CHAPTER ONE

INTRODUCTION
1.1 Background to the Study
The pursuit of economic development has been a major goal of
many developing nations of the world. Developing Kogi State is confronted
with several problems such as high rate of poverty and unemployment
which have continued to hinder the attainment of socio-economic
development. For any nation to attain development, industrialization,
gainful and meaningful employment are important indices used as a
measuring economic development. This is often adopted by income, the
welfare and quality of life enjoyed by the citizen of that nation. Small and
medium scale enterprises (SMEs) have proven to be a major tool adopted
by the developed nations to attain socio-economic development.
Despite governments institutional and policies support in enhancing
the capacity of small and medium scale enterprises, it has fallen beyond
expectations. This has generated serious concern and uncertainty on
whether small and medium scale enterprises can bring about economic
growth and national development in Kogi State. The concern is even more
disturbing when comparing small and medium scale enterprises in Kogi
State with that of other states particularly where small and medium scale
enterprises has become harbingers of economic reconstruction and
transformation (Ihua 2009). In the case of Kogi State, small and medium
scale enterprises have functioned at very abysmal level. This low
performance has further resulted to poverty, hunger, unemployment and
low standard of living of people in Kogi State thus its economy is in poor
state.
The current problems of hunger, poverty and unemployment have
undermined the capacity of the economy and the small and medium scale

1
enterprises are seen as mechanism for intervention to addressing these
long term problems of the economy.
The challenges of addressing the problems of hunger, poverty and
unemployment is even more worrisome when considering the actualization
of the sustainable development goals by the Kogi State in 2030. If Kogi
State is to achieve the sustainable development goals by 2030, one of the
sure ways is to enhance the capacity of the small and medium scale
enterprises. The core issues identified by the millennium development goal
such as hunger, poverty and literacy, maternal and mortality rates would
not be achieved unless the problems of small and medium scale
enterprises are clearly tackled.
The challenges and the problems of small and medium scale
enterprises are tied to some economic variables and the challenges that
generally characterized the nation’s economy. Some of the challenges and
problems include high level of unemployment, high poverty incidence and
low industrialization capacity, lack of finance, inconsistent government
policies and inadequate infrastructure and insecurity of the business
climate among others. Nevertheless, the internal characteristics of small
and medium scale enterprises too, also have to interact with some
economic variables to undermine the capacity of the economy. Issues of
low level of entrepreneurial skills, poor management practices, inadequate
equity capital and lack of information among other problems directly affect
the economy.
Inspite of these problems and challenges, the current economic
reforms, on-going in Kogi State is aimed at reducing poverty,
unemployment and strengthening of basic institutions and sub-sector of
the economy targeted at improving and enhancing the capacity of small
and medium scale enterprises is beginning to show a renewed optimism.

2
1.2 Statement of the Research Problem
Small and medium scale enterprises are expected to contribute to
the economic development of a nation. Despite government effort towards
enhancing its capacity and performance, they have still fallen short of
expectations. This has generated serious concern and sceptism on whether
small and medium scale enterprises can bring about economic growth and
national development in Kogi State. The concern is even more disturbing
when comparing small and medium scale enterprises in Kogi State with
that of others, particularly where it has become harbinger of economic
reconstruction and transformation. The over changing effect of this in the
context of Kogi State is evident in exacerbated poverty, hunger,
unemployment and low standard of the people, whose economy is ailing.
The problem is therefore how these can be repositioned in the interest of
achieving a vibrant economy for our good and the good of the generations
to come.
1.3 Objectives of the Study
The main objective of this research is small and medium scale
enterprises the economic development of Kogi State: an impact
assessment with particular attention to treasure confectionary, Lokoja,
Kogi State. However, the specific objectives of this research are:
i. To determine whether small and medium scale enterprises (SMEs)
contribute to the enhancement of the economy of Kogi State.
ii. To identify the sources of finance available to small and medium scale
enterprises (SMEs) in Kogi State.
iii. To examine the problems facing small and medium scale enterprises in
Kogi State.
1.4 Research Hypotheses
Research hypothesis is a specific, clear, and testable proposition or
predictive statement about the possible outcome of a scientific research

3
 study based on a particular property of a population, such as presumed
differences between groups on a particular variable or relationships
between variables. Specifying the research hypotheses is one of the most
important steps in planning a scientific quantitative research study. A
quantitative researcher usually states and a priori expectation about the
results of the study in one or more research hypotheses before conducting
the study, because the design of the research study and the planned
research design often is determined by the stated hypotheses. Thus, one
of the advantages of stating a research hypothesis is that it requires the
researcher to fully think.
The research hypotheses were based on the interviews and
questionnaires carried out with observation of small scale business. The
following are some of the hypothesis carried out.
The actual test begins by considering two hypotheses. They are
called the null hypothesis Ho and the alternate hypothesis Hi. These
hypotheses contain opposing viewpoints.
Ho: The null hypothesis: It is a statement about the population that will be
assumed to be true unless it can be shown to be incorrect beyond a
reasonable doubt.
Hi: The alternate hypothesis: It is a claim about the population that is
contradictory to Ho and what we conclude when we reject Hi. The
following hypotheses have been formulated to test their validity:
Hypothesis I

Ho: Small and Medium Scale Enterprises do not contribute to the enhancement
of Kogi State economy development.
Hi: Small and Medium Scale Enterprises contribute to the enhancement of
Kogi State economy development.

4
 Hypothesis II
Ho: Equity capital is not a major source of finance available to small and
medium scale enterprises (SMEs).
Hi: Equity capital is a major source of finance available to small and medium
scale enterprises (SMEs).
Hypothesis III
Ho: High cost of capital is not a problem facing small and medium scale
enterprises in Kogi State.
Hi: High cost of capital is a problem facing small and medium scale enterprises
in Kogi State.
1.5 Significance of the Study
This research work will be of great benefit because it is a
prerequisite for the award of Higher National Diploma in Business
Administration. Other significance of the study includes:
i. The work will enable the management of the selected small and medium
scale enterprises to understand the performance and effectiveness of small
and medium scale enterprises as an instrument of economic growth and
development in Kogi State. Knowledge about this will enhance a
restructuring of activities of these enterprises for maximal performance.
ii. The significance of this study also lies on the fact that, it will expose us to
an understanding of the institutions policies and programmes initiated by
the government towards enhancing the capacity of small and medium
scale enterprises in Kogi State.
iii. The study will contribute to the existing literature on the topic and will be
extension open upon the vista for further research in this area.
iv. It is expected that the study will bring to the bearest minimum some social
vices ravaging our society e.g kidnapping, political thuggery, rubbery, etc.

