CHAPTER ONE INTRODUCTION

1.1 Background to the Study

Small and Medium Scale Enterprises (SMEs) emerged as a real source of economic growth

and development of nations, because as they grow, the given economy grows and other social

institutions develop (Mambula, 2002). Some other specific benefits of SMEs widely

acknowledged by researchers and experts are in the areas of poverty eradication and

employment generation. Therefore in this new era of industrialisation, where the development

status of nations is measured basically on how far they achieve in term of provision of welfare

to their populace, SMEs generate employment in a way that ensures equitable income

distribution. SMEs provide a range of employment that does not respect wider gap between

income earners and does not concentrate wealth to very few individuals, thereby providing

alternative for dependence on Large Scale Enterprises (LSEs) th