THE ROLE OF FEDERAL GOVERNMENT IN THE PROMOTION OF SMALL SCALE BUSINESS IN NIGERIA

Project Abstract

Small and medium enterprises (SMEs) play a significant role in the economic development of countries around the world, including Nigeria. The federal government of Nigeria has recognized the importance of SMEs in driving economic growth, reducing unemployment, and fostering innovation. This research aims to investigate the role of the federal government in promoting small-scale businesses in Nigeria. The study will explore the various initiatives, programs, and policies implemented by the government to support SMEs. These may include financial assistance, access to markets, infrastructure development, capacity building, and regulatory reforms. By analyzing the effectiveness of these government interventions, the research seeks to provide insights into how the federal government can further enhance its support for small-scale businesses in Nigeria. Through a combination of literature review and empirical analysis, this research will examine the impact of government interventions on the growth and sustainability of small businesses in Nigeria. It will also assess the challenges faced by SMEs in accessing government support and propose recommendations to improve the effectiveness of government initiatives in promoting small-scale businesses. The findings of this study are expected to contribute to the existing body of knowledge on the role of government in supporting SMEs in developing countries. The research will provide valuable insights for policymakers, government agencies, business owners, and other stakeholders interested in promoting the growth of small-scale businesses in Nigeria. Overall, this research will shed light on the importance of government support for SMEs and offer practical recommendations for enhancing the impact of government interventions on small-scale businesses in Nigeria. By identifying best practices and areas for improvement, the study aims to help create a more conducive environment for the growth and development of small businesses in the country.

Project Overview

<p> </p><p><strong>1.0 &nbsp; &nbsp; &nbsp;</strong><strong>INTRODUCTION</strong></p><p>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.</p><p>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.</p><p>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)</p><p>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.</p><p>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. &nbsp; </p><p><strong>1.1 &nbsp; &nbsp; &nbsp;</strong><strong>OBJECTIVE OF THE ESSAY</strong></p><p>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:</p><p>a. &nbsp; To evaluate the marketing challenges facing small scale businesses.</p><p>b. To identify the sources of funds to the activities of the industry.</p><p>c. &nbsp; To find out the extent of government involvement in promoting the activities of the business.</p><p>d. To bring to light the contribution of the industry to the development of national diploma in marketing.</p><p>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.</p><p><strong>1.2 &nbsp; &nbsp; &nbsp;</strong><strong>SCOPE OF THE STUDY</strong></p><p>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.</p><p><strong>1.3 &nbsp; &nbsp; &nbsp;</strong><strong>SIGNIFICANCE OF THE ESSAY</strong></p><p>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.</p><p>Although successful governments have vowed to support individuals and group initiatives in the establishment of small scale businesses.</p><p>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.</p><p>This study is an attempt to evaluate the role of government in the promotion of small scale business in Nigeria as a country.</p><p><strong>1.4 &nbsp; &nbsp; &nbsp;</strong><strong>DEFINITION OF TERMS</strong></p><p>The following terms and abbreviations used in the extended essay are defined below:</p><p>a) &nbsp; (SSICS) Small Scale Industries Credit Scheme</p><p>(SME) Small and Medium Enterprises</p><p>(NIDB) Nigerian Industrial Development Bank</p><p>(NERFUND) National Economic Reconstruction Fund</p><p>(NDE) National Directorate of Employment</p><p>b) &nbsp; 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.</p><p>c) &nbsp; 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.</p><p>d) &nbsp; 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.</p><p>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. </p> <br><p></p>