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1.6 Scope of the Study
This research is restricted to the study of the impact, promotion and
challenges facing small and medium scale enterprises and economic
development, with particularly attention to some selected small and
medium scale enterprises in Lokoja, Kogi State.
This research work covers the fiscal year (2015 – 2021)
1.7 Limitation and Constraints of the Study
Inspite of the importance of this research work, its limitations lies in
the following areas:
i. Lack of Time: The little time allotted for this project was in fact
problematic. The researcher therefore had to do everything possible to
meet up with the deadline of the work.
ii. Insufficient Fund: Lack of sufficient funds available for this research also
serves as a limiting factor for it. The researcher restricted the study to
treasure confectionary, Lokoja, Kogi State, after which generalization was
made to cover the entire nation.
iii. Lack of Information: The unwillingness of the respondents to provide
the needed information for this research was yet a source of problem for
this research. Even the libraries around could not provide sufficient
literature on the topic.
1.8 Definition of Key Terms
It is important to clarify the key concepts used in this work. The idea
is to elicit a better understanding of the contending issues under
consideration. To this direction therefore, the concept to be clarified here
includes:
i. Enterprises: This can be seen as those corporations built to render
services for the public. For the purpose of this research, enterprises can be
conceptualized as organizations established with the primary aim of
offering goods and services to the general public (Afolabi, 2013)

6
ii. Economic Growth: For this research, economic growth can be conceived
as improvement in the Kogi State standard of living, the level of goods and
services that an average individual purchase or otherwise gain access to
(Kadiri, 2012).
iii. Small Scale Enterprises: The operational definition of small and
medium scale enterprises holds that, they are enterprises that operate at a
peripheral level.
iv. Unemployment: The phenomenon of joblessness in an economy. A type
of joblessness due to a particular economic mechanism (Jibir, 2015).
v. Poverty:Kadiri (2012), sees it as deficiency of elements or resources that
are needed of desired, or that constitute richness.
vi. Finance: The system that includes the circulation of money, the granting
of credit, the making of investments and the provision of banking facilities
(Ayodeji, 2012)
vii. Transformation: According to Namili (2016), is a profound and radical
change that orients an economy on a new direction and takes it to an
entire different level of effectiveness.
viii. Industrialization: Industrialization according to Bekele (2008) is the
process of social an/d economic change that transform a human group
from an agrarian society into an industrialized one involving the extensive
re-organization of an economy for the purpose of manufacturing.
ix. Development: Afolabi (2013) defines development as an effort that
seeks to improve the economic well-being and quality of life of nation or
state by creating and/or retaining jobs and supporting or growing income.

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 CHAPTER TWO
REVIEW OF REATED LITERATURE

2.1 Conceptual Framework

2.1.1 Concept of Small Scale Enterprises
The definition of small and medium scale enterprises (SMEs) varies
from state to state, region to region and from agencies to agencies in
today’s world.
The Kogi state concepts of small and medium enterprises is
somewhat a diversion but central bank of Nigeria agrees with the small
and medium scale industries and equity investment scheme (SMEs). In
their definition of small medium scale enterprises, it is any enterprises with
a maximum asset base less than N200 Million equivalent of about 1.43
million) exciding land and working capital and with a number of staff
employed not less man 10 (Otherwise will be a cottage or micro
enterprises and more than 300 (Sanusi 2003, Udechukwu 2003, Adebuze
2002, SMES 2002, and Sanusi 2004).
In Britain for example: small and medium scale enterprises is
conceive as that industry with annu/al turnover of 2 million pounds or less
with fewer than 200 paid employees.
Consequently, small and medium scale enterprises is generally seen
as those manufacturing with 100 million paid up capital and 300 million
paid up capital with 100 employee while those in rival trade with 100
million paid up capital and 50 employees.
Ogechukwu (2006) contend that in the wake of SFEM and sap era in
1993, this value has now been relevant and subsequently increased to five
million naira. Since this happened, increase scale industry into micro and
supper micro- business with a view to providing adequate incentives and
protection for the former. In that context, any business or enterprise

8
below the upper limit of N250,000 and whose annual turnover exceeds
N5,000 per annum is a small and medium scale industry.
The national director/ate of employment (NDE) concept a small and
medium scale enterprises as within N35,000. In other words, a business
unit of not less than & 240 dollars in characterized as a enterprises unit in
Kogi state. However, a common situation of service providers like hotels,
taste foods and restaurant are small and medium scale enterprises.
As a result of these definitions differences and lack of universally
acceptable definition, the European union (2003) adopted a universally
enterprise and micro business as companies of financial criteria revenue
must not exceed 50 million Europe measure as turnover) or 43 million euro
(measure as balance sheet).
In addition the European commission spectacles term of ownership
starting small and medium scale enterprises must be independent with less
than 25% being owned outside interest. European commission, (2007)
conceived small and medium scale enterprises employing 10-99 full time
employees or with a fixed capital investment of us 1000-500,000.
Small and medium scale enterprises are certainly not transnational
companies, multinational co/-operation, publicity owned enterprises or
large facility of any kind.
However they can depend on business and ownership structure to
become a large business unit. While if of small and medium scale
enterprises business form can take different form including private
ownership, limited partnership, association (Kozak, 2007, Maccucan,
2006).
Small and medium scale enterprises have narrow context within
which its operation is carried out. However, where it is effectively
operated it has capacity to sprout the economic medium scale enterprise
also contribute to long run industrial growth by producing and increasing

9
 number of terms that grows up and out of the small and medium scale
sector.
Nevertheless, Ogujiuba (2004) in a report on small and medium
scale enterprises claimed that 20 p/ercent of them are constrained in
receiving long term loans. This has forced small and medium scale
enterprises to use their internal financing which is usually unsustainable
and vulnerable to small and medium scale enterprises as a result of low
capital base. Even at the establishment of the second tie security market
ofKogi state, stock exchange was a palliative measures to solve the
financial problem of small and medium scale enterprise, shunned it
because of the high procedure and administration bottleneck in the
assessment of credit facilities.
2.1.2 Concept of Economic Devel/opment
The earliest concept of development was interpreted in terms of
growth of output over time and later in terms of per capita output. The
terms growth and development were used interchangeably.
During 1950 and 1960s many developing countries realized their
economic growth targets but standard of living of the people did not
change. In fact existence of mass poverty, illiteracy and ill health
continued to plague the developing countries. This implied that there was
something wrong with this definition of economic development. Most of
the economists clamored for dethronement of GNP and define
development in terms of removal of poverty, illiteracy, disease and
changes in the composition of input and output, increase in per capita
output of material goods. Increase in output of goods and services and in
income does not imply an improvement in the standard of living of the
people because GDP is a narrow indicator of economic development that
does not include non-economic indicators such as leisure time, access to
health, education, environment, freedom or social justice.

