| Content |
TABLE OF CONTENTS
Title Page
Declaration
Approval
Dedication
Acknowledgement
Abstract
Table of Contents
CHAPTER ONE:
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Significance of the study
1.5 Research questions
1.6 Statement of hypothesis
1.7 Delimitation / scope of the study
1.8 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
2.1 Historical perspective of research area
2.2 Conceptual definition of entrepreneurship
2.3 Concept of entrepreneurship and entrepreneur
2.4 The process of entrepreneurship
2.5 Concept of development
2.6 Meaning of entrepreneurship development
2.7 Factors influencing entrepreneurship development in the 21st century
2.8 Characteristics and skills of an entrepreneur
2.8.1 Entrepreneurial characteristics
2.8.2 Entrepreneurial skills
2.8.3 What is entrepreneurial spirit
2.9 Dynamics of the brain as the seat of entrepreneurial empowerment
2.10 Functions of entrepreneurship
2.11 Benefits of entrepreneurship
2.12 Factors determining the extent of entrepreneurship
2.13 Factors influencing the development of the individual entrepreneur
2.14 The role of marketing in entrepreneurship development in Nigeria
2.15 Challenges of entrepreneurship development in Nigeria
2.16 The role of entrepreneurship in the development of enterprises
2.17 The role of government towards entrepreneurship development in Nigeria
2.18 The role of entrepreneurship in economic development
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
3.1 Area of study
3.2 Research design
3.3 Justification for its adoption
3.4 Population of the study
3.5 Sample size and sampling techniques
3.6 Justification for sampling section
3.7 Methods of data collection
3.8 Instruments used in data collection
3.9 Method used in presentation and analysis of data collected Data analysis techniques
3.10 Limitations
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.0 Introduction
4.1 Respondents characteristics and classification
4.2 Presentation and analysis of data
4.3 Answer to research questions and or test hypothesis
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
5.1 Summary
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendixes
| This work evolved out of the need to provide an in-depth understanding of the economics of debt in Nigeria. This study aims at analysing the effectiveness of external debt on economic growth within a span of 1981-2010. The broad objective of this work is specified to evaluate the impact of external debt stock and debt servicing on economic growth. In all the models were to show the growth relationship between the independent variables-inflation rate, exchange rate, interest rate, external debt stock and external debt service and the dependent variable-gross domestic product (GDP). The data were collected from CBN Statistical Bulletin 2010 and the Debt Management Office (DMO) quarterly report. The Engle & Grenger Cointegration and Ordinary Least Square (OLS) were employed in the cause of this study. The Augmented Dickey Fuller test (ADF) shows that the variables are stationary and reliable for forecasting. The choice of OLS is most appropriate for the study in terms of goodness of fit and significance of regression coefficients. The result of the analyses showed that rising external debt stock inhibits the pace of economic growth of Nigeria by increasing the cost of its servicing beyond the debt sustainability limit while external debt servicing was found not to impair economic growth. Summary and policy recommendations were presented in line with our stated objectives and facts then conclusions were made. It was found that external debt stock rises rapidly due to accrued compound interest and loans were secured for dubious projects. Part of the policy recommendations were that Nigeria should increase its export base by investing borrowed funds in productive ventures and she should also seek fixed interest payment varying amortization schemes and multi-year rescheduling. | CHAPTER ONE
This research is on the impact of capital market on the economic growth of Nigeria. The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth because of its ability to facilitate and mobilize saving and investment. To a great extent, the positive relationship between capital accumulation real economic growths has long affirmed in economic theories (Anyanwu, 1993).
Success in capital accumulation and mobilization for development varies among nations, but it is largely dependent on domestic savings and inflows of foreign capital. Therefore, to arrest the menace of the current economic downturn, effort must be geared towards effective resources mobilization. It is in realization of this that consideration is given to measure for the development of capital market as an institution for the mobilization of finance from the surplus sectors to the deficit sectors.
