Issues, Challengesand Prospectsof Small and Medium Scale Enterprises (SMEs) in Port-Harcourt City (original) (raw)
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The paper discussed Issues, Challenges and Prospects of Small and Medium Scale Enterprises (SMEs) in Port-HarcourtCity, Nigeria. This was informed by the high rate of unemployment in the society and the poor performance of SMEs in employment generation. While the research questions addressed the extent to which poor financing, inadequate social infrastructures, lack of managerial skills and multiple taxation constitute major challenges in the performance of SMEs between October 2012 and November 2013, it assumes that government intervention through the provision of financial assistance, social infrastructures and favorable taxation policies will reverse the trend. The paper adopted a descriptive research design using 120 randomly selected registered operators of SMEs in Port-Harcourt City. Data collected were analyzed using descriptive statistics while formulated hypotheses were tested using z-test. Results from the data analysis indicated that poor financing, inadequate social infrastructures, lack of managerial skills and multiple taxation were major challenges confronting SMEs in Port-Harcourt City, thus recommended:provision of soft loans to SMEs operators, government guaranteeing of long-term loans to SMEs operators, establishment of SMEs funding agency, public/private sector partnership in infrastructural provision, capacity building for SMEs operators and provision of tax incentives for SMEs operators.
Challenges Affecting the Performance of Small and Medium Scale Enterprises (Smes) in Nigeria
Journal of Human Capital Development, 2015
Small and medium scale enterprises (SMEs) have been identified as the catalysts and builders for economic growth and national development for both developed and developing countries, particularly Nigeria. The objective of this study is to investigate the challenges affecting the performance of SMEs in Nigeria. This paper identifies the challenges affecting the performance of SMEs in Nigeria to include financial constraints, infrastructural problems, management problems, marketing problems, technological problems, corruption problem, lack of skill labour, government unfavourable fiscal policy and policy inconsistence’s, inadequate training, socio-cultural problem, strategic planning problem, multiple taxation, and location and business environment problem. But this study discovered that the major challenges that affect the performance of SMEs in Nigeria are finance, infrastructure and training among other challenges which this study adequately focused on. This study suggests that fin...
Small and Medium Enterprises (SMEs): Key to Socio-Economic Development of Nigeria
International Journal of Research and Innovation in Social Science (IJRISS) , 2021
In Nigeria, as in many other developing and emerging economies, Small and Medium Enterprises (SMEs) contribute to their socioeconomic development and growth hence, successive governments have invested resources in intervention programs aimed at stimulating the sector to achieve sustainable development. The main objectives of the study are to; review the role of SMEs to the socioeconomic development of Nigeria, identify current government efforts and challenges to stimulating SMEs performance especially as it relates to wealth creation and employment generation. The study found that; SMEs play a key role in socio economic development of the country especially in the area of employment generation and wealth creation. However, there are prevailing economic and political conditions that have not given room for SMEs to thrive, as evidenced in the internal and external challenging factors they are currently facing in the country despite the enormous government intervention initiatives. It is recommended that government should reform the implementation of these initiatives, ensure programmes continuity due to change on government, fight corruption and insecurity, improve on the business environment and evolve youth reorientation programme to cause them to embrace entrepreneurship. The methodology adopted for this work is narrative textual case study.
The role play by Small and Medium Scale Enterprises (SMEs) in economic growth and sustainable development of any nation cannot be downsized. Nigeria, in particular, SMEs serves as the major employer of labour and represent about 95% of its enterprises, This statistic is a pointer to the expected contribution of this segment to the economy. This study discusses the nature of SMEs: Government and financial institutions supports in Nigeria. This study discovers that despite Government and financial institutions support towards SMEs in Nigeria, SMEs fall short of expectations that make the Nigerian economy unstable than what it is expected. Therefore, this study recommends that the SMEs entrepreneurs should re-strategize the ways there do carry out operations from as-usual to unusual. The Government should appoint
AN EVALUATION OF THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) DEVELOPMENT IN NIGERIA
A major challenge facing many developing countries, especially in Africa, is devising appropriate development strategies that will capture the financial services requirements of small and medium entrepreneurs who constitute about 70 percent of the population. The Federal Government of Nigeria considers this segment critical for its development efforts to be fully realized. The government has instituted various policies to achieve its aims, including a commercial bill financing scheme; regional commodity boards (later called national commodity boards); an export financing and rediscount facility (1987); the Nigerian Agricultural Cooperative and Rural Development Bank Ltd; Community Banks, People's Bank, the Agricultural Credit Guarantee Scheme Fund (ACGSF); and the Small and Medium enterprises Equity Investment Scheme among others. These policies have contributed to improving the livelihoods of farmers, small business men and entrepreneurs. Despite various government institutional policies and effort to develop small and medium enterprises in Nigeria, Small and medium enterprises has fallen short of expectations. This has bring about the questions whether SMES can bring about the much needed economic growth and development in Nigeria. This study looks at the various challenges and prospect of small and medium enterprises in Nigeria. The study was conducted in Federal capital territory, Abuja, North-central Nigeria with the use of questionnaire and interview to collect data that was statistically analyzed. The major factor that determined the level of SMEs growth is the people ability to be self employed and not because the business is easy to start up and manage. Inadequate funding, poor location, and lack of management skill has been the major factors militating against the performance of small and medium scale enterprises in Nigeria. In view of this, the study recommend that government agencies like SMEDAN and the rest should create awareness on how to run a small scale business effectively, good business policies, adequate infrastructural base as well as the provision of financial assistance or aid to upcoming entrepreneurs in order to increase their performance and boost employment generation in Nigeria.
