MEDIUM SCALE BUSINESSES: ISSUES, CHALLENGES AND PROSPECTS. A RESEARCH PROJECT MATERIAL ON ENTREPRENEURSHIP
The research work aimed at examining the issues, challenges and prospects of the Nigerian Medium Scale Businesses. The main instrument used to generate data for the study was the questionnaire.
The key issues uncovered by the research study are that respondents agreed that medium scale enterprises have played a significant role in the Nigerian economy. Also most of the barriers to the growth of medium scale businesses include poor managerial skill, lack of feasibility studies, lack of timely information, inconsistent government policies and inadequate infrastructural facilities.
However, the findings of the study, the following recommendations are proffered. The Federal Government should provide enabling environment like the provision of infrastructures such as good roads, electricity supply, water to enable the operations of SMEs in Nigeria.
Bank officials should be mobilised to base investment on potential rather than security and collateral only. The nation’s government should guarantee both political and economic stability which will help in the growth of survival and expansion f medium scale enterprise.
Finally, Government regulations should be such that from time to time will not hinder the establishment of new and growth of existing small and medium scale enterprise in any part of the country.
1.0 BACKGROUND TO THE STUDY
Historical facts has show that prior to the late 19th century, cottage industries, mostly small and medium scale businesses controlled the economy of Europe. The industrial revolution changed the status quo and introduced mass production. The twin oil shocks during the 1970s undermined the mass production model, which triggered an unexpected reappraisal of the role and importance of small and medium sized enterprises in the global economy. Findings by economists over the years show that small firms and entrepreneurships play a much more important role in economy growth and development. (www.wiki.answer.com).