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KWARA STATE UNIVERSITY, MALETE, NIGERIA

SCHOOL OF POSTGRADUATE STUDIES (SPGS)

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BUSINESS EDUCATION AND ANALYTICAL SKILLS NEEDED FOR PROMOTING
SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN KWARA STATE
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Mohammed Baba AHMED

19/37MBE/00005

NOVEMBER, 2022
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KWARA STATE UNIVERSITY, MALETE, NIGERIA

SCHOOL OF POSTGRADUATE STUDIES (SPGS)

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BUSINESS EDUCATION AND ANALYTICAL SKILLS NEEDED FOR
PROMOTING SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN
KWARA STATE
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A DISSERTATION SUBMITTED AND PRESENTED

BY
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Mohammed Baba AHMED

19/37MBE/00005

In partial fulfillment of the requirements for the award of Masters of Science M.Sc. (Ed)
Degree in Business Education

DEPARTMENT OF BUSINESS AND ENTREPRENEURSHIP EDUCATION, FACULTY

OF EDUCATION,
KWARA STATE UNIVERSITY, MALETE
NIGERIA

NOVEMBER, 2022
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DECLARATION PAGE

I hereby declare that this Dissertation ―Business Education and Analytical Skills needed for

Promoting Small and Medium scale Enterprises (SMEs) in Kwara State‖ is a record of my

research. It has neither been presented nor accepted in any previous application for higher

degree.

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Mohammed Baba AHMED …………………….

19/37MBE/00005 Signature/date
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APPROVAL PAGE

This is to certify that this Dissertation by Mohammed Baba AHMED has been approved as

meeting the requirements of the Department of Business and Entrepreneurship Education, for the

award of the degree of Masters of Science (MSc. (Ed) in the Faculty of Education, Kwara State

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University Malete, KwaraState, Nigeria.
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Dr. Lawrence F. Ademiluyi ……………………………….

Main Supervisor Signature/Date
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Dr. Joshua S. Mamman …………………………………

Co-Supervisor Signature/Date

Dr. Ngozi B. Nwabufo……………………………………

Head of Department Signature/Date

……………………………… …………………………………
Internal Examiner Signature/Date
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Prof. Hamzat I. Abdulkareem ……………………………

Dean, School of Postgraduate Studies (SPGS) Signature/Date

DEDICATION

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This Dissertation is dedicated to my parents Late MallamHaruna Mohammed, Hajiya

Mohammed Kakawaragiand all lovers of education.

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ACKNOWLEDGEMENTS
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The researcher’s greatest appreciation goes to Almighty Allah the source of life of every

creation, who has the whole world in His hands, for his guidance throughout this study. The
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researcher’s gratitude also goes to his supervisors Asst. Prof. L.F. Ademiluyi and Dr. J.S.

Mamman for their patience, corrections, immense knowledge and support towards the success of
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this study, they have been relentless in their efforts at ensuring a thesis of this standard. May God

be with them and their families.

The researcher acknowledges the immense contribution of Head of Department,Asst.

Prof. N. B. Nwabufo and Prof. T. A. Umoru the Dean Faculty of Education who at one time or

another served as his readers, for their tolerance and valuable contributions to the work.

Appreciation also goes to the lecturers in the Department and Faculty of Education; Prof. G. T.

Oladunjoye, Prof. I. L Abubakar, Asst. Prof. Dr. O. G. Olorishade, Dr. S. O. Afolabi, Dr. M. O.

kehinde, Dr. F. Jimoh Dr. I. S. Ogundele and others for theirinsightful comments, criticisms,

encouragements and contributions to ensure that this work was completed successfully.
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The researcher sincere appreciation also goes to the Provost, Dr. M. D. Ibrahim, Former

Deputy Provost Mallam H. I. Salihu and the entire management team of Kwara State College of

Education (T.), Lafiagi for their cooperation and creation of enabling environment for him to

pursue this higher degree programme. The researcher equally appreciates Federal Government

through Tertiary Education Trust Fund (Tetfund) for the support that enable him complete this

programme without stress.The researcher is also grateful to his parents MallamHaruna M. L.

