TITLE PAGE

EFFECT OF SMALL AND MEDIUM ENTERPRISES’ OPERATIONS ON

ECONOMIC DEVELOPMENT OF NIGER STATE

BY
AKINWOLIRE ESTHER AYANFE

MAT NO: 2020/136331BB

SUBMITTED

TO
DEPARTMENT OF BUSINESS ADMINISTRATION AND MANAGEMENT
SCHOOL OF BUSINESS AND MANAGEMENT
FEDERAL POLYTECHNIC BIDA
P.M.B 55, BIDA
NIGER STATE
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
HIGHER NATIONAL DIPLOMA (HND)
IN BUSINESS ADMINISTRATION AND MANAGEMENT

OCTOBER, 2022

APPROVAL PAGE

1
This project has been read and approved on behalf of the Department of Business
Administration and Management of the Federal Polytechnic, Bida, by the undersigned people
for the Award of Higher National Diploma (HND) in Business Studies.

------------------------------- ------------------------------
Mallam. Ibrahim Abubakar Mikugi Date
Project Supervisor

------------------------------------- -------------------------------------
Mallam. Ibrahim Abubakar Mikugi Date

Head of Department

------------------------------------- -------------------------------------
External Moderator Date

DEDICATION

This research work is dedicated to Almighty God for His mercy and faithfulness upon me

throughout my academic programmed and who has made this research work a reality.

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 ACKNOWLEDGEMENTS

My deepest, heartfelt thanks, first of all goes to the Almighty God for granting me His

protection and knowledge in coming out with this important study.

I want to appreciate the support of my HOD who happen to be my supervisor Mallam.

Ibrahim Abubakar Mikugi.and for putting me through in this research.

I wish to express my indebtedness and profound to wonderful family Mr. and Mrs

Akinwolire
3
for their parental care, financial and moral support. I also want to appreciate the support of

my beloved siblings basil for their prayers and well wishes.

I cannot just stop until I appreciate my wonderful lovely caring and supportive Boo and

friends Olarinde, Bamidele, faith, Ibrahim, Dija, and to my School Father Mr Adeoti

May God richly bless you all including those who played diverse roles relating to the

production of this work but whose names did not come up for mentioning.

ABSTRACT

Small businesses are considered as the largest employers of labour all over the world and
their activities contribute to increased Gross Domestic Product (GDP), redistribution of
incomes, spread of economic entities, poverty reduction, effective tool for rural development
and economic growth and development. The present study examined the effect of small
business services on the development of Minna, Suleja, and Madalla in Niger State. Simple
random probability sampling technique was adopted to give every participant opportunity to
participate. The participants were drawn from four selected small and medium enterprises
operating in Minna, Suleja and Madalla, with a total population of 97 staff members
including the business owners. The participants returned almost all the distributed
questionnaire but 90 questionnaires were valid and used for analysis. The researcher
employed the statistical package for social sciences (SPSS) for data analysis. Results show
that small business services lead to poverty reduction in Niger State. Similarly, small
business services are making financial contribution and such contribution is positively
4
related to the development of Minna, Suleja, and Madalla. This suggests that the more
revenue collected from SMEs owners, the more Niger State government has ability to execute
infrastructural development, thereby contributing to economic growth of the area.

Keywords: poverty reduction, finance, entrepreneurship, resource utilization, small business

services, development

TABLE OF CONTENTS

Title page i

Approval Page ii

Dedication iii

Acknowledgement iv

Abstract v

Table of Contents vii

CHAPTER ONE:

INTRODUCTION

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1.1 Background to the Study 1

1.2. Statement of Problem 4

1.3 Research Question 6

1.4. Objectives of the Study. 6

1.5. Research Hypothesis. 7

1.6. Significance of the Study. 7

1.7 Scope and Limitations of the Study 8

1.8 Definition of Terms. 8

CHAPTER TWO:

LITERITUREREVIEW ANDTHEORETICAL FRAMEWORK:

2.1 Introduction 9

2.2 Conceptual Framework 9

2.2.1 Concepts of economic growth and development 11

2.2.2 Concept of small-scale business 13

2.2.3.Meaning of small-scale enterprises (SSEs). 16

2.2.4 Roles and importance of small-scale enterprises. 17

2.2.5.Specific problems facing small scale enterprises 18

2.2.6 Concepts of entrepreneur and entrepreneurship 20

2.3 Theoretical Framework 22

2.4 Empirical review 24

2.5 Research gaps 25

2.6 Research model 27

CHAPTER THREE:

METHODOLOGY

3.1 Introduction 28

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3.2 Research design 28

3.3 Population of the study 24

3.4 Sampling technique and determination of sample size 30

3.5 Instrument for data collection 31

3.6 Validity and reliability of data/instrument 31

3.7 Method of data analysis 32

CHAPTER FOUR:

DATA PRESENTATION AND ANALYSIS

4.1 Introduction 33

4.2 Data presentation and analysis 33

4.3 Test of hypotheses 45

4.4 Discussion of findings 46

CHAPTER FIVE:

SUMMARY, CONCLUSION, AND RECOMMENDATION

5.1 Introduction 50

5.2 Summary of findings 50

5.3 Conclusion 50

5.4 Recommendations 51

5.5 Study’s limitations and suggestions for further research 52

Bibliography 53

Appendix: 57

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 CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Evidence indicates that SMEs account for between 90 percent to 99 percent of the private

sector enterprises globally (Rodríguez-Gutiérrez, Moreno, & Tejada, 2015). Similarly,

Mudalige, Ismail, and Malek (2016) as well as OECD and World Bank (2015) reveal that

about 95 percent of existing businesses around the world are SMEs, close to 60 percent of

private sector workers are employed by SMEs and contribute about 50 percent to World

Gross Value Added (WGVA). Also, a global estimate of the contribution made by SMEs to

Gross Domestic Product (GDP) shows that this sub-sector accounts for 60 to 70 percent of

GDP (International Labour Organization, 2015).

According to Abu (2019), countries of the world have undertaken major concerns on the

workings of their economies for the basic objective of ensuring that it is productive and

responsive to the immediate and extended environments. To this effect, the managers of the

public economy evolve different policies and programmes that are directed at stimulating or

regulating the operations and directions of the economic activities and practices vis-à-vis the

goals and objectives the government has in focus. A major concern in this vein is the efforts

of the governments to ensure the growth of her economy with corresponding benefits to both

the government as an economic unit and the population as a benefiting unit. Irrespective of

the developmental status of nations, there is this growing propensity and focus by

governments to consciously stimulate economic growth and development.

Further, Abu (2019) is of the views that developed countries are continually maintaining the

economic growth and crystallizing their efforts into the fraternization of economic groupings

and partnerships with a scale of benefits such as the Group of seven most industrialized

economies (G-7) etc. In this global trend of economic growth and development, the
8
developing countries are equally harnessing their potentialities to pursue the factors of

economic growth so as to maintain a degree of competiveness with the economies of the

developed countries. It is therefore not out of place to record the increasing interest shown by

economists, management scholars, technologists etc in discussing and postulating measures

and theories of economic growth and development. Nigeria has her own share of the

experiences of economic growth and challenges arising from its practices.

SMEs contribute enormously to the Gross Domestic Products (GDP) of many economies in

the world (Ilegbinosa, & Jumbo, 2015; Roxas et al., 2017; Steinerowska‐Streb & Steiner,

2014).In the United Kingdom (UK) for example, the Department of Business, Innovation and

Skills (2015) says SMEs account for 60 percent of total employment and a combined annual

turnover of 47 percent of all private sector businesses as at 2015. Also, B20 Turkey (2015)

emphasizes that SMEs are in every nook and cranny of the European Union (EU). They are

strongholds in the economies of the EU. They constitute 99.8 percent of all private

enterprises in the EU in 2014, generate about 85 percent new jobs, employ almost 67 percent

of the total workforce of the private sector in the EU and generate 58 percent of the value-

added turnover (European Commission, 2015). Tahir Mustapha

Moreover, SMEs contribute two-third of private sector jobs in emerging economies like

Argentina, China, Korea, and Taiwan (IFC, 2013; OECD & World Bank Group, 2015).

Further, over 96 percent of businesses in ASEAN region are considered as SMEs

(Association of Chartered Certified Accountants-ACCA, 2016). According to SME

Corporation Malaysia (2016), 907,065 (98.5 percent) enterprises in Malaysia are SMEs with

a contribution of 65.3 percent of employment generation and a contribution of 36.6 percent of

GDP in Malaysia in 2016.

A look at African countries, for instance, in Morocco 93 percent of private firms are SMEs

(Edinburgh Group, 2013), while in Ghana, about 92 percent are SMEs (Gbandi & Amissah,
9
2014). Similarly, 91 percent of registered businesses in South Africa are SMEs while in

Nigeria, about 97 percent of business enterprises are SMEs (Adeyemi, Isaac, & Olufemi,

2017; Agwu, 2018; Tobora, 2015). Consequently, SMEs account for an average of 50 percent

jobs created in many African countries. In South Africa, it is approximated that SMEs

provide 61 percent of employment and 22 percent of GDP while in Ghana, SMEs generate

about 85 percent of employment and 21 percent of GDP (Osmond & Paul, 2016).

