Small And Medium Scale Industrial Development In Nigeria Case Study

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Register to read the introduction… The little progress recorded from the courageous efforts of the first generation of indigenous industrialists were almost completely wiped out by the massive dislocations and traumatic devaluation which took place under the Structural Adjustment Programme (SAP) (Udechukwu 2003; Sanusi 2003a). Many observers from different traditions and political orientations embrace the idea that small enterprises should be seen as the key to national economic regeneration and a road to renewed growth of employment. The role of the SMEs in the development and sustainability of a national economy is quite obvious as seen in the developed economies in Europe, Asia and North America (Loveman and Sengenberger 1990). SMEs indeed possess enormous capability to grow an indigenous enterprise culture more than any other strategy (Udechukwu 2003). For example, the Confederation of Asia Pacific Chamber of Commerce and Industry (CACCI 1994) documented the data presented in Table 1, which shows the contributions of SMEs in some selected Asian economies.

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AU J.T. 13(3): 186-192 (Jan. 2010)

Table 1. Contributions of SMEs in Selected Asian Economies (in percentages) Industrial characteristics Contribution to total number of industrial establishment Contribution to total industrial employment Contribution to total industrial production Contribution to total industrial value addition
Source: CACCI (1994).

Malaysia (1985) 92.1 49.4 46.7 30

Singapore (1990)
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As laudable as these programs were, quite a few were able to have reasonable impacts on the development of SMEs. One of the newest initiatives is the Small and Medium Industries Equity Investment Scheme (SMIEIS). This was initiated by the Central Bank of Nigeria as a means of providing longterm finances and professional guidance through participating Nigerian banks that commits 10 percent of their annual pre-tax profits to equity investment in the SMEs. Small- and Medium-Scale Enterprises in Ondo State The statistics division of the Ministry of Finance and Economic Planning in Akure, Ondo State, provided the data used in preparing the graphical representation of the number of non-formal sectorial establishments in the old Ondo State, which is a combination of the present Ondo and Ekitti State, between 1993 and 1996. Fig. 1 showed that the highest number of 2080 was recorded in 1995 and the least was 1805 in 1993. Meanwhile, it is usual for the SMEs to claim up to 99% of the total number of these establishments in the nonformal sector of the state. Records from the Ministry of Finance and Economic Planning (Anon. 1995) also showed that in 1995 the old Ondo State (which is a combination of the present Ondo and Ekitti State) had about 3.2% of all the SMEs in the Federation (Anon.

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