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TITLE PAGE

IMPACT OF SMALL SCALE FIRMS ON INDUSTRIAL

DEVELOPMENT OF ENUGU STATE

(A STUDY OF SELECTED SMALL SCALE ENTERPRISES IN ENUGU URBAN)

BY

UGWU NJIDEKA WINIFRED

PG/MBA/06/45819

DEPARTMENT OF MANAGEMENT

FACULTY OF BUSINESS ADMINISTRATION

UNIVERSITY OF NIGERIA

ENUGU CAMPUS

JUNE 2008

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CERTIFICATION

I, UGWU NJIDEKA W. a postgraduate student in the department of

management with Registration Number: PG/MBA/06/45819 has satisfactorily

completed the requirement for course and research work for the Degree of

Master of Business Administration (MBA) in Management.

The work embodied in the report is original and has not been submitted

in part or full for any other diploma or degree or any other university.

__________________________

UGWU NJIDEKA W.

Student ___________________

Date

_______________________ ___________________

Chief J.A. Ezeh Dr. U.J.F Ewurum (Project Supervisor) (H.O.D)

_______________________ ___________________

Date Date

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DEDICATION

This work is dedicated to Almighty God.

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ABSTRACT

From the title of this work, it will be seen that the work is geared towards finding out the impact of small scale firms on industrial development of Enugu Urban. The aim of the this study is to examine and identify in detail the problems, prospects effect and the importance of the development of small scale firms towards industrial development of Enugu Urban. This work has five chapters, with each chapter focusing in a specific objective. Chapter one tells us the history of small scale firms, chapter two examine other people’s work on small scale firms under these sub-headings characteristics of small scale firms, availability of resource, the impacts or importance, financing the small scale firms, Government and its agencies, and so on. Chapter three examines the type of research design and methodology used by the researcher. Chapter four, the researcher used two techniques of data analysis the percentages and chi-square at 0.05 level of significance. Chapter five summarizes the findings, making some conclusion and some recommendation as to how the problems of the small scale firms will be solved.

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ACKNOWLEDGEMENT

This research work has become a reality due to the combine efforts of

many people who have been very helpful towards the success of this research

project.

First and foremost, my immense gratitude goes to the Almighty God

through whose infinite love and boundless mercies, I was able to finish this

project.

I acknowledge the effort of my able project supervisor Chief J.A. Ezeh

for his guidance and advice throughout the research work.

My thanks also go to the staff of National Directorate for Employment

(N.D.E), Small and Medium Entrepreneur (S.M.E) centre, Aqua Rapha

Enterprises, and other small scale Enterprises in Enugu Urban whose

information gotten from them helped a lot in carrying out this work.

I am grateful to those who helped me in getting materials from various

libraries and internet.

I must not fail to express my gratitude to my husband, children,

relations and friends, whose continual encouragement sustained me

throughout my pursuit of this work and my education in the university.

I am also grateful to my course mates for their immeasurable

contributions during our stay in the university.

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TABLE OF CONTENTS

Title page ………………………………………………………… i

Approval page………………………………………………………. ii

Dedication …………………………………………………………. iii

Abstract ……………………………………………………………. iv

Acknowledgement………………………………………………….. v

Table of Content …………………………………………………….. vi

CHAPTER I: INTRODUCTION

1.1 Background of the study……………………………………… 1

1.2 Statement of problems………………………………………… 4

1.3 Research Questions………………………………………….. 5

1.4 Objective of the study…………………………………………. 6

1.5 Statement of Hypothesis………………………………………. 6

1.6 Significance of the study……………………………………… 9

1.7 Scope and Limitation of the Study…………………………… 10

References…………………………………………………….. 11

CHAPTER 2: REVIEW OF RELATED LITERATURE

2.1 Introduction…………………………………………………… 12

2.2 Meaning of small and medium scale enterprises and its characteristics.. 13

2.2.1 Small Scale Firms Characterized……………………………………. 15

2.3 What is the importance of small and medium scale enterprises

towards industrialization ……………………………………… 16

2.4 Who finances small and medium scale enterprises…………….. 18

2.5 Industrial and Policy Objectives in Enugu Urban………………. 22

2.6 What are the problems of small and medium scale enterprises… 25

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2.7 What role does technology have to play in buttressing the

development of industrialization through small and medium

scale enterprises……………………………………………….. 30

2.8 What institutional frame work is in existence (if any) and

established by government to register and manage the operations

of small and medium scale enterprises (SME)……………………… 34

References…………………………………………………….. 39

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction……………………………………………………. 40

3.2 Research Design………………………………………………. 40

3.3 Sources of Data ……………………………………………….. 41

3.3.1 Questionnaire………………………………………………….. 42

3.4 Data analysis…………………………………………………… 43

3.5 The Study Population…………………………………………. 43

3.6 Determination of Sample Size………………………………… 43

3.6.1 Assumptions of Chi-square…………………………………… 47

3.6.2 Reasons for Using Chi-square………………………………… 49

References…………………………………………………….. 50

CHAPTER 4: DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Analysis of Data Government Agencies……………………. 51

4.2 Analysis and Presentation of Data from Individual SMEs….. 66

4.3 Analysis of Similar Questions………………………………. 81

4.4 Test of Research Hypothesis and Interpretation…………… 85

4.4.1 Test of hypothesis I………………………………………… 86

4.4.2 Test of hypothesis II……………………………………….. 88

4.4.3 Test of hypothesis III……………………………………… 89

4.4.4 Test of hypothesis IV……………………………………… 91

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4.4.5 Test of hypothesis V……………………………………… 94

4.4.6 Test of hypothesis VI……………………………………… 96

CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATION

5.1 Summary of findings ……………………………………… 98

5.2 Conclusions………………………………………………… 100

5.3 Recommendations…………………………………………… 100

Bibliography…………………………………………………. 103

Questionnaire: Group A…………………………………….. 106

Questionnaire: Group B…………………………………….. 110

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CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Development of firms has been a matter of great concern and priority

to many nations of the world. It could be understood from economic history

that many advanced countries of the world which has attained the height of

industrialization started as a more small and medium scale enterprises which

later metamorphosed into giant cooperation. In the past, industrial

development process were slow and painful and the advancement in

technology in developed countries resulted from the survival of the cottage

firms which were nurtured, pampered and breastfed to grow up as big

industrial corporations today.

Since the early, 1990’s a number of initiatives have come to dominate

the economic growth agenda of many donors and public agencies. These

initiatives arose as a response to, or an interpretation of, the increasing effects

of market globalization on the economies of developing countries. Analyses

that only looked at domestic markets were no longer adequate to

understanding the dynamics that affected the incomes and livelihoods of poor

households almost anywhere in the world. With the increase in globalization,

resource-driven comparative advent-age diminished in importance, while

competitive advantage, created by private and public stakeholders, rises. And

with its rise, the importance of theories that could help us understand and

manipulate the dynamics affecting economic growth including

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competitiveness, value chain analysis, and economic cluster theory.

As a result of increased globalization and a shift in jobs from

developed to developing economies ethical issues emerged. These were

largely in response to labour and environmental concerns.

Since then, competitiveness initiatives, value chain analysis, and

cluster development approach have proved to be quite effective at increasing

micro, small and medium enterprises productivity and competitiveness into

global markets, as well as national and local markets.

Developing countries as a whole have now realized that they lag much

behind than the developed nations of the world, not only in industrial base but

also in national standard of living. As a result, these countries now seem to

have hastened up the pace of their industrial development process in other to

increase their living standard and thus reduce the present rate of

unemployment, (Klatt 1973).

Nigerian’s desire to concentrate on developing the small and medium

scale enterprises (SME) have always been buttressed by and reflected in a

wide range of economic policies. In-fact, the present consciousness on the

part of the every segment of the society including the government for small

and medium scale industrial growth cannot be under emphasized and the

delay in appreciating this sector as an economic catalyst is frustrating. (Ani

B.N. and Nwandu E.C. 2001).

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Yearly, government initiate policies that will not only help the

development of small scale firms but also bring legislations for small and

medium scale firms protection. Most government economic policies on

imported goods have been targeted at discouraging such importation and

protect the establishment, existence and survival of cottage firms. The

essence of the protection is not to allow it face the competition posed by

foreign goods in the market.

It is true that we are operating in a system where savings and

investment are quite low; this is as a result of low capital base, mass

unemployment and low per capital income. But government has not relented

on its effort to ensure the success of small and medium scale firms. Tax

holidays and tax concessions are many at times being offered by government

to small and medium scale firms to enable them survive. Grants and loan

facilities are another key ways of assisting small and medium scale (SME)

industries so that funds needed for current operations and investments may

not be an impediment.

If critically viewed, more efforts of government were geared towards

the establishment of industries which would provide employment to the

teaming populations, provide earnings to the country through export profiles,

enhance standard of living of the citizenry and in turn results to provisions of

infrastructural facilities.

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It is equally of important to note at this juncture that small and medium scale

enterprises means different thing to different people, group, society and

government hence.

1.2 STATEMENT OF PROBLEMS

The under-development of Nigerian economy is as a result of

inadequate industries in Nigeria and manufacturing of the existing one’s

owing to poor implementation, supervision and execution of government

policies and programmes, subject to corruption and lack of appropriate

machineries for later implementation.

The government (both at state and federal level) at various intervals

have initiated policies measures to encourage the development of the small

scale industries. Some of these policies included the operation feed the nation

(OFN) of 1973, the Green Revolution of 1977, the National Directorate of

Employment (NDE) of 1986 and others. All these geared towards assisting

the firms technically, financially and managerially.

Given that industrial development has been so slowly generally in

Nigeria, and that government has been doing something positive to increase

the industrial base of the country; the researcher therefore is challenged to

prove whether or not a small and medium firm will lead to quick industrial

development in Enugu Urban and Nigeria in general.

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The researcher will find out why most government industrialization

and mobilization policies inaugurated in the past, failed to achieve grass root

industrialization and mobilization among Nigerians and also how to address

the problems of entrepreneurship facing small scale industries in Nigeria and

Enugu State in particular.

1.3 RESEARCH QUESTIONS

The impact of small and medium scale enterprise towards industrial

development have been a controversial issue owing to its significant to

Nigerian economy. In view of this, the researcher intends to present the

following questions.

(1) What are the factors militating against the growth and development of

small and medium scale enterprises in Enugu Urban?

(2) Do Government and its agencies fund small scale firm adequately in

relation to its promises and policies as to industrializing in Enugu

Urban?

(3) Do government give financial assistance to small scale firms?

(4) Do good management contribute to the success of small scale firms in

Enugu Urban?

(5) How much loan do government give to small scale firms?

(6) Do small and medium scale enterprises contribute in waste

management disposal and extended usage of by-product that may not

haven been useful without the existence of SME’s?

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1.4 OBJECTIVES OF THE STUDY

This study intends to investigate various problems associated with

establishment and growth of small and medium scale enterprises towards the

development of industrialization in Enugu State. This research will attempt to

(1) To discover and determine the factors militating against the growth and

development of scale and medium enterprises in Enugu Urban.

(2) To discover if government and its agencies fund small scale firms

adequately in relation to its promises and policies as to industrializing

in Enugu Urban.

(3) To find out if government render financial assistance to small scale

firm in Enugu Urban.

(4) To find out if good management contribute to the success of small

scale firms in Enugu Urban.

(5) To find out if government give loans to the small scale firms.

(6) To discover whether small and mediums scale enterprise contributes in

waste management disposal and extended usage of by-product that

may not have been useful without the existence of SME’s.

1.5 STATEMENT OF HYPOTHESIS

The hypothesis to be tested against their alternatives will be formulated

from the statement or problem to serve as an effective guide:

Ho Small and medium scale enterprises does not have any factor militating

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against its growth and development in Enugu State.

Hi Small and medium scale enterprises does have any factor militating

against its growth and development in Enugu State.

Ho Small scale and medium enterprises does not have any effect to the

development and growth of industrialization in Enugu State.

Hi Small scale and medium enterprises does have any effect to the


Ho Individuals does not have roles to play towards promoting government

policy to achieve industrialization and stability in the economy of the

state.

Hi Individuals have roles to play towards promoting government policy to

achieve value chain of industrialization and stability in the economy of

the state.

Ho Small and medium scale enterprises (SME) does not contribute in

waste management disposal and extended usage of by-product that

may not have been useful without the existence of small and medium

scale enterprises.

Hi Small and medium scale enterprises (SME) does contribute in waste

management disposal and extended usage of by-product that may not

have been useful without the existence of small and medium scale

enterprises.