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 Economic development is/ thus a multivariate concept; hence there
is no single satisfactory definition of it. Economic development is a process
where low income national economies are transformed into modern
industrial economies. It involves qualitative and quantitative improvements
in a country’s economy. Political and social transformations are also
included in the concept of economic development in addition to economic
changes.
Literally, economic development can be defined as “passage from
lower to higher stage which implies change”. Charles P. Kindleberger and
Bruce Herrick (1958) point out: “Economic development is generally
defined to include improvements in material welfare especially for persons
with the lowest incomes, the eradication of mass poverty with its
correlates of illiteracy, disease and early death, changes in the composition
of inputs and output that generally include shifts in the underlying
structure of production away from agricultural towards industrial activities,
the organization of the economy in such a way that productive
employment is general among working age population rather than the
situation of a privileged minority, and the correspondingly greater
participation of broad based groups in making decision about the direction,
economic and otherwise, in which they should move their welfare”.
Kindleberger while making a distinction between economic growth
and economic development argues that: “Economic development implies
both more output and changes in the technical and institutional
arrangement by which it is produced and distributed”. Economic
development in the classical era meant: “an increase in the absolute size
of annual production regardless of the size of the population, or an
increase in the economy’s real income over a long period of time”.

11
2.2 Theoretical Framework
Various theoretical models have been developed which describe the
small scale enterprises and economic development.
2.2.1 Economic Theory
The economic studies of Entrepreneurship have been analysed in
early economical history as well as within the existing classical framework.
Entrepreneurship as a concept entered the economic literature mainly
through the contribution of Richard Cantillon (1680 – 1734), who gave the
concept an analytical prominence and assigning the Entrepreneurship an
economic action.
2.2.2 Classical and Neo-Classical Economic Theory
In the 18th century modern forms of production, social relations,
governance and social thought began to come. In the economic branch,
this phase marks the rise of classicism. I.B says that the Entrepreneur is
an organizer. As per his study, the Entrepreneur is an economic
middleman who collects all means of production and produces a socially
valuable product for the society. To get success, the Entrepreneur must
have ability to assess future demand to determine the appropriate amount
of goods and their timings to calculate probable production price and
selling price and to possess the skill of management.
2.2.3 Psychological Theory
Despite conductive economic circumstances, social networking,
support system, Entrepreneurial teams, finance, marketing and
government policy, enterprise, sometimes cannot be created. It needs a
person, who can gather all these factors in a productive manner, who
believes in innovation or Meta Innovation and who has the motivation to
accomplish the goals. For a person and his process to be successful
definite psychological perspectives are essential. Flood (cited in
Priyadarshni, 2007) explains an Entrepreneur as a person who initiates and

12
 manage new business. The theorists who have emphasis the contribution
of psychological factors to Entrepreneurship are Schumpeter (1934),
McClelland (1961), Hagen (1962) Kunkel (1965).Schumpeter’s Theory,
Joseph Schumpeter’s (1934) theory provides the most thorough analysis of
the Entrepreneurial functions.
2.2.4 Sociological Theory
The sociological impact and research provide essential and
distinctive contributions to the understanding of Entrepreneurship in
different ways. Sociologists assume the Entrepreneur as an act performer
corresponding to the role expected by the nation. Multiple societies are
featured by number of customs, rewards and restraints ethnic values,
nationalistic attitude and patriotisms.
2.3 Empirical Review
2.3.1 Roles and Importance of Small Scale Enterprises
Development issues are interesting ones in economics and finance
literature. They are interesting because they form the focus of many
strategies that become policies of government. In the contact of
developing economics such as Nigeria, poverty reduction or alleviation is
the nucleus of economic development policies. According to Babajide
(2002), poverty alleviation efforts are directed as addressing two major
goals of lifting persons trapped out of the poverty web and to also prevent
those above poverty line from slipping under. One of the instruments that
have been utilized to reduce poverty and promote economic development
is the promotion of small and medium scale enterprises. Development of
small scale enterprises is seen as an instrument that can be used to
generate sustainable development, is one which ensures that the general
population can attain an acceptable level of welfare both at present and in
the future. It is far from haphazard and inequitable economic growth. It is
growth accompanied by economic empowerment and mass participation in

13
 the economic and social life of the nation. It is, therefore, a truism that
industrialization remains a veritable strategy to economic advancement
and the promotion of small scale enterprises as a sub-sector of
industrialization is a pertinent instrument for economic development. This
is because small scale enterprises approach lends itself easily as a tool in
the development process.
According to Central Bank of Nigeria’s monetary policy circular of
2002 and 2003 section 3, states that its role in employment generation,
skill acquisition, output growth, enhancement of local technology and the
mitigation of rural-urban drift cannot be overemphasized. Its relevance is
manifested in the numerous dimensions:-
i. They enhance capacity building as they serve as entrepreneur training
avenues.
ii. Small scale enterprises ordinarily and usually create more employment
opportunities per unit of investment because they are characterized by
labour intensive operations.
iii. They achieve a more relatively high value added operations because they
are propelled by basic economic activities that depend mostly on locally
sourced raw materials.
iv. Small scale Enterprises provide feeder industry services as they serve as
major suppliers’ intermediate goods and components of large scale
industries as well as major agents for the distribution of the final product
of such industries.
v. They also provide opportunities for the development of local skills and
technology acquisition through adaptation. The ‘Aba made’ syndrome is a
clear manifestation of such technological acquisition that invariably gives
impetus to rapid development in the economy. 6. They also tend to serve
as agent of industrial spread and rural development since they survive in
less sophisticated industrial infrastructure.

