scale enterprises do not play important role in supplying the needs of large industries.
H1: Small scale enterprises do play important role in promoting the development of indigenous man power.
Ho: Small scale enterprises do not help in improving the standard of living in the State.
H1: Small scale enterprises do help in improving the standard of living in the State.
1.6 SIGNIFICANCE OF STUDY
Big businesses can hardly survive without the small scale and medium scale enterprises as they give the important links between the big business and the consumer.
The small scale enterprises through its operation can help an economic backward economy become an industrial economy.
This study looks at the ways the small scale enterprises will significantly contribute in:
1. The provision of employment to the unemployed citizens of the State.
2. Knowing the areas of needs of the large industries in the State.
3. Promoting the development of the indigenous man power
4. Providing the standard of living of the State.
1.7 BACKGROUND OF THE STUDY AREA
JUHEL NIGERIA LIMITED is located at Emene in Enugu, capital of Enugu State, Nigeria. It is a 100% indigenous company incorporated in 1987 with RC No.
104.648 as a wholesale Pharmaceutical Company. In answer to calls for local provision of coat-effective generic products to fill the gap left by Multinational companies operating in
the country; the founder, Dr. Ifealyi Okoye, mni, with a focused vision, ventured into production and the factory was commissioned in 1989 as the first pharmaceutical tablet manufacturing company in old Anambra state.
The company maintains high quality standard in all its operations. With high production capacity, the policy thrust is to continue to provide cost-effective, affordable, local alternatives of life saving drugs to the teaming population. There is always our company representative nearer to you are guaranteed good service delivery at your doorsteps.
The company at present service the needs of the countries of the West African sub-region and is poised to reach out to more countries in Africa and beyond. Production Capacity for contract manufacturing for individuals, corporate bodies, government and non- governmental agencies is available, and we look forward to going into partnership in achieving our common goals.
JUHEL NIGERIA LTD strong management team comprises of accomplished professionals who excelled in both their academic and professional career. The team
leader is Dr. Ifeanyi Okoye, Managing Director and Chief Executive Officer, a Ph.D holder in Phannaceutical technology, a member of national institute, mni, and a fellow of the Pharmaceutical Society of Nigeria, FPSN Dr. Ifeanyi Eric Okoye is a Pharmacist, with an M.Sc and a PhD in pharmaceutical technology, a fellow of the pharmaceutical society of Nigeria and a member of the National Institution Sir R.C Enemuoh is a Microbiologist, with a Post-graduate Diploma in Management, Masters in Business Administration, Masters in International Affairs and Diplomacy. Member, National Institute of Marketers of Nigeria and also member, Nigerian Institute of Management.
Our Brand and product range have since grown in strength and include virtually all therapeutic classes, such as, Antibiotics and Anti-infective, Cardiovascular, Anti- diabetics, Anti-malarial, Cough and Cold, Vitasnins and Minerals, Anxiolytics, Antihistasnines, Analgesics, Antacids and Anti- flatulent, and recently, bottled mineral water Ivy Table Water.
Zodiac Hotel Ltd (ZH)
Zodiac Hotel Ltd is a small scale business establishment. It was established in 1979 at No. 5/7 rangers Avenue. P. O. Box 671 Enugu, Nigeria. Zodiac is a five star hotel. It is a service organization. It deals both in outdoor catering and indoor catering. It has the employment capacity of 150 staffs. The senior staffs are 10 while the junior staffs are 10. The senior staffs include both Managers Accountants, supervisor while the Junior staffs include the Account officers, receptionists, security personnel’s, car washers, cooks, cleaners, room service attendants etc.
The channel of information flows from the junior staffs to the supervisors and to the managers.
1.8 SCOPE OF THE STUDY
This means the boundary of the study. It is the area in which the researcher intends to operate, concentrate and extend its operational tentacles. It also means the area where the researcher cannot exceed during the research study.
In this research work, the researcher could not exceed the boundary of studying the contributions of the small scale enterprises in economic development of Enugu State, improving the standard of living of the State and contributing to the development of indigenous manpower in the State.
The study is limited to Enugu state, with the researcher concentrating on two(2) small business types which includes:- ZODIAC HOTEL AND JUHEL. The study intends to investigate small scale enterprises and its contribution towards economic development of Enugu State. The research study is concluded by examining the problems and prospects of small scale enterprises with the attendant challenges.
1.9 LIMITATIONS OF STUDY
The researcher obtained all data, information and materials through several means that was thought important for this piece of work. However, putting this write
-up was not easy due to several constraints encountered by the writer during this write up and they are:
1. Financial constraints: This is one of the major set back the writer encountered in the conduct of this research work. The nature of this research requires the use of questionnaire which invariably requires money. Since the writer is unemployed at the moment, it was very difficult to source for money to finance this research work.
2. Time constraint: This MBA programme commenced late thereby making it importable for the students to start their research work early enough. In other words, the limited time did not allow me to assess all materials needed for this work.
3. Reluctance of some people to respond to research question and their inability to understand the questions in the questionnaire.
4. Dearth of information and administrative bottle neck
There were some cases where it was simply impossible for the researcher to get the much needed information. In such situation, the researcher had no choice than to make use of what information has been made available to her. Sometimes information could not be given out for “official” and “security: reasons.
This material content is developed to serve as a GUIDE for students to conduct academic research
THE ROLE OF SMALL SCALE ENTERPRISES IN ECONOMIC DEVOLOPMENT OF ENUGU STATE
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