TABLE OF CONTENTS
PAGE
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study – – – – – 1
1.2 Statement of the Problem – – – – 10
1.3 Objectives of the Study – – – – – 11
1.4 Research Question – – – – – – 12
1.5 Research Hypotheses – – – – – 12
1.6 Significance of the Study – – – – – 13
1.7 Scope and Limitation of the Study – – – 14
1.8 Organization of the Study – – – – 14
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction – – – – – – 16
2.1 Concept of SMEs – – – – 17
2.2 Concept of Economic Development – – – 18
2.3 Theoretical Framework – – – – – 20
2.4 Empirical Framework – – – – – 21
2.5 Characteristics of SMEs in AkwaIbom State – – 25
2.6 The Important Role of SMEs – – – – 29
2.7 Problem of SMEs Enterprises or the Challenges
Facing Small and Medium Enterprises – – 31
2.8 The way forward for the failure of SMEs – – 36
2.9 The Role Government in Small and Medium Scale
Enterprises – – – – – – – 37
2.10 Summary of Literature – – – – – 41
CHAPTER THREE: METHOD OF STUDY OR RESEARCH
METHODOLOGY
3.1 Introduction – – – – – – 42
3.2 Research Design – – – – – 43
3.2.1 Primary Sources – – – – – – 43
3.2 Sampling Procedure – – – – – 44
3.3 Questionnaire Design – – – – – 45
- Data Collection – – – – – – 46
- Data Analysis Techniques – – – – 46
CHAPTER FOUR
4.1 Introduction – – – – – – – 48
4.2 Hypothesis Testing – – – – – 50
CHAPTER FIVE
5.1 Summary – – – – – – – 63
5.2 Recommendations – – – – – – 64
5.3 Conclusion – – – – – – – 64
References – – – – – – – 66
Appendixes
ABSTRACT
This is study surveys the contribution of the impact of SMES, on the economic development of rural community. “A study of selected rural communities Uyo senatorial Distinct in AkwaIbom State where the research was carried out and analysed”. Of the 120 respondents from four (4) local government Areas in AkwaIbom State, the hypothesis on how SMES on the economic development of rural countries were tested. The idea of whether SMES job creation and economic development was also tested. Also tested was the hypothesis on whether there is no significant impact of SMES products and services on the economic development of the selected rural communities. It was observed that SMES is one of the major causes of economic development in AkwaIbom State and the it has reduced the levels of poverty in the state. With the analysis obtained, it was generally found that the impact of SMES on the economic development rural communities as affect the life of people in the rural communities by reducing the level of poverty in the state. Generally, government should establish well organized functioning programmes to enhance contraceptive service in order to encourage growth development in the state.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The pursuit of economic development has been a major goal of many developing nations of the world. Developing countries are confronted with numerous problems such as high rate of poverty and unemployment which have continued to hinder the attainment of socio-economic development.
For any nation to attain development, industrialization, gainful and meaning employment are important indices used as a measurement of economic development. This is often depicted by income per capital, equitable distribution of income, the welfare and quality of life enjoyed by the citizen of that nation.
Small and Medium Scale Enterprise (SMEs) has proved to be a major tool adopted by the developed nations to attain socio-economic development. In recent time, small scale industrial sector is considered to be the backbone of modern day economy. Historically fact show that prior to the late 19th century, cottage industries, mostly small and medium scale business controlled the economy of Europe. The industrial revolution changed the status quo and introduced mass production (Thomas, 2001). The twin oil shock during the 1970s undermined the mass production model, which triggered the unexpected reappraisal of the role and importance of small and medium scale enterprise in the global economy (Wendrel 2003).
SME is defined as the development of a business from the ground, it is a idea and turning into a profitable business which yield profit to the business. It is a journey of opportunity exploration and risk management to create value for profit and social good it entail recognizing the right opportunity finding resources to such as funding and tools to pursue the opportunity and creating the right team to do not.
Economic Development: This is the development of economic wealth of countries, reigns or communities for the well-being of their inhabitants, from a policy perspective economic development can be defined as efforts that seek to improve the economic by creating and/or retaining jobs and supporting or growing incomes and the tax base. The term “economic development” on the other hand, implies much more, it typically refers to improvement in variety of indications such as literacy rates, life expectancy and poverty rates.
The Important Role of SMEs: It is true that small scale enterprise are or economic importance and this full has been recognized world-wide.
Essien (2001) observed that small scale enterprises are useful in mobilizing small savings for productive investment and enhancement of the industrial capital formation. In a country with low level of savings. Such as Nigeria, small and medium scale enterprise are ideal for the mobilization of resources for economic development.
Carpenter (2001) asserted that SMEs promote industrial and economic development through the utilization of local resources technology. He further observed that SMEs problem the best opportunity for job creation and rural development.
1. Employment Creation: A very important rationale for promotion SMEs in AkwaIbom is their Job creating potentials. This stems mostly from their labour intensive and consequently capital saving methods of operation.
2. Utilization of Local Resources: SMEs can be said to be a greater local resource user than their anger counterparts. Their local resource utilization encompasses the use local raw materials and discarded by products of large firm or primary output in their production process. Their employment of local resources includes the opportunities offorded people with limited formal training or educating a large number of which can be found in developing nation.
3. Disposal of Economic Activities: Small scale business constitute a sector of the industrial sector offering easy entry to prospective entrepreneurs making low demand an capital intensity and not dependent on significant economics of scale of production and marketing for take off survival rather there look for greater demands on the skills and the ingenuity of their owners.
4. Mobilization of Savings: Another important role SMEs is that there helps in tapping idle financial resources which ordinarily would not be brought into the banking mechanism.