However, in Nigeria, the situation seems to be different as the contribution of SMEs to GDP

is less than five percent, which is very low compared to other countries (Agwu, 2018; Du &

Banwo, 2015; Ofili, 2015). Evidence abounds that the performance of SMEs in Nigeria is not

as the performance of SMEs in other developing countries such as South Africa and Ghana

whose contribution to GDP is estimated at 22 and 21 percent respectively (Osmond & Paul,

2016), and 36.6 percent in Malaysia (SME Corporation Malaysia, 2016). The low level of

SME performance in the country has negative effect on the GDP growth rate, unemployment

rate, and Nigeria’s ranking on the world competitiveness index. Thus, to some extent,

contribute to decrease in standard of living and increase in the rate of poverty in the country

(Uwajumogu, et al., 2015).

According to the Central Bank of Nigeria (2016), the annual GDP growth rate shows that

Nigeria experienced a drastic downturn in real GDP growth rate from10 percent in 2010 to

4.3 percent in 2012 and a slight increase to 6.3 percent in 2014 to a marginal growth rate of

2.7 percent at the end of 2015 and a negative (-) growth rate of 1.62 percent in 2016, this led

the Nigerian economy into recession (Nigerian Bureau of Statistics, 2017). To some extent,

this implies that the performance of SMEs to the development of Nigerian economy is poor.

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1.2 Statement of research problem

Small and medium enterprises (SMEs) operations have been plagued with so many

challenges, which have led to high rates of failure and poor level of performances and

eventual inability to contribute to Nigerian economy as expected (Jocumsen, 2004). The

challenges facing small scale enterprises have led to early deaths/failures among SMEs and

even SMEs owners are not spared (SMEDAN, 2017). These failure rates were captured in a

global business review, which reported that about 20 percent of young businesses established

fails within the first year of operation, and with this rate of failure expected to grow to about

66 percent by the end of the sixth year of their existence (Franco & Haase, 2010).

Additionally, Driessen and Zwart (2007) report that about 50 percent of new businesses goes

into extinction within the first five years of their existence owing to their inability to survive

competitiveness in their business environment. To further substantiate this assertion of high

rate of business mortality, Amiri, Zali and Majd (2009), report that only 10 percent of the

total businesses established in Iran were successful, with several of them failing, even before

they were launched.

Confirming of the above global reports on small and micro business failures, reports on the

sub-Saharan African country of Nigeria, reveals that most businesses established failed

within the first five years of existence, with a smaller percentage of them going into

extinction within the sixth to tenth years of establishment, while only about 5 to 10 percent of

these businesses, survives, thrives, and grow into maturity (Aremu & Adeyemi, 2011).

However, in the recent years, this failure rates have been reported to have risen to about 80

percent due to lack of finances (Akinfe, 2014).

Further, several challenges have been identified as the reasons why small scale businesses

have been unable to contribute substantially towards the development of Nigeria, and

specifically Niger State. Some of these identified challenges ranged from governmental
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regulations, limited access to finance, poor access to information technology, family

dependence, lack of access to control property, and managerial incompetency, restrictions to

the family businesses, minimum leadership role (Agwu & Emeti, 2014). All these problems

were reported to have impeded small scale business development, and eventually culminating

into their failure (Chancharat, 2011).

Additionally, Basil (2005) identifies some institutional factors, such as, inadequate capital,

erratic power supply, poor infrastructure, as well as individual factors like poor market

research, lack of focus, poor record and bookkeeping, poor business strategy, inability to

differentiate between revenue from profit, and failure to separate business and personal from

finances, and engaging in cut-throat competition, as some of the causes of the premature

death of most businesses in Nigeria.

Nevertheless, Rogers (2002) also attributed the high failure rates of business in Nigeria to the

inefficiency, poor record keeping, technical problems/competency, lack of expertise in

procurement, production, maintenance, finance, marketing, in addition to wrong decision-

making by their owners. Attesting to this assertion, the report of an exploratory survey

research on factors responsible for the failure of small business owners in Nigeria conducted

by Vossenberg (2013), reveals that factors such as, inadequate finances, lack of

infrastructure, lack of management and training experience, poor record and book-keeping,

coupled with other obstacles like, poor location, low demand for either products or services,

poor market research, insufficient profit, and excessive withdrawal of cash for personal use,

are among the major reasons for small scale business inability to contribute substantially to

the development of Nigerian economy.

In a bid to make small scale enterprises contribute meaningfully to Nigerian economy, the

Federal Government established the Small and Medium Enterprises Development Agency of

Nigeria (SMEDAN) to strengthen SMEs. Despite the establishment of SMEDAN, the

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contribution of SMEs to the Nigerian economy is still low. Hence, the Director General of

Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) asserted that

Nigerian entrepreneurial scene is bedevilled with a lot of challenges. Some of the highlighted

problems ranged from managerial incompetency, poor marketing skills, inadequate financing,

low entrepreneurial spirit, non-conducive business environment, fall in output level, as well

as insecurity, to that of threat from globalization (Nadada, 2013).

1.3 Research questions

The major research question is “What is the effect of small and medium scale business

services on the development of Niger State economy? Specific research questions:

i. What is the effect of employment opportunities offered by SMEs on the

development of Niger State economy?

ii. Do financial contributions of SMEs in the forms of payments of taxes, tenement

rates, and VATs develop the economy of Niger State?

1.4 Objectives of the Study

The major objective of this study is to examine the effect of small and medium business

services on the development of Niger State economy. Specific objectives include:

i. To examine employment opportunities offered by SMEs in the development of

Niger State economy

ii. To identify the financial contributions of SMEs in the forms of payments of taxes,

tenement rates, and VATs to develop the economy of Niger State.

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1.5 Research hypothesis

The following null hypotheses are hereby formulated to guide the present study:

H1: Employment opportunities offered by SMEs do not lead to economic development of

Niger State

H2: Financial contributions of SMEs in the forms of payments of taxes, tenement rates, and

VATs do not lead to the development of Niger State economy.

1.6 Significance of the study

The study will be beneficial to SMEs and entrepreneurship development in Niger State and

by extension, Nigeria. State and local governments can utilize the findings of the present

study as a basis for policy formulation as regard entrepreneurship development. The study

will also contribute to the existing knowledge on SMES and entrepreneurship development.

It is also worthy to note that the study can be used as a basis for further research, as the

research can be used as a spring board for further research as well as a good reference

material to students undertaking similar researches.

1.7 Scope of the study

This study covered an empirical examination of the effects of small business’operations on

the development of Nigerian economy. The study also identified the practical approaches

used in developing SMEs as well as the entrepreneurial potentials in Niger State. However,

the study is limited to a selected SMEs operating within Minna and Suleja metropolis in

Niger State.

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1.8 Definition of terms

i. Small scale business: small scale enterprises are enterprises in which total

investments (including land and working capital) did not exceed N500, 000 and

the annual turn-over did not exceed N5.0 million

ii. Entrepreneur: An individual that identifies, develops and brings vision to life

under conditions of risk and considerable uncertainty

iii. Entrepreneurship: is an innovative act, which includes endowing existing

resources for new wealth- producing capacity.

iv. Economic development:

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

The current chapter focuses on critical reviews of relevant literature pertaining to the current

study. Also, it discusses relevant theories that explains the relationship between the variables.

2.2 Conceptual framework

2.2.1 Concepts of economic growth and development

Economic growth is defined by Balami (2006) as increase in output of an economy’s capacity

to produce goods and services needed to improve the welfare of the country’s citizens.

Growth is seen as a steady process which involves raising the level of output of goods and

services in the economy, for example, rise in the Gross Domestic Product (GDP).

Accordingly, he explained that growth is meaningful when the rate of growth is much higher

than population growth because it has to lead to improvement in human welfare. Therefore,

growth is seen as a steady process of increasing the productive capacity of the economy and

hence of increasing national income being characterized by higher rates of per capita output

and total factor productivity, especially labors productivity. He also argued that there are

three different measurements for economic growth namely: nominal measurement of growth,

real output growth rate and growth measured in per capita values.

Economic development on the other hand is seen as a multivariate with many dimensions.

The concept is defined as the process by which economies become advanced with specific

concern to the improvement in the living standards of the people. It is therefore a focus by the

economy on enhancement of the overall health, wellbeing and social standards of the people.

Factors of economic development include improvement in the quality of education,

livelihood, workers’ income, health, and so on. The objective is to have a wealthier, healthier,

better educated and having greater access to good quality housing.

16
UNCTAD (2014) states that,

“countries that have succeeded achieving a sustained economic growth and

development are those that have been able to transform their production

activities effectively from low to high productivity and to diversify from the

production and export of a single or a few primary products to the

manufacture and export of finished products”.

From the above quotation, it follows that economic growth cannot be attained without

industrialization. According to Yesufu (1996) as cited in Abu (2019), industrialization is the

process of accelerated institutionalization of manufacturing process or techniques in an

otherwise predominantly rural and technologically backward economy. By this definition,

industrialization connotes te replacement of rudimentary economic practices with a modern

mechanized technique and process. Thus industries are formed as against subsistence

economic activities. A comprehensive definition of industrialization is taken from

Uwubanwen in Ogundele (2010). It is defined as

“the process of developing the capacity of a nation to muster and locate within

its borders, the overall industrial process involving the production of raw

materials, production of intermediate products for further production,

fabrication of machines and tools needed for the for the manufacture of desired

products and of other machines; skills to operate, maintain and reconstruct the

machines and tools, skills to manage factories and to organize the production

process.”

