This study, THE EFFECT OF GOVERNMENT FUNDING SCHEMES ON DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES SMEs contains concise information that will serve as a framework or guide for your project work. The project study is well-researched for academic purposes and are usually provided in complete chapters with adequate References.
TABLE OF CONTENTS
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 SIGNIFICANCE OF THE STUDY
1.6 SCOPE OF THE STUDY
1.7 LIMITATION OF THE STUDY
1.8 DEFINITION OF TERMS
2.0 LITERATURE REVIEW
2.1 CONCEPTUAL CLARIFICATION
2.1.1 CONCEPT OF GOVERNMENT FUNDING SCHEMES
2.1.2 CONCEPT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA
2.1.3 CHARACTERISTICS OF SMES IN NIGERIA
2.1.4 CONTRIBUTIONS OF SMALL AND MEDIUM SCALE ENTERPRISES TO THE NIGERIAN ECONOMY
2.1.5 CHALLENGES OF THE SMES
2.1.6 PROSPECTS OF SMALL AND MEDIUM SCALE ENTERPRISE IN NIGERIA
2.2 THEORETICAL FRAMEWORK
2.3 EMPIRICAL REVIEW
2.4 SUMMARY OF LITERATURE REVIEW
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.2 AREA OF STUDY
3.3 POPULATION OF THE STUDY
3.4 RESEARCH SAMPLE AND SAMPLING TECHNIQUE
3.5 INSTRUMENT FOR DATA COLLECTION
3.6 VALIDITY OF THE INSTRUMENT
3.7 METHOD OF DATA COLLECTION
3.8 METHOD OF DATA ANALYSIS
4.0 DATA ANALYSIS AND PRESENTATION
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.5 SUGGESTION FOR FUTHER STUDY
1.1 BACKGROUND TO THE STUDY
According to allbusiness.com (2010), the abbreviation SMEs occurs commonly in the European Union and in International Organizations such as the World Bank, the United Nations and the World Trade Organization. Also the term Small and Medium Scale Businesses (SMEs) is predominantly used in the United States of America. The European Union states traditionally have their own definition of what constitutes SMEs. For instance, the traditional definition in Germany Limits Small and Medium Scale Enterprises to two hundred and fifty (250) employees while in Belgium, it is limited to one hundred (100) employees. Recently, the European Union has standardize the concept by categorizing enterprises with less than ten (10) employees as ‘micro’, those with fewer than fifty (50) employees as ‘Small’ and those with fewer than two hundred and fifty (250) employees as “medium”. In the United States of America, any business with fewer than one hundred (100) employees is classified as “small” while medium scale business refers to a business with fewer than five hundred (500) employees. In India, Micro and Small Enterprises play a pivotal role in the overall industrial economy of the country. It is estimated that in terms of value, the sector account for about 39% of the manufacturing output and about 33% of the total export of the country. Also in South Africa, the term Small, Medium and Micro Enterprises (SMMEs) is usually used, while in Nigeria, the term Small and Medium Scale Enterprises (SMEs) is generally used. From the foregoing, it can be deduced that Small and Medium Scale Enterprises are enterprises that have the capacity to employ at most five hundred (500) employees at a time and it has been proved to be the back bone of every economy. The brain behind every successful Small and Medium Scale Enterprise is entrepreneurship which in the words of Olagunju Y. (2004) is an undertaking in which one is involved in the task of creating and managing an enterprise for a purpose. The purpose as further stated may be personal, social or developmental. One who is involved in this task is called an entrepreneur. Also a line between an entrepreneur and business owners must be drawn.
Governments at Federal, State and even local levels through budgetary allocations, pronouncements and policies have signified interest and acknowledgement of the important roles of the SMEs sector of the economy and hence made policies for energizing the sector. There have also been supports and aids from fiscal incentives, grants, bilateral and multilateral agencies as well as specialized institutions, which are all geared towards making the SMEs sector vibrant, and also it is a great concern to all, and sundry to promote development and performance of SMEs. With this, it has been a great concern for all the fact that the vital sector has fall shorts of expectations. The situation is more worrying and disturbing when compared with what other developed and developing countries have been able to achieve with their SMEs sectors, and it has been shown that there are high correlation and relationship between the degree of poverty, hunger, unemployment, economic well-being of the citizens of the countries and the degree of vibrancy of the respective SMEs (Onugu, 2005). It is now time to do something surgical to the situation of the SMEs in order to achieve performance, given the aggravating level of poverty in Nigeria and the need to meet up with the MDGs. One of the major drawbacks in Nigeria’s quest for industrial growth and development over the past years has been the absence of a vibrant, strong and performing SMEs sector. Given a population of well over one hundred and twenty million people, rich variety of mineral deposits, vast productive and arable land, and also enormous human and other natural resources, Nigeria should have been a haven for SMEs with maximum returns, as it also has the location advantage as a marketing hub for the West and even East African Countries (Onugu, 2005). A number of facts have been adduced as to why the expectations of SMEs have not been achieved.