14
 vi. Small scale enterprises provide an interesting alternative for countries like
Nigeria that desire the fast option for industrial development. This is
because they are characterized by short-term gestation periods and high
potentials for quick yield on investment.
2.3.2 Funding Needs and Sources of Funds for Small Scale Enterprises
A simple but general question to ask ourselves is for what do
organizations or firms require funding? According to Babajide (2002), firms
need finance for many reasons and these reasons can be divided into two
broad areas:-
i. To acquire fixed asset e.g. plant and machinery, factory premises and
facilities for start up, expansion, diversification or reconstruction.
ii. To finance working capital requirements which could be the need to
acquire or increase stock of raw materials and finished goods and to
bridge temporary gaps between the payment and the receipt of money.
The rationale for funding requirements of small scale enterprises is not
different from these. In general terms, the sources of funds to finance
business are legion depending on the type and character of business as
well as the duration for which the fund is required i.e. short term, medium
term and long term. In Nigeria, funding businesses of the nature under
consideration can be private or institutional.
2.3.3 The Small and Medium Industry Equity Investment Scheme
This is a voluntary initiative of the Bankers committee that was
approved at its 246 meeting held on 21st December, 1999. The initiative
was in response to government’s concerns and the policy measures for the
promotion of small and medium enterprises as vehicles for rapid
industrialization, sustainable economic development, poverty alleviation
and employment generation. The scheme requires all banks in Nigeria to
set aside 10 percent of their profit before tax for investment in form of
equity in eligible industries in the real sector of the economy, specifically in

15
 agro-allied, information technology and telecommunications,
manufacturing, educational establishment, services, tourism and leisure,
solid minerals, construction and any other activity as may be determined
from time to time. To access the funds, the beneficiary must be a limited
liability company and comply with all applicable tax laws and regulations.
Funds invested by participating banks shall be in the form of equity
investment. This is to reduce the burden of interest and other financial
charges under normal banks lending. A beneficiary may however, obtain
additional funds by way of loans from banks in addition to the equity. The
recommendations of industrial associations 28 such as the Manufacturers
Association of Nigeria (MAN) and National Association of Small and
Medium Scale Enterprises (NASME) are mandatory for their members
(Adeyemi, 2001)
2.3.4 The Predominance of Small Scale Industries inNigeria.
Small Scale Enterprises (SSE) are found significantly in every nook
and corner of Nigeria. They could be likened to frontline troops in the
battle for even development of a nation. An international finance
corporation study estimated the number of modern sector small and
medium scale enterprises in Nigeria at 90,000 in 1972 and 125,000 in
1983, suggesting an average annual growth rate of 3.5 percent between
1972 and 1983. If it is assumed that this growth rate had been maintained
since 1983, the number of small and medium scale enterprises in Nigeria
could have been about 320,000 in year 2001. The small and medium scale
enterprises sector employs about 50 (fifty) percent of the labour force in
Nigeria. According to statistical data as at 1999, it was revealed that there
were 3, 185 manufacturing establishments, which employed 435, 179
workers and paid ₦2.231 billion in wages and salaries. A survey which was
also conducted in 1999 covered 2,696 enterprises with a maximum capital
of ₦150,000. According to the survey, the bulk of employment was food

16
 and basic metal industries accounted for 40 percent and 16 percent
respectively. Furthermore, the average number of employees in an
enterprise was five and 90 percent of enterprises were sole
proprietorships. While about 35 percent of the managers did not have any
basic educational qualifications and more than 75 percent of the managers
had working experience of five or more years and about 88 percent had
received more than two years apprenticeship. They are also intensive
users of domestic raw materials, which accounted for about 60 percent of
the total cost of materials. There is no doubt that large domestic
employment generated by the small scale enterprises sector is as a result
of not only the large number of enterprises operating in the sector, but
also from the low level of capital investment per enterprise and worker
(Akingunola, 2011).
2.3.5 Importance of Small Scale Industries to the Development of Kogi
State
According to Owualah (2005) small scale industries are of great
importance considering the following:-
1. Employment opportunity:- Small scale enterprise have rally help to
reduce employment considering the number of people that engage in their
operation since most of their operation are labour intensive the provide
employment opportunity at a relatively low capital cost.
2. Ensure equitable distribution of the nation income:-Studies have
shown that between the rich and the poor the gap of geographical
distribution of income and wealth is very wide. According to Ekeigwe
(2001) a natural problem with the small scale business units is that of
necessity the basic conditions of internal control must be violated. Small
scale enterprise has a problem of vital business information.
According to Osubor (2000) the short coming of small scale business
enterprise are important of gaining capital for expansion the manager

17
 unable to meet or secure the necessary collateral for credit worthiness
problem continuity in small business especially in Africa, the death of line
owner business organizations keep fore way bring abrupt and to the
business.
Osubor (2002) mentioned other problem as burden if bearing the
entire loss of the business failure lack of mass production, the lengthy
hours of work which reduce mental efficiency in production and
management.
Kalu (2001) said about the importance of small scale industries, the
task or role of these small scale industries in the creation of jobs. In our
situation, it has to be in a mode that will absorb as much of our limited
capital as possible there five small scale industries are more suited to our
circumstance. Osaze (2003) listed the importance of small scale industries
as follows:
 The small scale industries avoid the heavy cost which often result from the
agglomeration at large labour forces.
 Provide suitable training ground for administrative responsibility than large
units.
 They can be spread geographically to serve predominantly agricultural
area.
 Present much less of a break with previously established modes of living
and therefore present much less of a strain than industrialization in the
form of large unit and.
They may also avoid some political problem associated with large
industries unit especially when owned and managed by frequencies. For
instance in United State of America according to Heilbrone (2002), the
small scale business is little indeed. Yet by virtue of numbers, the small
scale business of America are by no means unimportant in the national
economic picture small scale business collectively employs roughly 40

18
 percent of America labour force. Kill by (2000) and Faleye (2001) all agree
that in developing countries small scale industries are one of the most
effective means of stimulating indigenous entrepreneurship affording
private individuals to starts business with minerals resources requirement
and by affording them the opportunity to manage business themselves.
2.3.6 Problems of Small Scale Industries
Obitayo (2001), every business formation is not left without one or
two problem and small scale business are not exceptional the following are
notable problem facing small scale industries in Nigeria.
i. Difficulties in attracting funds for expansion one of the major problems
faced in Nigeria small scale industries the issue of financing their operation.
The collateral securities required must time by bank go beyond what small
scale can afford. Thereby, by denying them access to bank loans. Also,
where small scale owners are able to provide the required collateral, the
interest place on such loan may be too high and they may not be able to
afford it. Check (2002) agrees that investment in small scale industries help
to transform the traditional sectors(Serbert,2001).
ii. Competition or patronage: patronage means the ability of the customers to
make a repeat purchase of company’s products. Nigeria believes that
locally made goods thereby hindering the growth and expansion of small
scale industries. However, the federal government has been making effort
to re-oriented Nigerians to patronize locally made good to succeed.
iii. Lack of stable industrial policy: These is not industrialist policy for
example, an individual place an order for machine, when custom duties
have increase to 25, his not put the individual in difficult position clearing
the goods. High cost of machinery maintenance. Nigeria lacks the technical
knowhow overall and maintain some of sophisticated machineries needed
for prediction. This calls for the importation of expatriates whose service