The above definition simply views industrialization as a change from concern for

consumption processes to strategy that establishes instruments for creating consumption. It is

therefore the process by which an economy transforms from a traditional agrarian production

17
process to the use of technologies and machines in mass production and improved or

advanced products fro consumption.

Economic growth is defined by Balami (2006) as increase in output of an economy’s capacity

to produce goods and services needed to improve the welfare of the country’s citizens.

Growth is seen as a steady process which involves raising the level of output of goods and

services in the economy, for example, rise in the Gross Domestic Product (GDP).

Accordingly he explained that growth is meaningful when the rate of growth is much higher

than population growth because it has to lead to improvement in human welfare. Therefore

growth is seen as a steady process of increasing the productive capacity of the economy and

hence of increasing national income being characterized by higher rates of per capita output

and total factor productivity, especially labours productivity. He also argued that there are

three different measurements for economic growth namely: nominal measurement of growth,

real output growth rate and growth measured in per capita values.

2.2.2 Concept of small-scale business

Small Scale Enterprises (SSEs) forms a vital part of any developed economy of any given

nation and it will be useful for the purpose of this research to examine what constitute Small

Scale Enterprises in any economy such as Nigeria and particularly in Niger State; which is

the focus of this study. There are no generally accepted definitions for Small Scale

Enterprises (SSEs) as they vary from country to country even within the same industry. For

example, the United Nations Industrial Development Organization (2000) has located over

fifty (50) definitions of Small Scale Businesses (SSBs) in 75 different countries and as such

various definitions were based on certain parameters such as installed capacity, utilization,

output, employee, capital, and type of industry or other criteria which have more relevance to

the industrial policies of specific country.

18
There is hardly any unique and universally accepted definition of SSEs because the

classification of business into small or large-scale is a subjective and qualitative judgement;

Ekpenyong and Nyong; (1992). Rather each country tends to define this category of

enterprises based usually on the peculiar needs of public policies. Even within a country, the

definition changes over time, depending on circumstances and specific objectives of

institutions. There are however, some common indicators in most definitions namely the size

of capital investment (fixed assets), value of annual turnover (gross output) and number of

paid employees. The popularity of the three indicators derives largely from their ease of

measurement.

In countries such as United States of America, Britain and Canada, small-scale business is

defined in terms of annual turn-over and the number of paid employees. In Britain, for

instance, a small-scale business is defined as ‘‘that industry with annual turn-over of 2

million pounds or less with fewer than 200 paid employees. In Japan, a small-scale industry

is defined according to the type of industry. For instance, small-medium scale enterprises in

manufacturing are defined as those enterprises with N100 million as paid-up capital and 300

employees; while those in wholesale trade should have N30 million paid-up capital and 100

employees.

In Nigeria, the definition of SSEs also varies from time to time and according to institutions.

For instance, the Central Bank of Nigeria’s (1988) defined small scale enterprises (excluding

general commerce) as enterprises in which total investment (including land and working

capital) did not exceed N500, 000 and the annual turn-over did not exceed N5.0 million.

Following the persistence depreciation in the exchange rate of the naira, the maximum size of

capital investment has been raised to N5.0million and the turn-over to N25.0 million since

1990. In the 1990 Budget, the Federal Government of Nigeria defined small-scale enterprises,

for the purposes of commercial bank loans, as those enterprises with annual turn-over not
19
exceeding N500,000 and for merchant bank loans, those enterprises with capital investments

not exceeding N2million (exceeding cost of land) or a maximum of N5million. The National

Economic Reconstruction Fund (NERFUND) puts the ceiling for small-scale industries at

N10million. Section 37b (2) of the Companies and Allied Matters Decree of 1990 defines a

“small company” as one with:

(a) Annual turnover not more than N2million;

(b) Net assets values not more than N1million.

For the purpose of this Study, the researcher adopts the definition of Central Bank of Nigeria

(1993) which defines a small-scale enterprise (SSE), as enterprise whose total cost, excluding

cost of land but including working capital, is above N1million but not exceeding N10 million.

2.2.3. Meaning of small-scale enterprises (SSEs).

There has been no consensus among researchers and practitioners as to what constitutes a

small-scale business. Some writers refer to small scale business as one with low

employees, low sales volume, and small capital. The owner is usually directly involved in

the management as well as the operations of the business and may not have much training

or experience in accounting procedures, taxation, finance, business management and

business systems procedures and practices.

Most people would agree that the neighborhood beer parlors, grocery stores and newspaper

hawkers are small scale businesses while the Nigerian Brewery Limited, Iganmu Lagos or

the Nigerian Tobacco Company Ibadan is a big business. One may generate an argument

about what is “big or small” between these two extremes, since it is a relative concept.

What appears “small” in an establishment in terms of employees or sales volume may be

“big” in another establishment. For example, United Africa Company (UAC) with a total

sale of a billion naira annually could be a “giant” in comparison to Nigerian Mineral Water

20
Industries, Onitsha. Controversy arises then as to where to draw a line between “big and

small” or put in another expression, “how big or small?”. Perhaps the most functional

definition is the one made by United Nations Industrial Development Organization

(UNIDO) which suggests that a small-scale business firm is characterized by at least two

of the following features:

i. Ownership and management are usually vested in the same individuals that is, the

management is not independent and the managers are usually also the owners.

ii. The small business controls a small share of market and therefore, constitutes a

little quota in the large size market.

iii. Capital is made available by the owner and policy decisions are in the hand of the

individual or small groups of entrepreneurs.

iv. The area of operation is localized and workers and owners concentrate in the local

community. Of course, some do have branches in other towns but most of such

branches serve as mere depots.

v. The owner participates very actively in all decision making on a day-to-day

operational basis, with a high degree of rigid control.

The above definitions of small-scale business are based on parameters such as the installed

capacity utilization, output, employment, capital, type of industry or other criteria which

have more relevance to the industrial policies of the nation.

In Nigeria, the official definition of small scale business is somewhat flexible and broad.

For instance, the Nigerian Bank for Commerce and Industry defines small scale business

as a firm or company with asset (including working capital but excluding land) not

exceeding ₦750,000 and aid employment up to 50 persons. Such an establishment must be

21
wholly Nigerian owned (all companies in schedule of the 1977 Nigerian Enterprises

Promotion Decree).

The Central Bank of Nigeria Monetary Circular No. 25 of 1991 defines small scale

enterprises as one whose capital investment does not exceed five million naira including

land and working capital or whose turnover is not more than twenty-five million naira

annually. The World Bank Document (Report No. 7114) of 1988 on Nigeria defined small

and medium enterprises as one whose total fixed asset (excluding land) plus cost of

investment do not exceed ten million naira in constant 1988 price and in micro enterprise

as one with fixed asset (excluding land) plus cost of the investment prospect below four

hundred thousand naira in constant 1988 prices.

Furthermore, the National Economic Reconstruction Fund (NERFUND) defines small and

medium scale enterprises (Section 2 (b) of Act No 2 of 1969) as those with fixed cost of

new investment excluding land but not exceeding ten million naira. Following the current

official definitions of industrial Enterprises adopted by the Central Bank of Nigeria,

(CBN), small scale businesses are defined as businesses with turnover of less than 100

million naira per annum and /or less than 300 employees.

In the present study, small scale enterprises are conceptualized as any business entity that

is independently owned and operated and is not dominant in its field of study.

22
2.2.4 Roles and importance of small-scale enterprises.

The importance and relevance of small-scale enterprises cannot be over emphasized.

Hence, the Nigeria Vision 2020 National Technical Working Group (NTWG) on Small

Scale Enterprises (2009) emphasizes that:

Small Scale Enterprises are known to have significant relevance to all world economy. In

most parts of the world,SMEs constitute about 90% of all business enterprises. This and

particularly they are strong forward, backward and intra –linkages with all other business,

establishes Small Scale Enterprises as the rivers of any economy and the engines of

economic development worldwide. With this, they are able to generate employment, create

wealth and reduce poverty incidence index.

The various perspective from which the relevance of the small-scale enterprises in the state

and national economies has been considered includes:

i) Training ground for the development and growths of indigenous entrepreneurs.

ii) Job creation, employment generation and poverty reduction. Small scale enterprises

have been recognized as the engine through which the growth objectives of

developing countries can be achieved.

iii) Dispersal of economic activities. Small Scale Enterprises assist in the dispersal in

economic activities thereby encouraging the modernization of such activities

outside the urban areas and thus, provide effective means of resource mobilizations

and mitigation of rural–urban drift.

iv) Small Scale Enterprises have positive implications for improving the standard of

living of the citizens and generation of foreign exchange through export.

v) Small Scale Enterprises also act as catalyst for technological development.

23
 vi) Small scale enterprises achieve a more relatively high value-added operations

because they are propelled by basic economic activities that depend mostly on

locally sourced raw materials.

vii) Small scale enterprises provide feeder industry services as they serve as major

suppliers of intermediate goods and components of large scale industries as well as

major agents for the distribution of the final product of such industries.

viii) Small scale enterprises tend to serve as agent of industrial spread and rural

development since they survive in less sophisticated industrial infrastructure.

ix) Small scale enterprises provide an interesting alternative for countries like Nigeria

that desires the fast option for industrial development. This is because they are

characterized by short-term gestation periods and high potentials for quick yield on

investment.