The development of capital market in Nigeria, as in other developing countries has been induced by the government. Though prior to the establishment of stock market in Nigeria, there existed some less formal market arrangements for the operation of capital market. It was not prominent until the visit of Mr. J. B. Lobynesion in 1959, on the invitation of the Federal government, to advice on the role the Central Bank could play in the development of local money and capital market. As a follow-up to this, the government commissioned and a set up the Barback Committee to study and make recommendations on the ways and means of establishing a stock market in Nigeria as a formal capital market. Acting on the recommendation of the committee, the Lagos Stock Exchange (as it was called then) was set-up in March 1960, and in September 1961, it was incorporated under Section 2 cap 37, through the collaborative effort of Central Bank of Nigeria, the Business Community and Industrial Development Bank (Alile &Anao, 1990). With the establishment of the Central Bank of Nigeria in 1959 and the coming into existence of the Lagos Stock Exchange in 1961 and Subsequently, the Nigeria Stock Exchange by an Act in 1979, a sound foundation was laid for the operation of the Nigerian Capital Market for trading in securities of long term nature needed for the financing of the industrial sector and the economy at large. After the incorporation of the Lagos Stock Exchange, it was granted further protection under the law and its activities was placed under some sort of control by the government, hence the passing of the Lagos Stock Exchange Act. However, the Lagos Stock Exchange was only operational in Lagos. By the mid 70’s, the need for an efficient financial system for the whole nation was emphasized, and a review by the government of the operations of the Lagos Stock Exchange market was advocated. The review was carried out to take care of the low capital formation, the huge amount of currency in circulation which was held outside the banking system, the unsatisfactory demarcation between the operation of Commercial Banks and the emerging class of the Merchant Banks, and the extremely shallow depth of the capital.
In response to the problems mentioned above, the government accepted the principle of decentralization but opted for a National Stock Exchange, which will have branches in different parts of the country. On December 2nd 1977, the memorandum and article of association creating the Lagos Stock Exchange was transformed into the Nigerian Stock Exchange, with branches in Lagos, Kaduna, Port-Harcourt, Yola and now in Federal Capital Territory (FCT) Abuja and some other cities. The history of Nigeria Capital Market could be traced to 1946 when the British colonial administration floated a N600, 000 local loan stock bearing interest at 3¼% for the financing of developmental projects under the Ten-Years Plan Local Ordinance. The loan stock, which had a maturity of 10-15 years, was oversubscribed by more than N1 million, yet local participation of the issued was terribly poor. Certainly, potential fund abound in Nigeria, but the overriding consideration in this project is to examine the impact of the capital market in harnessing and mobilizing these resources (fund) to generate economic growth in the country and consequently economic development.
1.2 STATEMENT OF THE PROBLEM
There is abundant evidence that most Nigerian businesses lack long-term capital. The business sector has depended mainly on short-term financing such as overdrafts to finance even long-term capital. Based on the maturity matching concept, such financing is risky. All such firms need to raise an appropriate mix of short- and long-term capital (Demirguc-Kunt & Levine 1996). Most recent literatures on the Nigeria capital market have recognized the tremendous performance the market has recorded in recent times. However, the vital role of the capital market in economic growth and development has not been empirically investigated thereby creating a research gap in this area. This study is undertaken to examine the contribution of the capital market in the Nigerian economic growth and development. Aside the social and institutional factors inhibiting the process of economic development in Nigeria, the bottleneck created by the dearth of finance to the economy constitutes a major setback to its development. As a result, it is necessary to evaluate the Nigerian capital market.
1.3 RESEARCH QUESTIONS
This research was guided by the following research questions:
- What is the performance of the capital market in relation to economic growth in Nigeria?
- ii. How could the capital market through its crucial role stimulate economic growth in Nigeria?
1.4 OBJECTIVES OF THE STUDY
The broad objective of this study examined the activities and performance of Nigerian capital market. The specific objectives of the study are as follows:
- To evaluate the performance of the capital market in relation to the economic growth in Nigeria.
- To make recommendations as to how the operations of the market could be improve to boost economic growth and development of Nigeria.
1.5 HYPOTHESIS OF THE STUDY
The hypothesis that would be tested in the course of this research is stated below as:
H0: That the capital market operations have no impact on Nigerian economic growth.
1.6 SIGNIFICANCE OF THE STUDY
The study explored the impact or effectiveness of capital market instruments on Nigerian economic growth. Though the scope of the study was limited to the capital market, it is hoped that the exploration of this market will provide a broad view of the operations of the capital market. It will contribute to existing literature on the subject matter by investigating empirically the role, which the capital market plays in the economic growth and development of the country. The main importance of this study is that it will provide policy recommendations to policy-makers on ways to improve operations and activities of the capital market.
1.7 SCOPE AND LIMITATION OF THE STUDY
The economy is a large component with lot of diverse and sometimes complex parts; this research work only looked at a particular part of the economy (the financial sector). This work did not cover all the facets that make up the financial sector, but focus only on the capital market and its activities as it impacts on the Nigerian economic growth. The empirical investigation of the impact of the capital market on the economic growth in Nigeria was restricted to the period between 1980 and 2009 due to the non-availability of some important data.
