THE IMPACT OF WORKING CAPITAL MANAGEMENT IN SMALL AND MEDIUM SCALE ENTERPRISES IN UYO
- BACKGROUND OF THE STUDY
There exist lots and lots of business ventures that are run by individuals, group of people or association, SMEs, industries and government with the aim of maximizing profits. They range from small scale to medium and large SMEs. In the Uyo economy the small scale enterprises are the most common form of business. The aim of any economy (either industrialized or non industrialized) depends largely on how well organised the small and medium scale enterprises are (for instance if we look at the standard of practices of small-scale industries in the economically developed Countries). The small enterprises in Nigeria seem too stagnant, less adventurous than developed countries because the successive governments have not appreciated their significance to the national economy.
Firstly most of the small businesses are sole proprietorship business venture. Small SMEs play critical roles in providing job opportunities, nurturing a culture of entrepreneurship and opening up new business opportunities. They are recognised and acknowledged worldwide as vital and significant contributors to the economic development, introduction and diffusion of new technology, ability in generating potential entrepreneurs and skilled workers for the industrialization process both nationally and internationally (Ch ng Hakng Zephkee-Yun &1986:25). Small and Medium-Scale enterprises development can encourage the process of both inter-and intra- regional decentralization; and they may well countervail economic power of larger enterprises.
More generally, the development of SME s is seen as accelerating economic objectives, including poverty alleviation (cook & Nixson, 2000).Small and Medium enterprises are new and growing business which (for any number of reasons) do not grow beyond a certain size (Thomson & Martin 2005). The UyoBureau of Statistics (NBS) consider SMEs with fewer than ten employees as small -scale enterprises and their counterparts with more than ten employees as medium and large sized enterprises. The GSS in its national accounts considered companies with up to 9 employees as SMEs. (kayanula & Quartey 200
SME s account for significant share of the economic activity in Nigeria and can play an important role in achieving the Millennium Development Goals (MDGs). The long term
goals is for SMEs to maximize their countries T development with respect to production, income distribution and employment and the closer integration of women and people in rural areas within the national economy (NBSS, 1981).one of the significant characteristics of flourishing and growing economy is booming small and medium enterprises (SMEs).