Contribution Of Small-scale Enterprise To Economic Development In Nigerian

Business Administration Project Topics

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Content of this project reveals the contributions of small sale enterprise to economic development and it’s enhancement through various ways it encouraged. It also paid attention to the findings of these enterprises.

This paper identified the problem associated with server lack of managerial and technical. It also advice the government to help in the development of small scale industry seeing that it helps in the creation of employment opportunity.

Chapter one of this project tells about the background of the entire study, how small scale enterprise has been a bedrock even before it’s recognition by the government. Chapter two elaborate more on the case study of the project. how the enterprise in question was given birth to and its measure to appreciate and grow higher.

Chapter three deals with the design of the research the method used in collecting relevant data, questionnaire and the treatment of data and statistical techniques used. Chapter four is all abut hypothesis.

Finally, the summary of finding, conclusions in the research and recommendations made by the researcher are all in chapter five. The purpose how small scale enterprises have contributed to economic development in Nigeria. If small scale business will put the recommendation on how to achieve economic growth and development to use, such as increasing availability of credit by raising interest rate ceiling and permitting a spread that makes it worthwhile for bank to lend to small scale business. Problems of small scale business will be a thing of the past.








Title page                                                                                 i

Approval page                                                                  ii

Dedication                                                                       iii

Acknowledgement                                                            iv

Abstract                                                                           v

Table of contents                                                             vi

CHAPTER ONE                                              

INTRODUCTION                                                              1

1.1      Background to the study                                         1

1.2   statement of problem                                               7

1.3   objective of the study                                               8

1.4   scope of the study                                                    9

1.5      Research question/hypothesis formulation             9

1.6      Limitation of the study                                             11

1.7      Definition of terms                                                   12


2.1        Meaning of small scale business                             15

2.2   Entrepreneurial philosophies                                          19

2.3      Problems facing small scale entrepreneur                        21

2.4      Factors that determines location of industry           25

2.5      The relevance of small scale business

national development                                              27

2.6      Present situation of small scale business in Nigeria        30

2.7      Financing of small scale enterprise                          33

2.8      performance of small scale business enterprise

in Nigeria                                                                 36

2.9      Why small scale enterprise should be encourage

and developed.                                                        36

Reference                                                                 42

Literature review                                                      43


3.1   Research design and methodology                          45

3.2      Population for the study                                                  45

3.3      Sample size                                                              45

3.4      Development of research instrument                       46

3.5   Research procedure                                                         48

3.6   Method of collection                                                         48

3.7      Method of data analysis                                           49


4.1      Presentation, analysis and interpretation of data    51

4.2   Test of hypothesis                                                    72


Summary of findings, recommendations and conclusion        81

5.1   Summary of findings                                                       81

5.2      Recommendation                                                     84

5.3   Conclusion                                                              87

5.4   Suggestion for further research                                88

Bibliography                                                            89

Appendix 1                                                              91

Appendix 11                                                            92







The contribution of small –scale business in fostering economic growth and development has been well articulated in different areas of the study. The specific attention on them based on their expected impact and potential contribution on broad and diversified production, as well as their accelerative effect in achieving macro objectives pertaining to full employment income distribution and the development of local technology.  They are particularly most conducive for diffusion of management skills and emulation of indigenous entrepreneurship overtime.

        The meaning of Small business provides varies  from one country to anther and from one industry to another even within the same industry. In Nigeria for instance, the development plan 2003-2007 (Vol. 1. 353) described a small scale business as any manufacturing establishment employing less them  ten people or whose investment is equipment and machinery do not exceed N 600 . According to the credit guiding of the central Nigerian (CBN), small scale business are classified as those business within an annual turnover of less than half a million.

The Nigeria Bank for commerce and industrial (NBC1) 2003-2007 defined small scale business as an industry with capital not exceed N 750, 00  including working capital but including working capital but excluding cost of land.

In  Enugu state fund for small scale industry (EUSSI) established by  the state government defined small industry with a capital investment of N150,000 in machinery and equipment alone this exclude working capital and cost of land.

Small scale business provides financial opportunity and a chance to develop wealth. It is a place where creative motivated individuals can use their talent and expertise to the fullest becomes it provides satisfying careers and job opportunities and it is also the back borne of the market economy of the world.

Every big business started as a small business and it started with an entrepreneur who at first earns little or no profit. It was the new ideas of small business that brought about Ekene Dili  Chukwu transport, the fan Milk Nnewi Tokubo parts and even the many commercial Banks in Nigeria. Untried ideas become annulations that become concepts that change the business world. Small business is the basis for the economic well being of many development nations including USA and Japan.            

Entrepreneurship is what makes a small business successful.  Entrepreneurship occurs when an individual develops a new venture, a new approach to an old business or idea, or a unique way of giving the market place a product or service by using resources in a new way under conditions of risk.  Small business triumphs and entrepreneurship are closely related to it.  It is difficult to separate them.

        The unemployment situation in the country coupled with the new government instinctive towards easing social tensions among unemployed (NDE) were intended to lure a lot of unemployment. Graduates and school leaver are  now realized that government and the established private companies are not ready   to come to their air directly, through paid employment due to the dividing state of the economy.  Short of the alternatives, Nigerians including our graduates are therefore launching themselves into various small-scale business ventures, such as cottage soap and cosmetics production, fairing, restaurants, fast food, publishing, writing, block making,  cleaning services, weaving, advertising  and other same raw materials. The determination to succeed is also fast becoming the order of the day. Government has been playing appreciative role in promoting the survival and growth of small-scale enterprise in recognition of them flexible and adaptive nature as well as their re-generative power in promoting economic growth and development. Government also encourage people to establish their own small business so as to reduce the problem of unemployment in the country and also reduce the problem of importation of goods, moreso, to produce exportation products.

        Government in believing that a dynamic and growing small manufacturing sub-sector can contribute significantly to the implementation of a wide range development effectives, has thus emaciated  various policies to encourage their proliferation and make them veritable engines of growth and development.  In the third and for the development plan and the on-going three years rolling plan, priority has been accorded industrialization with greater emphasis on small-scale enterprises.  The basic activities of government policies as maintained in the monetary and fiscal policy measures, are to improve the financing and other supportive services of small-scale business by expanding and improving access to credit and infrastructural facilities, reducing their production costs, boosting their profitability, enhancing their survival and growth capacities as well as expanding their contributions to non-oil exports by making their products competitive in the export markets. Hardly could any major industry succeed without the services of small-business enterprise.

The major goals of any profit oriented business is to make profit.  A company will make more profit if statistics it’s customers need better them the competitors. 

There fore in the contribution of small-scale business, bakeries would produce what the customers want and by so doing they maximize profit and only bakeries that are effective and efficient can satisfy customers needs.  In reality, it is possible to run a business without profit for a time, but it is not possible for to survive for one day without customers.  Customers are the central theme of any business.  Without a total commitment to them, contribution to economic growth and development will have limited and brief effects. In this study, Ify Bakery which is the case study of this topic is not an exception to the problems farced by bakeries in Enugu.

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Contribution Of Small-scale Enterprise To  Economic Development In Nigerian