THE ROLES OF SMALL AND MEDIUM SCALE ENTERPRISE IN REVAMPING NIGERIAN ECONOMY (A CASE STUDY OF ERIC ENTERPRISE, UYO)
1.0 Introduction/Background of Study
In the bid to improve the economy of Nigeria, the Government has implored different measures in the pursuit of a better economy, yet the growth seems to be slow. Considering the economy in retrospect, many will notice that the industrialization of the state is gradually drawing to the drain. Some argue that this is because, the impact of small and medium scale business are no more acknowledged and as such people are no more encouraged to embark on that entrepreneurial journey anymore. Youths look forward to getting a job at a reputable company, a multinational company so to say, rather than the choice of being innovative.
Small and medium enterprises according to Nath, L. (2012), “is a life-wire for any growing economy in this age”, this in no doubt is reason why the big economies of the world rely and support small and medium scale businesses in their country.
The Small and Medium Enterprise (SME) sector carries great hopes and great burdens in the evolution of all of the transitional economies. Sustained and healthy growth of this sector is obviously necessary, since it is difficult to imagine rising overall living standards and social peace without such a development. With the large-scale units of both the State-Owned Enterprise (SOE) and previously State-Owned Enterprise (PSOE) sector often at best stagnant, successful performance during the transition increasingly appears to be dependent on the expansion of this Small and Medium Enterprise sector. Even if the hopes that this sector will by itself have a systems-dynamizing and transformational effect prove to be false, its role in generating employment and an atmosphere of social stability is crucial (EBRD 1995).
The Federal Government over the years has been claiming strong real GDP growth rate measuring at 6% or 6.5% since 2005 till date (Aganga, 2010 and Ogunmade, 2013). This is apparently a paradox. A situation whereby,
There is a decade of strong real GDP of 6.5% economic growth, and in the same period, unemployment rate continue to rise annually from 11.9% in 2005 to 19.7% in 2009, and over 37% in 2013% (Aganga, 2010 and Ogunmade, 2013). The apparent economic growth has not lead to economic development. The rate of poverty is still very high, the industries are still in shambles, technological development is still at rudimental stage, income inequality is high, immortal mortality rate and child mortality rate is high, and in fact, Nigeria’s development index is still very low.
Having identified the need to empower entrepreneurs in the country, government is yet to know the strategies to use in achieving effective results.
This research project is focused on the role of small and medium enterprise on revamping the Nigerian economy.
1.1 Statement of Problem
The government has invested some great portion of the country’s revenue on the empowerment of entrepreneurs yet the sector still needs to be aided. Instead of growing the number of small and medium scale business seem to be retarding. It has been observed that entrepreneurial problems have become the major factor posing problem to the survival of many small and medium scale enterprise businesses.
Such several entrepreneurial problems include, reasonable risk-taking, self confidence, hard wok goal setting, accountability, initiative and creativity innovative, high need for achievement skill and expertise and managerial ability, while other factors like the problem of finance, the required technology, competition have also posed problems to the survivals of SME’s businesses.
It is believed that those of entrepreneurial problems as stated above have been more. These problems have remained despite all the federal and state government efforts to encourage the growth survival of the indigenous small and medium scale business (SME’s). But no doubt the nation’s solid industrial super-structure can only by built on the same foundation of indigenous entrepreneurial or managers qualities or talent.
The managerial problem has increased due to the reluctance or inability of most of the entrepreneurs to attach importance or carry out effective managerial function as planning, organizing, directing and controlling, hence success requires the entrepreneur to anticipate change continuously and to search for new combination of activities the generate synergistic benefits to withstand the aggressive change.
1.2 Objectives of the Study
The following are the objectives of this research work:
- To examine the role of small and medium business enterprise in revamping Nigerian Economy.
- To find out the factors that impedes the growth of small and medium business enterprises.
- To find out how to empower entrepreneurs and SMEs owners to achieve results.
- To find out the benefits of small and medium scale business enterprises to our society.
1.3 Research Questions.
- What are the role of small and medium enterprises in revamping the Nigerian economy?
- What are the factors that impede the growth of small and medium business enterprises in Nigeria?
- In what ways can entrepreneurs and SMEs owners be empowered to achieve results?
- What are the benefits of small and medium business enterprises to our society?
1.4 Significance of the Study
This study is significant to the government of Akwa Ibom State and Nigeria at large to aid them in empowering small and medium business enterprises so as to develop the economy. The study will also educate owners of SMEs on the management of their enterprise thereby boosting their stability. This study is also of significance to individuals and the unemployed citizens to educate them on entrepreneurship and how they can take advantage of it to better their lives and reduce the rate of unemployment around them. This study will