Ho Government does not have any position towards assisting, promoting

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and stabilizing small and medium scale enterprises (SME) in other to

unlock value chain approaches to our economic boom.

Hi Government does have any position towards assisting, promoting and

stabilizing small and medium scale enterprises (SME) in other to

unlock value chain approaches to our economic boom.

Ho Environmental factors does not have influence in the establishment,

growth and stability of small scale enterprises (SME)

Hi Environmental factors does have influence in the establishment,

growth and stability of small scale enterprises (SME)

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1.6 SIGNIFICANCE OF THE STUDY

No matter the amount of resources committed in this study, its

importance as to the resources imputed cannot be compared. This is true

because it is a study that deals with rudiments and fundamentals of economic

growth and stability. Its centered on business prosperity, which if achieved

will reduce the personal problem of unemployment and poor standard of

living. It deals with the production of goods and services, provision of

necessary tools for infrastructural facilities and this helps to enhance

industrial development. It creates earning sources to the government and for

the general administration. Above all,

1. This research will give an insight into the natural implications of

existence of small and mediums scale enterprises in Enugu Urban.

2. This research work will also assist researchers, scholars and future

managers on the above subject matter.

3. This research work will expose any short comings that has been

militating against the establishment, growth and development of

industrialization in Enugu Urban

4. This research will expose opportunities that have not been exploited to

intending investors and entrepreneurs in search of opportunities.

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1.7 SCOPE AND LIMITATION OF THE STUDY

This research work has been limited to a reasonable researchable scope

considering a lot of constraints during the time of the study. The study aims

at identifying the problems and prospects of firm using selected small scale

firms in Enugu as a case study.

A lot of problems are likely to be encountered during the process of

putting this work together. These problems include:

(1) Finance: A lot of money is required at all stages of the study, as a civil

servant, it is a big problem.

(2) Time constraint: As a civil servant, I have a limited time to put this

work together due to other numerous engagements.

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REFERENCES

Ani B.N. & Nwandu E.C. (2001) Business Management. An Introductory

text, NERCE Publication

Klatt Lawrence (1973) Small Business Management Essential of Industrial

Entrepreneurship. Wartwork Publishing

Inc. Barkeley California.

United Nations Industrial (1996) Small Scale Industry” Monograph #11

Development Organizations, New York,

Vienna.

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CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 INTRODUCTION

Many eminent scholars have done some work in the area of small and

medium scale enterprises (SME) as it affects the industrial development of

any given economy. But before going into the main body of this essay, it is

pertinent to review the work of many individuals who have shown great

concern for the problem through their written articles, magazines, organized

seminars, workshops, debate, journals and symposium on the above subject

matter.

These proficient writers did not in any way hide the emmitigated love

for small scale firms. However, it is in this chapter that we will try to find out

in it entirely, the meaning of small and medium scale enterprises (SME) as

has been defined by these authors, the characteristics of small scale

enterprises, its important to industrial development, the role of government

towards assisting, establishing and consolidating the existence and operation

of small scale enterprises and the factors mitigating against the establishment,

administrative and management of small scale enterprises.

We will equally find out at this chapter whether technology is out of

place in consolidating the operations of small scale firms or do we say that

international communities are not important in consolidating the position of

small scale firms towards industrial development of our economy. All these

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things and many more are what we will try to buttress in this chapter as we

progress.

2.2 MEANING OF SMALL AND MEDIUM SCALE ENTERPRISE

Enormous differences arise as to what people understand by small

scale enterprises in Nigeria. However, there are common indicators in most

of the definition as they are going to be written below. They are:

(a) Size of investment

(b) Value of annual turn over ie gross output and number of paid

employees.

According to Federal Ministry of Commerce and Industry, it defines

small scale industries as establishments with capital investment totaling

N250,000 and staffed with between 50 and 150 employees.

The Central Bank of Nigeria (CBN) credit guide of 1993 defined small

scale enterprises as one whose total cost excluding cost of land but including

working capital is above N1 million but not exceeding N10 million.

The companies and Allied Matters Decree 1990 section 376 described

a small scale company as

(a) A private company limited by shares

(b) The amount of its turnover for the year is not more than N2 million or

such amount as may be fixed by the commission (ie Corporate Affairs

Commission).

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(c) The net asset value is not more than N1 million or such amount as may

be fixed by the commission.

(d) None of its owners is an alilu.

In its own definition, the National Development Plan (1975-1980) sees

small scale industry as a business that employs not more than 10 people

whose investment in machinery and equipment does not exceed 600,000,000.

The National Economic Reconstruction Fund (NERFUND) puts the

ceiling for small scale industries at 10 millions. The small scale industries

division of the Federal Ministry of Industry (1979) defined a small scale

business as an enterprises having investment capital (land, building,

machinery, equipment and working capital) of up to N60,000,000 and

employing not more than 50 persons.

In its own definitions, AGIM H. (1977:30) defines a small scale

business enterprises as a firm or company with assets (including working

capital but excluding land) not exceeding N750,000,000 and paid

employment up to 50 persons; such an establishment must be wholly

Nigerian owned.

Ejiofor (1989:70) in his own opinion defined small business as those

enterprises that have relatively little capital investment that employs not more

than 50 workers and in which management and control are vested in the

proprietor Needham and Grandfield (1993) credited the British Company Act

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as defining a small firm as one having fewer than 50 employees.

The government small scale industry development programme defined

small scale enterprises in Nigeria to be any manufacturing, processing or

service industry with a capital investment not exceeding N150,000 in

machinery and equipment alone.

According to http://search.bnet.com/search/small+Business+

and+finance.html. It is of the opinion that small business is an organization

that is small in relation and not part of a larger organization.

2.2.1 SMALL SCALE FIRMS CHARACTERIZED

According to United National Industrial Development Organization

(UNIDO), it suggests that a small scale business firms is characterized by at

least two of the following features’

1. Ownership and management are usually and normally vested on the

same individual(s). ie the management is not independent and

managers are usually also the owner.

2. The small business controls a small share of the market and therefore,

constitutes a little quota in the large size market.

3. The owner make capital available and policy decisions are in the hands

of the individual or small group of entrepreneurs.

4. The area operation is localized and workers and owners concentrate in

the local community.

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

by-day operational basis with a high degree of rigid control.

Chikere (2004:198), is of the opinion that such small and medium

enterprises posses the following characteristics.

(a) The business is likely to be a sole entrepreneurship, a partnership or a

private company.

(b) It is likely to be located at one place with a few departments.

(c) The managements is usually independent.

(d) The capital outlay is small and mainly furnished by the owner

2.3 WHAT IS THE IMPORTANCE OF SMALL AND MEDIUM

SCALE ENTERPRISES TOWARDS INDUSTRIALIZATION

The importance of small and medium scale enterprises in the light of

recent economic realities are very apparent. Government now accords a very

high priority to the development of small scale enterprises especially

industrial enterprises.

The importance is based mainly on the belief that such enterprises are

likely to facilitate the development of a broader base, encourage indigenous

entrepreneurial culture for the country and a higher value added to domestic

industrial production.

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Ejiofor (1989:74) indicated the following as the importance of small

scale industries.

1. INTRODUCTION TO BIG BUSINESS:- Small business serves as a

nursery for entrepreneurial talent and they grow in some cases into

large industries. Many large organizations all over the world today

started as small businesses. Some individuals may have affair for

entrepreneurship in large enterprises but owing to the shortage of

capital and other resources, they are not able to realize this, through the

establishment of small firms from which they expand into large scale

enterprises.

2. CREATION OF EMPLOYMENT:- The role of small scale business

in the development of any country was summarized in Nigeria.

National development plan (1975:80) as the generation of employment

opportunities, stimulation of indigenous entrepreneurship, facilitation

of effective mobilization of local resources including capital and skill

and the reduction of regional disparities. Small scale businesses

employ a large number of people per unit of invested capital than the

large scale capital intensive enterprise.

3. MAN POWER TRAINING:- Small Scale business are more

efficient than the large scale points in utilizing and training a small

number of skilled labour which they can be more readily and

effectively utilized.

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4. WASTE UTILIZATION: Small business help in the reduction of

wastes in the economy. They make use of scrap materials from large

firms not only as their raw materials but also for the manufacture of

serviceable improvised tools and machinery for themselves and others.

5. SELF RELIANCE: Small business can be an aid to personal and

national self reliance. This is because they utilize their resources for

the benefit of themselves and the nation as a whole.

6. RURAL URBAN MIGERATION: Small scale industries constitute

the chief means of industrializing the rural areas. One of the objectives

of the third National Development Plan (1975:80) was industrial

dispersion through the small scale industry.

7. PROMOTION OF COMPETITION: Small scale business acts as a

check against service to consumers. They are in intimate with market

needs.

2.4 WHO FINANCES SMALL AND MEDIUM SCALE

ENTERPRISES (SME)

Inyang and Ukpong (CBN) Economic and Review Vol. 3, No. 4. There

are three main sources of enterprises in Nigeria. These are as follows:

1. Formal financial institutions such as commercial banks, merchant

banks, insurance companies, and the development banks.

2. Informal financial institutions consisting of money lenders land lords,

27

credit and saving associations, friends and relations.

3. Other financial scheme is National Economic reconstruction fund

(NERFUND), Nigeria Exports and Import Bank (NEXIM) etc.

They went further to argue that there is a wide consensus in Nigeria

that government business policies have been made largely infavour of the

large scale enterprise to the detriment of small enterprises, for instance, while

the large scale enterprises have routinely enjoyed such benefits as access to

credits, foreign exchange, protection from severe competition through tarrifs

and quarters and trade likening, the small scale enterprises were often ignored

or at best paid lip services by the authorities. Enterprises and individuals

without this sector operate largely outside the system of government benefits

and regulation and thus have limited access to the formal credit institutions

and the main source of technology transfer. Many enterprises within this

sector operates such activities as food processing, marketing of food stuffs

and consumer goods, repairs and maintenance of machinery and consumer

durable goods, hotels, motor parts dealership and provision of transport

services. However, both Federal Government in recent years have introduced

various policies and programmes to redress the above shortenings, first,

government established a coordinating umbrella organization called “small

scale industries corporation” in 1971 with responsibilities for promoting

small scale industries generally through the provision of extension service

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and technical/management assistance as well as meeting the training needs of

the small scale enterprises. In addition, government has enterprises. Notable

among these institutions and programmes according to Inyang and Ukpang

are as follows:-

(a) SMALL SCALE INDUSTRIES CREDIT SCHEME (SSICS):- The

small scale industries credit scheme was introduced in 1871 as a

revolving grant by the Federal and State Government; to assist in

meeting the credit needs of small scale enterprises on relatively more

liberal condition mainly in private lending institutions such as

commercial bought the problem of inadequate financial resources

especially at the state level couple with reports of rampant mis-

management of the meager funds by both the administrators of the loan

as well as the benefiting small scale enterprises paralysed the scheme;

consequently, the Federal Government pulled out of the scheme in

1976 to establish the Nigerian Bank for Commerce and Industries

(NBCI) as the apex credit institution for small scale to hopefully ensure

more efficient utilization of scarce financial resources for the

development of viable small scale enterprises.

(b) NIGERIAN BANK FOR COMMERCE AND INDUSTRY

(NDCI): was established jointly by the Federal Government and

Central Bank of Nigeria (CBN) in 1978 as an apex institution for small

scale industries under a soft loan agreement.

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(c) NIGERIAN EXPORT AND IMPORT BANK (NEXIM): Nigerian

export and import (NEXIM) was established in January 1990 to

manage a number of credit facilities introduced specifically to boos

Nigerian’s non-oil export sector. The establishment of NEXIM was

also intended to support formers and other small scale exporters to

have direct access to international markets. The facilities offered by

NEXIM includes the export stimulation loan, the foreign input facility

(FRF). The export stimulation loan scheme was funded by the Federal

Government which NEXIM manages though a loan from the African

Development Bank (ADB), the export stimulation loan (ESL) seeks to

bring out the best in Nigeria entrepreneurs who do not have the

facilities of producing their products for the international market but

have initiatives. It also seeks to diversify non-oil expert products.

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2.5 INDUSTRIAL AND STRATEGIC POLICY OBJECTIVES IN

ENUGU URBAN

According to industrial policy of Nigeria (1998) it argued that the

industrial sector would become the prime mover of the economy by:-

1. GENERATING EMPLOYMENT: The major policy tool through

which Enugu State Government plans to enhance employment

generation is the promotion of small scale industries. Enugu State

Government therefore accords high priority to small and medium scale

enterprises projects whose main objectives are to develop in Nigeria a

broader base of entrepreneurial culture, a care of trained manpower and

an effective institutional structure capable of providing technical

services and credit facilities to viable small and medium scale

enterprises.

