THE ROLE OF MODERN TECHNOLOGY IN THE SUCCESS OF SMALL AND MEDIUM SCALE ENTERPRISE IN NIGERIA
ABSTRACT
This study was carried out with the aim of examining the role of modern technology in the success of small and medium enterprise in Nigeria. The instrument used for the purpose of this research was gathered through primary and secondary sources. The primary source is through questionnaire while the secondary sources extract from textbooks by different authors/journals and other publications. The mass of information generated from the questionnaire was summarized in form of table and analyzed using simple percentage. The researcher administered one hundred and twenty (120) questionnaires to respondents, hundred and five (105) were retrieved. The data collected was analyzed using chi-square statistical tool.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION                            
1.0    Background of the study                                
1.1    Statement of the research problem                            
1.2    Research question                                    
1.3    Objective of the study                                
1.4    Research hypothesis                                    
1.5    Scope of the Study                                    
1.6    Significant of the Study                                
1.7    Limitation of the Study                                
1.8    Definition of Terms                                    
CHAPTER TWO: LITERATURE REVIEW
2.0    Introduction                                        
2.1    Description of Small and Medium scale Business                    
2.2    Information and communication technology                    
2.3    Mobile Technology                                    
2.4    Computer and the internet                                
2.5    SMEs and ICT                                    
2.6    Factors affecting the adoption of ICT in SMEs                    
2.7    Use of ICT and its impact on SMEs success                    
2.8    Significant of SMEs and their contribution to economic development        
CHAPTER THREE: METHODOLOGY OF THE STUDY
3.0    Introduction                                        
3.1    Research design                                    
3.2    Population of the study                                
3.3    Sample and sampling technique                            
3.4    Instrument for data collection                            
3.5    Validation of the instrument                            
3.6    Reliability of the instrument                            
3.7    Method of data collection                                
3.8    Method of data analysis                                
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS
4.0    Introduction                                        
4.1    Data presentation                                    
4.2     TEST OF HYPOTHESES                                
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS OF RESULTS
5.0    Introduction
5.1    Summary of findings
5.2    Discussion of finding
5.3    Conclusion
5.4    Recommendation
5.5    Suggestion for further research
    BIBLIOGRAPHY
    CHAPTER ONE
    INTRODUCTION
1.0    BACKGROUND OF THE STUDY
Small and medium scale enterprises (SMEs) have become the beacon of hope for struggling economies around the world that are looking for answers to recession and massive unemployment. Developing nations like Nigeria suffer from technological deficits in production processes employed by its small and medium scale business when compared with those of developed nations.
Technological shifts are the norm in today‘s business. In a recent global study with Oxford Economics, 2,300 Small and Medium Enterprises (SMEs) senior executives were asked to assess key elements of running a successful enterprise. Almost 60% of the respondents agreed that technology is a key differentiator for their firms and more than one third of SMEs stated that creating a culture of innovation is a top strategic priority in driving growth. Essentially, the study revealed that staying ahead of innovation is critical to establishing and extending competitive advantage for SMEs, and that technology is key in innovation strategy. But the pace of change has accelerated, presenting SMEs with an unprecedented range of options to help drive growth, while staying flexible and answering to customer demands. Failing to adapt to the changing technological landscape will make a business to be completely forgotten.
Small and Medium Enterprises (SMEs) have been considered one of the driving forces of modern economies due to their multifaceted contributions in terms of technological innovations, employment generation and export promotion, among others. Of these, the ability of SMEs to innovate tends to have assumed significance given the free-flowing of today‘s business environment and market volatility. Therefore, adoption of modern technologies has the potential to motivate growth of individual enterprises at the micro level with possible ripple effects at the macro level. In a developing economy like Nigeria, SMEs play fundamental roles in reengineering the socio-economic landscape of the country. These enterprises largely represent a stage in industrial transition from traditional to modern technology. The variation in transitional nature of this process is reflected in the diversity of these enterprises. Most of the small enterprises use simple skills and machinery as well as local raw materials and technology. The significant roles of SMEs in Nigeria include but not limited to; employment creation, utilization of scarce available resources, limit the challenges associated with rural-urban migration, critical breeding and nurturing grounds for domestic entrepreneurial capacities, improving technical skills, aiding technological innovativeness and managerial competencies, income generation, utilization of local technology and raw materials, engine room for the growth of any developing economy, because they form the majority of business activities in developed and developing economies and being a change agent in economic transformation (Bogliacino, Piva, &Vivarelli, 2012).
