Small and Medium Scale Mining
PROJECT TOPIC : SMALL AND MEDIUM SCALE ENTERPRISES DEVELOPMENT IN NIGERIA (A Case Study of Cassava Processing Industry)
PROJECT PROPOSAL
BACKGROUND TO THE STUDY
Interest in the development of small and medium-sized enterprises (SMEs) and their contribution in the development process continue to be in the forefront of policy debates in developing countries. The advantages claimed for SMEs are various, including: the encouragement of entrepreneurship; the greater likelihood that SMEs will utilise labour intensive technologies and thus have an immediate impact on employment generation; they can usually be established rapidly and put into operation to produce quick returns. SME development can encourage the process of both inter- and intra-regional decentralisation; and, they may well become a countervailing force against the economic power of larger enterprises. More generally the development of SMEs is seen as accelerating the achievement of wider economic and socio-economic objectives, including poverty alleviation.
Staley and Morse (1965) identify a ‘developmental approach’ to SME promotion which has as its objective the creation of ‘economically viable enterprises which can stand on their own feet without perpetual subsidy and can make a positive contribution to the growth of real income and therefore to better living levels’. This approach emphasises the importance of efficiency in new SMEs. Small producers must be encouraged to adopt new methods, move into new lines of production and in the long-run, wherever feasible, they should be encouraged to become medium- or even large-scale producers.
The presidential Initiative on Cassava Production and Export has increased the awareness amongst Nigerians of the industrial crop, popularly referred to as the ‘new black gold’. Started in July 2004, the initiative seeks to generate $5 billion in export revenue. Fortunately, Nigeria, according to the Food and Agricultural Organisation, FAO, in its 2004 report, is
PROJECT PROPOSAL
BACKGROUND TO THE STUDY
Interest in the development of small and medium-sized enterprises (SMEs) and their contribution in the development process continue to be in the forefront of policy debates in developing countries. The advantages claimed for SMEs are various, including: the encouragement of entrepreneurship; the greater likelihood that SMEs will utilise labour intensive technologies and thus have an immediate impact on employment generation; they can usually be established rapidly and put into operation to produce quick returns. SME development can encourage the process of both inter- and intra-regional decentralisation; and, they may well become a countervailing force against the economic power of larger enterprises. More generally the development of SMEs is seen as accelerating the achievement of wider economic and socio-economic objectives, including poverty alleviation.
Staley and Morse (1965) identify a ‘developmental approach’ to SME promotion which has as its objective the creation of ‘economically viable enterprises which can stand on their own feet without perpetual subsidy and can make a positive contribution to the growth of real income and therefore to better living levels’. This approach emphasises the importance of efficiency in new SMEs. Small producers must be encouraged to adopt new methods, move into new lines of production and in the long-run, wherever feasible, they should be encouraged to become medium- or even large-scale producers.
The presidential Initiative on Cassava Production and Export has increased the awareness amongst Nigerians of the industrial crop, popularly referred to as the ‘new black gold’. Started in July 2004, the initiative seeks to generate $5 billion in export revenue. Fortunately, Nigeria, according to the Food and Agricultural Organisation, FAO, in its 2004 report, is
References: Staley E. and Morse R. (1965) Modern Small-Scale Industry for Developing Countries. London: McGraw-Hill Publishing. Oyelaran O. (2003) Financing and Development of Small-sale industries in Nigeria. Central Bank of Nigeria Economic and Financial Review. 24(4), December.