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PROJECT TOPIC SMALL AND MEDIUM RANGE ENTERPRISES DEVELOPMENT IN NIGERIA (A Case Study of Cassava Processing Industry) PROJECT PROPOSAL BACKGROUND TOWARDS THE STUDY Involvement in the development of small and medium-sized enterprises (SMEs) and the contribution in the development method continue to be inside the forefront of policy arguments in growing countries.
The benefits claimed pertaining to SMEs are various, including: the reassurance of entrepreneurship, the greater possibility that SMEs will utilise labour intensive technologies and therefore have an immediate impact on job generation, they can usually become established swiftly and put into operation to produce quick returns. SME expansion can motivate the process of the two inter- and intra-regional decentralisation, and, they could well become a countervailing push against the economic power of bigger enterprises.
More usually the development of SMEs is seen as increasing the achievements of wider economic and socio-economic objectives, including lower income alleviation. Staley and Morse (1965) discover a ‘developmental approach’ to SME promo which has as the objective the creation of ‘economically viable enterprises which can stand automatically feet devoid of perpetual subsidy and can make a positive contribution to the regarding real salary and therefore to better living levels’.
This approach emphasises the importance of efficiency in new SMEs. Small suppliers must be prompted to adopt new methods, transfer to new lines of creation and in the long-run, anywhere feasible, they must be encouraged for being medium- or perhaps large-scale manufacturers. The usa president Initiative on Cassava Production and Export has increased the awareness amongst Nigerians with the industrial plant, popularly known as the ‘new black gold’.
Started in This summer 2004, the initiative tries to generate $5 billion in export income. Fortunately, Nigeria, according to the Foodstuff and Agricultural Organisation, FAO, in its 2005 report, happens to be the largest manufacturer of cassava in the world in 34 million tons annual, but with a poor yield of your average of 10 tons per acres over around cultivated land size of three million hectares.
Nigeria can be closely followed by Brazil and Thailand, which may have a ability to produce twenty-four million plenty and 20 million loads and a yield of 13. 6th tons per hectare and 19. 5 tons every hectare correspondingly. Unfortunately, authorities at the Intercontinental Institute intended for Tropical Farming, IITA, Ibadan, Oyo State, believe that about half of the farmed cassava can be wasted by simply production and post-harvest issues while the others is consumed as meals.
Brazil and Thailand, which rarely ingest the cassava products immediately, have totally developed the cassava sector for the export industry. | | Nigeria should not focus on the exportation of cassava yet develop the large local and regional market segments for cassava that exist in the country, West Africa sub-region and Africa as a whole rather than start exporting the commercial raw materials to The european union. Nigerians must be encouraged to add value and process them for professional application.
The key thrust with this research work shall focus on the introduction of small and moderate scale enterprises in the cassava processing industry justifying the need for agro-processing industries that convert cassava clean tubers into primary cassava-based commodities which have been tradable in domestic and international markets. STATEMENT OF THE RESEARCH ISSUE The Small Level Industry is definitely acknowledged to acquire huge likelihood of employment era and prosperity creation in just about any economy. But in Nigeria, the sector has stagnated and is still relatively little in terms of it is contribution to GDP or to gainful work.
Activity blend the sector is also quite limited ” dominated by import centered processes and factors. Although there is no trusted data, imprecise indicators present that capacity utilization in the sector features improved perceptibly in the period since 1999, but the sector is still faced with a number of limitations with not enough credit availability as the main constraint. Credit is the major element of risk in the ebooks of most banking companies and failures in the managing of credit risk include led to the weakening individual banks and in some cases the financial system all together, have contributed, to many shows of financial instability.
OBJECTIVES WITH THE STUDY The key purpose of this study is usually to identify and consequently analyze the very best and useful way whereby small scale corporations could be borrowed and promoted, thereby taking into account various circumstances such as financial, political, sociable, psychological elizabeth. t. c under which small-scale businesses are encouraged to work with particular reference to the cassava control industry in Nigeria. By doing this, the specialist intends presenting an in-depth information and examination on the various strategies whereby small-scale businesses can be designed and urged.
In view of the above, the specialist intends to find out the following: (i) The position played simply by government to promotion and development of small-scale enterprises in Nigeria. (ii) To identify the economic potential of minor enterprises inside the cassava digesting industry. (iii) To identify the constraints dealing with the development of minor enterprises inside the cassava processing industry in Nigeria. (iv) To examine the financial support given to SMEs in Nigeria. RESEARCH CONCERNS The study would examine the subsequent questions: 1 )
What function does the federal government play in the campaign and development of small-scale enterprises in the cassava processing market in Nigeria? 2 . What impact do small and method scale corporations make to Nigeria’s monetary growth? a few. What are the constraints facing the development of minor enterprises inside the cassava control industry in Nigeria? 4. What is the trend of the monetary support directed at SMEs in Nigeria? ANALYSIS METHODOLOGY AND SOURCES OF DATA The two primary research ways to be used are survey research and content analysis.
Study research technique is used to analyze variables and their relationship as related to individual observation and opinions of the experience as it concerns this issue matter of research. Interview plans shall be put on some employees while the questionnaire schedule should be applied to a few small-scale internet marketers. The data, which would be collected from the questionnaire, will be analysed using the straightforward percentage technique and chi-square, goodness of fit. This will likely make the examination of the data more exact and simple. RANGE AND LIMITATIONS OF RESEARCH This exploration covers the spot of promoting small and channel scale companies n the cassava processing industry, taking note of the function of the government and other external factors that can affect absolutely the development of small , medium range enterprises in Nigeria. The investigation intends to examine the essential challenges encountered by simply small and medium scale providers in the cassava processing market and advise ways in which they can be effectively and efficiently financed and promoted. VALUE OF THE ANALYZE Small and moderate scale companies in Africa rely typically on individual savings, not just in grow nevertheless also to innovate.
Companies often need real providers support and formal financial assistance, failing which under-investment in long term capabilities (training and L , D) may result, (Oyelaran, 2003). Besides finance, you will find critical components (including: knowledge, skills and experience of staff, capacity and quality of internal features, information and knowledge of industry, intellectual and managerial command, external facilities and the motivation system in the micro and macro levels) that are lacking within technology support corporations themselves.
These undermine the potency of their support to SMEs. This research is significant because it would help to evaluate the operations of any vital section of the professional sector ” small and method scale companies, which have been informed they have very high potential in promoting economical growth and development. The evaluation should be done with exceptional focus on the tiny and moderate operators inside the cassava finalizing industry in Nigeria thus adding to the existing literature about them matter.
SUMMARIZE OF CHAPTERS In Chapter one, which is the preliminary part, the background of the analyze, the statement of the study problem, the objectives with the study and the methodology to get adopted will be discussed. Phase two will certainly deal with the literature review. The technique analysis and theoretical platform shall be analyzed in chapter three.
Info presentation, evaluation and model will be covered in phase four even though the concluding section of the research work will be chapter five where the bottom line is the brief summary, the conclusion plus the recommendations will be discussed. REFERENCES Staley E. and Frein R. (1965) Modern Small-Scale Industry for Developing Countries. London: McGraw-Hill Publishing. Oyelaran O. (2003) Financing and Development of Small-sale industries in Nigeria. Central Bank of Nigeria Monetary and Economical Review. 24(4), December.
