Profitability

In: Business and Management

Submitted By damrith
Words 3512
Pages 15
BARRIERS CONFRONTING THE DEVELOPMENT OF SMALL AND MEDIUM INDUSTRIES IN NIGERIA

BY

YEOSUF .A. ABDULRASAQ

BEING

A SEMINAL PAPER PRESENTED AT 3RD ANNUAL NATIONAL BUSINESS CONFERENCE OF SCHOOL OF BUSINESS STUDIES, FEDERAL POLYTECHNIC, NASARAWA. NASARAWA STATE BETWEEN 21ST AND 23RD APRIL, 2010.

ABSTRACT This paper identified the barriers confronting the growth and development of SMIs in Nigeria. An analysis of 150 SMIs, using chi-square technique and percentages, indicates that formal barriers and informal barriers form the most significant barriers for SMI businesses. The environmental barriers were secondary in significance. The government should provided enabling environment for the SMI to grow and develop such as good road, electricity supply, good provision of funds at low interest rate, Reduction in tax and finally, the SMI. Operators should form a support networks among themselves, in term of needs.

INTRODUCTION
Small and medium Industries (SMIs) have been widely acknowledge as a major divers of economic growth. In most of the developed country, SMIs accounted for 90% of all business enterprises. In china, SMIs are said to be responsible for about 60 percent of the industrial output and employed about 75 percent of the workforce in the urban centres.
In spite of all the efforts and support of the succeeding administrations and governments to the developments of SMIs in Nigeria, the SMIs have not played the expected role in the economic growth and development in this country. The manufacturing companies which are sub-section of the SMIs contributed only 6.7 percent to Gross domestic product (GDP) in 2008 and Industrial capacity utilization dropped to 48.8 percent in the same year. SMIs is an essential element in shaping the economy of any country and for the federal Government to…...

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