Developing nations such as Nigeria characterized as low income earners by the World Bank, value small and medium scale enterprises (SMEs) for several reasons. Viewed in static terms, the main argument is that SMEs, on average achieve decent levels of productivity especially of capital and factors taken together (that is, total productivity factor) while also generating relatively large amount of socio-economic development. In dynamic terms, the SMEs sector is viewed as being populated by firms most of which have considerable growth potential. SMEs in developing countries achieve productivity increases to a great extent simply by borrowing from the shelf of technologies available in the world to help boost their economy (Christopoulos & Tsionas, 2004).
Fundamental liberalization and deregulation have been presented in various sectors of the economy especially since the beginning of our fragile democratic institutions to make the Nigerian economy more and more market-oriented and combined with the emerging global economic structure in a justifiable manner. The Nigerian economic growth has been led by the service sector in the last decade, particularly, in the information technology and telecommunication. Mobile communications enable SMEs to be constantly connected whatever the time or location. For a customer, a positive experience and immediate response is essential. If a customer is unable to get hold of someone, they will simply look for another option. Many of the SMEs in Nigeria today need to recognize that, as they grow, they will need to ensure that they are supported by the right technology. This is why 68% of SMEs recently surveyed in Europe said that they plan to make further ICT investment to enable a deeper and more responsive level of customer service and to support more flexible and productive working practices. However, despite advances in information and communication technology and the acceptance of such technologies by large organizations, the same level of adoption is not evident among SMEs in Nigeria.
Okwuonu (2013) asserts that many SME operators are inexperienced with operating a computer and become doubtful of the benefits and value its gives to the business and have the notion that information and communication technology is only for larger companies even when they have the will and financial resources to integrate information and communication technology into their core business. SME operators are often at a loss when the need arises to choose the most appropriate and cost efficient product. But with the use of ICT, weak players in the economy can be empower by providing them with information, communication and knowledge they could not access before. This enhances the competitiveness of small and medium-size enterprises (SMEs) and can enable them establish their presence on the Internet and use it to communicate with suppliers and customers, to search for business information and to advertise their products (Okwuonu, 2013).
Given the above, the purpose of this work therefore, is to fine out the role of Modern Technology to the success of small and medium scale enterprises in Nigeria, examined the impacts of technology on SMEs operations and deliveries. Some of the technologies that will be made mention include, information technology, telecommunication, computer, internet and the use of machines.
1.1    STATEMENT OF RESEARCH PROBLEM
The recent increase in technological advancement has strong impact on the operation of SMEs in other parts of the world including China and Brazil (James Manyika& Charles Roxburg, 2011).Emphasis on impact of information technology on increase in productivity and performance on SMEs can be consider as an issue to Entrepreneurs, scholars and practitioners in developing economy like Nigeria. In a global world, the use of Information and Communication Technology to increase productivity and performance is one of the challenges being face by SMEs presently in Nigeria, due to the lack of knowledge on the benefit of Information and Communication Technology leads to failure in their businesses. However, there is the need for changing roles of SMEs operation to meet the global challenges. In developing countries like Nigeria, ability to constantly upgrade functions, processes and productive in Business becomes a problem not only of innovativeness but eventually one of existence. Information and Communication Technology is expected to improve SMEs operation performance in a form of transactional accessibility, saving of time and quick transaction.
1.2    RESEARCH QUESTION
(i)    Does ICT reduce transactional cost and increase productivity of SMEs?
(ii)    Does mobile phone enhance communication with trading partners and customers of SMEs?      
(iii)    Does machine improve competiveness and strategic management of SMEs?
(iv)    Does computer enhance effective data management, information gathering and overcome distance barrier of SMEs?
(v)    What are the factors influencing the adoption of modern technology by SMEs?