Given all the above positive impacts and indications which small scale enterprises can create

in an economy, it is understandable then that they are in fact, generally accepted that they

constitute over 90 percent of the employment and 30 – 70 percent of the gross domestic

product (GDP). Little wonder, that the government in its Economic Direction proposed the

SMEDAN Act of 2003 which establishes the Small and Medium Enterprises Development

Agency of Nigeria (SMEDAN) charged with the responsibility for promoting and facilitating

the development programmes in the Small and Medium Scale Industries subsectors. By

establishing the Agency, the Act further enhances and support services to accelerate rural

development, poverty alleviation and eradication respectively.

2.2.5. Specific problems facing small scale enterprises

The following specific problems impede the growth and development of small and medium

enterprises in Nigeria:

24
i. Finance: Finance is one of the most serious problems confronting small scale

industries. Finance is the life blood of an organization and no organization can

function properly in the absence of adequate funds. The scarcity of capital and

inadequate availability of credit facilities are the major causes of this problem.

Firstly, adequate funds are not available and secondly, entrepreneurs due to weak
economic base, have lower credit worthiness. Neither are they having their own
resources nor are others prepared to lend them. Entrepreneurs are force to borrow
money from money lender at exorbitant rate of interest and this upset all the
calculations.

ii. Raw Material: Small scale industries normally tap local sources for meeting raw
material requirements. This unit have to face numerous problems like availability
of inadequate quantity, poor quality and even supply of raw material is not regular
basis. All this factors adversely affects the functioning of these units.
Large scale units, because of more resources, normally corner whatever raw

material that is available in the open market. Small scale units are thus forced to

purchase the same raw materials from the open market at a very high prices. This

will lead to increase in the cost of production therefore making their functioning

unviable.

25
iii. Technology: Small scale entrepreneur are not fully exposed to the latest

technology. Moreover, they lack requisite resources to update or modernize their

plant and machinery. Due to obsolete methods of production, they are confronted

with less production in inferior quality and at higher cost. They are in no position to

compete with their better equipped rivals operating in modern large scale units.

iv. Marketing: These small scale units are exposed to marketing problems. They are

not in a position to get firsthand information about the market, i.e. about the

competition, taste, liking, disliking of the consumers and prevalent fashion.

v. Infrastructure: Infrastructure aspects adversely affects the functioning of small

scale enterprises. There is inadequate availability of transportation, communication,

power and other facilities in the backward areas. Entrepreneurs are faced with the

problem of getting power connections and even when they lucky enough to get

these they are exposed to unscheduled long power cuts.

Inadequate and inappropriate transportation and communication network will make

the working of various units more difficult. All these factors are going to adversely

affects the quantity, quality and production schedule of the enterprises operating in

these areas. Thus, their operations will become uneconomical and unviable.

vi. Underutilization of capacity: Most of the small scale businesses are working

below full potentials. Large scale businesses are working 24 hours a day, i.e.in

three shifts of 8 hours each and are thus making best possible use of their

machinery and equipment.

26
 On the other hand, Small scale businesses are making only 40 to 50 percent use of

their installed capacities. Various reasons attributed to these gross underutilization

of capacity are problems of finance, raw materials, power and under developed

markets for their products.

vii. Skilled manpower: Small scale businesses located in a remote backward area may

not have problem with respect of skilled workers, but skilled workers are not

available there. The reason is firstly, skilled workers may be reluctant to work in

this areas and secondly, the enterprise may not afford to pay the wages and other

facilities demanded by these skilled workers.

viii. Managerial Inadequacy: Managerial inadequacy poses another serious problem

for small scale business. Modern business demands vision, technical knowhow,

skill, attitude and whole hearted devotion in achieving the business goals and

objectives. Competent of the entrepreneur is vital for the success of any venture.

An entrepreneur is the pivot around whom the entire enterprise revolved.

Many small scale businesses have turned sick due to lack of managerial

competence on the part of the entrepreneur. An entrepreneur who is require to

undergo training and counseling for developing his managerial skills will add to the

growth of the enterprise.

2.2.6 Concepts of entrepreneur and entrepreneurship

Iheonunekwu (2003) defined the entrepreneur as one who is the originator of profitable

business ideas, while entrepreneurship involves the ability to gain command at and combine

resources in a new way which will be profitable. Entrepreneurship therefore implies the

ability to be prepared to risk personal energy and financial resources to achieve unpredictable

results. According to Weihrich, Cannice and Koontz (2008), the concept of entrepreneurship

implies dissatisfaction with the present state of things and an awareness of the need to do

27
things differently. They added that an entrepreneur is a person who focuses on innovation and

creativity and who transforms a dream or an idea into a profitable venture by operating

outside an organizational setting. Such a person, they believed, has the ability to see an

opportunity, obtain the necessary capital, labour and other inputs, and then put together an

operation successfully while at the same time, having a mind-set of willingness to take

personal risk of success or failure.

A typical entrepreneur is a risk taker, a man who braves uncertainty, strikes out on his own,

and through native wit, devotion to duty and singleness of mind and purpose, somehow

creates a business and industrial activity where none existed before (Oniorode & Ajokporise,

2006). From this definition, entrepreneurship thus occurs when an individual develops a new

venture, a new approach to an old business or idea or a unique way of giving the market place

a product (or service) by using resources under conditions of risk (Inyamako, 2000).

Similarly, Aladekomo (2003) perceived the entrepreneur as an innovator, a motivator, a

catalyst, a risk taker, a goal-getter and the one who makes things happen. He added that the

entrepreneur is quick to identify a goal, quick to mobilize resources to fill the gap and reap

his gain; in other words, he is a job creator and not a job seeker.

All these definitions imply that the entrepreneur must be full of some characteristics which

must include: ambition, creativity, inquisitiveness, smartness and activity. However, having

deliberated on whether an entrepreneur is born or made, Aladekomo (2003), arrived at the

conclusion that individuals can gain a lot from entrepreneurial training and development with

or without entrepreneurial traits especially through education and learning.

2.3 Theoretical Framework

There are underlining theoretical frameworks justifying the economic growth of societies.

These theories include the Mercantilist theory, the Classical theory, Neo-Classical theory

Endogenous theories, Keynesian theory, etc. Relating to the role of industrialization to

28
economic growth however is the Endogenous theory. A specific model developed from this

theory is the Schumpeterian Endogenous Growth Model of Industrial Innovation. According

to Grossman and Helpman (1991) and Aghion and Howitt (1992) explained that is model is

focused on the continuous quality improvement in intermediate products. Such accordingly

will lead to the accumulation of an economy’s aggregate output. Grossman and Helpman

further illustrate that argued that the improvement in will raise the total factor productivity in

the manufacturing of consumer and capital goods over time.

The emphasis of the Endogenous Growth Model which is of relevance to this paper is the

concern for improvement in the manufacturing of capital goods such as machines, chemicals

and technological tools. Innovative capital accumulation is criticized because of its inclusion

of human capital employment may lead to diminishing returns at a longer run. Also the

impact of externalities cannot be soft played in this model. Other areas of criticism include

the parameters of time estimation that can be difficult to estimate, the use simulations in

assessing the transformation from an economic innovation.

In discussing the contribution of Small and Medium Enterprises (SMEs) in overall

development in less developed countries (LDCs), two theories are predominant in the

literature namely: the classical and the modern theories. The Classical theories predict that

advantages of Small and Medium Enterprises (SMEs) will diminish over time and large

enterprises will eventually predominate in the course of economic development marked by

the increase in income.

The Modern theories believed that Micro, Small and Medium Enterprises (MSMEs) have two

important roles to play simultaneously: accelerate economic growth through yhe growth of

their contributions to Gross Domestic Product (GDP), and to reduce poverty through

employment creation and income generation effects of their generated output growth.

29
In addition to these direct effects, Small and Medium Enterprises (SMEs) also have indirect

on economic growth and poverty reduction through their growth linkage effects. Output and

employment increases in Micro, Small and Medium Enterprise (MSME) lead output and

employment to increase in the rest of the economy through three main linkages: Production,

Investment and Consumption. The world bank gives three core arguments in supporting

Small and Medium Enterprises (SMEs) in less developed countries (LDCs), which is in line

with the argument in the modern paradigm on the importance of Small and Medium

Enterprises (SMEs) in the economy, (world bank 2002, 2004).

First, Small and Medium Enterprises (SMEs) enhance competition and entrepreneurship

and hence have external benefit on the economy. Second, Small and Medium Enterprises

(SMEs) are generally more productive than large enterprises but financial market and other

institutional failures and non-conducive macroeconomic environment impede Small and

Medium Enterprises (SMEs) development. Third, Small and Medium Enterprises (SMEs)

expansion boosts employment more than large enterprises growth because Small and

Medium Enterprises (SMEs) are more labour intensive. The above arguments do not mean

however, that large enterprises are not important, or MSMEs can fully substitute the role

large enterprises in the economy.