19
 fee cannot be compared to that of the local experts and many enterprises
cannot pay for such expatriates service.
iv. Government policies inconsistent: Government policies some time create
problem for small scale operation. For instance, if an enterprise import raw
material and there is a policy banning such raw material. They survive if
there are available local contents to substitute.
2.3.7 Review of Related Work
Using the descriptive research method, Adoyi and Agbo (2009)
employed both primary and secondary data to determine the extent to
which small business firms have developed Benue sate of Nigeria, and
found that 86.3 percent of the small business firms pay their taxes
regularly. These taxes increase the revenue base of the state which is
used for development purposes. Akingunola (2011) assessed the specific
financing options available to SMEs in Nigeria and their contribution to
economic growth performance. The Spearman’s Rho correlation was
employed to determine the relationship between SMEs financing and
investment level. At 10 percent level of significance, the Rho value of
0.643 indicated a significant and positive relationship between SMEs
financing and economic growth in Nigeria.
Safiriyu and Njogo (2012), employed primary data instruments,
questionnaire and interviews to study the impact of small and medium
scale enterprises on employment generation in Lagos state, Nigeria. The
results of simple percentages and chi-Square (X2) tests conducted show
that small and medium scale enterprises and sustainable development of
Nigerian economy are positively related, just as promotion of SMEs and
improvements in employment generation are positively related and
significant. Availability of finance has been widely viewed as a constraint to
the growth of SMEs. Azende(2011), in an empirical evaluation of the
performance of small and medium /scale Enterprises, Equity Investment

20
 Scheme (SMEEIS) in Nigeria used Benue and Nassarawa states as case
studies. Using total credit to SMEs as a percentage of Banks’ total credit
for the period 1993 to 2008, the T-test conducted to determine the extent
of relationship between bank loans before and after the introduction of
SMEEIs indicated no significant difference between loans disbursed by
banks to SMEs. This result, according to him, was due to the fact that the
conditions for accessing SMEEIS funds were beyond the reach of the
targeted SMEs.
Nigerian SMEs are evidently aware of financial control system,
Melodi, (1995). A survey of inventory control practices according to Melodi
(1995) reveals that participating firms have knowledge of modern
inventory systems or policies but have not appreciated the application of
modern tools of making inventory decisions beneficial to their businesses.
Nevertheless, this shows that Nigerian SMEs are not just at the ready state
to use the modern inventory planning systems but the SMEs have the tools
that are founded on operation’s research/management science techniques
of which mostly are application of mathematical models with added
advantage of programme decision as practiced in the industrialized
countries from which the technology used was borrowed.
Nyakundi, (2014), study on management practices in Nigerian
private companies indicate that Nigerian firms use some financial control
techniques occasionally. Similarly, an attempt to examine the degree of fit
between size and structural variables in small and medium enterprises also
recommend increase in the use of control measures to achieve high
economic performance in these enterprises, Siwangaz, (2014).
2.3.8 Prospects of Small Scale Industries
Small and medium scale industries have played and will continue to
play a remarkable role in the growth development and industrialization of
many economies in the world. Below are some of the prospects of SMEs:

21
 Economic Development: The role of SME’s in economic development
cannot be overemphasized. This is owing to the fact that the profits made
by the entrepreneurs’ flows as an increase the nation’s Gross Domestic
Product (GDP). The contribution of SME’s in industrial sector to the
Nigerian Gross Domestic Product (GDP) was valued at 37% thereby,
making it the second largest contributor to the nation’s GDP after the oil
according to SMEDAN in (2009).
Encourage Investment: The introduction of an enabling environment
for SME’s in the sub-sector will further attract both local and foreign
investors to private sector of the economy.
Structural Balance: SME’s will enhance structural balance in terms of
small and large scale sectors of the industry as well as bring about rural-
urban development.
Encourage Technological Development and Innovation: SME’s will
produce specialized items in small quantity to meet current and diverse
people in the market.
Creation of Employment Opportunities: Entrepreneurship encourages
the creation of employment opportunities for the Nigerian citizens which in
turn increase the participation of small business owners in contribution to
the nation’s development, by drastically reducing unemployment in our
society. The existence of small businesses in the country has provided her
citizens with more jobs than the multinational.
2.4 Brief History of Treasure Bakery, Lokoja
Treasures Bakery was established in Early 2012, owned by Matthew
James. It has Branch in Lokoja, Opposite Specialist Hospital, Lokoja. It also
has an outlet in Destiny Plaza in Ganaja Junction. It renders catering
services and events planning.

22
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
Survey design is defined according to Nworgu (2006) as one in
which a group of people or items are studied by collecting and analyzing
data from any a few people or items considered to be representative of
the entire group.
The researcher used stratified sampling technique to draw data from
the population in order to have a cross representation of the selected
firms.
3.2 Area of the Study
The area of the study is the geographical area where the study was
conducted. This study was carried out in Treasures Bakery and
Confectionaries.
3.3 Population of the Study
Population is a complete set of individual, object or measurement
having some common observable characteristics, in other word population
is made up of all conservable phenomena’s of interest to the researcher.
Therefore, the population of this study comprises of worker at treasures
bakery and confectionaries
However the total population of workers at Treasures Bakery and
ConfectionariesLokoja is 20 of which is comprises the both senior and
junior workers
3.4 Sample of the Study
Asika (2010), sees sample as the part of the population sample is
the sub set of the population that is take to representing the entire
population of the organization.
However to determine the sample size the researcher used the yaro
yamanis formula

23
 n= N
1+N(e)2
Where:
N = population of the study
e = level of signification (5%)
n = sample size
1 is constant
N
1+N(e)2
n= 20
1+20(0.05)
n= 20
1+20(0.0025)2
n= 20
1+0.05
n= 20
1.05
n = 19
Therefore, the sample of this study is ninety (19).

