TABLE OF CONTENTS

Title Page        -           -           -           -           -           -           -           -           -           i

Declaration      -           -           -           -           -           -           -           -           -           ii

Certification    -           -           -           -           -           -           -           -           -           iii

Dedication      -           -           -           -           -           -           -           -           -           iv

Acknowledge              -           -           -           -           -           -           -           -           v

Table of Contents       -           -           -           -           -           -           -           -           vi

List of Tables  -           -           -           -           -           -           -           -           -           x

Abstract          -           -           -           -           -           -           -           -           -           xi

CHAPTER ONE: INTRODUCTION

1.1       Background of the Study       -           -           -           -           -           -           1

1.2       Statement of the Problem       -           -           -           -           -           -           2

1.3       Objectives of the Study          -           -           -           -           -           -           4

1.4       Research Questions     -           -           -           -           -           -           -           5

1.5       Formulation of Research Hypothesis -           -           -           -           -           5

1.6       Significance of the Study       -           -           -           -           -           -           6

1.7       Scope of the Study     -           -           -           -           -           -           -           7

1.8       Definition of term       -           -           -           -           -           -           -           7

CHAPTER TWO: LITERATURE REVIEW

2.0       Conceptual Framework           -           -           -           -           -           -           8

2.1       Definition of Small and Medium Scale Enterprises   -           -           -           9

2.1.1    Historical Development of Small and Medium Scale Enterprises      -           10

2.1.2    Promotion of Small and Medium Scale Enterprises (SMEs) and their

contribution to the economic growth of Nigeria        -           -           -           11       

2.1.3    Life Cycle of Small and Medium Enterprises            -           -           -           -           12

2.1.4    Importance of Small and Medium scale Enterprises (SMEs) -          -           13

2.1.5    Challenges Facing Small and Medium Scale Enterprises (SMEs)     

 in Nigeria       -           -           -           -           -           -           -           -           15

2.2       Theoretical Framework           -           -           -           -           -           -           19

2.3       Empirical Literature    -           -           -           -           -           -           -           21

2.4       Summary of Literature Review          -           -           -           -           -           31

CHAPTER THREE: RESEARCH METHODOLOGY

3.0       Research Design and Methodology    -           -           -           -           -           32

3.1       Research Design         -           -           -           -           -           -           -           32

3.2       Sources of Data Collection     -           -           -           -           -           -           32

3.3       Population of the Study          -           -           -           -           -           -           33

3.4       Sample Size Determination     -           -           -           -           -           -           33

3.5       Instrument of Data Collection                        -           -           -           -           -           33

3.6       Reliability of the Instrument   -           -           -           -           -           -           34

3.7       Method of Data Collection     -           -           -           -           -           -           34

3.8       Method of Data Analysis       -           -           -           -           -           -           34

3.9       Operation Measure of Variable           -           -           -           -           -           36

3.10     Decision Criteria         -           -           -           -           -           -           -           36

CHAPTER FOUR: DATA PRESENTATION AND DATA ANALYSIS

4.1       Respondents Characteristics and Classifications        -           -           -           38

4.2       Presentation and Analysis of Data According to Research Questions           39

4.3       Presentation and Analysis of Data According to Research Hypothesis         52

4.4       Discussion of Findings           -           -           -           -           -           -           66

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary         -           -           -           -           -           -           -           -           67

5.2       Conclusion      -           -           -           -           -           -           -           -           68

5.3       Recommendations      -           -           -           -           -           -           -           68

5.4       Suggestion for Further Studies           -           -           -           -           -           69

References      -           -           -           -           -           -           -           -           70

LIST OF TABLES

Table 1:           Sex of Respondent     -           -           -           -           -           -           39

Table 2:           Marital Status of Respondents           -           -           -           -           40

Table 3:           Educational Background of Respondents      -           -           -           41

Table 4:           Respondent years of Service  -           -           -           -           -           42

Table 5:           Inadequate Funding of SMEs Affect employment generation in

                        Nigeria?           -           -           -           -           -           -           -           43

Table 6:           Sustainable employment generation can solve socio-economic

Problem inherent in the Nigerian economy?   -           -           -           44

Table 7:           Inadequate Infrastructural Facilities affect employment generation

by SMEs         -           -           -           -           -           -           -           45

Table 8:           Interest rate on SMEs affects employment Generation in Nigeria     46

Table 9:           Small and Medium Scale enterprises contribute to Global Economic Growth and Development     -            -           -           -           -           47

Table 10:         Entrepreneurship reduces poverty and increase standard of living?  48

Table 11:         Poor planning and management of SMEs affect employment

                        Generation in Nigeria?            -           -           -           -           -           49

Table 12:         There is significance relationship between SMEs and employment generation?        -           -           -            -           -           -           -           50

Table 13:         Small and Medical Scale enterprises Affect/Contribute to Employment Generation in Nigeria?      -            -           -           -           -           51

ABSTRACT

This research investigated Small and Medium Scale Enterprises and Employment Generation in Nigeria, a study of relationship between SMEs and employment generation.  The study adopted a survey research design. The instrument used to gather information for this study was questionnaire.  For hypotheses were tested, one of which was testing the significance relationship between SMEs and employment generation.  A total of sixty six (66) copies of questionnaires were properly completed and retrieved. Two statistical methods were employed to analyse data for the study.  This result shows that there is significance relationship between small and medium scale enterprises and employment generation in Nigeria. The researcher recommended that in other to improve the role of small scale enterprises and employment generation, adequate attention must be given to widespread of economic activities  through entrepreneurship and SMES generation and therefore recommended the creation of more SMEs across the country as this will create more employment.

