ENEMS MICROSYSTEMS RESEARCH SPOT: THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN COMBATING HIGH RATE OF UNEMPLOYMENT IN THE F.C.T.

THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN COMBATING HIGH RATE OF UNEMPLOYMENT IN THE F.C.T.

(A CASE STUDY OF HAMDALLA SPECIAL BAKERY KUJE AREA OF F.C.T ABUJA)

ABSTRACT

The level of unemployment in Nigeria has reached an alarming rate. Efforts by various administrations at solving this problem have not been successful. The reason usually advanced for the lack of success, is the approach for the various administration to the problem. These administration feel that unemployment could be solve through the establishment of large-scale enterprises, however, due to the inability of the government to achieve it aim (reducing unemployment) by setting up large-scale enterprises. Emphasis is being shifted to encourage entrepreneurs to set up small and medium scale Enterprises. This research project aimed at identifying the important of small and medium scale enterprises, the problem of small and medium enterprise is the finance to small and medium scale enterprise and how to use small and medium scale enterprise to reduce unemployment rate in Nigeria.

CHAPTER ONE

INTRODUCTION

Employment has become a natural phenomenon due to the economic depression in the country. Nigeria is among few developing countries where wages and salaries are static, whole the price of goods and services as well as taxes continue to grow astronomically. Unemployment come to existence due to the economic background effect where many people are jobless.

Small and medium scale enterprises exist in order to curb the unemployment rate and gradually small and medium scale industries have developed. The develop countries to day their technological breath-through due to the establishment of small and medium scale enterprises, even the large scale enterprises, the world over, fund in advance and developing nations including Nigeria, stated as a small business and gradually became what they are to day. A good example in this direction is the NASCO group of company’s whose started them with one arm Northern Nigeria and consequently grew into a conglomerate of over four branches.

Therefore, as a result of development, small and medium scale enterprises serves as means of combating unemployment and many people that are formerly jobless are engaged in self employment business and, it is a fact that small and medium scale enterprises have contributed immensely in the economic growth of the FCT. The significance of small and medium enterprise include among others as highlighted below:

Creation of employment
Use of local resources.
Diversification of the economy and encouragement of rural development.
Improve saving investment.
Trading of un-skilled worker.

HISTORICAL BACKGROUND OF THE CASE STUDY

Hamdalla special bakery they specializes in baking bread, its factory is situated along secretarial road Kayarda, Kuje area council. The organization was established in 1997, it is a small business establishment owned by Alhaji Muhammadu Nurudeen with staff strength of 40. The bakery has its headquarters in Gwagwalada area council FCT Abuja. It as well has branches in other areas that has been functioning and living up to expectation in achieving it’s aims and objectives for which they were established. The Hamdalla special bakery was established to produce bread for consumption within it’s immediate environment, i.e. Kuje after which it started producing for other neighbouring towns and villages. The initial capital outlay of business was # 200,000(two hundred thousand naira only was contributed by the major owners Alhaji Mohammed Nurudeen.

Presently, the firm now also produces ceremonial cakes, for example weeding cake, birthday cakes, send-forth cakes and snacks and over like floor processing products. Since it’s commencement, the bakery has gone through positive and negative changes which has at the end strengthened it. Presently the management it Hamdalla special bakery intends to spend its tentacle into neighboring states around Abuja by supplying its products, due to high demand from people as a result of its high quality.

STATEMENT OF PROBLEM

In Nigeria and also thought the word the importance of small and medium enterprise cannot be over emphasized. The small and medium scale enterprise sub-sector is seriously affected by structural problem. These problems include how patronage, lack of constant lower supply, in adequate capital inadequate social amenities, lack of technical-know- how, and local market. These have hampered the development of small and medium scale enterprise in FCT.Abuja.

Another problem is the massive unemployment, rural urban migration and poverty and over dependence on foreign countries.

Increasing realization of any country is to be funded within small and medium scale enterprises of the country. The rational for educating small and medium scale industrialization is the capital requirement as small and medium. Therefore neither the rate of indigenous- entrepreneurs, small opportunities use local raw materials and how level of technology. They study will assess the role of small and medium industries contributing high rate of unemployment in FCT.it is desirable to document made problems and recommend possible solution that well lesson the structural problems.

1.3 OBJECTIVES OF THE STUDY

One of the main objectives of this research work is to expose the tremendous opportunity in setting a small and medium scale enterprise business. These opportunities are not evident to some people in our society which result in over reliance on the research for so-called white collar jobs, which had not solved unemployment problem.

Secondly, the objective lies in the provision of enabling environment such as electricity, good road and financial to encourage the small scale business in Nigeria.