2.4 Empirical Review

Worldwide, small and medium enterprises (SMEs) are regarded as the lubricants for the

engine of socioeconomic growth and development (Agwu, 2018; Amin, Thurasamy, Aldakhil

& Kaswuri, 2016; Buli, 2017; Gbandi & Amissah, 2014; Roxas, Ashill, & Chadee, 2017;

Uwajumogu, Nwokoye, Anochiwa, & Ojike, 2015). SMEs play pivot role in the economic

transformation of both developing and developed countries because they stimulate business

activities in both commercial centers and rural locations, reduce poverty by means of job

creation, encourage even distribution of wealth, ensure economic diversification, promote

30
indigenous industrial transformation, and increase local value added (National Bureau of

Statistics-NBS, 2015; Steinerowska‐Streb & Steiner, 2014). All these are accomplished

through the mobilization and utilization of local savings, local raw material, and human

capital to engage in local production of goods and services for immediate consumption as

well as inputs to large enterprises (Uwajumogu et al., 2015). In this sense,

A lot of studies have been carried out on SMEs access to financing. For instance, Charles

(2002) through interview technique investigated the factors that influence the growth,

performance and development of SMEs in Nigeria and other implication on policy. He found

that accessibility to finance and good management are central to SMEs growth and

development.

Nwosa and Oseni (2013) examined the impact of banks loans to SMEs and manufacturing

output in Nigeria for the period spanning 1992 to 2010. Employing error correction

modelling technique, the study deduced that bank loans to the SME sector had significant

impact on manufacturing output in the long and short run.

Obasan and Arikewuyo (2012) investigated the effects of pre-post bank consolidation on the

accessibility of finance to SMEs in Nigeria. Using the ordinary least square, the study found

out that bank’ consolidation has failed to foster a vibrant and competitive SMEs sector that

could enhance job creation and economic growth in Nigeria.

Ishmael (2012) study based on a survey Neolithic literation and dissemination of

questionnaires sample on a sample size of 50 SMEs within Ikeja local government area of

Lagos state, using random sampling techniques, reviewed that SMEs do not have better

access to finance through banks, do not have absolute rapport with the financial institution

due to their financial background and financially handicap which limit their size and capacity

to embark on bank loans with high interest rate arising from the neo-reorganization in banks

occasioned by consolidation.
31
About 80% of small businesses fail within the first 5 years notwithstanding the agencies

established by the Nigerian government to support the sector (Adebisi & Gbegi, 2013;

Kayode & Ilesanmi 2014). Most of the failures is due to numerous challenges facing the

sectors which borders on the success factors of small business. The research identified the

challenges based on the Lampadarious (2015) success factors framework to providing

information for owner’s managers and researchers of small business strategies.

According to SMEDAN (2013), Small businesses employed 80% of the Nigerian workforce.

Shehu et al (2013) stated that 97% of the Nigerian economy are small businesses and are

contributing job to 70% of the country’s job opportunities. Almost all the Small and Medium

Enterprises (SMEs) are starved of funds (Mambula, 2002).

2.5 Research Gap

Small and medium enterprises are those enterprises which have a minimum number of

employees and work on small scale. Many of the researchers have found that the small

business has increased the gross domestic product (GDP) rate of the country. Small

businesses hold an important place to enhance the growth of the country. It also provides the

employment opportunities for those who are unemployed in the rising economy (Jasra,

2011).

According to SMEDAN (2018), SMEs employed 80% of the Nigerian workforce. Similarly,

Shehu et al (2017) stated that 97% of the Nigerian economy rely on small businesses that are

contributing jobs to 70% of the country’s job opportunities. Also, taxes from SMEs owners

are substantial in the finances of local and state governments. According to Bature (2018),

SMEs help to conserve and utilize local resources within their domains for economic growth

and development. Notwithstanding these contributions, the economy of Niger State is not

growing despite the presence of numerous SMEs operating in the state.

32
Despite extensive studies on small business performance in Nigeria, no robust qualitative or

quantitative evidence was found to illustrate the relationship in the present study. In some of

the studies, some of the researchers adopted primary and secondary source of data. However,

this study made use of both primary and secondary sources using Chi-square, and other tools

to analyze the data collected. Also, there was no study on this research topic that was carried

out in Niger State by previous researchers.This study seeks to examine the effects of business

services on economic development of Niger State using some selected small businesses as

case studies.

This study attempted to fill this gap in literature and provide a framework for future research

to enable other researchers advance studies on economic development.Review of available

studies indicate existence of knowledge gaps in the understanding of the role SMEs play in

economic development of Niger State.

2.6 Research Model

The research model is presented in Figure 2.1.

Independent Variable Dependent Variable

SMEs Operations
Employment opportunities
Financial contributions
Poverty reduction Economic development
Local resource utilization

Fig. 2.1: Research Model

Source: Researcher

33
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

This chapter covered sub-topics such as population, research philosophy, sample, research

design, and sampling procedure, instrumentation, procedures for obtaining data and methods

of data analysis.

3.2 Research Design

Research design is a master plan specifying the methods and procedures for collecting and

analyzing the needed data to obtain a solution to the problem (Zikrnund, Babin, Carr, &

Griffin, 2009). The present study utilized quantitative research design to examine the

relationships amongst the elements of job demands, job resources and work engagement.

Such design is utilized because quantitative research reliably helps to find out whether a

concept or idea is better than the alternatives (Anderson, Sweeney, & Williams, 2000) and

able to answer questions about relationships amongst measured variables with the purpose of

explaining, predicting and controlling phenomena (Kreuger & Neuman, 2006; Leedy &

Ormrod, 2005).

Also, the present study examined causal relationships among the variables under

investigation. Closely linked with the type of investigation is the extent of interference of a

researcher with the normal flow of events. In this regard, the researcher’s interference with

the natural flow of events was limited to the distribution of questionnaires without any

conscious attempt to manipulate or modify the responses and behaviours of the participants.

In other words, the present study involves an unobtrusive measure as the study was

conducted in the natural environment of the workplace where the researcher’s interference

was minimal. According to Hair, Money, Samouel and Page (2007), and Cooper and
34
Schindler (2014), conducting a study in a natural environment creates high external validity

and the findings will be more robust, relevant and comprehensive.

3.3 Population and Sample Size

Population refers to all elements, individuals, or units that meet the selection criteria for a

group to be studied, and from which a representative sample is taken for detailed examination

(Cooper & Schindler, 2014). On the other hand, a sample is a sub-group of population and a

good sample should have the same characteristics of the population (Babin, Carr, Griffin, &

Zikmund, 2012). Due to large population in the current study, it became impractical to obtain

data from every element in the population because of the cost involved and availability of

participants (Babin, Carr, Griffin, & Zikmund, 2012). Therefore, the researcher pulled a

suitable sample to represent the whole population. To minimize sampling error, the power of

a statistical test was taken into consideration in determining adequate sample. It is the

possibility that a null hypothesis will be rejected when it is untrue (Faul, Erdfelder, Lang, &

Buckner, 2007).

35
The population of the four selected SMEs is 97in all their branches located in Minna, Suleja

and Madalla. Table 3.1 shows the population of study.

Table 3.1
Population of the Study
Firm Population

Stonik Enterprises 30

Ejike-Eme Auto Parts 20

Emako Auto Enterprises and 25

Lordwill Nigeria Enterprise 22

Total 97

3.4 Sampling Technique and Sample Size Determination

There are two main sampling designs namely probability and non-probability. Probability

sampling implies that each element in the population has an equal chance of being chosen as

a case in the study. Probability sampling techniques include systematic sampling, simple

random sampling, cluster sampling and stratified sampling. On the other hand, non-

probability sampling denotes the notion that the sample selection is based on chance

(Singleton & Straits, 2005). Non-probability sampling introduces investigator bias and limits

generalizability of the findings (Saunders, Lewis, & Thornhill, 2007). Due to the limitations

of non-probability sampling, the present study adopted probability sampling.

Generally, no matter the techniques employed in probability sampling design, the steps used

in sampling are essentially the same: (1) the first task is to determine the population, (2) the

researcher needs to arrive at a suitable sample size, and (3) select suitable sample (Gay &

Diehl, 1992). The probability sampling technique used in the present study is simple random

36
sampling because it gives every participant equal chance of being selected as a sample

((Babin, Carr, Griffin, & Zikmund, 2012).

The population of the selected SMEs is 97 in all their branches located in Minna, Suleja and

Madalla. To determine the sample size, the researcher used the entire population as sample

since the population is relatively manageable (Babin, Carr, Griffin, & Zikmund, 2012).

3.5 Instrument for Data Collection

The research instrument used in carrying out this research work is questionnaire. The

questionnaire is a document containing a list of questions arranged in a predetermined order

to be answered by respondent and used to elicit or obtain relevant information from the

population.The questionnaire will be constructed using five (5) point like scales which

express the mind and feelings of the respondents. It ranges from Strongly agree (5), Agree

(4), Undecided (3), Disagree (2), Strongly disagree (1).

To achieve the main objective of this research, the researcher employed both primary and

secondary sources of data collection.

a) Primary Source: According to Peay (2012), primary source is an original object or

document. The raw material or first-hand information, source material that is closest

to what is being studied. This source of data includes the use of questionnaires which

the researcher used in getting useful information from the respondent of the study.

b) Secondary Source: According to Peay (2012), secondary source is something written

about a primary source. Secondary sources include comments on, interpretations of,

or discussions about the original material. For this source, the researcher gathers data

from this source through the use of library, journal, dictionary, and internet. With this

source, the researcher was able to get information about the research work.

