CHAPTER ONE

1.1      Background of the Study

The dynamic role of government agencies in the development of small and medium enterprises is an engine through which the growth and development objectives of developing nations can be achieved. These enterprises have a very important impact on the life of everybody in the society. The small independence businesses are everywhere and in every line of work; they can also be seen in every community. This business is as old as man. So virtually everything done in life involves the element of business small and medium enterprises constitute an importance in today’s business activities or system. Small and medium enterprise in our economic history however, has been one of the distribution and contribution (Akingunola, 2011).

        Basil (2005), stated that any effect towards the restructuring of the economy without particular emphasis on the development of small and medium scale business not likely to be successful in the long term. The fact that small and medium scale business determines the direction and the extent of development of the country’s economy make them very important organizations…

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