1.2 STATEMENT OF THE PROBLEM
The performance of SMEs in Nigeria has been slow and in some cases even collapsed due to a number of challenges confronting this important sub-sector of the Nigerian economy. Some of the obstacles highlighted in the body of literature as being responsible for the problems include: deplorable infrastructural facilities; inadequate managerial and entrepreneurial skills; financing challenges; limited demand for their products and services; limited capacity for research and development as well as innovation; insufficient technology system; burden of multiple taxes charge; lack of business plan or good business plan; recruitment of incompetent employees; absence of motivation to staff; choosing of wrong business location; lack of transparency arising from government regulations and regulatory bodies; as well as lack of interest and focus on the side of government in addressing the specific factors responsible for the abysmal performance of the sub-sector. On the other hand, Oluboba (2011) argue that the issues faced by SMEs can never be overemphasized and it is as a result of poor access to funds, management practices, low equity participation from stakeholders, inadequate infrastructural facilities, societal and attitudinal problems, shortage of skilled manpower, multiplicity of regulating agencies, little access to markets and lack of access to information. Onugu (2005) argues that despite the incentives, programs, policies and support aimed at revamping the SMEs, they have performed rather below expectation in Nigeria. Different people, organizations, and operators have advanced. Various reasons to consider why SMEs has not been able or in the capacity to live up to their billing. While an average operator would always hinge their failure to lack of access to finance, some think otherwise arguing that difficulty in accessing global market, inappropriate management skills, lack of entrepreneurial skills and know-how, inadequate infrastructure, and the rest are mainly responsible. Finance is usually considered as the main obstacle of SMEs. While this may be true empirical evidence have shown that fund/finance contributes only about twenty-five percent to the success of SMEs, which sounds insignificant. Thus, the creation of other appropriate support systems and enabling environment are indispensable for the success of SMEs in Nigeria (Ekwem, 2011), all this contributed together gave birth to business stress on entrepreneur, and this however arose the interest of the researcher to investigate the effect of business stress on the performance of small scale enterprises.
1.3 OBJECTIVE OF THE STUDY
The main objectives of this study is to find out the effects of government funding scheme on the development of small scale enterprises, specifically the study intends to:
1.4 RESEARCH QUESTION
The following research questions were formulated by the researcher to guide this study:
1.5 RESEARCH HYPOTHESIS
Ho: there is no significant effect of government funding scheme on the development of SMEs in Nigeria
Hi: there is a significant effect of government funding scheme on the development of SMEs in Nigeria
1.6 SIGNIFICANCE OF THE STUDY
This study when completed will be a valuable help to various stakeholders for implementations with the concerned efforts of all and sundry including: governments at all levels, SME promoters etc.
Policy makers: It guides them in making policies and regulations that will create enabling environment for small and medium scale enterprises.
SMEs: This study will enable them to identify the problems confronting the development of small and medium scale enterprises.
Investors/Entrepreneurs: It will enable them to know what they expected of government in the promotion of small and medium scale enterprises. It will also enable them to know the cost involvement in establishing the small and medium scale enterprises.
Companies: They will also benefit from this study, since they are interested in the overall success, operational and financial efficiency evaluation of the firm. Student/Researchers: This study will also be a benefit to them, since they are curious in studying or knowing more about the topic and in their research work.
1.7 SCOPE OF THE STUDY
Because the researcher could not be able to cover the whole of Nigerian small and medium scale enterprises (SMEs). The researcher narrowed it down to the number of registered small and medium scale enterprises. This study the effects of government funding scheme on the development of small scale enterprises (SMEs) in Nigeria. Samples was taken only from Uyo Local Government Area of Akwa Ibom State.
1.8 DELIMITATION OF THE STUDY
However, in the course of carrying out this research work, the researcher can foresee some limitations which include; insufficient financing, insufficient data for the research work and the time required for the project to be concluded.
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