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PROJECT TOPIC: AN EVALUATION OF THE CONTRIBUTION OF SMALL AND MEDIUMS SCALE ENTERPRISES (SMES) TO THE ECONOMIC DEVELOPMENT IN NIGERIA (A CASE STUDY OF EIGHT (8) SELECTED SMSE IN ILORIN METROPOLICS

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CHAPTER ONE

INTRODUCTION

1.0   BACKGROUND OF THE STUDY

This study will have its fundamental root from the contribution of small and medium scale enterprises (SMSE) o the economic development in Nigeria.

        Apart from the potential development of small and medium enterprise for ensuring a self reliant industrialization in terms of the ability to rely largely on local raw materials. It is also a good strategy to boost employment and guarantee an even distribution of industrial establishments in the country including the rural area.

        In all countries of the world, small and medium enterprises have emerged as an important agent of economic and social transformation. The promotion of small and medium enterprises (SMES) is no longer just the business of the world association for small and medium enterprises (WASME) and other Non-Government organization (NGOS) but as become a major policy thrust in industrialized and developing countries.

        In industrialized countries, recent innovation in information technology, industrialized designation and global competition have propelled the spread of small business and forced large cooperation to search for new strategies to gain competitive operations. Small and medium enterprises (SMSE) could help to facilitate mobilization of capital and human resources that could otherwise be left idle.

        An important feature associated with small and medium enterprises which is particularly relevant to our current economic problems is that, these industries characteristically, depend less on imported inputs relative to their total capital investment than large scale industry. Small and medium enterprises (SMSE seek to diffuse economic power by helping to check imbalance seek to diffuse economic power by helping to check imbalance between various locality of a country and between different income groups in the same locality.


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