This study was aimed at examining the role being played by the small and medium scale enterprises towards economic growth of an economy with E-nugu state as our case study. From the study, it was observed that indeed, small and medium scale enterprises contribute to the economic development of Enugu state.

Lack of adequate finance was identified as one of the mayor problems hampering the development of small and medium scale enterprise in Enugu state.

In order to provide a sound theoretical framework and sound judgement for the work, the work of other researchers in the same issue were reviewed.

The use of Taro-Yamani Statistical formular was used in selecting an adequate sample size for the study from the population.

A total of six hypothesis were formulated and also tasted using the chi-square method of hypothesis testing.

In order to elicit proper information from the respondents who are both illitrate and litrate, the researcher utilized both questionnaire and interview. The data collected were properly analyzed using the table and simple percentage response formular.

In the final analysis, the research work found out that small and medium scale enterprises affects the economic growth of the Enugu State Economy.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The term business, has over the years turned out to be a house hold name. In different places and under different circumstances, people have tended to give the term “business” different definitions and meanings. However, it is also important to note, that in some instances, the dimension and size of an organization or an enterprise can determine the order of its definition.

In some instances, business can be regarded as the performance of the entrepreneurial function of co-rdination of all the factors of production – labour, capital, natural resources and management to provide goods and services which may be sold at a profit.

It therefore follows that business entails the proper coordination of the various factors of production with a view of utilizing them in the production of the necessary goods and services in order to maker prodit.

Business enterprises have also been identified to operate of the basis of different levels and capabilities. These ranges from small privately owned enterprises to large organizations that are either privately or publidy owned.

Based on the above definition of business, one would understand some basic issues. This include the fact that business are organized with the purpose of making profit. Therefore in essence, a good business venture is one in which is geared towards profit making. Therefore in a qust to make profit, the business organization must surly operate in an existing environment.

Having said that established the fact that most business establishments are geared towards profit making and at the sarve time that business organization exists within an environment, it will be wise to say that the environment of any business venture surly contributed to the success or failure of such a business.

Based on this, it is wise to examine on the other way round if there is any role the business organization on their own part does for the environment. This assentron will for the bedrock of this study which centers on examining the role of small and medium scale business enterprises to the economic development of the economy with emphasis on Enugu state.

1.2 STATEMENT OF THE PROBLEM

The import of entrepreneurial resource as a crucial input process of material development is becoming widely recognized, with growing emphasis on the role of small and medium scale enterprises in view of their contribution to general economic growth. (Ezeh 1998) Observed that, even where there are incentives and inducements, it is found from experience that entrepreneurs do not respond spontaneously to available business opportunities. This according to (Makinde 1999) can be attributed to inadequate intrastructural facilities and lack of access to bank credits. However, in most cases this is attributed to the low economic activities within the economy.

It is thus against this backdrop that the researcher intends to find out the impact of the small and medium scale enterprises towards the economic development of the economy, with emphasis on Enugu state.

1.3 STATEMENT OF RESEARCH OBJECTIVES