(late) and Hajiya Mohammed F. K.,his wife Mrs. Mohammed A. G., his children A. Ameer, A.

Nazeerullahi and A.Zayan for their patience, commitment and words of encouragement in the

course of this programme. He sees as them the treasures of his life. The contributions of Dr. S.

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O. Yahaya, Dr. L. S. Olumide, Dr. I. Taiye, Dr. A. Ameen, Mr. A. A. Tauheed, Mr. U. A. Aliyu,
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MallamYunusa I. N and others are equally acknowledged. The researcher appreciates his

research assistants who have been very helpful to the success of this project. May Allah bless
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them and be with them.

Finally, the researcher acknowledges Kwara State University, Malete, for providing
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enabling environment for his studies and this research work. He appreciates the institution for the

provision of qualified lecturers who impacted the researcher the required knowledge, he prays

that the institution would continue to witness tremendous growth.

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TABLE OF CONTENT

PAGES
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FRONT PAGE i

TITLE PAGE ii

DECLARATION iii

APPROVAL PAGE iv

DEDICATION v

ACKNOWLEDGEMENT vi

TABLE OF CONTENTS vii

LIST OF TABLE x

LIST OF APPENDICES xi
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ABSTRACT xii

CHAPTER ONE: INTRODUCTION

Background to the Study 1

Statement of the Problem 8

Purpose of the Study 9

Research Questions 10

Research Hypotheses 10

Significance of the Study 11

Scope of the Study 12

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Operational Definition of Terms 13

CHAPTER TWO: REVIEW OF RELATED LITERATURE

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Theoretical Framework 14
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Conceptual Framework 16

Business Education Skills and Entrepreneurship Development 21

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Overview of Small and Medium Scale Enterprises (SMEs) in Nigeria 25

Accounting skills and promotion of SMEs 31

Marketing skills and promotion of SMEs 33

Information and Communication Technology (ICT) skills and promotion of SMEs 34

Decision making skills and promotion of SMEs 37

Critical thinking skills and promotion of SMEs 39

Review of Related Empirical Studies 40

Appraisal of reviewed literature 47

CHAPTER THREE: RESEARCH METHODOLGY

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Research Design 48

Population of the Study 48

Sample and Sampling Technique 49

Instrument for Data Collection 49

Validation of the Instrument 50

Pilot Study 50

Reliability of the Instrument 50

Procedure for Data Collection 51

Method of Data Analysis 51

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CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

Analysis of Demographic Data

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Analyses of Data to Answer the Research Questions 54

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Test of Hypotheses 61

Summary of Findings 65
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Discussion of Findings 66

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMEDATIONS

Summary 71

Conclusion 72

Recommendations 73

Suggestion for Further Studies 74

REFERENCES 75

APPEDICES 83
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LIST OF TABLES

TABLES PAGES

1 Population for the Study 48

2 Sample size of the Study 49

3 Percentage Distribution of Respondents by status 53

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4 Percentage Distribution of Respondents by Gender 53

5 Percentage Distribution of Respondents Based on Years of Experience 54

6 Mean and Standard Deviation of Responses on the Accounting Skills

Needed for Promoting Small and Medium Scale Enterprises 55

7 Mean and Standard Deviation of Responses on the Marketing Skills

Needed for Promoting Small and Medium Scale Enterprises 56

8 Mean and Standard Deviation of Responses on the ICT Skills

Needed for Promoting Small and Medium Scale Enterprises 58

9 Mean and Standard Deviation of Responses on the Decision Making Skills

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Needed for Promoting Small and Medium Scale Enterprises 59
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10 Mean and Standard Deviation of Responses on the Critical Thinking

SkillsNeeded for Promoting Small and Medium Scale Enterprises 60

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11 Summary of t-test Result of the Difference between the Mean Responses of

SME Owners and Employees on the Accounting Skills needed for

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Promoting Small and Medium Scale Enterprises 61