3.6 Validity and Reliability of Data/Instrument

37
The instrument used for this research work is valid because questions used in this study were

written in clear and simple terms without any form of ambiguity. It also provides different

responses/alternatives from which the participants will choose from. Also, the instrument is

valid because it covered every aspect required in measuring the variables. The instrument has

the ability to gather the required data for this research work to ensure generalization of

findings.

In terms of reliability, the instrument used for this study is considered to be valid and reliable

as it was able to gather data which were needed. Ambiguity of words had no place in this

research as instruments used were well framed and unnecessary ambiguities avoided in the

draft of the questionnaire. The contents and questions asked in the questionnaire were simple,

straight-forward and well explained to participants who seemed not to be conversant with

questionnaires. The information generated is reliable and consistent as it will yield similar

results even when tested repeatedly.

3.7 Method of Data Analysis

For this study, the researcher made use of tables and percentage (%) for tabulating the data

collected in order to simplify the interpretation. Furthermore, the researcher analyzed the data

collected from faculty members using the statistical package for social sciences (SPSS) to test

the hypotheses.

38
 CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction

This chapter focuses on data presentation, analysis, interpretation, and hypothesis testing.

The various questions in the questionnaire were analysed using simple percentage and the

hypotheses were tested using the ordinary least square regression with the use of SPSS

application.

4.2 Data Presentation and Analysis

Prior to initial data screening, all the 90 valid questionnaires were coded into the statistical

packages for social sciences (SPSS). Initial data screening is very crucial in any multivariate

analysis because it helps researchers to identify any possible violations of the assumptions of

multivariate techniques of data analysis (Hair et al., 2017).

4.2.2 EMPLOYMENT OPPORTUNITIES

Table 4.1
SMEs generate huge employment opportunities
Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 12 13.3 13.3 13.3
Agree 26 28.9 28.9 42.2
Strongly Agree 52 57.8 57.8 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Table 4.1 shows that about 13.3% of the respondents disagree that SMEs generate huge

employment opportunities while 28.9% of the respondents agree as well as 57.8% who also

strongly agree that SMEs generate huge employment opportunities.

39
Table 4.2
Employment opportunities created by SMEs contribute to GDP in Niger State
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 6 6.7 6.7 6.7
Disagree 3 3.3 3.3 10.0
Agree 12 13.3 13.3 23.3
Strongly Agree 69 76.7 76.7 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Results from Table 4.2 shows that about 76.7% of the respondent strongly agree that

employment opportunities created by SMEs contribute to GDP in Niger State, 13.3%

disagree, 3.3% disagree while 6.7% of the respondents strongly disagree that employment

opportunities created by SMEs contribute to GDP in Niger State.

Table 4.3
Employment opportunities created by SMEs help to reduce crime rate in Niger State
thereby enhancing economic development
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 8 8.9 8.9 8.9
Disagree 8 8.9 8.9 17.8
Undecided 14 15.6 15.6 33.3
Agree 32 35.6 35.6 68.9
Strongly Agree 28 31.1 31.1 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

About 31.1% of the respondents strongly agree that employment opportunities created by

SMEs help to reduce crime rate in Niger State thereby enhancing economic development,

35.6% agree, 8.9% strongly disagree, 8.9% disagree while 15.6% are inconclusive on

whether employment opportunities created by SMEs help to reduce crime rate in Niger State

thereby enhancing economic development or not.

40
4.2.3 FINANCIAL CONTRIBUTION
Table 4.4
SMEs pay taxes and rates to both local and state governments thereby enhancing
economic growth
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 6 6.7 6.7 6.7
Undecided 3 3.3 3.3 10.0
Agree 18 20.0 20.0 30.0
Strongly Agree 63 70.0 70.0 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Table 4.4 revealed that about 70% of the respondents strongly agree that SMEs pay taxes and

rates to both local and state governments thereby enhancing economic growth, 20% agree,

3.3% undecided, while 6.7% of the respondent strongly disagree that SMEs pay taxes and

rates to both local and state governments thereby enhancing economic growth.

Table 4.5
SMEs contribute towards infrastructural development in Niger State

Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 20 22.2 22.2 22.2
Agree 17 18.9 18.9 41.1
Strongly Agree 53 58.9 58.9 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Results from Table 4.5 shows about 58.9% of the respondents strongly agreed that SMEs

contribute towards infrastructural development in Niger State, 18.9% agree while 22.2% of

the respondents conclude that SMEs does not contribute towards infrastructural development

in Niger State.

41
Table 4.6
SMEs owners offer financial support to the less privileged as corporate social
responsibility

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 13 14.4 14.4 14.4
Disagree 42 46.7 46.7 61.1
Strongly Agree 35 38.9 38.9 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

From table 4.6, 14.4% of the respondents strongly disagree that SMEs owners offer financial

support to the less privileged as corporate social responsibility, 46.7% disagree while 38.9%

of the respondents strongly agree that SMEs owners offer financial support to the less

privileged as corporate social responsibility.

Table 4.7
SMEs owners make contributions to support each other in the form of cooperative
societies to promote economic development of Niger State.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 7 7.8 7.8 7.8
Disagree 9 10.0 10.0 17.8
Undecided 2 2.2 2.2 20.0
Agree 32 35.6 35.6 55.6
Strongly Agree 40 44.4 44.4 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Results from Table 4.7 shows that about 7.8% strongly disagree that SMEs owners make

contributions to support each other in the form of cooperative societies to promote economic

development of Niger State, 10% disagree, 2.2% undecided, 35.6% agree while 44.4% of the

respondents strongly agree that SMEs owners make contributions to support each other in the

form of cooperative societies to promote economic development of Niger State.

42
4.2.4 POVERTY REDUCTION
Table 4.8
SMEs contribute to poverty reduction

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 7 7.8 7.8 7.8
Disagree 8 8.9 8.9 16.7
Agree 42 46.7 46.7 63.3
Strongly Agree 33 36.7 36.7 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

About 7.8% of the respondent strongly disagree that SMEs contribute to poverty reduction,

8.9% disagree, 46.7% agree while 36.7% of the respondents strongly agree that SMEs

contribute to poverty reduction.

Table 4.9
SMEs can liberate rural areas whose inhabitants have no monthly income sources

Cumulative
Frequency Percent Valid Percent Percent
Valid Agree 12 13.3 13.3 13.3
Strongly Agree 78 86.7 86.7 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Table 4.9 revealed that about 86.7% of the respondents strongly agree as well as 13.3% who

agree that SMEs can liberate rural areas whose inhabitants have no monthly income sources

Table 4.10
SMEs help to minimize social vices in Niger State thereby encouraging economic growth
and development
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 15 16.7 16.7 16.7
Disagree 16 17.8 17.8 34.4
Undecided 3 3.3 3.3 37.8
Agree 56 62.2 62.2 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

43
Results from Table 4.10 revealed that 16.7% of the respondent strongly disagree that SMEs

help to minimize social vices in Niger State thereby encouraging economic growth and

development, 17.8% disagree, 3.3% undecided while 62.2% of the respondents agree that

SMEs help to minimize social vices in Niger State thereby encouraging economic growth and

development.

Table 4.11
Small businesses reduce the rate of unemployment in Niger State thereby improving
economic growth and development of Niger State.

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 10 11.1 11.1 11.1
Disagree 11 12.2 12.2 23.3
Agree 27 30.0 30.0 53.3
Strongly Agree 42 46.7 46.7 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

About 11.1% of the respondents strongly disagree that Small businesses reduce the rate of

unemployment in Niger State thereby improving economic growth and development of Niger

State, 12.2% disagree, 30% agree while 46.7% of the respondents strongly agree that Small

businesses reduce the rate of unemployment in Niger State thereby improving economic

growth and development of Niger State.

4.2.5 LOCAL RESOURCE UTILIZATION

Table 4.12
Utilization of local resources by SMEs contribute to the economic development of Niger
State
Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 16 17.8 17.8 17.8
Agree 21 23.3 23.3 41.1
Strongly Agree 53 58.9 58.9 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

44
From Table 4.12, about 58.9% of the respondent strongly agree that Utilization of local

resources by SMEs contribute to the economic development of Niger State, 23.3% agree

while 17.8% of the respondents disagree that Utilization of local resources by SMEs

contribute to the economic development of Niger State.

Table 4.13
SMEs help to convert raw materials into finished goods thereby enhancing economic
activities and development of Niger State
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 14 15.6 15.6 15.6
Disagree 23 25.6 25.6 41.1
Agree 50 55.6 55.6 96.7
Strongly Agree 3 3.3 3.3 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Table 4.13 revealed that 3.3% of the respondent strongly agree that SMEs help to convert raw

materials into finished goods thereby enhancing economic activities and development of

Niger State, 55.6% agree, 25.6% disagree while 15.6% strongly disagree that SMEs help to

convert raw materials into finished goods thereby enhancing economic activities and

development of Niger State.