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

            Small and Medium Scale Enterprises (SMEs) are generally regarded as the engine room of economic growth and equitable development in developing economies. They are also seen as the key to Nigeria’s economic growth, poverty alleviation and employment generation.  For any nation to attain development, industrialization gain and meaningful employment are important indices used as a measurement of economic development, as such, poverty is caused by inadequate incomes and income result from employment which small and medium scale enterprises (SMEs) has proved to be a major tool adopted by the developed nations to attain social economic development (Lalkaka, and Obokoh,1997).

SMEs are also an attainment of national objective in terms of employment generation at low investment cost, development of entrepreneurial capabilities and indigenous technology.  They reduce the flow of people from rural to urban areas and can easily be established with minimal skill. They also contribute substantially to the country’s gross domestic product, export earning and employment opportunities. The challenges and the problem of small and medium scale enterprises are tied to some economic variables and the challenges that generally characterized the nation’s economy. Some of the challenges and problem include high level of unemployment, high poverty incidence, and low industrialization capacity, lack of finance, inconsistent government polices and inadequate infrastructure and insecurity of the business climate among others (Beckman 1983).

 In spite of these problems and challenges, the current economic reform process ongoing in Nigeria aimed at reducing poverty, unemployment and strengthening of basic institution and sub sector of the economy and improving and enhancing the capacity of small and medium scale enterprises is beginning to show a renewed optimism on small and medium scale enterprises as instrument of economic growth and development (Fabayo, & Onodugo, 2002).

1.2       Statement of the Problem    

            Most SMES in Nigeria die within their first five years of existence, a smaller percentage goes into extinction between the sixth and tenth year while only about five to ten percent survive, thrive and grow to maturity (Aremu, 2010). Many factors that contribute to this premature death of SMES has been identified. Key among them include: insufficient capital, irregular power supply, infrastructural inadequacies (water, roads etc), lack of focus, inadequate market research, over concentration on one or two markets for finished  products, lack of succession plan, inexperience, lack of proper book keeping, lack of proper records or lack of any records at all, inability to separate business and family or personal finances.

            In spite of the problems of SMEs and unemployment, Nigeria is faced with the challenge of curbing increased crime rate, unprecedented increase in prostitution, high mortality rate, and political thuggery among others which are traceable to youth unemployment. The rate of unemployment in Nigeria has now constituted a bane of economic development of Nigeria. Joblessness has resulted in rising incidence of social ills among young people. Successive government in Nigeria had adopted various policies to create Jobs and reduce unemployment. These employment policies were pivoted around small and medium scale enterprises as a veritable instrument to impact skills and provide financial assistance to unemployed person. As a result of the various strategies of successive governments, unemployment in Nigeria has continued to grow unabated. More so, dwindling economic growth and development attributable to insufficient number of economic activities call for people to engage in entrepreneurship in the form of small and medium scale Enterprises (SMEs) especially at such a time as this which on the long run will translate to improve and sustain economic growth and development, otherwise, the country will suffer relegation in the committee of nations (Osamwonyi & Oyimlade, A. O 2009).

1.3       Objectives of the Study

            The general objective of this study is to determine the role of small scale enterprise and employment generation in Nigeria. Specifically, it intends to;

1.         To examine the relationship between SMEs and employment generation in Nigeria.

2.         To determine whether lack of managerial skills contribute to the problem of SMEs in Nigeria.

3.         To examine the effect of inadequate infrastructural facilities of SMEs on employment generation.

4.         To examine the effect of poor planning and management of SMEs on employment generation.

5.         To determine whether poor financing constitute a major challenge to the generation of employment by SMEs in Nigeria.

6.         To proffer useful solutions to these problems

  

1.4       Research Questions

            In the course of the study, the following research questions were answered.

(i)         Is there any significant relationship between SMEs and employment generation in Nigeria?

(ii)        Can poor management of SMEs affect employment generation in Nigeria?

(iii)       Can inadequate infrastructural facilities affect employment generation in Nigeria?

(iv)       Can inadequate funding of SMEs affecting employment generation in Nigeria?

(v)        Does poor financing constitute a major challenge to the generation of employment by SMEs?

 (vi)      To what extent does lack of managerial skill constitute a problem to the generation by SMEs of employment in Nigeria.

1.5       Research Hypotheses

            In the course of these study, the hypothesis stated below were tested.

Ho1:     There is no significant relationship between SMEs and employment generation in Nigeria.

Ho2: Poor management of SMEs does not affect employment generation in Nigeria

Ho3: Inadequate infrastructural facilities does not hinder the generation of employment in Nigeria.

Ho4: Inadequate finding of SMEs does not affect employment generation in Nigeria

Ho5:     Lack of managerial skill does not constitute a problem to the generation by SMES of employment in Nigeria.

1.6       Significance of the Study

            The study will be of benefit to the operators of the small and medium enterprise, the government, and the future researcher by contributing to the up to date material on the subject.

            The study will be beneficial to the Nigeria youths and graduates who has the intention of going into business.

            To the government it will help in developing better policies that will encourage the development of SMEs for the creation of job opportunities.

            To the operators of

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