12 Summary of ANOVA Result Showing Difference in the Mean Responses

of Respondents on the Marketing Skills Needed for the Promotion of

Small and Medium Scale Enterprises Based on their

Years of Experience 62

13 Summary of t-test Result of the Difference between the Mean Responses of

Male and Female Respondents on the ICT Skills needed for

Promoting Small and Medium Scale Enterprises 63

14 Summary of t-test Result of the Difference between the Mean Responses of

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SME Owners and Employees on the Decision Making Skills needed for

Promoting Small and Medium Scale Enterprises 64

15 Summary of ANOVA Result Showing Difference in the Mean Responses

of Respondents on the Critical Thinking Skills Needed for the Promotion of

Small and Medium Scale Enterprises Based on their

Years of Experience 65

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LIST OF APPENDICES
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APPENDICES PAGES

A Letter of Introduction 84

B Letter of Validation 85

C Questionnaire Items 87

DReliability Test 90

E Research Advisors 92

F Attestation Letter 93

G Plagiarism Report 94

H SPSS Output 97

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Abstract

The need for personal progress and national development propelled the interest of the
researcher to examine the indispensability and instrumentally of entrepreneurship so as to
guarantee that the nation and indeed an individual optimizes the concept of entrepreneurship for
accelerated socio-economic development. This study assessed Business Education and Analytical
Skills needed for promoting Small and Medium Scale Enterprises in Kwara State. Five specific
purposes, five research questions, and five hypotheses were formulated to guide the study. The
study was anchored on Human Capital Theory propounded by Becker in 1964. A descriptive
research design was adopted. The population of the study comprised of 7,396 registered SME
owners and employees. The Research Advisors were used to select a sample size of 365 SME
owners and employees. A 36-item questionnaire titled "BEASNPSMES" with 4-point rating
scales was the instrument used for data collection validated by three experts. A reliability
coefficient of 0.72 was obtained using the Cronbach Alpha method. Data collected for the
research questions were answered using descriptive statistics of mean and standard deviation. A
t-test were used to test the null hypotheses 1, 3 and 4, while hypotheses 2 and 5 were tested using
ANOVA at a 0.05 level of significance. Presentation and analysis of the data were made by the

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use of tables. The result revealed that accounting skills are needed for promoting SMEs (mean =
3.07, SD = 0.65), marketing skills (mean = 2.92, SD = 0.62), ICT skills (mean = 2.65, SD =
0.56), decision-making skills (mean = 3.04, SD = 0.64) and critical thinking skills (mean = 2.97,
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SD = 0.63). The study further revealed that there was no significant difference in the mean
responses of SME owners and employees, based on years of experience and based on gender
(t363 = 0.706, P>0.05), (F3,361 = 0.606, p = 0.611) and (t363 = 0.22, P>0.05) respectively. It
was concluded that for SMEs to get out of their problems and continue to be in operation, they
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must make use of Business Education and Analytical skills. It was recommended among others,
that the government should launch a robust awareness campaign through SMEDAN and other
agencies to educate owners of SMEs about the importance of learning the basics of accounting,
marketing, ICT, decision-making and critical thinking skills.
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CHAPTER ONE

INTRODUCTION
Background to the Study

Small and medium scale enterprises (SMEs) are seen as agents of economic development

that contribute to improved living standards, substantial local capital formation, and achievement

of high levels of productivity and capability for individuals and nations. It’s the backbone of both

developed and developing market economics and serve as a springboard for both industrial

advancement and economic expansion.This implies that the development of entrepreneurs is

greatly aided by business education, which imparts knowledge, skills, and analytical

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competencies needed to carry out work that can produce economic values that are essential for

business success. IE
Business education refers to education for business and education about business. It is a
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programme of study that prepares students to be self-reliant (Ademiluyi&Ademiluyi, 2020).

Supporting this view, Nwabufo and Mamman (2016) asserted that business education entails the

study of technologies and related sciences as well as the acquisition of practical skills (including
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teaching skills), attitudes, understanding and knowledge pertaining to occupations in various

spheres of the economy and social life. Similarly, Okorie (2013) defined business education as

the sum total of knowledge, skills, and attitudes necessary to effectively promote and manage

business enterprises as an entrepreneur. According to Umoru (2019), business education is

viewed from two perspectives: the vocational and applied technical education perspective and

the general education perspective.

