CHAPTER ONE

1.0 INTRODUCTION

The usefulness of statistical tools for analysis has become invaluable in recent years. Nowadays, it has become an indispensable tool of investigation and research in virtually every day of human activities. Most statistical analysis methods are concerned with making inference from the observed data.  That is, drawing valid conclusion using sample information.

1.1             BACKGROUND INFORMATION

The small and medium enterprises development of Nigeria (SMEDAN) is a major structure designed to provide institutional support for Small and Medium scale industries. It was established in Nigeria in 2003.

Responsibilities of SMEDAN

• Initiating and articulating ideas for SME’s policy thrust
• Overseeing, monitoring and co-coordinating the development of the SME sector.
•  Promoting and providing access to industrial infrastructure such as layouts.
•  Policy development.

The dearth and paucity of credible and reliable MSME database is one of the main constraints to evolving a strategic action plan towards an efficient and sustainable MSME sector.

This survey conducted by the Small and Medium Enterprise Development Agency Of Nigeria in collaboration with National Bureau Of Statistics covers business enterprises in Nigeria employing below 200 persons (Micro, Small and Medium Enterprises). The survey was conducted in all the 36 States of the Federation and the Federal Capital Territory, Abuja. The pre-test was conducted in Lagos and Kano states. For micro enterprises (employing 1-9 persons) data were canvassed through the National Integrated Survey of Household (NISH) Schedule. Also rural and urban areas where small (employing 10-49 persons) and medium (employing 50-199 persons) enterprises are located were covered through the National Integrated Survey of Establishment (NISE) Module.

Thirty Enumeration Areas comprising of 3 replicates in which each replicates contain 10 Enumeration Areas were selected per state and FCT, Abuja. These replicates are subsets of twenty (20) with each state of the Federation and FCT, Abuja having Ten micro enterprises which were systematically selected per Enumeration, Area making a total of 300 micro enterprises visited in each state and FCT, Abuja.

1.2             STATEMENT OF THE PROBLEM

The research question from the above experience is thus; with the enumerated benefits of SMEDAN, has it contributed significantly to the small and medium scale entrepreneurs across the 36 states? This is to checkmate their contribute to the economic growth in Nigeria?

1.3 OBJECTIVES OF THE STUDY.

The main objective of the study is to apply statistical techniques in examining the benefit of Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) on entrepreneurs across 36 states. This is in order to ascertain how small and medium scale enterprises have contributed using the available services which SMEDAN has made available with a view to achieve gradual formalization in the quest for National Economic growth. Meanwhile, the specific objectives are:

a. To determine the level of benefit from SMEDAN services across the Nigerian states.

b. To examine the effect of poor financing/monitoring of small and medium scale enterprises on the Nigerian State.

c. To suggest possible measures that will aid the growth of MSMEs in rural/urban areas.

1.4 STATEMENT OF HYPOTHESIS.

For the purpose of this study, the research developed the following hypothesis.

H0: There is no significant difference in the level of benefit from SMEDAN  services to entrepreneurs in the Nigerian states.

H1:  There is a significant difference in the level of benefit from SMEDAN  services to entrepreneurs in Nigerian states.  

1.5 SIGNIFICANCE OF THE STUDY

The significance of the study is to establish an extent of growth and development and to expose the immense benefit derivable from small and medium scale industries.

Also, this study will help to redress the belief of the society that small and medium scale industries can bring about economic and development in Nigeria.

1.6     SCOPE OF THE STUDY.

The study will broaden the knowledge of the researcher as well as contribute to the existing literature on the subject matter, by providing an expository analysis of the Small and Medium Enterprise Development Agency Of Nigeria (SMEDAN) and its benefit as a Government institution to the economic growth of Nigeria. This will in turn enhance policy formation in the country as well as address economic challenges of MSMEs in general.

It will also be an individual tool for students, academic institutions and individuals who wish to know more about the roles, contributions and benefits of SMEDAN on the Nigeria economy in the 36 states of the federation.  This project is not beyond the data collected from the National Bureau Of Statistics.

1.7     DEFINITION OF TERMS

SME           - Small and medium enterprise

SMEDAN   -Small and Medium Enterprise Development Agency of Nigeria

MSME        -Micro,hhhhhh Small and Medium Enterprise

NBS            -National Bureau of Statistics

NISH          -National Integrated Survey of Household

NISE           -National Integrated Survey of Establishment

EA              -Enumeration Area

SMIDA       -Small and Medium Industry Development Agency

NERFUND -National Economic Reconstruction Fund

NEXIM       -Nigerian Export Import Bank

BSCs          -Business Support Centres

BICs           -Business Information Centres

NOTAP      -National Office for Technology Acquisition Promotion

NEPC          -National Export Promotion Council