2. DISPERSAL OF INDUSTRIES: Through an array of incentives,

including a programme of industrial layouts, crafts development

thrives to make government at various levels to plan to make areas

attractive to new investment.

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3. INCREASED LOCAL CONTENTS:- Finding suitable raw

materials and promoting their use by industries, is one element of the

strategy by which government plans to realize this objective. The raw

material research and development council will allocate resources to

research and development identified raw material substitutes or

alternatives.

4. INCREASED EXPORT OF MANUFACTURED GOODS:-

Government strategy for increased export of manufactured goods rest

on making Nigeria export more competitive internationally and export

strategy are:-

(a) The regulatory environment.

(b) Promotion of exports free zones

(c) Liberalization access to foreign exchange

(d) Allowing a market determined exchange rate for the air.

(e) Fiscal and financial incentives.

The Nigeria export promotion council is the premier

organization responsible for the administration of various incentives

schemes and measure aimed at encouraging exports and also

responsible for administering the export development fund.

5. IMPROVING TECHNOLOGICAL CAPACITY:- The industrial

development centres (IDCs) are established by government to

represent an important instrument for improving technological

32

capacity. The IDCs are created to ensure that small and medium scale

enterprises are not ordinarily in a position to employ highly skilled

man power, such as mangers, engineers and technical staff but to assist

in solving their operational problems.

(a) Technical advice and assistance regarding the selection of the

proper manufacturing process for the product in view and

selection of the right machinery, equipment and raw materials

for the purpose.

(b) Assistance in the installation and operation of machinery.

(c) On the job trainings of artisans in the handling of machines and

simple tools.

(d) Assistance in the repairs of machinery and tools.

(e) Advice and assistance to small scale industries to improve the

design and quality of their product.

(f) Training of proprietor and supervising staff of SME’s in modern

management method and practices suited to their enterprises.

(g) Marketing counseling regarding pricing, packaging, sales

strategy, advertising and marketing methods for the promotion

of sales of their products.

6. INCREASED PRIVATE SECTOR PARTICIPATION:- The

strategy by which government seeks to achieve increased private sector

participation in manufacturing is the privatization/ commercialization

33

of public sector investments. In this connection, Federal government

has completely diverted itself of holdings in over 67s companies. In

addition, while some companies will be fully commercialized, others

especially those considered strategic for the moment will be partially

commercialized. These arrangement as indicated are embodied in

Decree No. 29 of 1988.

7. ATTRACTING FOREIGN CAPITAL:- The structural adjustment

programme (SAP) was embarked upon with the prospect of increase in

flow of foreign capitals. The main component of government strategy

for attracting foreign capital is the liberalization of access to foreign

exchange market (FEM). Another element of government strategy

consists of amendments to the Nigeria Enterprises Promotion Decree

(NEPD) 1970. These amendments are designed to open up more areas

for foreign investment.

2.6 WHAT ARE THE PROBLEMS OF SMALL AND MEDIUM

SCALE ENTERPRISES

While the importance of small scale enterprises to a nation’s

development has been well recognized, those firms are equally beset with a

number of structural problems which have constrained their ability to play the

pivotal role expected of them. Some of these problems are summarized

below:-

34

1. UNDER CAPITALIZATION: The major source of finances of small

scale enterprises in the world all over the is the owner’s capital. In

Nigeria, as in many other developing nations of the world, the

unwillingness of sole proprietors to allow participation of outsiders is

what is usually considered personal or family business.

2. HIGH MORTALITY RATE:- Available records and evidence

shows that a large number of all newly registered small scale

businesses usually folds up during their first year of registration, while

an even larger number hardly rate of business failure among small

scale enterprises has been ascribed to such factors as poor knowledge

of the project conceptualization and implementation given the death of

managerial and technically skill among small scales enterprises.

3. HIGH RISK RATING:- As a direct consequences of the above

mentioned problems, nearly all small scale enterprises are usually

classified as “high risk” business by most lending institutions.

Consequently, they are accorded very low priority rating in credit

institutions lending scheme. This problem is often associated with high

degree of loan diversion to unscheduled activities and high rate of

default loan repayment.

4. DEATH OF TANGIBLE ASSETS:- Another factors, which hinders

the flow of financial assistance to small scale enterprises, is the fact

that individual small scale business and their owner usually lack,

35

adequate tangible assets which could serve as collateral to secure loans

from private credit institutions.

5. LOW PRODUCTIVITY:- As a result of poor financial base and

smallness of their market share the productivity of these enterprises is

generally low. They are therefore hardly able to compete effectively in

both factor and product markets. According to (Ejiofor 989, 76-77), he

indicated the underlisted as the problems of small scale enterprises.

6. MANAGERIAL PROBLEMS:- The success or failure of any small

scale business depends solely on the business acumen of the

entrepreneur, since management and control authorities are vested in

the owner/manager. Most often, the entrepreneur is lacking in

technological and managerial knowledge as he has responsibilities of

any functions of management.

7. LEGAL CONSTRAINTS:- In Nigeria, business laws are too

complex and too general in relation to small scale businesses. Most of

which tend to be ill of armed about these laws. Laws regarding

licensing taxation, factories, storing and availability of land are

inadequate, primitive or non/existence. Those governing, leasing,

credit sales, mortgages affect the finances and acquisition of equipment

by small scale industries. The law creates immense difficulty and

sometime cripples the establishment and development of small scale

business. Furthermore, patent centers and domestic patent rights does

36

not exist. This has undermined the potentials for domestic technology

innovation.

8. LACK OF INFORMATION NETWORK: Centers for providing

information on finance, marketing, technology and services are poor,

inadequate or non existent.

9. QUALITY AND STANDARDS:- Small scale businesses are

generally unaware of the importance of standard and quality. They may

not have the facilities for and knowledge and standard. They lack the

equipment for quality control and testing.

10. POOR INFRASTRUCTURE: - Infrastructure such as industrial

estates, technology incubating centers, transportation,

telecommunication, road network, etc is often inadequate or non-

existence. Poor infrastructure often results in high cost to

entrepreneurs. Supply of raw materials and other inputs are unstable

inequality, quantity and prices. Small scale industries suffer from

shortage of energy supply and bottlenecks in transportation adversely

affect availability of both input and distribution of their products.

11. ECONOMIC FACTOR:- Macro-economic factors such as the effects

of world wide recessions inflation, problems arising from international

agreements (general agreement on trade and tariff) commodity policy,

etc regulation of international foreign exchange all have practical and

direct effect on micro-economic polities for small business

37

development. Since the early 1980’s, Nigeria has embarked on

structural Adjustment Programme have so far succeeded in restoring

external and internal balances, with regards to small scale business.

Micro-economic actors such as taxes, free technical advice and other

support service from the Federal Government.

Against the background of these problems and after several exhausting

studies, it became clear that a restructuring of the manufacturing sector

was required. To cope with the problems of this sector and the

economy in general, Nigeria embarked on a structural adjustment

programme (SAP) in July 1986. SAP has important implications for

government and industry alike. Among other things, it has brought

about governments re-appraisal of the regulatory environment, the

structure of protection for local industries and the package of

inventives available for the private sector and industrialist generally, it

will demand a more serious effort to control costs, increase production

efficiency and stay competitive. SAP thus marks watershed in the

evolution of manufacturing sector in this country.

12. MANPOWER: These present special difficulties for small enterprises

which have to compete with large firms for the services of skilled

worker at the wages and terms of services they can afford to offer.

38

2.7 WHAT ROLE DOES TECHNOLOGY HAVE TO PLAY IN

BUTTRESSING THE DEVELOPMENT OF INDUSTRIALIZATION

THROUGH SMALL AND MEDIUM SCALE ENTERPRISES

Thurik, (1999: 29-65) is of the opinion that corporative efficiency of

different sizes of business has long raised one of the most perplexing

dilemmans in the entire body of economic theory… But a beginning must be

made sometime in tackling this whole size efficiency problem on an

empirical basis. The first step in any such undertaking would logically be

that of economy. Since it is technology which largely determines the

relationship between the size of plant and efficiency.

When the determinants of the underlying industrial structure are stable,

the industry structure itself would not be expected to change. He however

made reference to Chandler (1990), Scherer and Ross (1990) and Dosi (1988)

as emphasizing on a change in the underlying determinants would be

expected to result in a change in the optional industry structure. He went

further to say that Chandler (1990) and Scherer and Ross (1990) identified a

shift in optimal industry structure towards increased centralization and

concentration throughout the first two-thirds of the previous century as a

result of changes in the underlying technology along with other identified a

change in the determinants underlying the industry structure that has reversed

this trend. The most salient point of this change is that technology,

globalization, regulation, labour supply, variety in demand, and the resulting

39

higher levels of uncertainty have rendered a shift in the industry structure

away from greater concentration and centralization towards less

concentration and decentralization. A series of empirical studies (Loveman

and Sengen Berger, 1991; Acs and Audretsch, 1993; ACs et al, 1999) have

uncovered two systematic findings regarding the response of industry

structure to changes in the underlying determinants. The first change is that

the industry structure is generally shifting towards an increased role for small

enterprises.

An implication of this high variance in industry restructuring is not

some countries are likely to have industry structures that are different from

“optimal” http://allafrica.com/stories/200711150185.htmc.

Economic experts are agreed that the deployment of technology leads

to economic development even as they hold that, the success of any nation is

also directly proportional to the success of its small and medium Enterprises

SMEs.

Given this scenario, government administrators especially in

development countries since realized that economic growth is not possible if

their SMEs are jeopardized. This has led to policies geared towards ensuring

that the SME’s of countries in Africa are not only strengthened that also

given the needed tonic to ensure their growth and success.

With the speedy advances recorded in Information Communications

Technology (ICTs) daily redefining and influencing the ways human beings

40

live, work, do business, move, govern and are governed, the emergence and

evolvement of ICTs and the internet in the last few decades is helping in

reshaping the opportunities available to SMEs to average on and ensuring

fundamental changes in organizational strategy.

SMEs by nature constitute the most viable vehicle for sustaining

industrial development because they possess the capacity to promote an

indigenous enterprise culture. In most developing economies, they have been

used as a strategy for employment generation, food security, poverty

alleviation, rapid industrialization and reversing rural urban migration. It is

also a tool for economic restructuring for development and growth.

In Europe, Asia and some parts of Africa, SMEs are the nuggets that

power the economy and make it viable. The economies of India and China for

example have been transformed by the growth and strength of their small and

medium scale business, which attract and generate millions of dollars in

revenue annually from indigenous efforts and innovations.

SMEs play a very important role in alleviating poverty and in

sustaining domestic and regional growth. Though small businesses tend to be

slower in adopting technology than the larger ones, the reality today in

Nigeria is that the increased awareness of the gains of ICT and how it can

positively impact on a business has led to small businesses in Nigeria

adopting technology as an effective tool for growing their businesses. Many

of these SMEs are using the internet, emails, computers, telephones, business

41

software models etc to assist in the smooth running of their business. The

advent of mobile phones, computers, broadband etc enable communication

over longer distances and aid businesses to be transacted on the go, offering

great flexibility in keeping in tough with suppliers and customers alike.

SMEs in Nigeria can reduce operational costs by deceasing

procurement, material and transactional costs by adapting technology, which

translates to lower price for immediate and finished goods. With technology,

SMEs can use more information, facilitate global connectivity, improving the

value of their output, leading to new ways of creating and delivering products

and services on a global scale. In order to compete with their foreign counter

parts, Nigeria business owners need to inculcate and adopt ICT, to manage

their business especially now that the economy and new businesses are

moving towards knowledge –based work and digitalization. To put the

country on the path of economic relevance, the Nigerian government must

look beyond those resources and to terms with the fact that its oil resources

will not last forever. They may soon be depleted. The government of the

United Arab Emirates, a country rich in oil reached the same conclusion

years ago and adopted proactive measures by strengthening its tourism and

business processes to make way for businesses to trade and thrive. This

policy of the UAE has today made Dubai, one of its provinces the tourism

and trade centre of the world with annual incomes running into millions of

dollars and exceeding incomes from oil coming into the government’s

42

treasury from non oil resources.

The Nigeria Government should also wake up to the fact that its future

growth lies beyond oil and take deliberate steps to diversify its economic base

from oil by developing its non-oil sector. It should also promote the growth

and development of SMEs by providing funding mechanism that can be

tapped into by the SMEs and also by promoting the spread of ICTs especially

to rural communities to give SMEs owners in these areas the opportunity of

becoming players in the national and global space.

