The problems of small scale enterprises in Osun State,Nigeria.
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Date
2015
Authors
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Journal ISSN
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Publisher
Sociology and Anthroplogy, Obafemi Awolowo University
Abstract
The study identified the problems peculiar to small scale enterprises within the study area, determined the effect of government policy on small scale operation.it also examined the impact of socio-cultural factors on SSEs. These were with a view to examining the effect of all these problems on the performance of Small Scale Enterprises in Osun State.
Both primary and secondary data were employed for the study. Primary data was obtained from small scale enterprise operators in Ife Central, Olorunda and Ede South. Each of this local government were selected to represent Osun East, Osun Central and Osun West respectively through simple random sampling technique. A pilot survey revealed that there were 1,190, 1152, and 694 tailors; 10, 9, 3 pure water producer; 11, 17, and 3 bakeries; 14, 16 and 4 block industries in the respective local government. A total of 10% of respondents in each of the respective local governments were selected making a total of 390 questionnaires administered. In-depth interviews were also conducted on two of each different small scale operators. Secondary data were obtained from archival search which consist of journals, articles magazines, books, the internets and special publication on problems of SSEs. Data from questionnaire were analyzed using descriptive (frequencies and percentages) and inferential statistics (chi-square) to obtain results. Data obtained from the interviews were subjected to content analysis.
Results indicated that poor financing affects the growth of SSEs 93.04 percent; it also revealed that inadequate infrastructures such as poor road and lack of good electricity constituted another major problem affecting SSEs 51.53 percent and 51.02 percent respectively. The study further showed that insecurity affected the growth of SSEs (62.31 percent). Also, government policies, especially importation of foreign goods influence the growth of SSEs percent (69.21%). It was also found that taxation does not have negative effect on SSEs in study area and 76.41 percent of the respondents affirmed that taxation does not affect them. And socio-cultural factors such as time spent in place of worship, money spent on ceremonies were major challenges confronting SSEs in Osun State. Furthermore, 70.28 percent and 71.32 percent of respondents went to place of worship often and spent on ceremonies respectively. Results further showed that poor financing significantly affects the growth of SSEs, (χ² = 25.5363, p<0.05), it also revealed that inadequate infrastructures such as poor road and lack of good electricity significantly constituted another major problem to SSEs (χ² = 17.8368, p<0.05) and (χ² = 32.0716, p<0.05) respectively. However the study further showed that insecurity significantly affected SSEs (χ ² =67.0757, p<0.05) while government policies, especially importation of foreign goods significantly influence the growth of SSEs (χ² = 53.7631, p<0.05). It was also found that there is no relationship between SSEs and taxation in the study area (χ² = 4.3982, p>0.05). And some socio-cultural factors (time spent in place of worship, money spent on ceremonies) were major challenges confronting SSEs in Osun State. (χ² = 23.5214, p<0.05).
The study concluded that Small Scale Enterprises are facing array of problems such as social infrastructures, insecurity, lack of modern technology, high cost of maintaining machine, government policies and socio-cultural factors. All this problems have adverse effect on the performance of small scale enterprises in Osun State.
Description
xiii, 104p
Keywords
Small scale enterprises, Government policy, Local Government, Taxation, Social infrastructures
Citation
Fowowe,P.O (2015).The problems of small scale enterprises in Osun State,Nigeria. Obafemi Awolowo University