An Empirical Examination Of The Effect Of Small And Medium Scale Development On Youth Empowerment

An Empirical Examination Of The Effect Of Small And Medium Scale Development On Youth Empowerment
Abstract
This study was carried out to to examine the effect of small and medium scale development on youth empowerment using in Kaduna Metropolis as a case study. The study was specifically carried out to determine whether there is a significant relationship between SMEs and youth empowerment, determine the contributions of SMEs on youth empowerment in Kaduna Metropolis, and ascertain the factors affecting SMEs in Kaduna Metropolis. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprises of owners of selected SMEs in Kaduna Metropolis. In determining the sample size, the researcher conveniently selected 147 respondents while 141 were received and validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using mean scores. While the hypotheses were tested using Pearson correlation statistical tool, SPSS v23. The result of the findings reveals that there is a significant relationship between SMEs and youth empowerment. The findings also revealed that the contributions of SMEs on youth empowerment in Kaduna Metropolis includes: promotes skill acquisition, creates self-employment opportunities, creates white collar jobs for the youths, improves wealth circulation, generates manual job opportunities. The study recommends that the state government and private organizations (empowerment organizers) need to create an environment where youth empowerment beneficiaries can identify business opportunities. This will improve their performance by improving business sustainability. Start-up sustainability can be attributed to quick and effective decision making on business opportunity recognition. Nigerian youths need to be empowered to manage and pilot the affairs of a business successfully, this will reduce the rate of crime in Nigeria. To mention but few.
Table of Content
- Title Page
- Certification
- Dedication
- Acknowledgement
- Table of Content
- List of Tables
- Abstract
Chapter One:
Introduction
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objective of the Study
- 1.4 Research Questions
- 1.5 Research Hypothesis
- 1.6 Significance of the Study
- 1.7 Scope of the Study
- 1.8 Limitation of the Study
- 1.9 Definition of Terms
- 1.10 Organisations of the Study
Chapter Two:
Review of Literature
- 2.1 Conceptual Framework
- 2.2 Theoretical Framework
- 2.3 Empirical Review
Chapter Three:
Research Methodology
- 3.1 Research Design
- 3.2 Population of the Study
- 3.3 Sample Size Determination
- 3.4 Sample Size Selection Technique and Procedure
- 3.5 Research Instrument and Administration
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Validity of the Study
- 3.9 Reliability of the Study
- 3.10 Ethical Consideration
Chapter Four:
Data Presentation and Analysis
- 4.1 Data Presentation
- 4.2 Analysis of Data
- 4.3 Answering Research Questions
- 4.4 Test of Hypotheses
Chapter Five:
Summary, Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
- References
- APPENDIX
- QUESTIONNAIRE
Chapter One
Introduction
1.1 Background to the Study
Small and Medium Scale Enterprises are sub-sectors of the industrial sector which play crucial roles in industrial development (Ahmed, S. 2006). Following the adoption of Economic reform programme in Nigeria in 1981, there have been several decisions to switch from capital intensive and large scale industrial projects which was based on the philosophy of import development to Small and Medium Scale Enterprises which have better prospects for developing domestic economy, thereby generating the required goods and services that will propel the economy of Nigeria towards development. It is base on this premise that Ojo O. (2009), argued that one of the responses to the challenges of development in developing countries particularly, in Nigeria, is the encouragement of entrepreneurial development scheme. Despite the abundant natural resources, the country still finds it very difficult to discover her developmental bearing since independence. Quality and adequate infrastructural provision has remained a nightmare, the real sector among others have witnessed downward performance while unemployment rate is on the increase. Most of the poor and unemployed Nigerians in order to better their lots have resorted to the establishment of their own businesses. Consequently, Entrepreneurship is fast becoming a household name in Nigeria. This is as a result of the fact that the so called white collar jobs that people clamor for are no longer there. Even, the touted sectors (Banks and companies) known to be the largest employer of labour are on the down-turn following the consolidation crisis and fraudulent practice of the high and mighty in the banking sector. The companies of course are folding up as a result of erratic power supply, insecurity and persistent increase in interest rate which has lead to high cost of production and undermines profit making potentials of companies operating in Nigeria. As a result of banking sector practices and continuous folding up of companies, a lot of Nigerians are thrown into unemployment which inevitably detriment the economic situation of the country.