Table 4.14
SMEs help to prevent resource wastages in Niger State thereby enhancing economic
development
Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 20 22.2 22.2 22.2
Undecided 3 3.3 3.3 25.6
Strongly Agree 67 74.4 74.4 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

About 22.2% of the respondents strongly agree that SMEs help to prevent resource wastages

in Niger State thereby enhancing economic development, 3.3% undecided while 22.2% of the

45
respondents disagree that SMEs help to prevent resource wastages in Niger State thereby

enhancing economic development.

4.2.6 ECONOMIC DEVELOPMENT

Table 4.15
Economic development of Niger State can be attributed to the activities of SMEs
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 42 46.7 46.7 46.7
Disagree 8 8.9 8.9 55.6
Agree 15 16.7 16.7 72.2
Strongly Agree 25 27.8 27.8 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

From table 4.15, about 46.7% of the respondent strongly disagree that economic development

of Niger State can be attributed to the activities of SMEs, 8.9% disagree, 16.7% agree while

27.8% of the respondents strongly agree that economic development of Niger State can be

attributed to the activities of SMEs.

Table 4.16
SMEs contribute to GDP in Niger State
Cumulative
Frequency Percent Valid Percent Percent
Valid Undecided 3 3.3 3.3 3.3
Agree 72 80.0 80.0 83.3
Strongly Agree 15 16.7 16.7 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

About 16.7% of the respondent strongly agree that SMEs contribute to GDP in Niger State,

80% also agree while 3.3% are inconclusive on whether SMEs contribute to GDP in Niger

State or not.

46
Table 4.17
SMEs help to develop both rural and urban areas of Niger State
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 8 8.9 8.9 8.9
Disagree 11 12.2 12.2 21.1
Undecided 6 6.7 6.7 27.8
Agree 32 35.6 35.6 63.3
Strongly Agree 33 36.7 36.7 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Results from table 4.17 revealed that 36.7% of the respondents strongly agree that SMEs help

to develop both rural and urban areas of Niger State, 35.6% agree, 12.2% disagree, 8.9%

strongly disagree while 6.7% of the respondents are inconclusive on whether SMEs help to

develop both rural and urban areas of Niger State or not.

Table 4.18
SMEs are the major economic growth and development agents in Niger State
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Disagree 27 30.0 30.0 30.0
Disagree 63 70.0 70.0 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Table 4.18 shows that about 30% of the respondents strongly disagree that SMEs are the

major economic growth and development agents in Niger State as well as 70% of the

respondents who also disagree that SMEs are the major economic growth and development

agents in Niger State.

4.2.7 DEMOGRAPHIC INFORMATION

Table 4.19
Gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 65 72 72 72
Female 25 28 28 100.0
Total 90 100.0 100.0

47
Source: Questionnaire administered (2022)
Table 4.19 shows that majority of the participants are males while the females constitute 28%

of the participants. The reason may be attributed to the fact that males are seeing as the bread

winners in homes. Hence, there is need for more females to be engaged in productive

ventures to support the homes. Table 4.20 presents data related to participants’ age.

Table 4.20
Age distribution
Cumulative
Frequency Percent Valid Percent Percent
Valid Less than 20years 20 22.2 22.2 22.2
21-30 years 25 28 28 50.2
31-40 years 22 24.3 24.3 74.5
Above 41 years 23 25.5 25.5 100.0
Total 90 100.0 100.0
Source: Questionnaire administered (2022)
Table 4.20 shows that a simple majority of the participants have are aged 21-30 years.

Although other age groups are close to the majority of the age, the young adults have taken

over entrepreneurship. This may simply imply that government efforts at encouraging

entrepreneurship development are yielding good results.

Table 4.21
Educational Qualifications
Valid Cumulative
Frequency Percent Percent Percent
Valid No formal education 15 16.7 16.7 16.7
SLC/SSCE/ND/NCE 18 20 20 36.7
Degree/HND 35 38.9 38.9 75.6
Masters 22 24.4 24.4 100.0
Total 90 100.0 100.0
Source: Questionnaire administered (2022)
Table 4.21 indicates that majority of the participants are degree/HND holders while 22
48
participants are master’s degree holders. By implications, majority of the respondents are

well educated.

Table 4.22
Level of investments
Valid Cumulative
Frequency Percent Percent Percent
Valid Below N500,000 15 16.7 16.7 16.7
N500,000-N1m 35 38.9 38.9 55.6
N1m – N2m 30 33.3 33.3 88.9
Above N2,000,000 10 11.1 11.1 100.0
Total 90 100.0 100.0
Source: Questionnaire administered (2022)
Table 4.22 shows that cumulatively, 72% of the participants have investments not below

N500,000 in their businesses. The value of investment herein is an indication that the SMEs

owners are truly operating on a small scale bases. Access to finance is a major impediment to

entrepreneurial business. Hence, many SMEs owners depend on personal savings and loans

from cooperatives. The next Table presents data on years of operations.

Table 4.23
Years of operation

Cumulative
Frequency Percent Valid Percent Percent
Valid 5 Years 53 58.9 58.9 58.9
6 to 10 years 19 21.1 21.1 80.0
11 to 15 years 18 20.0 20.0 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

About 58.9% of the respondents have been operating their SMEs for at least 5 years, 21.1%

between 6 to 10 years while 20% of the respondents have being operating their SMEs

between 11 to 15 years.

49
Table 4.24
Number of Employees
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 to 20 83 92.2 92.2 92.2
21 to 40 7 7.8 7.8 100.0
Total 90 100.0 100.0

Source: Questionnaire administered (2022)

Majority of the respondents have between 1 to 20 employees representing 92.2% of the total

population while 7.8% of the respondents have between 21 to 40 employees.

4.3 Test of Hypothesis

4.3.1 Hypothesis One

Employment opportunities offered by SMEs do not lead to economic development of
Niger State

Chi-Square Test
Frequencies
Observed N Expected N Residual
Strongly Disagree 6 22.5 -16.5
Undecided 3 22.5 -19.5
Agree 18 22.5 -4.5
Strongly Agree 63 22.5 40.5
Total 90

Test Statistics

Chi-Square a 102.800
df 3
Asymp. Sig. .000
a. 0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 22.5.

Conclusion: Since p – value (0.000) < 0.05, we reject the null hypothesis and hence conclude

that employment opportunities offered by SMEs lead to economic development of Niger

State.

50
4.3.2 Hypothesis Two
Financial contributions of SMEs in the forms of payment of taxes, tenement rates, and
VATs do not lead to the development of Niger State Economy

Chi-Square Test
Frequencies
Observed N Expected N Residual
Disagree 20 30.0 -10.0
Agree 17 30.0 -13.0
Strongly Agree 53 30.0 23.0
Total 90

Test Statistics

Chi-Square a 26.600
df 2
Asymp. Sig. .000
a. 0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 30.0.

Conclusion: Since p – value (0.000) < 0.05, we reject the null hypothesis and hence conclude

that financial contributions of SMEs in the forms of payment of taxes, tenement rates, and

VATs lead to the development of Niger State Economy.

4.4 Discussion of Results

About 70% of the respondents agreed/strongly agree that SMEs help to develop both rural

and urban areas of Niger State. Majority of the respondents agreed that SMEs generate huge

employment opportunities. This is important as most SMEs owner/managers cannot manage

their businesses alone. Hence, there is a need to employ people to runtheir businesses. SMEs

have helped to reduce unemployment in Nigeria.

Another worthy finding is that many respondents strongly disagree that SMEs owners offer

financial support to the less privileged as corporate social responsibility. This is not

surprising as many SMEs owner/managers hardly have enugh money to cater for the less

privileged in the society. However, 38.9% of the respondents strongly agree that SMEs

owners offer financial support to the less privileged as corporate social responsibility.

51
Majority of the respondent strongly agree that Utilization of local resources by SMEs

contribute to the economic development of Niger State. Also, respondent strongly agree that

SMEs help to convert raw materials into finished goods thereby enhancing economic

activities and development of Niger State.

About 74.4% of the respondents strongly agree that SMEs help to prevent resource wastages

in Niger State thereby enhancing economic development. More than 80% of the respondents

strongly agree that SMEs contribute to GDP in Niger State.

More so, a cumulative 81% of the respondents agreed/strongly agreed that SMEs owners

make contributions to support each other in the form of cooperative societies to promote

economic development of Niger State. Similarly, above 80% of the respondents strongly

agree that SMEs contribute to poverty reduction.

52
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction

This chapter presents a summary of the findings, conclusion and recommendations of the

study in line with the research objectives. More so, the study indicates research limitations

and directions for future research.

5.2 Summary of Findings

Majority of the respondents agreed that SMEs generate huge employment opportunities. This

is important as most SMEs owner/managers cannot manage their businesses alone. Hence,

the need to employ people to run their businesses. SMEs have helped to reduce

unemployment in Nigeria.

Results from Table 4.2 shows that 76.7% of the respondents strongly agreed that employment

opportunities created by SMEs contribute to GDP in Niger State. More so, a higher

percentage of the respondents strongly agree that employment opportunities created by SMEs

help to reduce crime rate in Niger State thereby enhancing economic development.

Further, findings revealed that about 70% of the respondents strongly agree that SMEs pay

taxes and rates to both local and state governments thereby enhancing economic growth.

Also, the respondents strongly agreed that SMEs contribute towards infrastructural

development in Niger State.

