CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

The impact of Small Scale Enterprises to the developmentcannot be neglected in everyeconomy,moreespeciallydevelopingnationswhere sustainable economicdevelopment ishighlydesirable small business enterprises have such a crucial impact toplay in the development of an economy in such a way that theycannot be ignore.

According to Osuagwu (2001) small business enterprisesinvolves the use of human and non-human resources towards theachievement of set goals and objectives.Smallbusinessenterprises should form one of the development objectives theycan serve as a source of impact for multinational, thereby replacing existing foreign resources, they are also training ground for local skill ensuring a more equitable distribution of income and reducing the migrating of manpower from the rural to the urban areas.

Small scale enterprises are crucial for economic growth, poverty alleviation and wealth creation. In an economy like Nigeria, small business enterprises has always been faced withcredibility problems, planners experience frustrations when they make their forecast because they did not come out as forecast while no business planners would dream of claiming :n fallibility the crucial things among the business planner is not :or internal prediction are right or wrong but what the forecast is able to produce.

Economic history is well stocked with enough it sights into the humble beginnings of present great corporation, evidence abound that almost all of the multinational giant corporation in America Europe and even Nigeria were cottage enterprises, growing as their industry grew and through their own sheer ability, marketing skills, and effort to reproduce and produce existing products better cheaply. Japan's economy was dominated by traditional industries, cottage firms and by many SMEs, who drew their strength, not only from the abundance of capital, but from the role of marketing in guaranteeing the growth of small scale enterprise.

Small scale enterprises contributed greatly to Nigerians development by the provision of employment, marketing of goods and services and the growth and development of the rural areas. Ithas also brought about the growth of indigenous entrepreneurship in Nigeria.

1.2      STATEMENT OF PROBLEM

The ineffective and inefficient performance of small scaleenterprises as a result of poor environmental forces in Nigerianecessitated this research. It is important to note that all othermanagement factors considered, the success or failure oforganization small scale enterprise is heavily dependent onenvironmental influences.

Poor or inadequate knowledge of the operating environmentof small scale enterprise adversely affects the performance,survival, growth and eventual success of small scale business enterprises.

1.3      OBJECTIVES OF THE STUDY

·        The extent to which is necessary for the government to support the small and medium scale enterprises.

·        Examine the effectiveness and ineffectiveness of the various government or environmental issues like financialinstitutions; power sectors and level of corruption in the stage.

·         To determine the role and importance of small and medium scale enterprises in the economic development.

1.4      RESEARCH QUESTIONS

In order to achieve the objectives of this research study, theresearch study will attempt to provide answer to the followingresearch questions:

·        What are the roles of small and medium scale enterprises on aeconomic development?

·        How does small and medium scale enterprises create job in economic development?

·        Are small medium scale enterprise in the market the engine of economic development?

·        Howe does small and medium scale enterprises improve the standard of living?

1.5      RESEARCH HYPOTHESIS

Testing the following hypothesis will provide answers to the research questions:

1.        Ho:     Small scale enterprise does not play any role in the

economy development

Hi:       Small scale enterprise plays a vital role in tie economy

development

2.        Ho:     Small scale enterprises does not create job

opportunities in the economy development.

Hi:       Small scale enterprise creates job opportunities in the

economy development.

3.        Ho:     Small scale enterprise in the market are no: the engine

of economy development.

 Hi:      Small scale enterprise in the market are the engine

of economy development.

1.6      SCOPE OF THE STUDY

The research work will cover the role of small scale on the economic development the scope of this research will be limited to small scale enterprise in AlabaInternational Market.

1.7      LIMITATIONS OF THE STUDY

These are the constraints on the research work:

·        Financial constraint: when research work suffers frominsufficient fund to execute, it affects smoothness of theresearch work.

·        Time constraint: in a situation where the time available forthe research work is short, this limits the effectiveness ofcollecting and analyzing the research data.

·        Attitude constraint: the research work can be negativelyaffected where the experts and the others concern are not readily responding adequately on the research work.

1.8      SIGNIFICANCE OF STUDY

This research work has the following significance:

·        The study will be useful to the government for job creation.

·        It will be useful to Nigerians who intends to evaluate the roles played by small scale enterprise on economy development.

·        The research equally be a good reference material for future research on the topic.

REFERENCE

Osuagwu L. (2001): Business Entrepreneurship Management, Lagos

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