2.8 WHAT INSTITUTIONAL FRAME WORK IS IN EXISTENCE (IFANY)

AND ESTABLISHED BY GOVERNMENT TO REGISTER AND MANAGE

THE OPERATIONS OF SMALL AND MEDIUM ENTERPRISES (SME)

Industrial Policy of Nigeria (1998) is of the opinion that several

institutional frame work have been established in the past even in the present

to help buttress the bottleneck in the activities and operations of small and

medium scale industries in Nigeria. It went further to indicate the established

institutional frame work as

1. The Industrial Development Coordinating Committee (IDCC): This

was established to averse the required approval for the establishment of

new industries requests from government ministries and agencies. The

committee comprises ministers of the ministries of finance, internal

affairs, trade commerce and industries, science and technology,

43

agriculture, labour and productivity. Industrial Development

Coordinating Committee (IDCC) will function as a coordinating centre

for reliving applications from prospective investors, channeling such

applications to the appropriate ministries for onward comments and

comments and recommendation and collating information received for

briefing and decision – making. the law provides that every application

shall be processed within two months. The functions of the Industrial

Development Coordinating Committee (IDCC) as stipulated in the

industrial policy are as follows:-

(a) Granting approvals for the commencement of new business and

relevant expatriate quota for such businesses (expatriate quota

approvals by IDCC is limited to new business only)

(b) Approving reinvestment technology transfer agreements as they

relate to:

(i) Feasibility studies

(ii) Assistance in producing machinery, plant equipment

and component

(iii) Engineering design services

(iv) Plant installation and commissioning

(c) Advisory on the administration of government industrial

incentives.

(d) Making recommendation of pertinent policies including tariff

44

and various measures aimed at ensuring the industrial

development of the country.

(e) Over relevant functions are assigned to the committee from time

to time to facilitate meaningful industrial development.

2. The Policy Analysis Department (PAD):- Government has

established on organ known as the policy analysis department within

the Federal Ministry of Commence and Industries whose functions are

to undertake the collection of data, conduct economic research and

policy analysis necessary for the evaluation of the effectiveness or

otherwise of industrial policy.

3. The Industrial Inspectorate Department (IID):- This certifies the

actual value of capital investment in buildings, machinery and

equipment of various industries. It also certifies the date of

commencement of production for companies that enjoy proper status,

and the value of imported industrial machinery and equipment for the

confirmation of approved status for non resident capital investment.

IID also provides in-house technical services for the ministry,

including negotiations, equipment selection and implementation of

public sector projects.

4. Raw Materials Research and Development Council (RMRD):- This

material research and development council has been established in the

Federal Ministry of Science and Technology. The Council works in

45

close collaboration with the Federal Ministry of Commerce and

Industries, which has the overall responsibility for the development of

incentive pertaining to raw material utilization.

5. Investment Information and Promotion Center (IIPC):- The

Investment information and promotion centre of the Federal Ministry

of Industries provides latest information on procedural matters and

industrial climate in Nigeria. The centre advices and guides importers

free of charge on most aspect of their proposals, whether the

prospective investors are Nigerians or Foreigners.

6. Industrial Training Fund (ITF):- This is responsible for promoting

and encouraging the acquisition of skills, industry and commerce. The

body provides facilities for training of person employed in industry and

commerce, approve courses and appraise facilities provider regularly

operational areas of industry or commerce that require specific

manpower training and development inputs and recommend the kind of

training needed ad the standards to be attained, and ensure that such

standard are met. It also assist individual person or corporate

organization in finding facilities for training for employment in

industry and commerce and conduct or assist other conduct research

into any matter relating to training in industry.

7. Standard Organization of Nigeria (SON):- The SON is the body

responsible for standardization and quality control in the nation

46

economy. It prepare standards for products and processes, ensure

compliances with government policy in standardization and imported,

undertake investigations as necessary into the quality of product in

Nigeria and establish a qualify of product in Nigeria and establish a

quality assurance system industry certificate of factories products and

laboratories maintain reference standards for collaboration and

verification of measures and instruments and co-operate with

corresponding national and international organizations with a view to

secure uniformity in standards specification. Standards organization of

Nigeria strictly enforces the power seizure, confiscation and products

and steals up produce sub-standard or defective goods and products.

An industrial data bank has been established in the Federal

Ministry of Commerce and Industries to gather, store and retrieve data.

The data bank will provide information on existing industries in the

various sub-sectors, their production capacities and expansion plan,

production last, the state of the market, price movement, raw material

available in various parts of the country etc.

47

REFERENCES

Agim, H. (1977, P. 30) Standard Auditing Guide for Government and Small Business

Organisation

Austin A. Chikere (p196-200) Business Management An Introductory text

Central Bank of Nigeria Policy (CBN) 1993 The Bank Economic Review Vol. 7 No 1

Ejiofor Pital (1989 P2-25) Foundations of Business Administration. Africana Feb

Publishers. Onitsha

http://search.bnet.com/search/small+business+and+finance.html.

http://www.theorator.com/bills109/hr4319.html

http://www.allafrica.com/stories/200711150185.html

Inyang and Ukpon (CBN) Economic and Review Vol. 3 No 4)

Industrial Policy of Nigeria (1998) “Policies Incentive Guideline and Institutions

framework” Federal Ministry of Industry.

Obeleagu-Nzelibe (1990 P24-33) Management of Small Scale Business in Nigeria Fourth

Dimension Publishers Co Ltd Enugu.

Omimaegbu J. (1987:P5) Industrialization and Indigenous technology Obstacles

Statement.

Thurik A.R. (1999 P29-65) Entrepreneurship, Industrial Transformation and Growth, in

GD. Libercap/(ed), The Sources of

Entrepreneurial Activity; Vol 77, Advances

in the study of entrepreneurship, Innovations

and Economic Growth (JAI Press Stampfore,

ICT)

United Nations Economic Commission for Africa (1996) No 16 “Report on Senior Policy

Workshop on Stimulating and Sustaining

Small and Medium Scale Enterprises through

effective outreach programme. Access to

finance and improvement of the legal and

regulatory Environment” unpublished

William Fsteel and Leita Mwebster (1992) The World Bank Economic Review. Volume 6

Number 3 brain levy.

48

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter clearly outlines the procedural steps employed to generate

relevant data for this research work. The research design is also discussed and

finally the tools for analysis used and the study in general will be discussed.

3.2 RESEARCH DESIGN

The research design employed for this research is the exploratory

research method. This is warranted because this is a relatively untouched

topic.

The general objective in this exploratory research is to gain an insight

and generate new idea. It is helpful particularly because, it helps in breaking

broad, vogue problems statements into smaller more precise sub problem

statement in the form of hypothesis as has been earlier done in chapter one.

In this research work questionnaires are used to gather information.

The questions used in the questionnaire were structured in line with the

subject of study and also to get the views of the management of the said

companies and the workers. The questionnaire were personally administered

and followed up by interviews to obtain information in the verbal responses

from respondents to confirm or reject hypothesis.

49

3.3 SOURCES OF DATA

In seeking information, the researcher used two broad based sources of

data namely:-

- Sources of secondary data

- Sources of primary data

The secondary data are already in existence, having been gathered

specifically for the project at hand.

Secondary data used in the research work is from libraries, textbooks,

journals, newspapers and websites. In a bid to complement the information

requirement for this research, questionnaire was designed to gather primary

data that has direct relevance with the hypothesis to be tested. Interviews

were also conducted to ensure a fair reconciliation of the ideas already

contained in the questionnaire.

QUESTIONNAIRE

A questionnaire was designed to gather primary data that would throw

more light on the impact of small scale firms on industrial development in

Enugu Urban. Same questions were framed in such a way that their responses

would be outsized in testing hypothesis earlier formulated.

In all, thirty (30) questions were administered to government agencies

involved in harnessing the activities of small and medium scale industries of

Enugu Urban while one hundred and sixty-one (161) questions were

50

administered to selected small scale firms in the state. This is to help get a

fair representation of the whole company. The question were principally of

two types; the dichotomous questions were used where a “yes” or “no”

answer is required. On the other hand, the open ended questions were used to

direct respondents frame of mind as that of the researcher while at the same

time permitting them to put forward their own views in the form of brief

comments. As much as possible, difficult questions that were not likely to be

answered without assistance were omitted. In the same view, some sensitive

questions were avoided in order to ensure that the quality of response is high.

3.4 DATA ANALYSIS

In analysis, data is reduced to an interpretable form so that the relation

to the research problem can be studied. In this research work, data collected

is computed using the chi-square (X2) distribution method. The data is

tabulated and compared with expected or theoretical figures or values.

The completed questionnaires are analysed using the percentage

distribution of the response and the chi-square test. Where the null-hypothesis

permits, the chi-square is applied directly to the statistics using the relevant

questions.

Where this is not possible, because of difficulty in estimating the

expected frequencies under the null hypothesis, the percentage distribution is

used to arrive at a conclusion in the first instance.

51

The second stage in such cases, involves the use of the chi-square to

test whether such results have occurred by chance or not.

Al hypothesis will be tested at five percent (5%) level of significance.

In order to satisfy the condition that the chi-square can only be used where

the expected frequency is at least or equal to five (5), a number of categories

at each end of the frequency distribution is combined to give an expected

frequency of at least five.

Ch-square method is considered more appropriate here because another

consideration is its simplicity and lack of technical equipment.

3.5 THE STUDY POPULATION

For the purpose of this study, the researcher is restricted to some

selected small and medium scale companies in Enugu Urban as well as the

government agencies through which the industries receive assistance from the

government.

3.6 DETERMINATION OF SAMPLE SIZE

In the conduct of research of any nature, “no concept is as fundamental

to the conduct of research and the interpretation of its result as sampling”

(Osuala 1987:104) it involves taking portion of a population or universe.

Shirkettle (1968:113) is of the opinion that instead of obtaining data

from the whole material being investigated sampling methods are often used

in which only a sample selected from the whole is dealt with and from this

52

sample, conclusions are drawn relating to the whole”.

A sample is therefore, a subset of the population. The sample is made

up of government agencies, and selected firms for the above subject matter.

The sample sizes of the government agencies were selected from the study

through a computation using the formular.

n = )(( 21 eNN

+

n = sample size of government agencies (respondents)

N = total number of staff of agencies under study. In using the

formular, the following estimates were made for determining

the sample size of the management.

e = 0.05 (e)2 = 0.0025

N = 33

n = ( )205.033133

+

n = 30

The sample size for staff of selected firm was selected randomly as

thus a particular firm was selected randomly from each of the seven (7) firms

under study and the sample size was obtained by the companies using the

same formula stated above.

53

SELECTED SMALL SCALE FORMS IN ENUGU STATE

NAME OF FIRMS STAFF NUMBER

Aqua Rapha Water Industries 60

Alo Aluminium Industry 54

Chiemek’s Bread Industries 23

Juhel Pharmaceutical Industries 44

Key Paints Industries 53

Winners Block Industries 21

Palm Kernel Industries 15

Totals 270

In using the formular, the following estimates were made for determining the

sample size.

N = total number of workers in selected firms

n = sample size of respondents in each of the firms

n = ( )21 eNN

+

n = ( )205,02701270

+

n = 161

To select sample for each site ni, we apply the formula,

ni = n(Ni/N) where i = 1,2,3,4,5,6,7.

54

Where ni = sample size of sites in the company.

n = Calculated sampled size of workers.

Ni = total number of workers in the sites.

N = total number of workers in the whole site selected.

To get ni where i = 1,2,3,4,5,6,7.

For Aqua Rapha site, ni.

Where

ni = 161

Ni = 60

N = 270

ni = 161 (60/270) = 36

For Alo Aluminum site, ni

Where

ni = 161

Ni = 54

N = 270

ni = 161 (54/270) = 32

For Chiemek’s Bread Industries Emene,

n3 = 161 (23/270) = 14

For Juhel Pharmaceutical Industries

n4 = 161 (44/270) = 26

55

For Key Points Industries

n5 = 161 (53/270) = 32

For Winners Block Industries

n6 = 161 (21/270) = 12

For Palm Kernel Industries

n7 = 161 (15/270) = 9

The questionnaire were issued as thus

NAME OF FIRMS NO OF STAFF

Aqua Rapha 36

Alo Aluminium 32

Chiemek’s 14

Juhel 26

Key Points 32

Winners Block 12

Palm Kernel 9

Total 161

3.6.1 ASSUMPTIONS OF CHI-SQUARE

The chi-square is a non-parametric statistical method which does not

require the stringent assumption with parametric methods but however,

certain basic requirement must be met before the chi-square procedure can be

applied for hypothesis testing.

