CONTRIBUTION OF SMALL AND MEDIUM SCALE BUSINESS IN THE ECONOMIC DEVELOPMENT
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CONTRIBUTION OF SMALL AND MEDIUM SCALE BUSINESS IN THE ECONOMIC DEVELOPMENT
Chapter one
GENERAL INTRODUCTIONS
1.0 Introduction
Interest in the development of small and medium-sized firms and their role in the development process remains at the forefront of policy debate in emerging countries. The benefits claimed for small and medium-sized businesses are numerous, including:
the encouragement of entrepreneurship; the increased livelihood; the use of labor-intensive technologies, which has an immediate impact on job creation;
and the ability to be established quickly and put into operation to generate quick returns. Small-scale business development can promote both inter-regional and intra-regional decentralisation
and it has the potential to become a countervailing force to larger firms’ economic dominance. More broadly, the growth of small businesses is viewed as hastening the fulfilment of larger economic and socioeconomic goals, including poverty alleviation.
1.1 Background of the Study
The purpose of this study is to look at how small and medium-sized enterprises contribute to Akwa Ibom State’s economic objectives. According to the research, small-scale promotion has been identified as a development technique.
The development of economically successful firms that can stand on their own two feet without constant subsidies and contribute positively to real income growth and, as a result, higher living standards. This method emphasises the value of efficiency in emerging small-scale enterprises.
Small producers must be encouraged to embrace new methods and expand into new lines of production, and in the long run, whenever possible, they should be encouraged to become medium or even large scale producers.
The presidential initiative on cassava production and export has raised awareness among Nigerians about the industrial crop, often known as the ‘new black gold’. Started in July 2004, the effort aims to produce $5 billion in export earnings by 2007.
Fortunately, Nigeria, according to the Food and Agriculture Organisation. According to the FAO’s 2008 assessment, the world’s greatest cassava grower is presently producing 34 million tonnes per year, although with a low yield of 10 tonnes per hectare over an estimated three million hectares of cultivated land.
Nigeria is closely followed by Brazil and Thailand, which have the capacity to produce 24 million tonnes and 20 million tonnes, with yields of 13.6 tonnes per hectare and 19.4 tonnes per hectare, respectively.
1.2 Statement of the Problem
When examining the activities, services, contribution, and relevance of small and medium-sized businesses in particular, it seems in most cases that, despite their economic importance in this sector, the degree of acceptance is always obvious and clearly visible.
In light of the foregoing, it is worth considering if the state is unaware of this attitude or is not paying attention to the significant contributions of small and medium-sized businesses to the broader community.
As a result, the purpose of this study is to investigate the many ways in which small and medium-sized businesses contribute positively to the economy of Akwa Ibom State, with a special focus on Ibedmore Resource Nigeria Limited.
1.3 GOALS OF THE STUDY
The primary goal of this research is to analyse the role of small and medium-sized businesses in Akwa Ibom State community development. Also, identify and analyse the most effective and efficient way to finance and promote small-scale enterprises, taking into account various conditions such as economic
political, social, psychological, and so on, under which small-scale enterprises are encouraged to operate, with a focus on Nigeria’s cassava processing industry. The researcher seeks to provide detailed information and analysis on the numerous ways for developing and encouraging small-scale firms.
In light of the preceding, the researcher seeks to find out the following:
The government’s role in promoting and developing small-scale firms.
To assess the economic potential of small-scale businesses in Nigerian industries.
To emphasise the benefits for the government and the broader public.
To identify the limitations to the development of small-scale firms in Nigerian industries.
To identify effective techniques for improving the development, growth, and survival of small-scale firms in the industry.
1.4 RESEARCH QUESTIONS.
The following research questions were formulated with the aim of delivering responses to them in:
What is the current trend in Nigeria’s financial support for small and medium-sized enterprises.
How do small-scale entrepreneurs raise capital?
What contribution do small and medium-sized firms make to Nigeria’s economic growth?
What contribution has the banking system made to the growth of small businesses in Nigeria?
1.5 Research Hypothesis
To fulfil the objectives of this study, hypotheses were developed in both null (Ho) and alternative form (HI).
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