Small and Medium Scale Enterprises (SMEs): A Catalyst in Promoting Economic Development in Nigeria
This research paper has specifically x-rayed the concept of Small and Medium Scale Enterprises (SMEs) and it was defined as a business which is owned, led by one or a few persons, with direct owner(s) influence in decision making, and having a relatively small share of the market and relatively low capital requirement. The contributions of SMEs to the economy were examined in this paper. The problems confronting SMEs and the possible strategies of combating the problems were also examined. A conceptual framework was developed by the authors and it explains/illustrates the series of variables that are integral in the area of SMEs and the effects it can possibly have on the economy. The concept of Economic Development was briefly described. A section was devoted to examining the roles of SMEs for economic Development in Nigeria. One of the major recommendations advanced in this paper was that the Government should urgently invest massively in improving the current infrastructural base in the country. 1.0. Introduction The national economy has remained a focal point in recent debates owing to the rising level of unemployment, poverty, insecurity, low productivity, human capital flight/brain drain. The need to advancing the socioeconomic , political and technological growth of any nation relies heavily on the creativity and technical ingenuity of the players/actors in that economy in transforming the available resources into productive use. It has been stressed by scholars that Small and Medium Scale Enterprises (SMEs) is a driving force in developing and developed nations alike. The emphases on SMEs remain a recurring decimal in the lexicon of Nigeria and this is not unconnected with the realization of the roles of SMEs in job creation, poverty alleviation and foreign exchange conservation (Jimah, 2011; Ikherehon, 2002; Akingunola, 2011). Agu (2001) defined SMEs as a business which is owned, led by one or a few persons, with direct owner(s) influence in decision making, and having a relatively small share of the market and relatively low capital requirement. The earliest manifestations of SMEs in advanced countries were coltage industries that later transformed into industrial complexes and tech factories. SMEs today account for the bulk of output in most countries today. It is also a proven job creator: the share of SMEs in global productivity is over 30% higher in some countries, but generally growing. In China, SMEs employ over 50% of the workforce while in the United States (US), SMEs account for over 50% of Gross Domestic Product (Ehinomen & Adeleke, 2012). In Nigeria, SMEs employ over 60% of the labour force both in formal and informal sectors. The need to have a regulatory body to control the activities of SMEs in the country led to the formation of Small and Medium Enterprises Development Agency of Nigeria (SMEDEN) in 2004 by an act of parliament towards the realization of the goals and objectives of SMEs. There is no doubt that SMEs play significant roles in the advancement and development of the economy. Some of these roles which have been briefly identified above remain integral to the progress of the nation. For these roles to be fully realized there is need for our educational system to fully be repositioned with the aim of accelerating the growth and development of SMEs. The establishment and management of SMEs no doubt have numerous implications on the economic development of the nation as documented by scholars in the field. The term Economic development has been defined by various scholars in different ways. According to Misra and Puri (2003), economic development means growth plus progressive changes in certain critical variables that determine the well-being of the people. They assert that there are qualitative dimensions in the development process which may be missing in the growth of a given economy expressed in terms of an increase in the national product or the product per capita. From the foregoing, it becomes obvious that economic development is far beyond the numerical growth in a nation's income which politicians often express to draw the attention of unsuspecting electorates. This growth or changes must cut across all the sectors of the economy and must be felt in the living standard of the citizens and this is what SMEs seeks to bring to reality.
The Issues, Challenges and Prospects of Small and Medium Scale Enterprises in Bauchi Metropolis
IIARD, 2024
The Study examine the Issues, Challenges and Prospects of Small and Medium Scale Enterprises (SMEs) in Bauchi metropolis, Nigeria. The objective of the study is to determining factors influencing small and medium enterprises in Bauchi Metropolis. This was informed by the high rate of unemployment in the society and the poor performance of SMEs in employment generation. While the research will also addressed the extent to which poor financing, inadequate social infrastructures, lack of managerial skills and multiple taxation constitute major challenges in the performance of SMEs, it assumes that government intervention through the provision of financial assistance, social infrastructures and favorable taxation policies will reverse the trend. The research adopted a descriptive research design using 30 randomly selected registered operators of SMEs in Bauchi Metropolis. Data collected were analyzed using descriptive statistics while formulated hypotheses were tested using z-test. The major findings from the Results of the data analysis indicated that poor financing, inadequate social infrastructures, lack of managerial skills and multiple taxation were major challenges confronting SMEs in Bauchi metropolis. Based on the findings from results of the data analyzed it was recommended that provision of soft loans to SMEs operators, government guaranteeing of long-term loans to SMEs operators, establishment of SMEs funding agency, public/private sector partnership in infrastructural provision, capacity building for SMEs operators and provision of tax incentives for SMEs operators., Nigeria.
SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA: THE PROBLEMS AND PROSPECTS
The Collegiate Journal of Economics, 2011
Small and medium scale enterprises have long believed to be catalysts for economic growth and national development both in developed and developing countries. In Nigeria where private sector is not well developed SME is assumed to play the role of employment generation, facilitator of economic recovery and national development. The paper examined small and medium scale enterprises in Nigeria and in relation to those challenges which affects SMEs from developing capacity to realizing its full potentials as well the prospect for improvement and development for employment generation, economic growth and national development. It is suggested therefore that invigorating SMEs with strengthened commitment to economic reform would offer a turning point in facilitating the recovery of Nigeria economy and national development.