56

These are:

(a) The case must be randomly tested. The data must be classified and

must satisfy the normal level of measurement requirement and

(b) The sample size should range between 25 and 250 (1 banya 1992:122)

Chi-square is a measurement of variation between actual and

theoretical frequencies.

( )Fe

FeFoX

22 −Σ=

where Fo = frequency observed

Fe = frequency expected/theoretical frequency

∑ = summation

X2 = value of chi-square

The responses from the questionnaire will form the observed frequency (fo)

while the frequency expected will be calculated using the formular.

( )n

crFo

Σ×Σ=

Where ∑r = summation of rows

∑c = summation of column

n = total number of respondents

The level of significance chosen is 95% or 0.05. The degree of

freedom is calculated as thus ( )( )11 −−= crDf

Where Df = degree of freedom.

57

3.6.2 REASONS FOR USING CHI-SQUARE

Chi-square is used for studying association between two or more

nominal variables where the primary data consist of counts, ie number of

cases that fall into various specified classes of each combination of

categorical variables. Chi-square analysis is useful technique for achieving

the following objective.

(a) Determining the significance of sample deviations from assumed

theoretical distribution ie finding out whether certain models fit the

data. This application is typically called “goodness of fit for testing”.

(b) Determining the significance of the relationship between one or more

sample classification ie testing whether sets of data are associated with

respect to specified attributes. Chi-square is a measure of variations

between the actual and theoretical frequency under the null-hypothesis

that the model “fits the facts if the measure of variation is high”. The

null hypothesis is rejected at some specified alpha-risk. If the measure

is how, the null hypothesis is accepted ie the models output is in

agreement with the actual frequencies.

(c) The calculated chi-square value provides the basis for computing

contingency co-efficient (c) used for assessing the nature of the

relationship between nominal values.

58

REFERENCES

Akuezuilo E.O. (1993) Research Methodology and Statistics. Second Edition

Publisher NUELCENTI (Nig)

Bernard S.P. (1976) Social Research: Strategy and tactics Macmillan Company

New York.

Okeke A.O. (1995) Foundation Statistics for Business Decisions. High Mega

Systems Ltd Enugu.

Orji (1999) Business Research Methodology IMT Enugu.

Osuala E.L. (1987) Introduction to Research Methodology. Africana Feb.

Publishers Onitsha.

Onwu J.O. (1998) Simple Random Sampling Element of Project and

Dissertations Writing. A guide to effective

Dissertation Report Impress Publishers.

Unamka P.C. (1998) Sampling Method. An Effective Guide to Dissertation

Report.

59

CHAPTER FOUR

4.0 PRESENTATION, ANALYSIS AND INTERPRETATION OF

DATA

As was mentioned earlier in the previous chapters, the researcher

distributed two types of questionnaires. One was sent to the government

established bodies while the other was sent to some selected small and

medium scale industries all in Enugu State. The questionnaires were

distributed randomly.

A total of (161) one hundred ands sixty-one questionnaires were

distributed to staff of the selected firms and were returned making a

representation of 100%.

From the above analysis, one can say that the responses were

encouraging. These goes to say that the respondents were interested in the

study.

4.1 ANALYSIS OF DATA FROM GOVERNMENT AGENCIES

Question 1

Sex

Response variables No of Respondents % of respondents

Male 27 90%

Female 3 10%

Total 30 100%

60

The above table revealed that 90% of the respondents are male while 10% of

the respondents are females.

Question 2

Educational Qualifications of Respondents


Below first degree 10 33.3%

First degree and above 20 66.67%

Total 30 100%

It will be observed that from the analysis of the above table, 66.67% of the

respondents are first degree holders while 33.33% are operators without first

degree qualifications.

Question 3

Rank of respondents


Junior staff 18 60%

Senior Staff 8 26.67%

Management staff 4 13.33%

Total 30 100%

The data on question No 3 reveals that 60% of the respondents are junior

staff, 26.67% of the respondents are senior staff while 13.33% of the

respondents are management staff.

61

Question 4

Age


Below 24 years 2 6.67%

25yrs – 40yrs 22 73.33%

Above 40 years 6 20%

Total 30 100%

It is indicated on the above table that 6.67% of the respondents are below

25yrs of age while 73.33% revolves within the age of 25yrs and 40yrs and

20% of the respondents and above 40yrs of age.

Question 5

Names of the Organizations of Respondents


Standard Organization of Nigeria 7 23.33%

Industrial Training Fund (ITF) 10 33.33%

Policy Analysis Dept (PAD 7 23.33%

Industrial Insspect Depart (IID)

The above analysis indicates that 23.33% of the respondents are from

standard organization of Nigeria, 33.33% are from industrial training fund,

and another 23.33% of the respondents are from policy analysis department

while 20% of the remaining respondents are from industrial inspectorate

department.

62

Question 6a

Do you think that there is need for establishment of SME in Enugu State.


Yes 28 23.33%

No 2 6.67%

Total 30 100%

The table in question No. 6 indicated that 23.33% of the respondents are of

the opinion that there is need for establishment of SME in Enugu State while

6.67% of the respondents are of contrary opinion.

Question 6b

If Yes, why?


To create employment 11 36.67%

To promote self reliance 9 30%

To encourage local development 7 23.33%

To enhance waste utilization 3 10%

Total 30 100%

It is revealed from the above tables that 36.67% of the respondents indicated

employment creation on establishment of small scale enterprises, 30% of the

respondents are of the opinion for self reliance, 23.33% indicated that it

encourages local development while 10% of the respondents are of the

opinion that it enhances waste utilization.

63

Question 7a

What role do you think that government will play towards establishing,

assisting, promoting and stabilizing SME to unlock value claim approach in

our economy?


Positive 21 70%

Negative 9 30%

Total 30 100%

20% of the respondents are of the opinion that the SME’s have positive effect

towards assisting promoting and stabilizing small and medium scale

enterprises while 30% of the respondents are of contrary opinion.

Question 7b

If yes, how?


By ensuring that the prospective SME

meets the established standard for

registration and operation

6

20%

By ensuring that tax levy on SME are

significantly minimal

5

16.67%

By providing technical advice for both

the existing SMEs.

7

23.33%

By providing funds 12 40%

Total 30 100%

64

From the analysis above, it is noted that 20% of the respondents are of the

opinion that the only way to unlock value chain approach in an economy is to

ensure stick adherence to the established rules for registration and operation,

23.33% of the respondents are of the opinion that technical advise is what is

necessary, 16.67% of the respondents are of the opinion that government

should reduce their tax levy on SMEs while 40% of the respondent indicates

that if government provide sufficient fund, it go a long way in unlocking

value chain approach in our economy.

Question 8a

Do you think that most of these SMEs are properly managed?


Yes 10 33.33%

No 20 66.67%

Total 30 100%

The above table indicated that 33.33% of the respondents are of the opinion

that most of the SMEs are properly managed while 66.67% of the

respondents are of contrary opinion.

65

Question 8b

If no, what do you think could be the possible factor to its poor management?


Illiteracy 17 56.67

Lack of feasibility study 6 20%

Lack of entrepreneurial skill 4 13.33%

Lack of government support 3 10%

Total 30 100%

From the above table, I will be observed that 56.67% of the respondents are

of the opinion that illiteracy is the major cause of the poor management of

SMEs, while 20% of respondents indicated that it is caused by lack of

feasibility study then 13.33% of the respondents said it is caused by lack of

entrepreneurial skills and finally, 10% the respondents indicated that poor

management of SMEs are caused by lack of adequate government support.

Question 9a

What are the factors responsible for retarded growth and development of

small and medium scale enterprises in Enugu State?


Positive 19 63%

Negative 11 37%

Total 30 100%

66

The above table indicated that 63% of the respondents are of the opinion that

small scale enterprises does not have any factor responsible for retarded

growth and development of SME in Enugu Urban while 37% of the


Question 9b

If No, how?


Mal-administration 2 6.67%

Poor/diversion of fund for SMEs 6 20%

Political instability 4 13.33%

High mortality rate 6 20%

Legal constraints 6 20%

Lack of information Network 3 10%

Poor Infrastructure 3 10%

Total 30 100%

From the above analysis, it is indicated that 6.67% of the respondents

are of the opinion mal-administration is the major cause of retarded growth

and development SMEs in Enugu State, 20% of the respondents indicated

that the cause of retarded growth and development of SMEs caused by

poor/diversion of fundamental for SME operators by government agencies;

13.33% of the respondents is of the opinion that such retarded growth and

development is caused by political instability, 20% of the respondent equally

indicated that it is caused by high mortality rate and another 20% of the

67

respondents is of the opinion that such retarded growth is caused by, legal

constraints while 10% of the respondents are of the opinion that such retarded

growth is caused by lack of information network while the remaining 10% of

the respondents indicated that it is caused by poor infrastructural facilities.

Question 10a

What effect (if any) do you think SME will have to the growth and

development of industrialization in our state?


Positive 26 86.67%

Negative 4 13.33%

Total 30 100%

86.67% of the respondents indicated that the effect of SME towards the

growth and development of industrialization in the state will be positive

while 13.33% of he respondents are of the opinion that it will have a negative

effect.

Question 10b

If positive in question 10a, how?


Creation of self development and

specialization

9 30%

Adoption of timely and useful

information

7 23.33%

Enhancement of usage of modern 8 26.67%

68

technology

Enhancement of socially responsible

project

1 3.33%

Large capital formation 5 16.67%

Total 20 100%

The analysis above indicated that the present of SME towards the

growth and development of industrialization in our state if positive, will bring

creation of self development and specialization by 30% of the respondents,

while 23.33% of the respondents are of the opinion that it will lead to

adoption of timely and useful information and 26.67% of the respondents are

equally of the opinion that it will enhance usage of modern technology,

another 3.33% of the responsible project and the remaining 16.67% of the

respondents indicated that it will lead to capital information.

Question 11a

Do you think that government and its agencies are funding small scale firms

adequately in relation to its promises and policies as to industrializing the

nation through small scale firms?


Yes 10 33.37%

No 20 66.67%

Total 30 100%

69

66.675 of the respondents are of the opinion that government and its agencies

do not fund small scale firms at it is being blown in the air while 33.33% of

the respondents are of the opinion that government is carrying out their

promises and policies to the later to ensure that small scale firms are

sufficiently founded.

Question 11b

If No, what are the factors instrumental to its (government) failure?


Ineffectiveness of imple 9 30%

Lack of respect for rule of law 4 13.33%

Lack of staff training 7 23.33%

Lack of accountability 3 10%

All of the above 7 23.33%

Total 30 100%

30% of the respondents are of the opinion that ineffectiveness of

implementation of government policies is one of the factors for failure of

government funding of small scale firms, 13.33% of the respondents are of

the opinion that it is due to lack of respect for rule of law 23.33% of the

respondents are of the opinion that it is due to lack training while 10% of the

respondents indicated that it is due to lack of accountability and 23.33% of

the respondents resolved that it is caused by the whole, factors enumerated

above.

70

Question 12a

Do government through its agencies make the environment where SMEs

operate conducive and favourable for them.


Yes 20 66.67%

No 10 33.33%

Total 30 100%

66.67% of the respondents are of the opinion that government through its

agencies create favourable and conducive environment for SMEs to operate

while 33.3% of the respondents are of contrary opinion.

Question 12b

If Yes, how?


By giving them technical support 6 20%

By taxing healthy, the

industrialized firms

3

10%

By giving them financial

assistance

7

23.33%

By enacting laws that protect the

invest of SMEs

10

33.33%

By encouraging the SMEs to

provide the product that does not

require highly sophisticated

technology for production

4

13.33%

Total 30 100%

71

20% of the respondents in question 12b are of the opinion that government

gives technical support to SMEs, 10% of the respondents are of the opinion

that government levy little or no tax on SMEs in other to encourage them

stabilize, 23.33% of the respondents indicated that government assistance is

financially based while 33.33% of the respondents are of the opinion that

government assistance is on legal protection while 13.33% of the respondents

are of the opinion on that government assistance is on legal protection while

13.33% of the respondents are of the opinion that government through its

agencies makes the environment where SMEs operate favourable and

conducive through encouraging them to produce with local equipment that

does not require sophisticated equipment.

Question 13a

Do you think that the establishment of SMEs helps in managing waster

disposal in the state?


Yes 20 66.67%

No 10 33.33%

Total 30 100%

66.67% of the respondents are of the opinion that establishment SMEs helps

in managing waste disposal while 33.33% of the respondents are of contrary

opinion.

72

Question 13b

If yes, how?


