Thesis Abstract

Abstract
Small and Medium Scale Enterprises (SMEs) play a significant role in the economic development of Nigeria by contributing to job creation, poverty reduction, and wealth generation. The Federal Government of Nigeria has recognized the importance of SMEs and has implemented various policies and initiatives to promote their growth and sustainability. This research project aims to investigate the specific roles that the Federal Government plays in supporting SMEs in Nigeria. The study will utilize a mixed-methods approach, combining both qualitative and quantitative research methods. Qualitative data will be collected through interviews with key government officials, SME owners, and industry experts to gain insights into the government's policies and programs for SMEs. Quantitative data will be gathered through surveys distributed to a sample of SMEs to assess the effectiveness of government interventions. The research will focus on analyzing the various forms of support provided by the Federal Government to SMEs, including financial assistance, capacity building initiatives, regulatory frameworks, and access to markets. By examining the impact of these interventions on the growth and sustainability of SMEs, the study aims to provide valuable insights into the effectiveness of government policies in promoting entrepreneurship and small business development in Nigeria. The findings of this research project are expected to contribute to the existing body of knowledge on the role of the Federal Government in promoting SMEs in Nigeria. The results will provide policymakers, government officials, and other stakeholders with valuable information on the strengths and weaknesses of current government interventions, as well as recommendations for improving support mechanisms for SMEs. Overall, this research project seeks to shed light on the critical role that the Federal Government plays in fostering the growth and development of SMEs in Nigeria. By identifying best practices and areas for improvement, the study aims to inform policy decisions that will enhance the overall business environment for small and medium-sized enterprises in the country.

Thesis Overview

INTRODUCTION

Small scale business constitute an important component of the Nigerian industrial sector. The importance of this sector cannot be over emphasized, especially in a typical developing country like ours where the level of youth unemployment is rising beyond control. Hence small scale industries generate employment opportunities per unit of capital investment because they are generally more labour intensive which are more capital in nature. A large scale industry that cost N20million for instance, may employ a mere 70 (seventy) workers or less. Where as a small scale industry that cost just N150,000 (one hundred and fifty thousand naira) may employ about 20-30 workers. Small scale business specialized in the production and marketing of various products and services ranging from food, beverages, drinks/sachet water, cosmetics, spare parts and many others.

Kilby (1969) acknowledge the diversity of terms of the degree of specialization and division of labour and the quantity of raw materials and output and the character of markets being served by small scale businesses. As a result the bulk of Nigerian business falls within the small scale business which account for over 80% of the number of enterprises in the country. (Ekunna 1992 Pg.160) Several number of small scale business are successful while other fail or are staggering for survival due to poor background management, lack of qualified manpower, poor capital base, lack of marketing research and appropriate technology and credit rating among banks and other lenders.

 

These problems continue to militate against the establishment, survival and growth of small scale business in Nigeria. Although successful government in Nigeria have been emphasizing on the importance of small scale business and have established institutional support agencies to facilitate industrialization. However, small scale business still operate in uncertainty and are faced with serious obstacles, this raises the questions of whether the federal government is actually up to the responsibility in the promotion of small scale business in Nigeria.

 

OBJECTIVES OF THE ESSAY

The main objectives of this study is to evaluate the impact of federal government in the promotion of small scale business in Nigeria. This study will specially seek to achieve the following:  

i. To evaluate the marketing challenges facing small scale businesses.  

ii. To identify the sources of funds to the activities of the industry.  

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

iv. To bring to light the contribution of the industry to the development of national diploma in marketing.

v. Finally, it is my hope that the students of marketing and others in related discipline will find this study very informative and useful tool in their respective studies.

 

SCOPE OF THE STUDY

As the title of this essay indicates, the study focuses its attention to federal government support to small scale business enterprises in Nigeria, it causes various policy, guidelines, direct and indirect financial assistance and other programs and initiatives designed to promote this vital sector of the country.

 

SIGNIFICANCE OF THE ESSAY

The significance of this study lies basically on its contribution to knowledge and its benefits to individual and organization. The current economic crises in Nigeria has deciminated the growth of infant industries and encourages the establishment of similar business venture in both small and large scale proportions. Although successful governments have vowed to support individuals and group initiatives in the establishment of small scale businesses.

The current state of most small scale business in Nigeria is a far cry particularly when structural adjustment programme (SAP) was introduced, which brought about the problem of devaluation of the naira and the scarcity of foreign exchange of raw materials from abroad which has adversely affected production unit especially under a depressed economy. This study is an attempt to evaluate the role of government in the promotion of small scale business in Nigeria as a country.

 

DEFINITION OF TERMS

Small scale enterprise: Apart from size, it is a type of business that is self initiated, largely self financial, closely self managed and is of relatively small in size when considered as part of the industry.  

Management: Is the part of loaning organizing, directing and motivating others so as to enhance productivity with maximum utilization of available resources and achieving the organizational goals or objectives.  

Resources: These are the primary inputs that needs to be put together into function before the proper management activities really take place. These activities include; men, materials , money and machines.  

Enterprises: This is one of the fundamental principles of management that is concerned with the division of labour and assigning of responsibilities with authority for the well being of business unit.