1.8 ORGANIZATION OF THE STUDY
The study is divided into five (5) chapters and organized as follows: Chapter one form the introduction part, this is where the main theme of the research is given. It comprises of the statement of the problem, objectives of the study, research questions and hypotheses, significance of the study, scope and delimitation of the study and organization of the study.
Chapter two is the literature review of the impact of capital market on the economic growth of Nigeria.
Chapter three forms the research methodology which includes sources of data, method of data analysis and model specification.
Chapter four is the data analysis while chapter five includes the summary, conclusion and recommendations.
| Most developing nations define industrialization as a central objective of their economic policy they see industrialization goes with agricultural progress as an integral part of growth and structural change. | The consequences of population growth on the economic development of less developed countries are not the same because the condition prevailing in these countries are quite different from those of developed economy. Therefore the body of literature on population growth in Nigeria has always emphasized either the negative or the positive effect. | CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This research is on the impact of small and medium scale industries on the economic growth of Nigeria (1986-2010). In recent time, the fortune of small scale and medium scale Industries attracted the attention of government world-wide and thus has been the focus of general interest and research, especially in developing Countries due to the importance of small scale and medium scale Industries.
Their importance cannot be over emphasized as they constitute a whole virile vehicle for the generation of vast production of outputs and job creation. They are also act as catalyst for restructuring and diversifying the productive base of an economy and for the Industrial economy and for the Industrial economy take-off and growth of such an economy. The small and medium scale Industries are seen to hold the key to future expansion of the Industrial sector.
In Nigeria, evidence has shown that in 1986, small scale and medium scale Industries accounted for 70% of all firms, employing millions of Nigerians (first Bank of Nigeria report, 1987). By the end of 1979, over 80% of all establishments licensed under the factory act were small and medium scale Industries (Onwuala, 1987). This made the importance of this economic unit to be unelectable.
Small scale and medium scale Industry in its widest sense implies the urgent response to the challenges of developing countries, of which Nigeria is not an exception. Small and medium scale Industries should be practiced with due regards to the importance of available local raw materials in its environs because the challenges facing small and medium scale Industrialist are enormous.
The importance of small and medium scale Industries to the economic development of any country, whether developing or developed, have been widely acknowledged and acclaimed. They are considered as there stimulate to private ownership and entrepreneurial skills, generate employment, promote industrial dispersal and rural- urban migration.
Clive carpenter (2001), said that across the world, small businesses are crucial for economic growth, poverty alleviation and wealth creation.
Uayatudeen (2001) said that across the world, small businesses have such a crucial role to play in the development of an economy and that cannot be ignored. According to William and David, most firms and small and medium scale Industries are compared with companies that economist usually study. But economists have concentrated on large scale Industries. The leading textbooks in economics have title discussions on small and medium scale business or entrepreneurs.
The partial combinations of small and medium scale Industries on the Nigerian economy are; creation of wealth, poverty eradication and employment generation as encapsulated in the national economic empowerment development strategies (NEEDS)
However small and medium scale Industries are bedeviled by numerous challenges which have hampered its development and growth and also its combination to national development. To this end, government has instituted various programs to address the challenges and constraints facing small and medium scale industries growth. The programs and institutions Include:
- Setting up and founding of industrial estates.
- Establishment of national directorate of employment (NSE)
- Establishment of the Nigerian bank of commerce and industry (NBC), the national economic re-construction fund (NERFUND),the Nigerian Industrial bank (NIDB) which has merged in to one agency in the bank of industry, the world assisted small scale enterprises loan scheme (SNEX), the Nigerian export and import bank (NEXIN) etc.
- Setting up a small and medium scale enterprises development agency of Nigerian (SMEDAN); an agency which Co. ordinates development in small business sector.
Unfortunately, all these formal credit schemes have not been able to adequately address the fundamental problems which have constrained small scale enterprises access to credit; and any other enterprise establishing a small and medium scale industry requires capital to take off survive and eventually expand.
Nigeria's major manufacturers produce food and beverages, cigarettes, textiles and clothing, soaps and detergents, footwear, wood products, motor vehicle parts, chemical products and metals while small and medium scale manufacturing engage in leather making, poultry making and wood carving. The smaller industries are often organized in craft guides involving particular families who pass the skill from generation to generation.