From a vocational education perspective, business education is an organized educational

programme, offering a sequence of courses directly related to equipping students with the skills

necessary to perform particular functions in an office or data processing occupation; it will also
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provide him or her with the understanding and knowledge needed for conducting personal affairs

and using the services of the business world. (Umoru, 2019).This is generally referred to as

education for business. As a general education component, business education is a combination

of courses that are provided to all students in the school system regardless of their career

interests, and this is referred to as education about business or consumer education. Umoru,

further explained that business education as education for business belongs to the vocational

education family and derives its vocational objectives from that relationship. It is therefore

because of this special relationship that the business education vocational objective espouses its

relevance in preparing citizens for initial employment, to upgrade existing skills and to retrain in

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new office and business-related professions. The semi-vocational purpose of business education,
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which ensures that many business skills lead to advancement in professions or occupations other

than those directly related to business, is related to the topic of the vocation of business
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education.

The goals of business education are thus to provide a continuous programme of planned
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learning experiences designed to equip individuals to effectively fulfill three roles: providing and

distributing goods and services as workers; using the products of production as consumers; and

making prudent socioeconomic decisions as citizens. This is due to the fact that in order for a

firm to succeed in the competitive market, it must have the core business skills (accounting,

management, marketing, purchasing and supply, banking and finance, information and

communication technology (ICT), and entrepreneurship skills). The recipients of business

education also receive a general education, enabling them to act as productive members of

society. For the purpose of this study, some skills are necessary, which will make one useful in

both the business environment and society at large. These skills are business education skills that
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would help in the development of enterprises and include accounting skills, marketing skills, ICT

skills, and business management skills. However, the study will only focus on accounting skills,

marketing skills, and ICT skills in business education.

According to Gidado and Babakura (2019), accounting has to do with theories, concepts,

and methods used to transform financial data into knowledge that can be utilized for reporting,

planning, controlling, and taking decisions. These demonstrate that accounting involves keeping

financial records for the purpose of determining the financial state of a business or an

organization, which could lead a business owner to interpret financial records, plan, make

sensible decisions, and implement control mechanisms. As for the accounting skills, Onoh in

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Okoye, Uniamikogbo and Adeusi (2017) noted that they are the core accounting competencies
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that are needed for promoting small and medium-scale enterprises so as to competently,

effectively, and successfully function in performing the function of recording daily business
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transactions. These skills, among others, include the ability to prepare a cashbook, debtors’

record, creditors’ record, calculate depreciation, bank reconciliation statement, trade, profit and
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loss account, and balance sheet.

Marketing skills are more than just selling and promoting one’s business. It is about

identifying one’s customers and working out how to get them to purchase one’s products or

services. According to Ile and Nwokoli (2017), marketing skills are the competence to

communicate with one’s potential customers and inform them of one’s products and/or services,

product distribution network, and know how to define and target one’s market. One needs to

know what will work for one’s business. One area of emphasis in business education is the

development of marketing skills. Gidado (2014) claimed that marketers carry out surveys to

identify the requirements and desires of consumers before creating products to fulfill those
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desires. This implies that business education might help businesses grow by preparing

entrepreneurs to carry out their roles effectively.This is due to the fact that having an

understanding of marketing would encourage them to effectively utilize the four-Ps of

marketing: product, pricing, place, and promotion. It is anticipated that this will encourage the

creation of sound product concepts that will ultimately result in a marketable product. These

skills, among others, include creating videos that can help one’s business, creating e-mail

addresses for easy accessibility of the products, developing social media like Whatsapp,

Facebook, Twitter, Instagram, and so on to enable the product to excel (Ile &Nwokoli, 2017).

Information and Communication Technology (ICT) applications offer numerous

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advantages for a variety of intra- and inter-firm business processes and transactions. Business-to-
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business (B2B) and business-to-consumer (B2C) transactions can be completed more quickly

and reliably attributable to ICT solutions that enhance information and knowledge management
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within the organization. Additionally, they are useful tools for enhancing external

communications and service quality for both current and potential clients. ICT skills are about
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understanding and applying a range of computer programmes, software and other applications.

