ABSTRACT

This research work shows the role of small scale business in economic development in view of its important and objective for the economy of Nigeria. In analyzing this, attains were made to look the essential of these with regards to the growth development from a rural economy to a more adduced economy. The reaches work is written in such a manner that the five (5) chapters contained in it will greatly serves the need to know the role of small scale business. In economic development, its objectives and importance besides, the practical of Small Scale Business in economic development such as rural industrialization, employment provision of income and entrepreneurial development.

TABLE OF CONTENTS

CHAPTER ONE:         INTRODUCTION

1.1            Background to the Study

1.2            Statement of the Problem                           

1.3            Research questions                  

1.4            Research              

1.5            Purpose of the study                         

1.6            Scope of the Study                                                        

1.7            Significance of the Study                            

1.8            Limitations                                                           

1.9            Operational Definition of Terms                 

CHAPTER TWO: LITERATURE REVIEW

2.1            Introduction to the Study                                     

2.2            Current Literature Review                 

2.3            Relevant Theories of the Research              

2.4            Summary of the Chapter                             

CHAPTER THREE: RESEARCH METHOD

3.1            Research Design            

3.2            Population of the Study                    

3.3            Sample/Sampling                    

3.4            Design Synthesis                                        

3.5            Instrumentation/materials                            

3.6            Method of Collections/ Analysis                 

CHAPTER FOUR

4.1            Presentation of Data                          

4.2            Analysis of Data                               

4.3            Discussion                                        

CHAPTER FIVE

5.1            Summary                                          

5.2            Conclusion                                       

5.3            Recommendations                                      

REFERENCES                                          

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

          The important of small scale business cannot be over emphasized. There is no doubt among intellectuals, policy analysis and student about the economic development of Nations, especially to less developed countries (LCD) like Nigeria.

          Some authorities have also agreed that small scale business contributed about 40% of the domestic production (GDP)

          Small scale businesses are also known to be a major tool for rural Industrialization and equitable distribution of income.

1.2     STATEMENT OF THE PROBLEM

          Several students have identified Financial Constraint as the major obstacle to small scale business development in developing economic including Nigeria for instance, has always constituted a pandemic problem for economic development in Nigeria. He recalled that in the past, a number of schemes have been put in place to provide special credit lines/windows for SME’S but this achieved very limited impact.

          The primary focus of this study emanates from the facts that small scale businesses do not have sufficient, finance to carry on their dues to the low saving culture of the people in this part of the world. The reason for this is not for fetch low level of income basically while it is an establishment facts that small scale business facts financial challenges, no research has been conducted to investigate the effect the financial problem on their contribution to economic development.

          Asaolu et al (2005) and many other Authors and Research have deducted that the financial challenges mar the development role of small scale business. But this may not be true especially in the case f Nigeria where the informal sector, which is constituted largely by the small scale business play a very important role in the development of the Nation’s economy. Therefore, this study seeks to evaluate the promotion of small scale business in Nigeria and their contribution to economic growth.

1.3     RESEARCH QUESTIONS

          The study would like to examine the following questions.

·        What is the trend of financial support given to SME (Small, Medium Enterprises) in Nigeria?

·        What impact do small and medium scale enterprises make to Nigeria economic growth?

·        What contribution has the financial system made to the growth of SME in Nigeria?

·        How could the growth of small scale business be enhanced in Nigeria or in the economy?

1.4            RESEARCH HYPOTHESIS

That there is no relationship between gross domestic product and the operations of small scale enterprises in Nigeria. Hi – that there is relationship between gross Domestic product and the operations of small scale enterprises in Nigeria.

HYPOTHESIS II HO:

          That there is not relationship between the loans granted to small scale enterprises and the interest rate n Nigeria. HI - that there is relationship between the loans granted to small scale enterprises d the interest rate in Nigeria.

1.5     SCOPE OF THE STUDY

          This research work cover the general role of small scale business in economic development, but this study is mainly focused on the role of small scale business in Nigeria economic development.

1.6     PURPOSE OF THE STUDY

          The aim of this research work is to enable student and other business dealers to:

i.                   Know the origin and establishment of small scale business in Nigeria.

ii.                 Understand the different types of small scale business in Nigeria

iii.              Fully understand the role played by small scale business in Nigeria economic development.

iv.              Also know the problems affecting small scale business in Nigeria and the possible solution.

v.                 Make the people know the benefit of movement in small scale business.

1.7     SIGNIFICANCE TO THE STUDY

          The study is intended to acquaint the business society and the general public the role played by small scale business in developing the Nigeria economy.

          The research will also encourage people to invest their money into small scale business due to its profitability. This research work is believed to be relevant to the researcher and the entire society, because, it will lead to the discovering of the problems of small scale business in the economic, especially the rural area.

          Finally, the research work contributed the existing literature in the area of study

1.8     LIMITATION OF THE STUDY

          A lot of problems were encountered during the course of executing this research work. The very first one has to do with time factor. There is considerably pressure on them because the research work is being written along with other class activities for example, regular lecture, assignment, test, quizzer sectional examination etc.

          Some organisation do not put into consideration planning and decision making carefully, before setting up business firms. Consequently. The investigation regarding theirs are failed to yield good result. Also the work has carried out with limited resources at my disposal. However, in spite of all these constraint the research work was property carried out and a useful piece of work is produced.

          In conclusion, lack of textbooks in the polytechnic library was yet another prominent factor that militated in the course of carrying out this research work.

1.9     OPERATIONAL DEFINITION OF TERMS.

1.       BUSINESS

          This is any lawful human activities which involve the production and distribution of goods and services for satisfying customer wants and heed at a profit.

II.      ECONOMIC DEVELOPMENT

          Economic development is the growth in Economy indices such as industrial sector, food security, health, education, banking and agriculture etc.

III.     SMALL SCALE BUSINESS

          This is independent owned and operated and not dominant in it field.

          However, for the purpose of this study, small scale business include modern enterprises employing up to fifty full time workers, family, business, engaging three or four workers.

          Small scale business also include non-manufacturing business e.g. transport, tread, repair service, maintenance etc in which the operation and administrative management rest in the hands of one or two people who usually make major decision.