People have lived in what is now known as Nigeria since at least 9000BC, evidence indicated that since at least 5000BC, some of them have practiced settled agriculture. In the early (centuries (AD), kingdoms emerged in the drier northern savanna, prospering from trade with north Africa. At roughly the same time, the western and southern forested areas yielded city- state and looser federations sustained by agriculture and coastal trade. These systems changed radically with the arrival of the Europeans in the late 15th century, the rise of the slave era in the 16th Century through the 19th Century. Nigeria achieved independence in the 1960, but has since been plagued by an unequal distribution of wealth and inflation.
The first well documented kingdom was the Yoruba kingdom, which was observed between the 11th -12th centuries. Over the next few centuries, they spread their political and spiritual influence beyond the borders of its small city states. Its artisans were highly skilled, producing among other things, bronze castings of heads in a very naturalistic style. Terra- cotta, wood and Ivory were the common media instruments used.
Shortly after the 12th century, the kingdom of Benin emerged in the mid-western south region. Although it was separate from the Yoruba kingdoms; Benin legends claim that the kingdoms first rulers were descendant from an Ife prince. By the 15th century, the Benin kingdom was large, wood designing was what sustained the city's trade (both within the region and later with Europe). Its legacy includes a wealth of elaborate bronze plagues and statues recording the nation's history and glorifying its rulers.
From the above paragraphs, it can be noted that small and medium scale industries are indeed necessary for the development of any economy. Small and medium scale industries act as the major stepping stone to economic growth. In Nigeria today, small and medium scale industries are common but have no efficiently achieved or attained her goals.
Therefore, to encourage local businessmen and institutions in buying small and medium sized businesses, the government established the Nigerian bank for industry and commerce, which had an initial operating capital of 50 million naira. There was some concern in Nigeria that Nigerians might not be able to raise enough capital to take over the foreign owned businesses affected by the decree and that there might not be enough Nigerians with the technical and managerial skills necessary to replace extricate personnel.
1.2 STATEMENT OF THE PROBLEM
The small and medium scale Industries survey conducted in 2005 by the central Bank of Nigeria (CBN) provides some evidence that apart from the acute short of technology, managerial skills, poor management, adverse environment, and change in policy, capital is a source of great concern to the entrepreneur in the sector. Since one of the microeconomic goals of the Nigerian government is economic growth, we can assume that the government aims at the expansion of small firms.
In a continent where finance is a major constraint on development, the problem confronting the private sector in Nigeria above all small and medium scales Industries standout.
Most large scale industries in Nigeria have reduced their borrowings due to high interest rates and the short term nature of available loans. At the same time, banks are unwilling to lend to the small and medium scale sector with its high perceived rises. In this case, lending is not efficient to the real sector and loanable funds are currently used to finance primary consumer imports and to separate in foreign exchange markets. The research question from the above experience is thus; will small and medium scale contribute much to economic growth in Nigeria when they are not properly funded.
1.3 OBJECTIVES OF THE STUDY
The aim of this research work is to examine the importance of small and medium scale industries on the Nigerian economy in order to ascertain how small and medium scale is utilized in production using the available raw materials and resources with a view to achieve gradual formalization in the guest for national industrialization. Meanwhile, the specific objectives are:
- To determine the impact of small and medium scale enterprises.
- To examine the effect of small and medium scale enterprises.
1.4 STATEMENT OF HYPOTHESIS
For the purpose of this study, the research developed the following hypothesis.
Ho: Small and medium scale industries are not catalyst for economic development and growth in Nigeria.
Hi: Small and medium scale industries are catalyst for economic
development and growth in Nigeria.
1.5 SIGNIFICANCE OF THE STUDY
The significance of the study is to establish an extent of growth and development and to expose the immense benefit derivable from small and medium scale industries.
Also, this study will help to redress the belief of the society that small and medium scale industries can bring about economic and development in Nigeria.
1.6 SCOPE AND LIMITATION OF THE STUDY
The study encompasses the roles and contributions of small and medium scale industries on the Nigeria economy from 1986-2010. The basis of covering this period of time is to ascertain whether there have been any significant impacts of small and medium scale industries on the Nigerian economy. And also, this study does not consider the medium and large scale industries.
In writing this project, the researcher encountered some limitations, which were; lack of information from appropriate quarter, time constraints, transportation, lack of funds, power outrage etc. However, in spite of all the odds, the researcher was able to come out with a standard work. The project However, contains information which in reliable and authentic.
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