CHAPTER ONE INTRODUCTION
1.1. BACKGROUND OF THE STUDY
The performance and effectiveness of small scale electronic enterprises as an instrument of economic growth and development in Suleja, Niger State has long been under scrutiny. The low performance and inefficiency that characterized small and medium scale enterprises particularly in assessing its role on economic growth and development needs thorough examination. Despite government institutional and policies support to enhancing the capacity of small scale enterprises, the enterprises have fallen short of expectations. In the case of Nigeria, small scale electronic enterprises have performed at very abysmal level. This low performance of small scale electronic business has further exacerbated poverty, hunger and low standard of living of people in a country whose economics is ailing. The current challenges of finance, inadequate infrastructural activities have undermined the capacity of the economy and small scale electronic enterprises are seen as mechanism for intervention to addressing these long term problem of the economy. Small scale electronic Enterprises whether new or existing, often face certain challenges when they approach products providers for both enterprise fixed capital investment and market standards. The insufficient supply of microloans is a major issue, particularly where business creators are unemployed persons, women or form part of ethnic minorities with different cultural dependencies. Supporting the supply of microloans is therefore not only an issue of entrepreneurship and economic growth, but also of social inclusion (Karatas et al., 2008). The challenges of small scale electronic enterprises in Nigeria are tied to some economic variables and the challenges that generally characterized the nation’s economy. Some of the challenges and problems include lack of finance, high poverty incidence, high level of unemployment, low industrialization capacity, inadequate infrastructure, insecurity of the business climate and inconsistent government policies among others. Nevertheless, the internal characteristics of small scale electronic enterprises too have also interact with some economic variables to undermine the capacity of the economy of Niger state. Issues like poor management practice, low level of entrepreneurial skills, lack of information and inadequate equity capital among other problems. Small and medium scale enterprises (SMEs) are largely viewed as the engine wire of any nation’s economic growth and they are regarded as justifiable means that propel development globally. S
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