1.3    OBJECTIVES OF THE STUDY
The objectives of this study are as follows:
(i)    To determine how ICT reduce transactional cost and increase productivity of SMEs
(ii)    To determine how mobile phone enhance communication with trading partners and customers of SMEs
(iii)    To determine if the use of machine improve competiveness and strategic management of SMEs
(iv)    To determine if the use of computer enhance effective data management, information gathering and overcome distance barrier of SMEs
(v)    To evaluate factors influencing modern technology adoption in the SMEs sector.
1.4    RESEARCH HYPOTHESIS
Ho1: ICT has no significant influence on the growth of SMEs operation
Ho2:  Mobile phone does not significantly improve communication with trading partners and customers of SMEs
Ho3:  Machine does not improve competiveness and strategic management of SMEs
Ho4:  Computer does not significantly enhance effective data management, information
    gathering and overcome distance barrier of SMEs
1.5    SCOPE OF THE STUDY
This study is on the roles of modern technology in the success of small and medium scale businesses. Although the study tends to cover the practices of small and medium scale businesses in Nigeria, but the study will be limited to selected small and medium scale enterprises in Benin City, This study will basically focus on the following technologies; information technology, telecommunication, computer and the internet.
1.6    SIGNIFICANCE OF THE STUDY
The need for this study arises due to the recent increase in technological advancement, which has strong impact on SMEs.
The researcher hopes that the findings of the study would help in creating awareness on the role of Modern Technology on SMEs performance. Such knowledge can be use to adopt appropriate modern technology that will help to reduce transactional cost as well as increase productivity.
The finding of this study will help owners/managers of small and medium scale enterprise understand the roles of Modern Technology in enhancing communication with trading partners and customers of small and medium scale enterprise. This knowledge will help them to use the most effective channel of communication in their business transaction with their customers and business partners.
This study will also help owners/managers of small and medium scale enterprise to identify better means of information gathering and data management. The manager could use such knowledge for effective and efficient decision making.
The finding of this study will help owners/managers of small and medium scale enterprise to be aware of the problems and challenges of adopting Modern Technology by SMEs. Such information will help them to make the right decision on the skills and training, management support and government support attitude, fund, cost and infrastructure with regards to small and medium scale enterprise.  
1.7    LIMITATION OF THE STUDY
Despite the attempt made to carry out an extensive study, the study has some limitation that militated against it.
Respondents Attitude: Unwillingness on the part of the respondents to fill and return questionnaire was a major limitation faced by the researcher. Having access to get the questionnaires to them as well as retrieving them was difficult.
Finance: There was no adequate fund to carry out the research, knowing fully well that finance is the life wire of any project.
1.8    DEFINITION OF TERMS
(a)    SMEs: The Small and Medium Sized Development Agency of Nigeria (SMEDAN) defines SMEs based on the following criteria: a micro enterprise as a business with less than 10 people with an annual turnover of less than ₦5,000,000.00, a small enterprise as a business with 10-49 people with an annual turnover of ₦5,000,000.00 to 49,000.000.00; and a medium enterprise as a business with 50-199 people with an annual turnover of ₦50,000,000.00 to 499,000,000.00.
(b)    ICT: This is any technology that enables communication and the electronic capturing, processing and transmission of information.
(c)    TECHNOLOGY: Scientific knowledge used in practical ways in industry
(d)    INDUSTRY:    The production of goods from raw materials, especially in factory
(e)    TRANSITION: The process or a period of changing from one state or condition to another    
(f)    DEVELOPING: Poor and trying to make its industry and economic system more
(g)    DEVELOPED: Having many industries and complicated economic system.
(h)    SMEDAN: Small and medium enterprise development agency of Nigeria is an agency establish to develop the micro, small and medium enterprise in Nigeria
(i)    SMEEIS: Small and medium enterprise equity investment scheme is a voluntary initiative of the bankers committee (central bank and all other license bank in Nigeria)
(j)    ADOPTION: The decision to start using something such as an idea, a plan or a name    
(k)    BARRIER: This is a problem or situation that prevents or makes something impossible
(l)    CHALLENGE: A new or difficult task that test somebody ability or skill