Assessment of the Contributions of Small Scale Enterprises to the Development of the Nigerian Economy

Abstract

This research examines the contributions of small scale enterprises to the development of the Nigerian economy using Polytechnic Energy Product (PEP) Ventures, Federal Polytechnic, Idah, Kogi State as case study. The main focus of the study is to assess the contributions of small scale businesses to the development of Nigerian economy. To carry out this study effectively, two hypotheses were formulated and data collected through primary and secondary sources, the primary data were collected through questionnaire and personal interview while the secondary data were collected from journals, text books and other relevant literature materials. Samples of twenty (20) respondents were drawn from the staff of PEP Ventures, Federal Polytechnic Idah. The data collected from the respondents were presented using tables and analyzed with the aid of simple percentages (%) and the hypotheses tested using Chi-square (X²) statistical tool. From the analysis of the study, the findings revealed that effective management of small scale enterprises enhances the development of Nigerian economy. It was also revealed that the financial challenges faced by small scale businesses affect their contribution to the development of Nigerian economy. Based on the findings, the study recommends government should provide friendly business environment in terms of adequate infrastructural facilities, good road network, efficient telecommunication system and uninterrupted power supply to encourage existing and would be small scale business to float their businesses effectively. Finally, business firms should develop and implement policies and strategies that will enable them strive and compete favourably in carrying out their business activities effectively.