By using the waste of industrialized

firms for further economic usage.

9

30%

By engaging the services of

individuals who may not have been

employed if there had not been such

SME

11

36.67%

By being socially responsible in area

of environmental sanitation.

10

33.33%

Total 30 100%

30% of the respondents are of the opinion that if the answer in 12a is yes, that

it will encourage the usage of industrialized waste to further economic usage,

36.67% of the respondents are of the opinion that it will strengthen the

engagement of services of individuals who may not have being employed

should there not be such enterprise and 33.33% of the respondents are of the

opinion that it will strengthen the environmental sanitation exercise by

making SMEs to be socially responsible.

73

Question 14a

Do you think that individual SMEs operators contribute towards promoting

government policy to achieve value chain approach in establishing and

sustaining SME?


Yes 21 70%

No 9 30%

Total 30 100%

70% of the respondents are of the opinion that individual SMEs operators

contribute towards promoting government policy to achieve value chain

approach in establishing and sustaining SME while 30% of the respondents

are of contrary opinion.

Question 14b

If Yes, how?


By abiding to the rule 8 26.67%

By flawing the rules 1 3.33%

By attending workshops and seminars

organized by government and donor

agencies

10

33.33%

By employing the unemployed 11 36.67%

Total 30 100%

26.67% of the respondents are of the opinion that if the answer in question

(14a) is Yes, that it is by abiding to the rules, 3.33% is by flawing the rules,

74

33.33% of the respondents are of the opinion that it is by attending

workshops and seminars organized by government and donor agencies while

36.67% of the respondents are of the opinion that it is by employing the

unemployed.

4.2 ANALYSIS AND PRESENTATION OF DATA FROM

INDIVIDUAL SMEs

Sex of Respondents Question 1


Male 128 84.77%

Female 23 15.23%

Total 151 100%

84.77% of the respondents are of the male while 15.23% of the respondents

are female.

Question 2

Educational Qualification


Below first degree 114 75.50%

First degree and above 37 24.50%

Total 151 100%

75.50% of the respondents possess below first degree certificate and

knowledge while 24.50% of the respondents are operators with an acceptable

level of knowledge.

75

Question 3

Rank of respondents


Junior Staff 72 47.68%

Senior staff 49 32.45%

Management staff 30 19.87%

Total 151 100%

The above analysis indicated that 47.68% of the respondents are junior staff,

and 32.45% of the respondents are senior staff while 19.87% of the

respondents are found at the management cadre.

Question 4

Age of Respondents


Below 25 years 16 10.60%

25 years and 40 years 89 58.94%

40 years and above 46 30.46%

Total 151 100%

10.60% of the respondents ranks below the age of 25yrs and 58.94% of the

respondents revolves between the age of 25yrs and 40yrs while 30.48% of the

respondents are above the age of 40yrs.

76

Question 5

Name of the Organization

Response Variables No of Respondents % of Respondents

Aqua Rapha 38 25.17%

Juhel 23 15.23%

Chiemek’s bread 15 9.93%

Palm Kernel 9 5.96%

Alo Aluminium 34 22.52%

Winners Block 14 9.27%

Key Paints 18 11.92%

Total 151 100%

From the above analysis, it will be observed that 25.17% of the respondents

are from Aqua Rapha, 15.23% from Juhel Pharmaceutical, 9.93% from

Chiemek’s Bread Industries Emene, 5.96% from palm kernel industry Amagu

Street Achara Layout, 22.52% from Alo Aluminium Emene, 9.37% of the

respondents from Winners Block Industry Port Harcourt Express while

11.92% of the respondents are from key paint industry Enugu.

Question 6

What type of business are you into?

Response variables No of Respondents % of Respondents

Industrial 133 88.08%

Agriculture 18 11.92%

Total 151 100%

77

88.08% of the respondents are of the opinion that they are into industrial

business while 11.92%of the respondents are for Agricultural product.

Question 7

When was it established?


Pre-civil war 3 1.99%

Post-civil way 148 98.01%

Total 151 100%

1.99% of the respondents are of the opinion that their business was

established before the Nigeria Civil War while 98.01% of the respondents are

of the opinion that their business was established after civil war.

Question 8

From what sources do you raise fund for registration, establishment and

subsequent operation of your business?


Personal savings 68 45.03

Friends/Relatives 43 28.48%

Cooperative Society 28 18.54%

Bank loans 8 5.30%

Donor agencies 4 2.65%

Total 151 100%

78

45.03% of the respondents are of the opinion that they registered and started

their business through their personal savings, 28.48% of the respondents

indicated that their initial capital came from friends and relatives and 18.54%

of the respondents are of the opinion that theirs came from cooperative

society then 5.30% of the respondent equally indicated that their came from

bank loan while 2.65% of the respondents are of the opinion that theirs came

from donor agenizer.

Question 9

Where do your source of materials from?


Locally 73 48.34%

Internationally 42 27.81%

All of the above 36 23.84%

Total 151 100%

48.34% of the respondents indicated that the source of their materials locally,

27.81% of the respondent indicated that the source of their materials

internationally while 23.84% of the respondents are of the opinion that they

source their materials from the above first two options.

79

Question 10

What are the problems encountered at the course of sourcing your materials?


Insufficiency of fund 61 40.40%

High cost of materials 23 15.23%

Transportation problems 32 21.19%

Unaccessibility 11 7.28%

Insufficiency of materials 21 13.91%

Custom duties 3 1.99%

Total 151 100%

40.40% of the respondents indicated that the problems encountered at the

course of sourcing their materials is fund insufficiency, 15.33% of the

respondents is of the opinion that it is high cost of materials, while 21.19% of

the respondents problem; then 7.28% of the respondents are of the opinion

that if inaccessibility of resources and 13.91% says. It is insufficiency of

materials and finally 1.99% of the respondents says that their problems are

mainly custom duties.

80

Question 11a

Do you think that government and its agencies are assisting small scale firms

as adequately as being pronounced by government agencies to unlock value

chain approach.


Yes 61 40.40%

No 90 59.60%

Total 151 100%

40.40% of the respondents indicated that government and its agencies do

assist small firms to unlock value chain approach while 59.60% of the

respondents is of contrary opinion.

Question 11b

If No, what do you think is the cause of such poor assistance.


Staff legal conditions 42 29.81%

Lack of technical advice 39 25.83%

Lack of fund provision 61 40.40%

Huge tax levy 9 5.96%

Total 151 100%

27.81% of the respondents are of the opinion that the course of government

poor assistance towards small scale firms to unlock value chain approach is

due to government stiff legal conditions while 25.83% of the respondents

81

indicated that it is due to lack of technical advise by government then 40.40%

of the respondents indicated that it is due to lack of sufficient fund by

government while 5.90% of the respondent says it is due to huge tax levied

on SMEs by government.

Question 12

Is the environment in which your business is situated conducive for its

operation.


Yes 70 46.36%

No 81 53.64%

Total 151 100%

46.36% of the respondents says that the environment in which their business

is situated is conducive while 53.64%of the respondents are of contrary

opinion.

Question 13

Are there enough infrastructural facilities on ground for use by your

business?


Yes 30 19.87%

No 121 80.13%

Total 151 100%

82

19.87% of the respondents upheld that there are enough infrastructural

facilities on ground to be used by their business while 80.13% of the


Question 14a

What are the hindrances encountered towards the development of your

business?


Positive 103 68%

Negative 48 32%

Total 151 100%

The above table indicated that 68% of the respondents are of the opinion tat

SME’s does have any factor militating against its growth and development in

Enugu Urban while 32% of the respondents are of the contrary opinion.

Question 14b

If No, how can it be possible?


Lack of information 63 41.72%

Poor infrastructure 29 19.21%

Insufficient fund 27 17.88%

Lack of austereness 23 15.23%

Illiteracy 9 5.96%

Total 151 100%

83

41.72% of the respondents are of the opinion that the hindrances they

encounter at the course of developing their business is lack of information,

19.21% indicated that it is due to poor infrastructural facilities, then 17.88%

equally indicated that their poor development is caused by insufficient fund

while 15.23% is of the opinion that it is due to lack of awareness then 5.96%

says it is caused by high level of illiteracy.

Question 15a

Do you think that with the existence of SMEs in your loans, that waste

management can be enhanced.


Yes 128 84.77%

No 23 15.23%

Total 151 100%

85.77% of the respondent indicated that the present of SMEs enhances the

management of waste while 15.23% of the respondents are of contrary

opinion.

84

Question 15b

If Yes, how?


Further usage of industrialized

waste product

60

30.74%

By engaging in local cleanliness

that would not have been possible

without the existence of SMEs

42

27.15%

By encouraging the usage of by-

product.

50

33.11%

Total 151 100%

30.74% of the respondents indicated that waste management is enhanced by

SMEs through further usage of industrialized waste product, 27.15% of the

respondents indicated that it is through engaging in local cleanliness while

33.11% indicated that waste management is enhanced through encouraging

the usage of by-product.

Question 16

What in your own understanding do you think is the effect of SME to the



Positive 133 88.08%

Negative 18 11.92%

Total 151 100%

85

From the above analysis, it is indicated that 88.08% of the respondents are of

the opinion that the effect of SME to the development and growth of

industrialization in the state is positive while 11.92% of the respondents is of

contrary opinion.

Question 17a

What role to do think individual SMEs play towards promoting government

policy to achieve value chain approach in establishing and sustaining SMEs

in Enugu State.


Positive 63 42%

Negative 88 58%

Total 151 100%

42% of the respondents are of the opinion that the SME’s have positive effect

to the roles towards promoting government policy to achieve

industrialization. While 57% of the respondents are of contrary opinion.

Question 17b

If Yes, How?


Abiding to the established rules 13 8.61%

Employing the unemployed 30 19.87%

Attending seminars and

86

workshops organized by

government and donor agencies.

61 40.40%

Being educated 47 31.13%

Total 151 100%

8.61% of the respondents indicted that SMEs promote government policy to

achieve value chain by abiding to the established rules 19.87% indicated that

it is by employing the unemployed, then 40.40% is of the opinion that it is by

attending seminars and workshops organized by government and donor

agencies while 31.13% of the respondents indicated that it is by being

educated.

Question 18a

Have your firm applied for government loan before?


Yes 101 66.89%

No 50 33.11%

Total 151 100%

66.89% of the respondents indicated that they have applied for government

before while 33.11% of the respondents are of contrary opinion.

87

Question 18b

If Yes, did you get it?


Yes 37 24.50%

No 184 75.50%

Total 151 100%

24.50% of the respondents indicated that they got the loan they applied for

while 75.50% of the respondents indicated that they did not get the loan they

applied.

Question 18c

If No, why?


I did not meet the standard 31 20.53

Because of bureaucracy 42 27.81%

Insufficient fund 89 58.94%

Total 151 100%

20.53% of the respondents is of the opinion that they did not get the loan

because they id not meet the standard, 20.53% of the respondents equally

indicated that they did not get the loan because of government bureaucracy

while 58.94% of the respondent is of the opinion that it was due to

insufficient fund.

88

Question 18d

1f 18b is Yes, did you get the full amount applied for.


Yes 59 39.07%

No 92 60.93%

Total 151 100%

39.07% of the respondents are of the opinion that they get the full loan

applied for while 60.93% of the respondents are of contrary opinion.

Question 19a

Did you get the loan when it was actually needed.


Yes 53 35.10%

No 98 64.90%

Total 151 100%

35.10% of the respondents were of the opinion on that they got the loan when

it was needed, while 64.90% of the respondents were of contrary opinion.

Question 19b

If No, Why?


Bureaucracy 22 14.57%

Insufficiency of fund 81 53.64%

Change of government 48 31.79%

Total 151 100%

89

14.57% of the respondents were of the opinion that they were not able to get

the full loan applied for because of bureaucracy of government, while

53.64% indicated that it is due to fund insufficiency and 31.79% of the

respondents argue that it is caused by instability of government.

Question 20

Did you pledge any collateral security for the amount obtained?


Yes 49 32.45%

No 102 67.55%

Total 151 100%

32.45% of the respondents indicated that they pledge collateral security for

the loan obtained while 67.55% is of contrary opinion.

4.3 ANALYSIS OF SIMILAR QUESTIONS

Question 1


operate conducive and favourable for them?

Response

Variable

Government

Response

% of government

response

SMEs

Response

% of SMEs

Response

Total

Response

% of Total

Response

Yes 20 66.67% 70 46.36% 90 49.72%

No 10 33.33% 81 53.64% 91 50.28%

Total 30 100% 151 100% 181 100%

90

The table above shows that 49.72% of the respondents are of the opinion that

government through its agencies make the environment where SMEs operate

conducive and favourable for them while 50.28% are of contrary opinion.

