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The Impact Of Small And Medium Scale Industries On The Economic Growth Of Nigeria (1986 – 2010)
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1.2 STATEMENT OF THE PROBLEM
The small and
medium scale Industries survey conducted in 2005 by the central Bank of
Nigeria (CBN) provides some evidence that apart from the acute short of
technology, managerial skills, poor management, adverse environment, and
change in policy, capital is a source of great concern to the
entrepreneur in the sector. Since one of the microeconomic goals of the
Nigerian government is economic growth, we can assume that the
government aims at the expansion of small firms.
In a continent where
finance is a major constraint on development, the problem confronting
the private sector in Nigeria above all small and medium scales
Industries standout.
Most large scale industries in Nigeria have
reduced their borrowings due to high interest rates and the short term
nature of available loans. At the same time, banks are unwilling to lend
to the small and medium scale sector with its high perceived rises. In
this case, lending is not efficient to the real sector and loanable
funds are currently used to finance primary consumer imports and to
separate in foreign exchange markets. The research question from the
above experience is thus; will small and medium scale contribute much to
economic growth in Nigeria when they are not properly funded.
1.3 OBJECTIVES OF THE STUDY.
The
aim of this research work is to examine the importance of small and
medium scale industries on the Nigerian economy in order to ascertain
how small and medium scale is utilized in production using the available
raw materials and resources with a view to achieve gradual
formalization in the guest for national industrialization. Meanwhile,
the specific objectives are:
a. To determine the impact of small and medium scale enterprises.
b. To examine the effect of small and medium scale enterprises.
1.4 STATEMENT OF HYPOTHESIS.
For the purpose of this study, the research developed the following hypothesis.
Ho: Small and medium scale industries are not catalyst for economic development and growth in Nigeria.
Hi: Small and medium scale industries are catalyst for economic development and growth in Nigeria.
1.5 SIGNIFICANCE OF THE STUDY
The
significance of the study is to establish an extent of growth and
development and to expose the immense benefit derivable from small and
medium scale industries.
Also, this study will help to redress the
belief of the society that small and medium scale industries can bring
about economic and development in Nigeria.
1.6 SCOPE AND LIMITATION OF THE STUDY.
The
study encompasses the roles and contributions of small and medium scale
industries on the Nigeria economy from 1986-2010. The basis of covering
this period of time is to ascertain whether there have been any
significant impacts of small and medium scale industries on the Nigerian
economy. And also, this study does not consider the medium and large
scale industries.
In writing this project, the researcher encountered
some limitations, which were; lack of information from appropriate
quarter, time constraints, transportation, lack of funds, power outrage
etc. However, in spite of all the odds, the researcher was able to come
out with a standard work. The project However, contains information
which in reliable and authentic.
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ABSRACT - [ Total Page(s): 1 ]The study investigates the impact of small and medium scale industries on the Nigerian economy, spanning from 1986 to 2010. The study adopted Ordinary Least Square (OLS) Linear Specification model. Using unit root test, the work shows that small scale industries significantly contributed to the economic growth in Nigeria despite poor funding by commercial banks. The work recommends among others that government should improve its monetary policies so as to reduce to an acceptable level, the rate ... Continue reading---
