Small and Medium Scale Enterprises and National Development

Abstract

This study is on Small and Medium Scale Enterprises and National Development. The objectives of the study are to: determine factors militating against small and medium scale enterprises in contributing to national development, ascertain the contributions of small and medium scale enterprises to national development, determine the nature of the relationship between small and medium scale enterprises and national development. Data for this research were obtained from both primary and secondary sources. The study had a population size of 350, out of which a sample size of 186 was realized using Taro Yamane’s statistical formula.  The total number of 186 copy of the questionnaire was distributed while 177 copies were returned. Descriptive survey research design was adopted. Pearson Chi-square (X2) and Pearson product moment correlation coefficient test were used to test the hypotheses. To ensure that the research instruments are valid, a conduct of a pre-test of every question in the questionnaire was carried out. For reliability of the research instruments, a test-re-test method was adopted using Pearson’s Product Moment Correlation Coefficient of reliability to calculate the result and the result gave reliability coefficient of 0.77. Findings indicate that: lack of management expert and inadequate infrastructural facilities are the factors militating against small and medium scale enterprises in contributing to national development; job creation and employment are the contributions of small and medium scale enterprises in national development; there is positive relationship between small and medium scale enterprise and national development. The study concluded that small and medium scale enterprises is an engine room that promote national development and the bedrock of economic development. The study recommends that Governmenst should assist prospective entrepreneurs to have access to finance and necessary information relating to business opportunities, modern technology, raw materials, market, plant and machinery which would enable them to reduce their operating cost and be more efficient to meet the market competitions.

Keywords: Small and medium enterprises, National development, Nigeria.