Question 2

Do you think that the establishment of SMEs helps in managing waste


Response

Variable

Government

Response

% of government

response

SMEs

Response

% of SMEs

Response

Total

Response

% of Total

Response

Yes 20 66.67% 1.28 84.77% 148 81.77%

No 10 33.33% 23 15.23% 33 18.23%

Total 30 100% 151 100% 181 100%

The above table indicated that 81.77% of the respondents are of the opinion

that the establishment of small scale enterprises helps in waste management

in the state while 18.23% of the respondents are of contrary opinion.

Question 3

Do you think that government will play any role towards establishing,

assisting, promoting and stabilizing SMEs to unlock value chain approach in

our economy?

Response

Variable

Government

Response

% of government

response

SMEs

Response

% of SMEs

Response

Total

Response

% of Total

Response

Yes 21 70% 61 40.40% 82 45.30%

No 9 30% 90 59.60% 99 54.70%

Total 30 100% 151 100% 181 100%

91

45.30% of the respondents are of the opinion that government plays role

towards establishing SMEs to assisting, promoting and stabilizing SMEs to

unlock value chain approach in our economy while 54.70% of the

respondents are of the contrary opinion.

Question 4

Do you think that there are factors militating against the growth and

development of small and medium scale enterprises?

Response

Variable

Government

Response

% of government

response

SMEs

Response

% of SMEs

Response

Total

Response

% of Total

Response

Yes 19 63.33% 103 68.21% 122 67.40%

No 11 36.67% 48 31.78% 59 32.60%

Total 30 100% 151 100% 181 100%

The analysis above indicated that 67.40% of the respondents are of the

opinion that there are some militating factor against the growth and

development of their small and medium scale enterprises while 32,60% of the

respondents are contrary opinion.

92

Question 5



Response

Variable

Government

Response

% of government

response

SMEs

Response

% of SMEs

Response

Total

Response

% of Total

Response

Yes 26 86.67% 103 68.21% 129 71.27%

No 4 13.33% 48 31.78% 52 28.73%

Total 30 100% 151 100% 181 100%

71.27% of the respondents are of the opinion that SMEs have positive effect

to the growth and development of industrialization in our states while 28.73%

of the respondents are of contrary opinion.

Question 6

Do you thinks that individual SMEs have role to play towards promoting

government policies to achieve value claim approach in establishing and

sustaining SME?

Response

Variable

Government

Response

% of government

response

SMEs

Response

% of SMEs

Response

Total

Response

% of Total

Response

Yes 21 70% 63 41.72% 84 46.41%

No 9 30% 88 58.28% 97 53.59%

Total 30 100% 151 100% 181 100%

93

46.41% of the respondents indicated that individual SMEs have role to play

towards promoting government policies to achieve value chain approach is

establishing and sustaining SME while 53.59% of the respondents are of

contrary opinion.

4.4 TESTING OF RESEARCH HYPOTHESIS AND

INTERPRETATIONS

Having analysed the data collected, it would be necessary to test the

hypothesis stated in chapter one, which they will subsequently be accepted or

rejected.

In this research work, six hypothesis are being tested using the chi-

square distribution. One question or a maximum of two are used in testing

each hypothesis. In using the chi-square method of distribution to test the

hypothesis, these questions would be merged together such that only

responses common to both are analysed and tested.

94

4.4.1 TEST OF HYPOTHESIS I

The hypothesis is re-stated as follows:

Ho: Small and medium scale enterprises does not have any factor militating

against its growth and development in Enugu Urban.

Hi: Small and medium scale enterprises does have any factor militating

against its growth and development in Enugu Urban.

Table 4.4.1

Response to question 9a and 14a which have earlier been tabulated

provided data for the testing of this responses.

Questions Yes No Total No of

responses

9a 19 11 30

14a 103 48 151

Total 122 59 181

CONTINGENCY TABLE

S/NO fo fe fo-fe ( )2fefo − 2

−fe

fefo

1 19 20.22 -2.22 1.4884 7.36

2 11 9.78 1.22 1.4884 1.52

3 103 101.78 1.22 1.4884 1.46

4 48 49.22 1.22 1.4884 3.02

X2 13.36

95

Calculating “fe”

Fe = ( )n

cr Σ×Σ

Σc = summation of columns

Σr = summation of rows

n = total no of respondents

C1 = ( ) 22.2018112230 =×

C2 = ( ) 78.91815930 =×

C3 = ( ) 78.101181122151 =×

C4 = ( ) 22.4918159151 =×

Degree of freedom; d.f = (c-1) (r-1)

= ( )( ) 11212 =−−

95.02 =X at 1 84.3. =fd

Decision Rule

Accept Ho: If calculated value is less (<) than tabulated value.

Reject Ho: If the calculated value is greater (>) than the tabulated value.

Decision Rule: Since 13.36 > 3.84

Reject Ho and Accept Hi

96

We accept Hi which implies that small and medium scale enterprises

do have militating factors against its growth and development in Enugu

Urban.

4.4.2 TEST OF HYPOTHESIS 2

Ho: Small scale and medium enterprises does not have any effect to the

development and growth of industrialization in Enugu Urban.

Ho: Small scale and medium enterprises does have any effect to the

development and growth of industrialization in Enugu Urban.

Table 4.4.2

Question Positive Negative Total No of Response

10a 26 4 30

16 133 18 151

Totals 159 22 181

CONTINGENCY TABLE


−fe

fefo

1 26 26.35 -0.35 0.1225 4.65

2 4 3.65 0.35 0.1225 3.36

3 133 132.65 0.35 0.1225 9.23

4 18 18.35 0.35 0.1225 6.68

X2 23.92

97

C1 = ( ) 35.2618115930 =×

C2 = ( ) 65.31812230 =×

C3 = ( ) 65.132181159151 =×

C4 = ( ) 35.1818122151 =×


= ( )( ) 11212 =−−

95.02 =X at 1 84.3. =fd

Decision Rule

Accept Ho: If calculated value is less (<) than the tabulated value

Reject Ho: If calculated value is greater (>) that the tabulated value.

Decision

Since 23.92 > 3.84


We accept Hi which implies that small scale enterprises does have

effect to the development and growth of industrialization in Enugu Urban.

4.4.3 TEST OF HYPOTHESIS THREE

Ho: Individuals does not have roles to play towards promoting government

policy to achieve industrialization and stability in the economy.

98

Ho: Individuals does have roles to play towards promoting government

policy to achieve industrialization and stability in the economy.

Response to questions 14 and 17a as have earlier been tabulated

provided data for the testing of this hypothesis.

Table 4.4.3


responses

14 21 9 30

17 63 88 151

Total 84 97 181

CONTINGENCY TABLE


−fe

fefo

1 21 13.92 7.08 50.13 3.60

2 9 16.08 -7.08 50.13 3.12

3 63 70.08 -7.08 50.13 7.15

4 88 80.92 7.08 50.13 6.20

X2 20.072

Calculation (FE)

C1 = ( ) 92.131818430 =×

C2 = ( ) 08.161819730 =×

C3 = ( ) 92.8018184151 =×

99

C4 = ( ) 92.8018197151 =×


= ( )( ) 11212 =−−

95.02 =X at 1 84.3. =fd

Decision Rule

Accept Ho: If calculated value is less (<) than the tabulated value

Reject Ho: If calculated value is greater (>) than the tabulated value.

Decision Rule:

Since 20.07 > 3.84


We accept Hi which implies that individuals have roles to play towards

promoting government policies to achieve value chain industrialization.

4.4.4 TEST OF HYPOTHESIS FOUR

Ho: Small and medium scale enterprises does not contribute in waste

management disposal and extended usage of by-products that may not


enterprises.

Hi: Small and medium scale enterprises does contribute in waste

management disposal and extended usage of by-products that may not


enterprises.

100

Response to question 13a for government and 15a for SMEs as earlier

en tabulated provided data for the texting of this hypothesis.

Table 4.4.4


responses

13a 20 10 30

15a 128 23 151

Total 148 33 181

CONTINGENCY TABLE


−fe

fefo

1 20 24.53 4.53 20.52 8.37

2 10 5.47 4.53 20.52 3.75

3 128 123.47 4.53 20.52 1.67

4 23 27.53 -4.53 20.52 7.45

X2 21.24

Calculation (FE)

C1 = ( ) 53.2418114830 =×

C2 = ( ) 47.51813330 =×

101

C3 = ( ) 47.123181148151 =×

C4 = ( ) 53.2718133151 =×


= ( )( ) 11212 =−−

95.02 =X at 1 84.3. =fd

Decision Rule

Accept Ho: If calculated value is less (<) than the tabulated value.


Decision

Since 21.24 > 3.84


We accept Hi which implies that small and medium scale enterprises

does contribute in waste management disposal and extended usage of by-

product that may not have been useful without the existence of small and

medium scale enterprises.

102

4.4.5 TEST OF HYPOTHESIS FIVE

Ho: Government does not have any positions towards assisting, promoting

and stabilizing small and medium scale enterprises (SME) in other to

unlock value chain approach to our economic boom.

Hi: Government does have positions towards assisting, promoting and

stabilizing small and medium scale enterprises (SME) in other to

unlock value chain approach to our economic boom.

Table 4.4.5


responses

7a 21 9 30

11 61 90 151

Total 82 99 181

CONTINGENCY TABLE


−fe

fefo

1 21 13.59 7.41 54.91 4.04

2 9 16.41 -7.41 54.91 3.35

3 61 68.41 -7.41 54.91 8.03

4 90 82.59 7.41 54.91 6.65

X2 22.07

103

Calculation (FE)

C1 = ( ) 59.131818230 =×

C2 = ( ) 41.161819930 =×

C3 = ( ) 41.6818182151 =×

C4 = ( ) 59.8218199151 =×


= ( )( ) 11212 =−−

95.02 =X at 1 84.3. =fd

Decision Rule:

Accept Ho: If calculated value is less (<) than the tabulated value.

Reject Ho: If the calculated value is greater (>) than the tabulated

value.

Decision, since 22.07 > 3.84,


We accept Hi which implies that government have positions towards

assisting, promoting and stabilizing small and medium scale enterprises

(SME) in other to unlock value chain approach to our economic boom.

104

4.4.6 TEST OF HYPOTHESIS SIX

Ho: Environmental factors does not have influence in the establishing,

growth and stability of small scale enterprises (SME).

Hi: Environmental factors does have influence in the establishing, growth

and stability of small scale enterprises (SME).

Table 4.4.6


responses

12a 20 10 30

12 70 81 151

Total 90 91 181

CONTINGENCY TABLE


−fe

fefo

1 20 14.92 5.08 25.81 1.73

2 10 15.08 5.08 25.81 1.71

3 70 75.05 5.08 25.81 3.34

4 81 75.08 5.08 25.81 3.40

X2 10.18

105

Calculation (FE)

C1 = ( ) 92.141819030 =×

C2 = ( ) 08.151819130 =×

C3 = ( ) 08.7518190151 =×

C4 = ( ) 92.7518191151 =×


= ( )( ) 11212 =−−

95.02 =X at 1 84.3. =fd

Decision Rule

Accept Ho: If calculated value is less (<) that the tabulated value.


Decision Rule, since 10.18 > 3.84m

Reject Ho and Accept Hi.

We accept Hi, which implies that environmental factors does have

influence in the establishment, growth and stability of small scale enterprises.

106

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 SUMMARY OF FINDINGS

The researcher has attempted, in the course of this study to discover

some revelations and observations as follows:

1. Financial problems have been the major and most serious impediments

to small scale enterprises towards buttressing the growth and

development of industries in Enugu Urban.

2. That appropriate financial frame work have not been effectively put in

place to assist small scale firm establishment, growth and development.

The high interest rate, unavailability of credits, poor access to credit

and many other factors discourages entrepreneurs from borrowing and

as such cripples the business of those who have the business initiatives

but lacks the necessary facilities to borrow as a collateral.

3. Nigeria policies and programmes towards small scale firms have

always been efficient but not effective.

4. Funds have not been made available to banks and other government

agencies who are involved in funding small scale firms for onward

lending to entrepreneurs because of inadequate liquidity policies of

government and Central Bank of Nigeria (CBN).

5. Lack of technical and managerial support skills from agent of

government to the intending and existing small scale firms.

107

6. High level of illiteracy by the existing entrepreneurs who are one way

or the other not mentally balanced to carryout some business

programmes caused by educational impediments.