Since the office jobs that people desire are no longer there for the teeming population, and few ones that succeeded in getting the jobs are thrown out as a result of the factors identified above, the need for the government and the people to have a rethink on the way-out of this mess became imperative. Hence, the need for Small and Medium Scale Enterprises (SMEs) became a reality as a means of ensuring self-independent, employment creation, import substitution, effective and efficient utilization of local raw materials and contribution to the economic development of our dear nation (Nigeria). All the aforestated benefits of Small and Medium Scale Enterprises cannot be achieved without the direct intervention of the government and financial institutions. Over the years, a number of policies have been formulated by the government with a view to developing Small and Medium Scale Enterprises. The Nigerian government under the then leadership of Chief Olusegun Obasanjo promulgated micro-finance policy and other regulatory and supervisory framework in 2005. The research will therefore examine the impact of small and medium enterprise development on youth empowerment in Kaduna metropolis.
1.2 Statement of the Problem
There has been stunted growths and sluggish development in the small and medium enterprises (SMEs) regardless of increasing targeted government assistance streamlined to benefit firms operating in this sector. There were several policies in the past which gave priorities to entrepreneurship development, indicating the trust in government policy in support of SMEs. The government of Nigeria identified entrepreneurship development as a major thrust to achieve economic development through SMEs growth and development.
This made Nigerian government both at National and State as well as local government to prioritize small and medium enterprises development initiatives by. As such the prioritization of the small and medium scale by government at different level is echoed in almost every policy document.
For example in the industrial development policy in vision 2020, the Nigeria aim is to promote and support small and medium enterprise as they are viewed as an important engine for employment creation and economic growth. Although the government of Nigeria has been advancing targeted support in marketing, management and finance and worse still others collapsed. Egbe (2004) in this regard rated Nigeria as having one of the lowest small and medium scale sector’s share of employment in the world, when “250 employees” was considered the yard stick in the definition of small and medium scale enterprise. Targeted government assistance has been observed to play a pivotal role in starting, growing and medium scale enterprise in Nigeria, (Beck, 2005; Zainab, 2008; Herbert 2008 and Atino, 2001). Although some entrepreneurs in SMEs have received both financial and non financial assistance, many are still small or are facing viability problems. In Nigeria, the SMEs sector is facing to contribute meaningfully to the national economy as was experienced elsewhere when governments advanced target support. Targeted government support to SMEs was found to translate into economic development in countries like Indonesia where SMEs accounted for 98% of employment creation and growth with Japan and Thailand having their SMEs contributing 81% and 78% to gross domestic product (GDP) (Okoh, 2009).
This contrast has promoted the researcher to carryout a study to investigate the impact of small and medium scale enterprise on youth empowerment in Kaduna. As well as to find out the forms of government support render to small and medium scale enterprises in Kaduna.
1.3 Objective of the Study
The central objective of the study is to examine the effect of small and medium scale enterprises development on youth empowerment in Kaduna Metropolis. The specific objectives are:
- Determine whether there is a significant relationship between SMEs and youth empowerment.
- Determine the contributions of SMEs on youth empowerment in Kaduna Metropolis.
- Ascertain the factors affecting SMEs in Kaduna Metropolis.
1.4 Research Questions
In order to effectively investigate the problem of this research, the researcher formulated the following research questions:
- Is there a significant relationship between SMEs and youth empowerment?
- What are the contributions of SMEs on youth empowerment in Kaduna Metropolis?
- What are the factors affecting SMEs in Kaduna Metropolis?
1.5 Research Hypothesis
- H0: There is no significance relationship between SMEs development and youth empowerment.
- Ha: There is significant relationship between SMEs development and youth empowerment.
1.6 Significance of the Study
The study will be beneficial to entrepreneurship development; as such Kaduna state government can utilize the findings of the research as a basis for policy formulation as regard entrepreneurship development.
The study will also contribute to the existing knowledge on entrepreneurship development.