Another worthy finding is that many respondents strongly disagree that SMEs owners offer

financial support to the less privileged as corporate social responsibility. This is not

surprising as many SMEs owner/managers hardly have enugh money to cater for the less

privileged in the society. However, 38.9% of the respondents strongly agree that SMEs

owners offer financial support to the less privileged as corporate social responsibility.
53
More so, a cumulative 81% of the respondents agreed/strongly agreed that SMEs owners

make contributions to support each other in the form of cooperative societies to promote

economic development of Niger State. Similarly, above 80% of the respondents strongly

agree that SMEs contribute to poverty reduction.

It was revealed that SMEs can liberate rural areas whose inhabitants have no monthly income

sources while 62.2% of the respondents agree that SMEs help to minimize social vices in

Niger State thereby encouraging economic growth and development.

Also, most of the respondents strongly agree that small businesses reduce the rate of

unemployment in Niger State thereby improving economic growth and development of Niger

State.

Majority of the respondent strongly agree that Utilization of local resources by SMEs

contribute to the economic development of Niger State. Also, respondent strongly agree that

SMEs help to convert raw materials into finished goods thereby enhancing economic

activities and development of Niger State.

About 74.4% of the respondents strongly agree that SMEs help to prevent resource wastages

in Niger State thereby enhancing economic development. More than 80% of the respondent

strongly agree that SMEs contribute to GDP in Niger State.

Lastly, about 70% of the respondents agreed/strongly agree that SMEs help to develop both

rural and urban areas of Niger State.

5.3 Conclusion

Worldwide, small and medium enterprises (SMEs) are regarded as the lubricants for the

engine of socioeconomic growth and development (Agwu, 2018; Amin, Thurasamy, Aldakhil

& Kaswuri, 2016; Buli, 2017; Gbandi & Amissah, 2014; Roxas, Ashill, & Chadee, 2017;

Uwajumogu, Nwokoye, Anochiwa, & Ojike, 2015). SMEs play pivot role in the economic

transformation of both developing and developed countries because they stimulate business
54
activities in both commercial centers and rural locations, reduce poverty by means of job

creation, encourage even distribution of wealth, ensure economic diversification, promote

indigenous industrial transformation, and increase local value added (National Bureau of

Statistics-NBS, 2015; Steinerowska‐Streb & Steiner, 2014).

SMEs do accomplish the above importance through the mobilization and utilization of local

savings, local raw material, and human capital to engage in local production of goods and

services for immediate consumption as well as inputs to large enterprises (Uwajumogu et al.,

2015). In this sense, SMEs contribute enormously to the Gross Domestic Products (GDP) of

many economies in the world (Ilegbinosa, & Jumbo, 2015; Roxas et al., 2017).

From the discussions so far, this study has added empirical evidence to the relationships

between SMEs activities and economic development of Niger State, Nigeria. Empirically, the

whole four hypotheses were supported. Thus, the study has achieved its objectives by

providing answers to the research questions raised in chapter one despite the inherent

shortcomings. The findings have demonstrated immense support for the main theoretical

assumptions that underpinned the study.

Further, the study has lent empirical evidence and theoretical supports for the effect of SMEs

activities on economic development of Niger State. Thus, the research framework of this

study has provided substantial empirical evidence in support of the postulations of resource-

based view. Empirical evidence indicates that SMEs account for 90-99 percent of the private

sector enterprises globally (Rodríguez-Gutiérrez, Moreno, & Tejada, 2015). Hence, to attain a

viable economic development, there is a need to have functional SMEs in Niger State.

55
5.4 Recommendations

Based on the findings of this study, the following recommendations are put forward:

i. The regulatory agencies of small and medium enterprises such as the Small and

Medium Enterprises Development Agency of Nigeria (SMEDAN) needs to

develop more incentives to enhance the contributions of SMEs to economic

development. For instance, tax rebate/waivers may be granted to SMEs for all

imports and local operations.

ii. Results indicate that SMEs owners do not make financial contributions to alleviate

the sufferings of the people in their domains. This finding is not surprising

because most SMEs owners operate with minimal capital outlay. Hence, if they

give out their business money on charity, what will happen to their business?

Therefore, the financial institutions such as the Bank of Industry and Central Bank

of Nigeria are encouraged to offer more financing windows to boost

entrepreneurship in Nigeria.

iii. Findings indicate that SMEs prevent resource wastages. Therefore, to ensure more

efficient utilization of local resources, there is a need to encourage potential

entrepreneurs in local communities to start-up new businesses. By doing so,

abundant resources in various communities can better harnessed to improve the

Gross Domestic Product (GDP), economic growth and development.

iv. SMEs owners/managers experience multiple taxation in Nigeria and this practice

minimizes their profits. Therefore, the Federal Inland Revenue Service and tax

regulatory agencies (Internal Revenue Boards) in states may need to harmonize

their taxes to encourage SMEs owners to contribute more to economic

development.

56
5.5 Study’s Limitations and Suggestions for Further Research

In the course of carrying out this research work, the following constraints were faced by the

researcher.

i. Time constraints: In an institution, other activities are carried out such as lectures

and tests. This created a serious constraint for the time of completing the project

work was limited. However, the semester is too short and students that are

engaging in research work will have to balance academic work alongside project

work.

ii. Problem of Finance: As a student engaging in research work it is very difficult to

source for fund for the project as many necessary requirements arises during the

course of writing the project.

iii. Poor attitude of respondents: The attitude of respondents in responding to some

critical questions tend to also limit the researcher to getting vital information as

some keep saying some questions are confidential and secret.

iv. Problem of retrieving questionnaire administered: There were problems of

retrieving questionnaires administered to the respondents as not all were returned

thereby restricting the researcher to relevant information which may have assisted

the research work.

57
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 APPENDIX I
Department Of Business Administration

Federal Polytechnic Bida

October24, 2022

Dear Participants,

You are cordially invited to participate in this study. This study aims to investigate the

impact of small-scale business operations on the economic development of Niger State.

Please endeavour to provide sincere answers to all the questions and note that there are

neither right nor wrong answers.

Also, all responses in this survey will be treated anonymously, confidentially and strictly for

academic purposes.

Thank you for your anticipated cooperation.

Akinwolire Esther Ayanfe

62
 APPENDIX II
SECTION A
The following statements describe your level of agreement on items measuring the
contribution of small business activities to the economic development of Niger State. Please
circle/tick the number that best describes your level of agreement. Remember there is no
wrong or right answer. So, answer objectively and honestly.

Strongly disagree (SD)=1, Disagree (D)=2, Neither Agree nor Disagree (N)=3, Agree (A)=4,
and Strongly agree (SA)=5
S/No. Statements S D N A SA
D (2) (3) (4) (5)
(1)
Employment opportunities
1 SMEs generate huge employment opportunities 1 2 3 4 5
2 Employment opportunities created by SMEs contribute to 1 2 3 4 5
GDP in Niger State
3 Employment opportunities created by SMEs help to 1 2 3 4 5
reduce crime rate in Niger State thereby enhancing
economic development
Financial contribution
1 SMEs pay taxes and rates to both local and state 1 2 3 4 5
governments thereby enhancing economic growth
2 SMEs contribute towards infrastructural development in 1 2 3 4 5
Niger State
3 SMEs owners offer financial support to the less 1 2 3 4 5
privileged as corporate social responsibility
4 SMEs owners make contributions to support each other 1 2 3 4 5
in the form of cooperative societies to promote economic
development of Niger State.
Poverty reduction 1 2 3 4 5
1 SMEs contribute to poverty reduction 1 2 3 4 5
2 SMEs can liberate rural areas whose inhabitants have no 1 2 3 4 5
monthly income sources
3 SMEs help to minimize social vices in Niger State 1 2 3 4 5
thereby encouraging economic growth and development
4 Small businesses reduce the rate of unemployment in 1 2 3 4 5
Niger State thereby improving economic growth and
development of Niger State.
Local resource utilization 1 2 3 4 5
1 Utilization of local resources by SMEs contribute to the 1 2 3 4 5
economic development of Niger State
2 SMEs help to convert raw materials into finished goods 1 2 3 4 5
thereby enhancing economic activities and development
of Niger State
3 SMEs help to prevent resource wastages in Niger State 1 2 3 4 5
thereby enhancing economic development
Economic development
1 Economic development of Niger State can be attributed
to the activities of SMEs
63
 2 SMEs contribute to GDP in Niger State
3 SMEs help to develop both rural and urban areas of
Niger State
4 SMEs are the major economic growth and development
agents in Niger State

SECTION B
Please tick the appropriate box
Gender Male ( ) Female ( )
Age
Below 20 years ( ) 21 to 30 years ( ) 31 to 40 years ( )
Above 41 years

Educational qualifications
No formal education ( ) Primary/Secondary School ( ) NCE/OND ( )
HND/Degree ( ) Master’s degree ( )

Level of investments
Below N500,000 ( ) N500,000 to N1,000,000 ( ) N1,000,000 to N2,000,000 ( )
Above N2,000,000

Years of operation 5 years( ) 6 to 10 years( ) 11 to 15 years( ) 16 years & above ( )

Number of employees
1 to 20 ( ) 21 to 40 ( ) 41 to 60 ( ) 61 to 80 ( ) 81-100 ( ) 100 and above ( )

THANK YOU FOR YOUR TIME AND COOPERATION

HAVE A PLEASANT DAY

64