Word processing, online collaboration, databases, computer security, email management and

setup, power points, and search engines are examples of these skills.

The computer, the internet, the mobile telephone, the various electronic applications (e-

banking, e-governance, e-commerce, and others), digital media, and broadband are all examples

of how ICT is expressed (Suleiman, 2016). Utilization of ICT skills by entrepreneurs would

promote and open up opportunities for SMEs to market and sell their products online to a global

audience. Through the use of an organization’s own website or through the use of social

networking websites such as Facebook, one can reach millions instantly and still be able to offer
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personalized services and be able to engage clients and customers on a one-on-one level,

marketing one’s services and products. In spite of the above, there are other skills that are very

essential in promoting SMEs in Nigeria and the world at large. One of the major skills that are

needed is analytical skills.

Analytical skills are the ability to visualize, communicate, analyze, or solve both

complicated and understandable issues by making logical conclusions in light of the facts at

hand. According to Slipicevic and Masic (2012), analytical skills are the skills of knowledge or

thinking that enable the use and assimilation of new information used for planning purposes or

for creating a system of planning. These skills include the capacity to break down difficult

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situations into their component elements using logic. Analytical skills are used to gain a better
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understanding of a complex situation or problem. Additionally, Udemba (2020) noted that

analytical skills involve incorporating the ability to recognize market needs and thus the ability
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to develop new markets. Managers and business owners of small-scale enterprises need to be

equipped with relevant analytical skills to develop innovative and creative ideas in order to run
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their businesses successfully. These skills include decision-making skills, demonstration skills,

critical thinking skills, problem solving skills, data and information analysis skills,

communication skills, and others. However, the study will focus on decision making skills and

critical thinking skills of analytical skills.

Every success, every failure, every chance taken or passed up by an organization (large or

small), is the result of a decision that someone made or didn't make. The performance of an

organization is mostly determined by the assumption of sound decisions and their prompt

implementation. According to Ardakani and Avorgani (2021), decision-making is the act of

acquiring, processing, synthesising, and analyzing information to make a rational choice after
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filtering (internal and external) factors that affect a given problem or situation. Decision-making

skills are skills that show proficiency in choosing between two or more alternatives. The process

of making a decision is one of the most important and complex activities of SME owners and

managers. The appropriateness and soundness of decisions have a significant impact on the

sustainability and competitiveness of SMEs (Ardakani&Avorgani, 2021). The ability to make

decisions that are best for the organization depends on those skills. Some of the decision-making

skills essential to business owners include problem solving, good suggestions, leadership,

reasoning, teamwork, motivation, creativity, logic, collaboration, emotional intelligence,

communication, and critical thinking.

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Critical thinking is thinking that is precise, knowledgeable, accurate, thoughtful and fair
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in considering what to believe or do (Matthias, Francis &Ugwoke 2013). Critical thinking

involves the ability and propensity to successfully gather, evaluate, and use information. The
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results of critical thinking, which is essential in promoting SMEs, include business and financial

intelligence, competency, idea generation, and strategic project execution. Entrepreneurs may
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identify problems and turn them into opportunities by using critical thinking. Such skills are

essential for daily life as well as for making wise business decisions in an entrepreneurial

business enterprise (Brazeau, 2013). According to Matthias, Francis, and Ugwoke (2013),

finding analogies and relationships between pieces of information, recognizing one's own and

other people's frames of reference, judging the relevance and accuracy of information that could

be used to structure and solve problems, exploring new topics, and discovering and evaluating

solutions or alternative approaches to treating problems are the basic critical thinking skills.