It is also worthy to note that the study can be use as a basis for further research, as the research can be use as a spring board for further research as well as a good reference material to students undertaking similar research.
1.7 Scope of the Study
The study is generally narrowed to examine the effect of small and medium scale development on youth empowerment. Hence the study is delimited to Kaduna metropolis.
1.8 Limitation of the Study
The study is limited to Kaduna metropolis, as it will be difficult to cover other part of the state due to the duration of this study.
For the fact that a survey study was used as the research design as well as the questionnaire as the research instrument, it is not certain if the same result would be obtained if other designs and instruments were used. Besides, another limitation is that the respondents could have either over exaggerated or understate their responses while scoring the items in the questionnaire. Also the nonchalant attitude of some of the respondents could affect the validity of their response to the questionnaire. This limitation should be taking cognizance of other researches conducting similar studies.
1.9 Definition of Terms
Entrepreneurship:
Is an innovative act, which includes endowing existing resources for new wealth – producing capacity (Afonja, B. 1999).
Entrepreneur:
An individual that identifies develops and brings vision to life under – condition of risk and a considerable uncertainty (Bashar, O. 2005)
Entrepreneurial Characteristic:
These are traits that make an individual an entrepreneur (Tonga, R. 2009).
Business Performance:
The success or failure of an enterprise (Tonga, R. 2009).
1.10 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows.
- Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
- Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
- Chapter three deals on the research design and methodology adopted in the study.
- Chapter four concentrate on the data collection and analysis and presentation of finding.
- Chapter five gives summary, conclusion, and recommendations made of the study.
Chapter Five
Summary, Conclusions and Recommendations:
5.1 Introduction
This chapter summarizes the findings on the effect of small and medium scale development on youth empowerment using in Kaduna Metropolis as a case study. The chapter consists of summary of the study, conclusions, and recommendations.
5.2 Summary of the Study
In this study, our focus was to examine the effect of small and medium scale development on youth empowerment using in Kaduna Metropolis as a case study. The study was specifically carried out to determine whether there is a significant relationship between SMEs and youth empowerment, determine the contributions of SMEs on youth empowerment in Kaduna Metropolis, and ascertain the factors affecting SMEs in Kaduna Metropolis.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 141 responses were validated from the enrolled participants where all respondent were owners of selected SMEs in Kaduna Metropolis.
5.3 Conclusions
Based on the findings of this study, the researcher concluded that;
- There is a significant relationship between SMEs and youth empowerment.
- The contributions of SMEs on youth empowerment in Kaduna Metropolis includes: promotes skill acquisition, creates self-employment opportunities, creates white collar jobs for the youths, improves wealth circulation, generates manual job opportunities.
- The factors affecting SMEs in Kaduna Metropolis includes: lack of fund, poor management practices and low entrepreneurial skill, corruption, lack of infrastructural facilities, shortage of skilled manpower.
5.4 Recommendations
Based on the findings of the study, the following recommendations are proffered.
- The state government and private organizations (empowerment organizers) need to create an environment where youth empowerment beneficiaries can identify business opportunities. This will improve their performance by improving business sustainability. Start-up sustainability can be attributed to quick and effective decision making on business opportunity recognition. Nigerian youths need to be empowered to manage and pilot the affairs of a business successfully, this will reduce the rate of crime in Nigeria.
- Government programmes should prepare a wide range of opportunities for youth’s empowerment for industrial development and nation building.
- Good policies and effective implementation will encourage good entrepreneurs which will create wealth, establish small scale and medium scale industries and increase the rate of youth empowerment for national harmony.
- There is the need for youth to strive toward skill acquisition because success and progress in the world of work and becoming self-employed, self-reliant is dependent on the amount of skills and abilities possessed.
- Government should encourage the growth of small business by giving them the necessary assistance as regards to fund raising and equally advice them on how to utilize it effectively.
- Government should as matter of urgency assist prospective entrepreneurs to have access to finance and necessary information relating to business opportunities, modern technology, raw materials, market, plant and machinery which would enable them to reduce their operating cost and be more efficient to meet the market competitions.


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