3.5 Method of Data Collection

Data collection is the process of gathering information for the
purpose of verification of hypothesis which they themselves have bearing
on the problem under study however, for the purpose of this study the
data collection method used include questionnaire interview.
A questionnaire is a research instrument consisting of a series of
question and other prompts for the purpose of gathering information from
respondents questionnaire is a very effective research instrument which is
cheapest when comparing to any other method of data collection tools. An
interview is a conversation between two or more people when question
24
 are asked by the interviewer to elicit facts or statement from the interview
interviewing when considered for conducting qualitative research is a
techniques used to understand the experience of others.
3.6 Administration and Retrieval of Instruments
The research instrument used for the purpose of this study is
questionnaire in view of this (19) questionnaire design and distribution to
the (19) selected staffs
This is to obtain more information from greater number of
respondents’ personal method of distribution or delivering and collection of
questionnaire was adopted by the researcher out of the (19) copies of
questionnaire administered, only (15) where correctly filled and returned
by the respondents.
3.7 Problem of Methodology
According to Adegbo, (2003), in spite of all effort made towards
ensuring a good research work, the researcher still encountered the
following methodological problems:
Some of the respondents do not fill the questionnaire administered
and some of the respondents also turned down requests to be given
questionnaires.
Some of the respondents did not give accurate answers to the
questions in the questionnaire. However, the available data from the two
methods employed by the researcher will be meaningful for testing of
formulated hypotheses.
3.8 Method of Data Analysis
The method used in analyzing the data for the research is simple
percentage and Chi-square was used to test hypothesis.
Simple percentage enabled the researcher to know the relative
importance between two variables expressed in relation to 100%
mathematically.

25
 This was carried out using the formula:

Percentage = No. of Responses × 100

Total No. of Respondents 1
While Chi-square will enable the researcher to measure the
difference between a set of a theoretical frequencies.
The values of the Chi-square (X 2) is computed using the formular
below:
X2 = ∑ (Ef-f)2/
Ef
Where X2 = Chi-square
Ef = Expected frequencies
Of = Observed frequencies
∑ = Summations
Decision Rule:

i. If the calculated value is greater than the table value (X 2) reject null
hypothesis Ho accepted the Alternative hypothesis Hi
ii. Where calculated value is less than the table value accept the null
hypothesis.

26
 CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter deals with the presentation analysis and interpretation
of data collection from interview, sent to respondents on Small and
Medium Scale Enterprise and the Economic Development of Kogi State a
case study of Treasures Confectionaries, Lokoja.
4.1 Presentation and Analysis of Data
A total number of 19 copies of questionnaire were administered and
15 were completed and returned. The tables are used to analyze the
research work, with the simple percentage frequency method. This where
presented and analyze
Section A
Table 4.1.1: Sex of Respondent
Options No of Respondents Percentage
Male 13 87
Female 2 13
Total 15 100
Source: Field survey, 2021
Analysis of the table above revealed that 13 out of 15respondent
representing 87% are male while 2 out of 15 respondent representing
13% are female.
Table 4.1.2: Age Distribution
Options No of Respondents Percentage %
25-30years 3 20
30-35years 5 34
35-40years 4 26
40-45years 1 7
45years above 2 13
Total 15 100%
Source: Field survey, 2021
Analysis of table 2 above revealed that 3 out of 15 respondents
representing 2% falls between 25-30years, 5 out of 15 respondents representing
34%fall between 30-35years,4 out of 15 respondents representing 26% fall

27
between 30-40years 1 out of 15 respondents representing 7% fall between 40-
45years while 2 out of respondents representing 13% fall between 45years and
above.
Table 4.1.3: Marital Status
Options No of Respondents Percentage %
Single 6 40
Married 9 60
Divorced - -
Total 15 100
Source: Field survey 2021
Analysis of table 3 above shows that 6 out of 15 respondents representing 40%
are single while 9 out of 15 respondents representing 60 are married.
Table 4.1.4: Educational Qualification
Options No of Respondents Percentage%
WAEC/GUCE 3 20
ND/NCE 2 13
HND/BSC 8 54
MBS/MSC 2 13
Total 15 100%
Source: Field survey 2021
According to the information gathered of above 3 out of 15 respondents
representing 20%ares WACE/GCE holder, 2 out of 15 respondents representing
13% are ND/NCE holder 8 out of 15 respondents representing 45% are
HND/BSC holder while 2 out of 15 respondents representing 13%are MBS/MSC
holder.

Sections B (Questions on the Subject Matter)

Table 4.1.6: Does Small and medium scale enterprises contribute to the
economic development of Kogi State?
Options No. of Respondents Percentage (%)
Yes 10 60
No 5 40
Total 15 100
Source: Field Survey, 2021.

28
Table 4.1 6 above shows that 10 respondents representing 60% agreed to the
fact that Small and medium scale enterprises contribute to the economic
development of Kogi State, while 5 respondents representing 60% disagreed.
Table 4.1.7: Are small and medium scale enterprises underperformed in Kogi
State

Options No. of Respondents Percentage (%)

Yes 13 86.6
No 2 13.4
Total 15 100
Source: Field Survey, 2021.
Table 4.1.7 above shows that 13 respondents representing 86.6% agreed to the
fact that Small and medium scale enterprises are underperformed in Kogi State,
while 2 respondents representing 13.4% strongly disagreed.
Table 4.1.8: Is poor capital base responsible for poor performance of small and
medium scale enterprise
Options No. of Respondents Percentage (%)
Yes 12 80
No 3 20
Total 15 100
Source: Field Survey, 2021.
Table 4.1.8 above shows that 12 respondents representing 80% agreed to the
fact that Poor capital base is responsible for poor performance of small and
medium scale enterprise, while 3 respondents representing 20% disagreed.
Table 4.1.9: Does poor infrastructural facilities affect the operation of small and
medium scale enterprises
Options No. of Respondents Percentage (%)
Yes 14 93.3
No 1 6.7
Total 15 100
Source: Field Survey, 2021.
Table 4.1.9 above shows that 14 respondents representing 93.3% agreed to the
fact that Poor infrastructural facilities affect the operation of small and medium
scale enterprises, while 1 respondent representing 6.7% disagreed.

