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The Challenges of Small and Medium Enterprises Based on Vision 20:2020

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The Challenges of Small and Medium Enterprises Based on Vision 20:2020.

ABSTRACT

Nigeria Vision 20:2020 Economic Transformation Blueprint is a long-range plan that aims at launching Nigeria in the league of the top twenty developed economies of the world by the year 2020. However, the SME sub-sector has been identified by government and development experts as the main engine of economic transformation. This is because the SME’s contribution towards economic growth and development is numerous and multifaceted.

An active SME sub-sector is the principal means by which a society stimulates indigenous entrepreneurship, generates employment, wealth creation, poverty reduction, and promotes the material well-being of its populace. SMEs in Nigeria have been constrained by a number of factors.

Consequently, this study has its objective to determine the challenges facing the Small and Medium Enterprises and the effects of these challenges in achieving Vision 20:2020. The researcher used the survey research design. Data were collected mainly from the primary sources.

Questionnaires were administered to 70 respondents (the management staff of SMEs in the manufacturing sub-sector that are members of MAN). Census was used for the study since the entire population of the management staff of SMEs (70) was small. Data were presented using tables. A non-parametric inferential statistic known as chi-square was used to test the hypotheses.

The study showed that there is a huge gap in infrastructures (power supply, roads networks, good healthcare delivery, ICT), poor access to finance, and insufficient commitment to capacity building.

It recommended that in pursuit of Vision 20:2020, both government and SMEs have important roles to play such as; intensive commitment should be made now more than ever by all levels of Government towards the provision of adequate basic and technological infrastructures in the area of power supply, roads, healthcare, ICT. SMEs should be committed towards acquiring entrepreneurial skills and staff training.

TABLE OF CONTENTS

Cover Page ……………………………………………………….. ……i
Title Page …………………………………………………………. ……ii
Certification ………………………………………………………. ……iii
Approval Page …………………………………………………….. …..iv
Dedication ………………………………………………………….. …..v
Acknowledgments…………………………………………………….vi
Abstract ……………………………………………………………. ……vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study………………………………………..1
1.2 Statement of the Problem ………………………………………5
1.3 Objectives of the Study ………………………………………….8
1.4 Research Questions ……………………………………………..9
1.5 Hypotheses ……………………………………………………….9
1.6 Significance of the Study ……………………………………….10
1.7 Scope of the Study ………………………………………………13
1.8 Limitations of the Study …………………………………………14
1.9 Definition of Terms ………………………………………………15
References………………………………………………………..20

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Introduction ……………………………………………………….22
2.2 Conceptual framework ………………………………….……….24
2.3 Vision 20:2020…………………………………………..……..….26
2.3.1 Objectives of Vision 20: 2020 ………………………………..….29
2.4 Definition and Concept of Small and Medium Enterprises (SMEs) in Nigeria 36
2.4.1 Features of SMEs……43
2.5 Nigerian Economic Development Plans (Past and Present)…44
2.6 The Roles of SMEs in Achieving Vision 20: 2020 …………….51
2.7 The Challenges of SMEs in Achieving the Vision 20: 2020 ….54
2.7.1 Poor and Inadequate Infrastructure: Power and Transportation Facilities …………59
2.7.2 Poor Market Information and Lack of MarketAccess…………62
2.7.3 Harsh Business Operating Environment Resulting in High Cost
of Doing Business and Unfair Competition from Imported
Goods ………………………………………………………………63
2.7.4 Non Access to Medium and Long Term Credit Facilities …….68
2.7.5 Inadequate Government Support………………………………..69
2.8 Summary…………………………………………………………..72
References…………………………………………………………77

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction ………………………………….…………………….81
3.2 Area of the Study………………………………………………….81
3.3 Research Design………………………………………………….81
3.4 Sources of Data …………………………………………………..82
3.4.1 Primary Source …………………………………………………..82
3.5 Pilot Survey ……………………………………………………….83
3.6 Population of the Study ………………………………………….83
3.7 Sample Size Determination ……………………………………..85
3.8 Instruments for Data Collection………………………………….85
3.9 Instrument Validation and Reliability……………………………85
3.10 Data Presentations and Analysis Techniques…………………87
References ………………………………………………………88

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Introduction………………………………………………………..89
4.2 Data Presentation…………………………………………………90
4.3 Test of Hypotheses………………………………………………107

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS

5.1 Introduction……………………………………………………….115
5.2 Summary of Findings…………………………………………..115
5.3 Conclusion………………………………………………………117
5.4 Recommendations……………………………………………..119
Bibliography……………………………………………………..122
Appendix A: Questionnaire……………………………….127
Appendix B: Reliability Result……………………………132

INTRODUCTION

1.1 Background of the Study

The vision 20:2020 policy was articulated during the Olusegun Obasanjo administration (1999 – 2007) to make Nigeria one of the twenty largest economies in the world by the year 2020. At the inception of this policy, it was argued that the Nigerian government had no intention, strategy, and execution capacity to make Nigeria one of the largest economies by 2020.

On assumption of office in May 2009, the  Yar’Adua administration set up the National Council on Vision 20:2020 to develop a blue print for the vision 20: 2020 in collaboration with the National Planning Commission. In November 2009, the Nigerian Vision 20:2020 Economic Transformation Blueprint for Nigeria was released to the public (Igbuzor, 2010:1). The SMEs sector has been identified as one of the critical elements to achieving the Nigerian vision 20: 2020.

This is because a nurtured and well-structured SME sector can contribute significantly to employment generation, wealth creation, poverty reduction, and sustainable economic growth and development. This is in line with the vision for the SMEs sector which is “To be the engine of economic growth, drivers of sustainable industrial development and a global competitiveness”.

BIBLIOGRAPHY

Abdullahi S. (2008) “A Reflection on Nigeria Vision 20:2020: Toward Building a Culture of Continuous Improvement”, www.Nigeriansinamerica.com
Adebayo, E. (2003)’’ Marketing and Vision 20:2020 Nigeria’’. www.mk/andv.2020.com.
Adediran, A. (1997) Marketing: Fundamental Principles and Practice. Fola Associates Ibadan
Adenekan,  S   (2011)  ‘’SMEs,  Critical   to   achieving           Vision 20:2020’’ www.cenbank.org
Afolabi:  F.O   (2008)  “Vision  20:2020  and  the      Millennium Development Goals”: The Guardian April 28 www.v2020.mdgs.com

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