More so, to help in the provision of employment opportunities, since unemployment become the tragedy of millions in Nigeria.

SCOPE OF THE STUDY

The scope of this study covered the role of small and medium scale enterprises on combating high rate of unemployment in FCT but special attention and reference is given to the Hamdalla special bakery kuje,Abuja which is sited along secretarial road kuje.

The bakery has its head quarters at Gwagwalada Area Council, f.c.t. Abuja. It as well has branches in other areas which are functional and living up to their expectation in achieving its aims and objectives for which they were established.

1.5 LIMITATION OF THE STUDY

In anything one is undertaking, he or she most encounters difficulties in the process.

Altitude of respondents: Some of the respondents in the bakery at kuje were not willing to discuss the true picture of the things to project writer under the preference of confidentiality about their work..
Deliberate refusal to attention: Where I was involved in face-to- face interview some of the employees deliberately refused to respond answers to certain questions where they did, they did not given the required information. Infact, others were instructed on what to say.
FINANCE: In every research work it need financial support for the printing of questionnaire traveling to and for the case study and some miscellaneous to be incurred.
TIME CONSTRAINTS: Research work has to be carried out and submitted within a special period of time, writer have to share her/his time among other activities. The time allocated to carry out the project may not be sufficient. Lastly, the accuracy of the information received cannot be guarantied as some useful information.

SIGNIFICANCE OF THE STUDY

This research work is undertaking in on attempt to identity the role of small and medium scale enterprises in fighting unemployment in the Abuja. The project will be a useful guide especially to those willingly to set up or who are already engage in it. The finding here will go a long way in fighting high rate of unemployment in FCT.

In addition, this study will enable the government to be in position to know what impact the small and medium scale enterprises development has in combating unemployment.

1.7. STATEMENT OF HYPOTHESIS

To effectively test evaluate the role of small and medium scale enterprises (S.M.ES) in combating high rate of unemployment in the Federal territory, two hypothesis is formed will be later located against validity in chapter four. These hypotheses include.

HYPOTHESIS 1

HO: Small and Medium scale enterprise are not important in creation of employment opportunity.

HI: Small and medium scale enterprises are important in the creation of employment opportunity.

HYPOTHESIS11

HO: Small and medium scale enterprise not does use relatively how-capital intensive method of production.

HI: Small and medium scale enterprise use relatively how capital intensive method of production.

DEFINITION OF TERMS

BUSINESS: can be defined as commercial activities that one engages itself to satisfy the society needs in order to obtain a profit.

BUSINESS PLAN; Is there a planning tool that spell out goals, strategies and objectives in a systematic and realistic manner.

CAPITAL: The amount invested in a business, may be in the form of debt or equity.

SMALL SCALE ENTERPRISES: Five panelist attending the nation reference on small and medium scale industry and development of Nigeria at the university of Ibadan between 22-25 Feb .1987 agreed that there was no universal definition of small-scale enterprise. According to federal ministry of industry defined small –scale enterprise as all manufacturing unit was a total unit, well a capital investment up to #60,000 and a employment up to fifty persons.

CURRENT OFFICIAL: Definition of small- scale enterprise as an increased of capital investment from #150,000 under the third national development plan to #250,000 without any reference to the number of people employed.

Industrial research centre of the Obafemi Awolowo university defined small-scale enterprise as business whose total assets in capital, equipment, plant and working capital are less than #50,000 and employs fewer men so full time workers. Page 119-120 Rantage Publishers Ibadan.

ENTREPRENEURSHIP: is term used to broadly or largely in connection well innovation and creative of modern industry business. Entrepreneurship can be defined as an action oriented highly motivated

ENTREPRENEURSHIP: Is often described as a man or people perceive business opportunity and take advantage of scare resource to use them most profitable way. However using the economic and managerial view point, it can be defined as the willingness and ability of an individual or group of persons to search for investment opportunity, establish and run a business unit successfully and it is an entrepreneur alone that bears all the risk and it is he who direct both human and material resources in the determination and attainments of business objectives.

UNEMPLOYMENT: Is a situation which arise when some member of labor force are willing to work but cannot set job, or can be defined as a situation whereby person or people living stranded without having something to do in order to carter for him self neither can he increase the standard of willing, finally unemployment is a state where working as are jobless.

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ENEMS MICROSYSTEMS RESEARCH SPOT

Thursday 16 March 2023

THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN COMBATING HIGH RATE OF UNEMPLOYMENT IN THE F.C.T.

THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN COMBATING HIGH RATE OF UNEMPLOYMENT IN THE F.C.T.

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