7. Inability of some intending small scale firms and the existing one’s to

attend the height of legal requirement by government either to register

a business or to operate one.

8. The researcher equally discovered that the individual operators of

business did not recognize the fact that they are part players to the

execution of government policies and programme.

9. That individual operators of small scale firms are prime factors to

waste management disposal in the state.

10. Lack of information to small scale operators are equally a seniors

impediments to the contribution of small scale firms towards the

growth and development of industrialization of the state.

11. Lack of provision of infrastructural facilities by government have not

helped to stabilize business and as such makes it difficult for small

scale firms to operate and survive.

12. Lack of confidence in the products of our small scale firms by the

consumers which includes government agents.

108

5.2 CONCLUSIONS

Everything that has a beginning, they say, must have an end.

Therefore, the researcher wishes to draw up some conclusions based on the

findings of the research, both through the administrative analysis of such data

used.

We have already seen some results of these findings; based on these

findings, the researcher was able to draw the following conclusions.

1. That small scale firms are not given the desired as well as required

attention by government and its agencies.

2. That small scale firms are an integral part of economic growth and

development of any nation.

3. That small scale firms should be sufficiently funded by government

and its agencies in time to enable them (SME) create a feasible impact.

4. That small scale firms operators are operating below the universally

accepted level of education.

5.3 RECOMMENDATION

Since small scale enterprises can not be displayed in area of growth

and development of industrialization, it therefore indicates that proper

provisions made by government to accommodate and tolerate the short

comings associated by its (Small Scale Firms) existence will go a long way to

enhance our economy.

109

1. That government should make sufficient funds available to small scale

firms in other to enable them operate favourably.

2. That government should reframe its financial frame work such that the

needs of the small scale firms will be adequately attended to.

3. That government should make its policies towards the establishment,

funding, growth and development of small scale firms efficient as well

as effective.

4. That government should create enabling environment for small scale

firms to operate and succeed.

5. That government should provide enough infrastructural facilities that

will enable the small scales firm to operate competitively.

6. That individual operators of small and medium scale firm should know

that they a part players towards achieving government policies on

them.

7. That government should create a technical legal loopholes that will

give an edge to small scale firm over industrial firms.

8. That government should organize workshop and seminars on routing

basis to help small scale operators.

9. That individual operators of small scale firms should try as much as

possible to get educated for their self development and reliance.

10. That consumers of products made by small medium scale firms should

have confidence in them rather than the foreign counterpart.

110

11. Policies which encourage government purchase of small scale firms

product should be made in the state, this is to make the society have

confidence in our industrial produce.

12 Banks and other governments agents should be encouraged to charge

preferential rates to small scale firms.

111

BIBILOGRAPHY

BOOKS:

Agim, H. (1977) Standard Auditing Guide for Government and Small Business

Organizations

Ani B.N & Nwandu E.C (2001) Business Management An Introductory Text, NERCE

Publication.

Austine .A. Chikere (:196-200) Business Management An Introductory text

Akuezuilo E.O (1993) Research Methodology and Statistics. Second Edition Publisher

NUELCENTI (Nig)

Bernard S.P. (1976) Social Research: Strategy and Fact Macmillan Company New York.

Ejiofor Pita (1989 P.20-25) Foundations of Business Administration Africana Feb.

Publishers Onitsha.

Klatt Laureme (1973) Small Business Management Essential of Industrial

Entrepreneurship. Wart Work

Publishing Inc Berkeley California

Obeleagu – Nzelibe (1990 P. 24-33) Management of Small Scale Business in Nigeria

Fourth Dimension Publishers Co. Ltd

Enugu

Okeke A.O. (1995) foundation Statistics for Business Decision: High Mega Systems Ltd

Enugu.

Orji J. (1999) Business Research Methodology IMT Enugu.

Osuala E.L. (1993) Research Methodology and Statistics. Second Edition Publisher

NUELCENT, (Nig)

Omon J.O. (1998) Simple Random Sampling Element of Project and Dissertations

Writing: A guide to effective

Dissertation Report Impress Publishers.

Thurik (1999:29-65) Entrepreneurship Industrial Transformation and Growth, in GD

Liberal ed) The Sources of

Entrepreneurial activity Vol. 11

Advances in the Study of

Entrepreneurship, Innovation and

Economic (JaI Press Standard, CJ)

112

JOURNALS:

Akinnade, A. (1987) “Small scale enterprises Backbone of Industrialism” the Nigerian

Entrepreneur, Vol. 2 No.1

Akwaeze, G.C. (1987) “Small scale industries and national Development” Development

Outlook, Vol. 1 No. 10

Central Bank of Nigeria Policy (CBN) 1993, The Bank Economic Review Vol. 7 No. 1

Ifedi. C. (1989) Budget and Small Enterprises, Nigerian Mirrow, February 9, Pp. 6, 8.

Industrial Policy of Nigeria (1998) “Policies Incentives Guidelines and Institutional Frame

Work” Federal Ministry of Industry.

Inyang and Ukpong (CBN) Economic and Review Vol. 3, No. 4

Okorie, N. (2982) Small Scale Business Impact on the Nigerian Economy, Odouma

Business Journal, No. 8

Onuegbe (19876: P. 5) Industrialization and Indigenous Technology Obstacles Statement.

Patterson, R. (1986) The University English Dictionary New York Publisher Limited

Unamka P.C. (1998) Sampling Method. An effective guide to Dissertation Report.

United Nations Economic Commission for Africa (1996) No 16 “Report on Senior Policy

Workshop on Stimulating and

Sustaining Small and Medium Scale

Enterprises through effective outreach

Programme. Access to finance and

improvement of legal and regulatory

Environment” Unpublished; http://search/bnet.com/search/small+business+and+finance.html.

http://www.Theorator.com//bills109/hr439.html

http//allafrica.com/stories/200711150185.html

113

Faculty of Business Administration

Department of Management Studies

University of Nigeria

Dear Sir/Madam,

I am an MBA Student of the Faculty of Business Administration

(Department of Management) in the above named institution.

I am carrying out a research work on the impact of small-scale firm on

industrial development of Enugu Urban (a study of selected small scale

enterprises in Enugu Urban.

Please, I need your responses / answers to my questionnaire, which I

am quite sure will go a long way in helping me to accomplish my objective.

Any information disclosed will be treated with confidentially.

Your Co-operation will be highly appreciated.

Yours Sincerely,

Ugwu Njideka .W.

114

GROUP A

QUESTIONAIRE ON THE IMPACT OF SMALL SCALE FIRMS ON

INDUSTRIAL DEVELOPMENT OF ENUGU STATE

1. Sex

(a) Male (b) Female

2. Educational Qualifications

(a) Below 1st degree (b) 1st degree and above

3. Rank of respondents

(a) Junior staff (b) Senior staff

(c) Management staff

4. Age

(a) 25years – 40years (b) 40years and above

5. Organizations of Respondents _____________________

6. Do you think that there is need for establishment of SME in Enugu

State.

(a) Yes (b) No

7. What role do you think that government will play towards establishing,

assisting, promoting and stabilizing SME to unlock value claim

approach in our economy?

(a) By ensuring that the prospective SME meets the established

standard for registration and operation

(b) By ensuring that the tax levy on SME are significantly minimal

(c) By providing technical advice for the existing SMEs

(d) By providing funds.

8a. Do you think that most of these SMEs are properly managed?

(a) Yes (b) No

115

9. What are the factors responsible for retarded growth and development `

of small and medium scale enterprises in Enugu State?

(i) Mal-administration

(ii) Political instability

(iii) Poor / diversion of funds for SMEs

(iv) Lack of information Networks

(v) Legal constraints

(vi) Poor infrastructure

Question 10a



(a) Positive (b) Negative

Question 10b

If positive in question 10a, how?

(a) Creation of Self Development and Specialization

(b) Adoption of timely and useful information

(c) Enhancement of usage of modern technology

(d) Enhancement of socially responsible project

(e) Large capital formation

Question 11a

Do you think that government and its agencies are funding small scale firms

adequately in relation to its promises and policies as to industrializing the

nation through small scale firms?

(a) Yes (b) No

116

Question 11b

If No, what are the factors instrumental to its (government) failure?

(a) Infectiveness of impel

(b) Lack of respect for rule of law

(c) Lack of Staff training

(d) Lack of accountability

(e) All of the above

Question 12a


operate conducive and favourable for them?

(a) Yes (b) No

Question 12b

If Yes, how?

(a) By giving them technical support

(b) By taxing healthy, the industrialized firms

(c) By giving them financial assistance

(d) By enacting laws that protect the invest of SMEs

(e) By encouraging the SMEs to provide the product that does not require

highly sophisticated technology for production.

Question 13a

Do you think that the establishment of SMEs helps in managing waster


(a) Yes (b) No

117

Question 13b

If yes, how?

(a) By using the waste of industrialized firms for further economic usage.

(b) By engaging the services of individuals who may not have been

employed if there had not been such SME

Question 14a

Do you think that individual SMEs operators contribute towards promoting

government policy to achieve value chain approach in establishing and

sustaining SME?

(a) Yes (b) No

Question 14b

If Yes, how?

(a) By abiding to the rule

(b) By flawing the rules

(c) By attending workshops and seminars organized by government and

donor agencies.

(d) By employing the unemployed

118

GROUP B

QUESTIONAIRE ON THE IMPACT OF SMALL SCALE FIRMS ON

INDUSTRIAL DEVELOPMENT OF ENUGU STATE

Question 1

Sex of Respondents

(a) Male (b) Female

Question 2

Educational Qualification

(a) Below first degree (b) First Degree and above

Question 3

Rank of respondents

(a) Junior staff (b) Senior Staff (c) Management staff

Question 4

Age of Respondents

(a) Below 25 years (b) 25 years and 40 years

(c) 40 years and above

Question 5

Name of the Organization

(a) Aqua Rapha (b) Juhel (c) Chiemek’s bread

(d) Palm Kernel (e) Alo Aluminium

(f) Winners block (g) Key paints

119

Question 6

What type of business are you into?

(a) Industrial (b) Agriculture

Question 7

When was it established?

(a) Pre-civil war (b) Post-civil way

Question 8

From what sources do you raise fund for registration, establishment and

subsequent operation of your business?

(a) Personal savings (b) Friends / Relatives

(c) Cooperative Society (d) Bank loans

(d) Donor agencies

Question 9

Where do your source of materials from?

(a) Locally (b) Internationally (c) All of the above

Question 10

What are the problems encountered at the course of sourcing your materials?

(a) Insufficient of fund (b) High cost of materials

(c) Transportation problems (d) Inaccessibility

(e) Insufficiency of materials (f) Custom duties

120

Question 11A

Do you think that government and its agencies are assisting small scale firms

as adequately as being pronounced by government agencies to unlock value

chain approach?

(a) Yes (b) No

Question 11B

If No, what do you think is the cause of such poor assistance.

(a) Staff legal conditions (b) Lack of technical advice

(c) Lack of fund provision (e) Huge tax levy

Question 12

Is the environment in which your business is situated conducive for its

operation?

(a) Yes (b) No

Question 13

Are there enough infrastructural facilities on ground for use by your

business?

(a) Yes (b) No

Question 14

What are the hindrances encountered towards the development of your

business?

(a) Lack of information (b) Poor infrastructure

(c) Insufficient fund (d) Lack of austereness

(e) Illiteracy

121

Question 15a

Do you think that with the existence of SMEs in your loans, that waste

management can be enhanced.

(a) Yes (b) No

Question 15b

If Yes, how?

(a) Further usage of cleanliness that would not have been possible without

the existence of SMEs.

(b) By encouraging the usage of by-product.

Question 16

What in your own understanding do you think is the effect of SME to the


(a) Positive (b) Negative

Question 17

What role to do think individual SMEs play towards promoting government

policy to achieve value chain approach in establishing and sustaining SMEs

in Enugu State.

(a) Abiding to the established rules

(b) Employing the unemployed

(c) Attending seminars and workshops organized by government and

donor agencies

(d) Being educated

Question 18a

Have your firm applied for government loan before?

(a) Yes (b) No

122

Question 18b

If Yes, did you get it?

(a) Yes (b) No

Question 18c

If No, why?

(a) I did not meet the standard

(b) Because of bureaucracy

(c) Insufficient fund

Question 18d

1f 18b is Yes, did you get the full amount applied for.

(a) Yes (b) No

Question 19a

Did you get the loan when it was actually needed.

(a) Yes (b) No

Question 19b

If No, Why?

(a) Bureaucracy (b) Insufficient of fund

(c) Change of government

Question 20

Did you pledge any collateral security for the amount obtained?

(a) Yes (b) No

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