PROJECT TOPIC : SMALL AND MEDIUM SCALE ENTERPRISES DEVELOPMENT IN NIGERIA (A Case Examine of Cassava Processing Business) PROJECT PROPOSAL BACKGROUND TO THE STUDY Curiosity within the improvement of small and medium-sized enterprises (SMEs) and their contribution within the improvement course of proceed to be within the forefront of coverage debates in growing international locations.
The benefits claimed for SMEs are numerous, together with: the encouragement of entrepreneurship; the higher chance that SMEs will utilise labour intensive applied sciences and thus have a direct affect on employment era; they’ll normally be established quickly and put into operation to supply fast returns. SME improvement can encourage the method of each inter- and intra-regional decentralisation; and, they could properly grow to be a countervailing power towards the financial energy of bigger enterprises.
Extra usually the event of SMEs is seen as accelerating the achievement of wider financial and socio-economic targets, together with poverty alleviation. Staley and Morse (1965) establish a ‘developmental strategy’ to SME promotion which has as its goal the creation of ‘economically viable enterprises which may stand on their very own ft with out perpetual subsidy and could make a optimistic contribution to the expansion of actual revenue and due to this fact to higher dwelling ranges’.
This strategy emphasises the significance of effectivity in new SMEs. Small producers have to be inspired to undertake new strategies, transfer into new strains of manufacturing and within the long-run, wherever possible, they need to be inspired to grow to be medium- and even large-scale producers. The presidential Initiative on Cassava Manufacturing and Export has elevated the attention amongst Nigerians of the commercial crop, popularly known as the ‘new black gold’.
Began in July 2004, the initiative seeks to generate $5 billion in export income. Luckily, Nigeria, based on the Meals and Agricultural Organisation, FAO, in its 2004 report, is at present the most important producer of cassava on the planet at 34 million tons yearly, however with a poor yield of a mean of 10 tons per hectare over an estimated cultivated land measurement of three million hectares.
Nigeria is carefully adopted by Brazil and Thailand, which have a capability to supply 24 million tons and 20 million tons and a yield of 13. 6 tons per hectare and 19. four tons per hectare respectively. Sadly, consultants on the Worldwide Institute for Tropical Agriculture, IITA, Ibadan, Oyo State, consider that as much as half of the harvested cassava is wasted by manufacturing and post-harvest inefficiencies whereas the remaining is consumed as meals.
Brazil and Thailand, which hardly ever eat the cassava merchandise straight, have absolutely developed the cassava trade for the export market. | | Nigeria shouldn’t give attention to the exportation of cassava however develop the big native and regional markets for cassava that exist within the nation, West African sub-region and Africa as an entire reasonably than begin exporting the commercial uncooked materials to Europe. Nigerians ought to be inspired so as to add worth and course of them for industrial software.
The principle thrust of this analysis work shall give attention to the event of small and medium scale enterprises within the cassava processing trade justifying the necessity for agro-processing industries that convert cassava contemporary tubers into main cassava-based commodities which can be tradable in home and worldwide markets. STATEMENT OF THE RESEARCH PROBLEM The Small Scale Business is acknowledged to have enormous potential for employment era and wealth creation in any financial system. But in Nigeria, the sector has stagnated and stays comparatively small by way of its contribution to GDP or to gainful employment.
Exercise combine within the sector can also be fairly restricted – dominated by import dependent processes and elements. Though there isn’t any dependable information, imprecise indicators present that capability utilization within the sector has improved perceptibly within the interval since 1999, however the sector continues to be confronted with quite a lot of constraints with lack of credit score availability because the principal constraint. Credit score is the most important component of threat within the books of most banks and failures within the administration of credit score threat have led to the weakening particular person banks and in some instances the banking system as an entire, have contributed, to many episodes of monetary instability.
OBJECTIVES OF THE STUDY The principle objective of this research is to establish and consequently analyze the best and environment friendly approach by means of which small scale enterprises may very well be financed and promoted, thereby taking into account numerous circumstances resembling financial, political, social, psychological e. t. c below which small-scale enterprises are inspired to function with specific reference to the cassava processing trade in Nigeria. In so doing, the researcher intends giving an in-depth data and Assessment on the varied methods by means of which small-scale enterprises could be developed and inspired.
In view of the above, the researcher intends to seek out out the next: (i) The function performed by authorities in direction of promotion and improvement of small-scale enterprises in Nigeria. (ii) To establish the financial potential of small-scale enterprises within the cassava processing trade. (iii) To establish the constraints confronting the event of small-scale enterprises within the cassava processing trade in Nigeria. (iv) To look at the monetary Help given to SMEs in Nigeria. RESEARCH QUESTIONS The research would look at the next questions: 1.
What function does the federal government play within the promotion and improvement of small-scale enterprises within the cassava processing trade in Nigeria? 2. What affect do small and medium scale enterprises make to Nigeria’s financial development? three. What are the constraints confronting the event of small-scale enterprises within the cassava processing trade in Nigeria? four. What’s the pattern of the monetary Help given to SMEs in Nigeria? RESEARCH METHODOLOGY AND SOURCES OF DATA The 2 primary analysis strategies for use are survey analysis and content material Assessment.
Survey analysis technique is used to check variables and their relationship as associated to human statement and opinions about their expertise because it considerations the subject material of research. Interview schedules shall be utilized to some operators whereas the questionnaire schedule shall be utilized to some small-scale entrepreneurs. The information, which might be collected from the questionnaire, might be analysed utilizing the straightforward share technique and chi-square, goodness of match. This may make the Assessment of the info extra concise and easy. SCOPE AND LIMITATIONS OF STUDY This analysis covers the realm of selling small and medium scale enterprises n the cassava processing trade, being attentive to the function of the federal government and different exterior elements that may have an effect on positively the event of small and medium scale enterprises in Nigeria. The analysis intends to check the important issues encountered by small and medium scale operators within the cassava processing trade and counsel methods by which they are often adequately and effectively financed and promoted. SIGNIFICANCE OF THE STUDY Small and medium scale enterprises in Africa rely largely on personal financial savings, not solely to develop but in addition to innovate.
Corporations typically want actual providers Help and formal finance help, failing which under-investment in long run capabilities (coaching and R & D) might consequence, (Oyelaran, 2003). Moreover finance, there are important parts (together with: information, expertise and expertise of employees; capability and high quality of inner services; data and information of market; mental and managerial management; exterior infrastructure and the motivation system on the micro and macro ranges) which can be missing inside know-how Help establishments themselves.
These undermine the effectiveness of their Help to SMEs. This research is critical as a result of it could Help to guage the operations of a significant phase of the commercial sector – small and medium scale industries, which have been recognized as having very excessive potential in selling financial development and improvement. The analysis shall be performed with particular give attention to the small and medium operators within the cassava processing trade in Nigeria thereby including to the present literature on the subject material.
OUTLINE OF CHAPTERS In Chapter one, which is the introductory half; the background of the research, the assertion of the analysis drawback, the targets of the research and the methodology to be adopted shall be mentioned. Chapter two will cope with the literature overview. The methodology Assessment and theoretical framework shall be examined in chapter three.
Knowledge presentation, Assessment and interpretation might be lined in chapter 4 whereas the concluding a part of the analysis work might be chapter 5 the place in a nutshell the abstract, the conclusion and the suggestions could be mentioned. REFERENCES Staley E. and Morse R. (1965) Fashionable Small-Scale Business for Creating Nations. London: McGraw-Hill Publishing. Oyelaran O. (2003) Financing and Improvement of Small-sale industries in Nigeria. Central Financial institution of Nigeria Financial and Monetary Assessment. 24(four), December.