Small and medium scale enterprises (SMEs) are now attracting the attention of

governments from all over the world. SMEs are defined using different criteria. In view of this,
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Afolabi and Macheke, in Udemba (2020), noted that small and medium scale enterprises are

those firms owned by individuals and are typically founded as a way of generating income and

enhancing a nation's GDP. They mostly use power and small machines. They are located in small

and big towns and cities. They employ hired labourers, get raw materials from distant markets,

and sell their products even in distant markets. The businesses are renowned for their low startup

costs, reliance on local resources, ability to create jobs, promote entrepreneurship, connect

agriculture and industry, and provide parts and components, among other things (Onwughalu,

2014). Small businesses are those with assets of under N50 million (excluding land but including

working capital) and no more than 100 employees, according to the Small and Medium-scale

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Enterprises Development Agency of Nigeria (SMEDAN, 2012).
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In Nigeria, the majority of SME companies are family-owned, have a small financial

basis, are situated in urban and semi-urban areas, and predominately operate in the informal
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economy. In Nigeria, all economic activities that are operated outside of the scope of

governmental regulation are referred to as being in the "informal sector." In the context of this
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study, small and medium-scale industries are small businesses usually owned and managed by

individuals called business owners, entrepreneurs, or business operators. However, anecdotal

evidence suggests that SMEs in developing nations like Nigeria confront numerous difficulties

that have recently stifled their expansion.

Previous studies on small businesses in Nigeria have found a clear trend toward failure

within the first five years of operations (Adebisi&Gbegi, 2013; Preye, 2015). These failures are

partially attributable to the difficulties small firms encounter, some of which include a lack of

effective management, marketing, accounting, record-keeping, and ICT skills that would offer

them a competitive advantage. Business leaders will be able to make decisions that help maintain
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their companies for longer than five years if more research is done to identify the business skills

and tactics that small business owners may utilize to contribute to small business success. It is

clear from the foregoing that business education has the ability to promote SMEs. Because the

skills would improve customer needs and wants identification, product development or provision

to satisfy customers, proper financial and other organizational record keeping, good customer

relations, leadership skills for dealing with employees or subordinates, and business management

skills if used by business owners.

Small and medium-scale enterprises SME owners in this study refer to individuals who

establish and operate an entity that is engaged in commercial, industrial, or professional activities

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with the purpose of deriving profits from its successful operations. While employees are
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individuals who are hired by a person or business to perform work for that person or business,

they are also referred to as business owners. This study refers to gender as the state of being male
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or female of individuals. The enterprises are characterized by both female and male SME owners

and employees. Adigun, Onihunwa, Irunokhai, Sada, and Adeshina (2015) posited that gender is
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the range of physical, biological, mental, and behavioral characteristics pertaining to and

differentiating between the feminine and masculine population.

In the view of Ademiluyi and Ademiluyi (2020), male and female SME owners and

employees had similar dispositions and did not differ with regard to the success of the business.

Because the SME as an enterprise is not gender biased and affects both genders, there is a need

to investigate the responses of both genders in promoting SMEs. The years of experience of

SME owners and employees in this study refers to the state of their achievement in their

businesses based on the length of time spent in the business. It is as a result of this background
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that this study was conducted to investigate the business education and analytical skills needed

for promoting SMEs in Kwara State.

Statement of the Problem

Small and medium-scale enterprises (SMEs) are generally regarded as the engines and

catalysts of economic growth and equitable development in developing nations like Nigeria. This

is because they contribute toward employment and income generation, increasing production,

encouraging the utilization of local resources, technological development, and the provision of

domestic linkages for rapid industrialization. It takes special skills to succeed in business, but

most of these skills came through learning and practicing (Udemba 2020). Based on observations

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by the researcher as well as deductions from Oluboba (2011), Mba and Agwu (2014), and
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Alexander and Alexander (2017), it was discovered that SMEs are faced with a lot of challenges

that centered on bookkeeping and accounting, decision making, ICT skills, and marketing skills.
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These challenges have resulted in weaknesses of business operations, which eventually led to

bad management, poor initiative, lack of critical thinking, poor decision-making, poor
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communication, poor record-keeping and upkeep, and inability to distinguish between personal

and business finances.

Probably other problems include poor sales habits; low degree of delegation; lack of

employees' cooperation; poor client relations; inability to effectively scan the environment to

better determine the needs and wants of the people; and the inability of SME owners to carry out

their plans and sustain their businesses for more than five years. Some of the above and other

problems have been of serious concern to intending entrepreneurs. However, there is a need for

investigation into different ways of solving the aforementioned problems, because if business

education and analytical skills needed for promoting SMEs are not identified and incorporated

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