29
Table 4.1.10: The government of Kogi State made significant efforts towards
enhancing the performance of small and medium scale enterprise
Options No. of Respondents Percentage (%)
Yes 6 40
No 9 60
Total 15 100
Source: Field Survey, 2021.
Table 4.1.10 above shows that6 respondents representing 40% agreed that the
government of Kogi State made significant effort towards enhancing the
performance of small and medium scale enterprise, while 9 respondents
representing 60% disagreed.

30
Table 4.1.11: Small and medium scale enterprises are restructured in such a
way that they bring about economic growth
Options No. of Respondents Percentage (%)
Yes 8 53.3
No 7 46.7
Total 15 100
Source: Field Survey, 2021.
The table above shows that 8 respondents representing 53.3% agreed that Small
and medium scale enterprises are restructured in such a way that they bring
about economic growth, while 7 respondents representing 46.7% disagreed.
Table 4.1.12: Are Poor management practice, poor accounting standard,
shortage of manpower and corruption the problems of organizations in Kogi
State
Options No. of Respondents Percentage (%)
Yes 15 100
No - -
Total 15 100
Source: Field Survey, 2021.
The table above shows that all the respondents representing 100% agreed that
Poor management practice, poor accounting standard, shortage of manpower
and corruptionare the problems of organizations in Kogi State
Table 4.1.13: Equity capital is a major source of finance to small and medium
scale enterprises

Options No. of Respondents Percentage (%)

Yes 12 80
No 3 20
Total 15 100
Source: Field Survey, 2021.
Table 4.1.13 above shows that 12 respondents representing 80% agreed that
Equity capital is a source of finance to small and medium scale enterprises, while
3 respondents representing 20% disagreed.
Table 4.1.14: High cost of doing business affects the performance of small and
medium scale enterprise in Kogi State

31
 Options No. of Respondents Percentage (%)
Yes 15 100
No - -
Total 15 100
Source: Field Survey, 2021.
Table 4.1.14 above shows that 15 respondents representing 100% agreed that
High cost of doing business affect the performance of small and medium scale
enterprise in Kogi State.
Table 4.1.15: Lack of stable and consistent government policy affect the
performance of small and medium scale enterprise in Kogi State
Options No. of Respondents Percentage (%)
Yes 10 66.6
No 5 33.4
Total 15 100
Source: Field Survey, 2021.
Table 4.1.15 above shows that 10 respondents representing 66.6% agreed that
Lack of stable and consistent government policy affect the performance of small
and medium scale enterprise in Kogi State, while 5 respondent representing
33.4% disagreed.

32
Table 4.1.16: Small and medium scale enterprises find it difficult to attract
funds for expansion
Options No. of Respondents Percentage (%)
Yes 15 100
No - -
Total 15 100
Source: Field Survey, 2021.
Table 4.1.16 above shows that 15 respondents representing 100% agreed that
Small and medium scale enterprises find it difficult to attract funds for expansion.

4.2 Test of Hypothesis

The hypothesis earlier formulated in this research work tested on
this part, as a result of the analysis of the questionnaires guides has been
made and some information have been found to either supporting or against the
hypothesis .
The statistic technique which is used in testing this hypothesis is Chi-square (X 2)
the formula for Chi-square is show below.
(Of −Ef )❑2
2
X ❑ =∑ [ Ef ]
= (Of – Ef)2
Ef
Where: Of is the observed frequency
Ef is the expected frequency
Σ = Summation
X2 = is the Chi- square
Decision Rule
This rule states that if the calculated value of Chi-square is greater than the
table value of Chi-square, reject the Null Hypothesis (Ho) and accept the
Alternative Hypothesis (Hi) but where the table value greater than the calculated

33
value of Chi-square accept the null greater than the calculated value accept the
Null Hypothesis (Ho) and reject the Alternative Hypothesis(Hi).
Hypothesis I
Ho: Small and medium scale enterprises do not contribute to the enhancement
of Kogi State economy development
Hi: Small and medium scale enterprises contribute to the enhancement of
Kogi State economy development
Recall 4.1.6 for testing hypothesis I
Options No. of Respondents Percentage (%)
Yes 10 60
No 5 40
Total 15 100
Source: Field Survey, 2021.
Contingency Table
Of Ef Of – Ef (Of – Ef)2 (Of – Ef)2
Ef
10 7.5 2.5 6.25 0.83
5 7.5 -2.5 6.25 0.83
15 15 X =1.66
2

Therefore X2 – calculated = 1.66

Tabulated x2
Significant level ( ) =0.05
Degree of freedom (Df)=1
Therefore, 0.05 under 1= the chi-square (x2) distribution table gives 3.84
Decision rule
Since the calculated X2 is less than the tabulated X2 we accept the null
hypothesis which states that Small and medium scale enterprises does not
contribute tothe enhancement of Kogi State economy development and reject
the alternative hypothesis.
Hypothesis II

34
Ho: Equity capital is not a major source of finance available to small and
medium scale enterprises
Hi: Equity capital is a major source of finance available to small and medium
scale enterprises
Recall table 4.1.13 for testing hypothesis II
Options No. of Respondents Percentage (%)
Yes 12 80
No 3 20
Total 15 100
Source: Field Survey, 2021.
Contingency Table
Of Ef Of – Ef (Of – Ef)2 (Of – Ef)2
Ef
12 7.5 4.5 20.25 2.7
3 7.5 -4.5 20.25 2.7
15 15 X 5.4
2

Therefore X2 – calculated = 5.4

Tabulated x2
Significant level ( ) =0.05
Degree of freedom (Df)=1
Therefore, 0.05 under 1= the chi-square (x2) distribution table gives 3.84
Decision:
Since the calculated X2 (5.4) is greater than the tabulated X 2 (3.84) reject the Null
hypothesis and accept the alternative hypothesis which state that Equity capital
is a major source of finance available to small and medium scale enterprises
Hypothesis III
Ho: High cost of capital is not a problem facing small and medium scale
enterprises in obtaining loans by treasure
Hi: High cost of capital is a problem facing small and medium scale enterprises
in obtaining loans by treasure

35
Recall table 4.1.14 for testing hypothesis III
Options No. of Respondents Percentage (%)
Yes 15 100
No - -
Total 15 100
Source: Field Survey, 2021.
Contingency Table
Of Ef Of – Ef (Of – Ef)2 (Of – Ef)2
Ef
15 7.5 7.5 56.25 7.5
- 7.5 -7.5 56.25 7.5
15 15 X =15
2

Therefore X – calculated = 15
2

Tabulated x2
Significant level ( ) =0.05
Degree of freedom (Df)=1
Therefore, 0.05 under 1= the chi-square (x2) distribution table gives 3.84
Decision:
Since the calculated X2 (15) is greater than the tabulated X2 (3.84)
reject the Null hypothesis and accept the alternative hypothesis which
state that High cost of capital is a problem facing small and medium scale
enterprises in obtaining loans in Kogi State.

4.3 Discussion of Findings

The study was carried out in order to examine: The impact of small
and medium scale enterprises on the economic development of Kogi State,
with particular reference to some selected small and medium scale
enterprise in Lokoja
The result of the findings from this research study showed that,
small and medium scale enterprise contributes to the enhancement of Kogi

36
State economy development, Since the calculated value of Chi- square (X 2)
=51 is greater than the table value (11.143).
It was revealed that, Equity capital is a type of finance available to
small and medium scale enterprises, Since the calculated value of Chi-
square (X2) =94.904 is greater than the table value 11.143.
It was also discovered that, High cost of capital is a problem facing
small and medium scale enterprises in obtaining loans by treasure, since
the calculated value of Calculated Chi- square (X2) =194, is greater than
the table value 11.143.
Furthermore, the research study revealed that, lack of stable and
consistent government policy affect the performance of small and medium
scale enterprises in Kogi State since majority of the respondents agreed.
The study also revealed that small and medium scale enterprises
find it difficult to attract funds for expansion.
The researcher discovered that Poor management practice; poor
accounting standard, shortage of manpower and corruption are the
problems of organizations in Kogi State.

37
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings
The findings of the study revealed that small and medium scale
enterprises have a significant impact on the economic growth of Kogi State
and access to capital has posed a major challenge to developing small and
medium scale enterprises in the State and the nation at large.
It is a fact that small and medium scale enterprise is one of the
strategies towards socio-economic development of any society.
From the study, it is revealed that small and medium scale
enterprises have increased in number and it has positive impact on poverty
reduction in the state.
In the same vein, the study showed that small and medium scale
enterprises in Kogi State have helped tremendously in areas of
employment generation and that government through its poverty
alleviation programmes have helped to developing the sector in Kogi State.
The findings shows that small and medium scale enterprise
contributes to the enhancement of Kogi state economy development.
The researcher also discovered that poor management practice;
poor accounting standard; shortage of manpower and corruption are the
problems associated with small and medium scale enterprises in Kogi
State.
5.2 Conclusion
Based on the above findings, the researcher therefore draw the
following conclusions:
i. That poor access to capital is a major bane to the development of small
and medium scale enterprises in Nigeria.
ii. That poor infrastructural facilities like road, power supply etc. affect the
performance of SMEs in Nigeria.

38
iii. That SMEs can help in employment generation and hence in poverty
alleviation in Nigeria.
5.3 Recommendations
Based on the results of the finding, the following recommendations
were made:-
i. Financial institutions should provide more capital funding to the young
ones who present viable business ideas in order to reduce the rate of
unemployment in Nigeria;
ii. Training should be organized for the owners of small and medium scale
enterprises in Nigeria so as to boost their business performance;
iii. Effort should be made to ensure that adequate infrastructural facilities are
in place for proper operations of small and medium scale enterprises in the
Nigerian economy. Availability of adequate electricity and efficient
transport system is very essential for survival, growth and development in
any given economy;
iv. New economic policy should be introduced in the country to prevent
massive importation of foreign goods particularly those that our local
industries can produce domestically in order to protect the local producers
against stiff competition with foreign firms and
v. Financial institutions especially banks should be encouraged to increase
their loans and advances to SMEs in the country to address the financial
challenges confronting the operations and survival of many enterprises in
the country.

39
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42
 APPENDIX I
Department of Business
Administration,
School of Management Studies,
Kogi State Polytechnic,
P.M.B 1101,
Lokoja.
15th December, 2020.
Dear Respondent,
LETTER OF INTRODUCTION
I am a final year student of the above named Department and institution
conducting a research on “An Impact Assessment of Small and Medium Scale
Enterprises in the Economic Development of Kogi State” using Treasure
Confectionary, Lokoja as a case study. It is in partial fulfillment of the
requirements for the award of Higher National Diploma (HND) in Business
Administration.
For the purpose of genuine data collection, the questionnaire attached has
been designed and a copy is enclosed to solicit your response.
I promise that any information supplied will be treated with strict
confidence as it is for academic purpose.
Thanking you in anticipation of your positive response.
Yours faithfully,

Okpanachi Mary
(Researcher)

43
 APPENDIX II
QUESTIONNAIRE
PART A: Personal Data
Instruction: please respond by ticking the ( ) appropriate box
1. Sex of respondent
Male ( ) Female ( )
2. Age distribution
25 – 30 years ( ) 30 – 35 years ( ) 35 – 40 years ( )
40 – 45 years ( ) 45 years and above ( )
3. Marital status
Single ( ) Married ( ) Divorced ( )
4. Educational qualification
WAEC/GCE ( ) ND/NCE ( )
HND/B.Sc ( ) MBS/MSC ( )
Sections B: Main Research Questions
5. Does Small and medium scale enterprises contribute to the economic
development of Kogi State?
Yes ( ) No ( )
6. Are small and medium scale enterprises underperformed in Kogi State?
Yes ( ) No ( )
7. Is poor capital base responsible for poor performance of small and
medium scale enterprise?
Yes ( ) No ( )
8. Does poor infrastructural facilities affect the operation of small and
medium scale enterprises?
Yes ( ) No ( )
9. Does the government of Kogi State made significant efforts towards
enhancing the performance of small and medium scale enterprise?
Yes ( ) No ( )

44
10. Are small and medium scale enterprises restructured in such a way that
they bring about economic growth?
Yes ( ) No ( )
11. Are Poor management practice, poor accounting standard, shortage of
manpower and corruption the problems of organizations in Kogi State?
Yes ( ) No ( )
12. Is equity capital a major source of finance to small and medium scale
enterprises?
Yes ( ) No ( )
13. Does high cost of doing business affects the performance of small and
medium scale enterprise in Kogi State?
Yes ( ) No ( )
14. Does lack of stable and consistent government policy affect the
performance of small and medium scale enterprise in Kogi State?
Yes ( ) No ( )
15. Doessmall and medium scale enterprises find it difficult to attract funds for
expansion?
Yes ( ) No ( )

45