IMPROVING THE DEVELOPMENT OF SMES IN ENUGU STATE, THROUGH THE ACTIVITIES OF THE NATIONAL ASSOCIATION OF CHAMBER OF COMMERCE INDUSTRIES, MINES AND AGRICULTURE (NACCIMA)
ABSTRACT
This research work, examined improving the Development of SMEs in Enugu State, through the activities of the National Association of Chamber of Commerce Industries, Mines and Agriculture (NACCIMA). The objectives of the study include to: find out how linking foreign partners with local entrepreneurs by NACCIMA improves the developments of SMEs in Enugu State, ascertain the relationship between promoting investments in Commerce, Industries, Mines and Agriculture and improving the development of SMEs in Enugu State, determine the effect of collecting and disseminating relevant information that will assist entrepreneurs on improving the development of SMEs in Enugu State and examine the relationship between initiating important training programmes for entrepreneurs and improving the development of SMEs in Enugu State. The research method adopted by the researcher was the survey research method. The major instrument of data collection was the questionnaire. The sources of data used were the primary and secondary sources of data. The population of the study was 186 while the sample size of 186 was determined by applying the rule governing population and sampling. The major instrument of data collection was the questionnaire. The data collected were presented in tables using frequencies and percentages and analysed using the five point likert system. The hypotheses were tested using the chi-square distribution formula. The findings include that linking foreign partners with local entrepreneurs by NACCIMA improves the development of SMEs in Enugu State, promoting investments in commerce, industries, mines and agriculture have a positive relationship with improving the development of SMEs in Enugu State, collecting and disseminating relevant information that will assist entrepreneurs have a positive effect on improving the development of SMEs in Enugu State and initiating important training programmes for entrepreneurs have positive relationship with improving the development of SMEs in Enugu State. The researcher therefore concludes that the development of SMEs in Enugu state can be developed through the activities of NACCIMA and it was recommended that government should try to link foreign partners with local entrepreneurs, government should promote investments in commerce, industries, mines and agriculture, NACCIMA should help collect and disseminate relevant information that will assist entrepreneurs and important training programmes for entrepreneurs should be initiated by the government.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
1.9    Operational definition of Terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.2     Theoretical Framework of the Study                
2.3     Empirical Review                             
2.4 Gap in the Review of Related Literature            
2.5 Summary of Review of Related Literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.4    Test of Hypotheses                            
4.5    Discussion of Findings                         
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                             
Appendix                                    
Questionnaire                                
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
    Small and medium scale enterprises (SMEs) are initial to the economic of all countries (Adeyinka 2014:106). They contribute to economic development by creating employment for rural and urban population, providing flexibility and innovation through entrepreneurship and increasing international trade by diversifying economic activities. Their role income generations and economic growth for developing countries is critical. Edemereyor (2012:74) posits that small scale enterprises in Nigeria constitute over so percentage of all registered companies, occupying positions in agro based and allied industries, rubbers based leather shoes industries, chemical, electronics, general merchandizing, restaurants, dress making, hair dress making etc.
    To Nwosu (2015:74) small and medium scale enterprises are well suited to the factor endowment of the Nigeria economy. This is because they promote the use of local raw materials. They are entrepreneurial development centers and can facilitate balanced development, since they can be operated at remote and rural areas.
    However, globalization and trade uberalization have ushered in new opportunities as well as challenges for SMEs (Williams, 2014:58) presently, only a small part of the SME sectors is able to identify and exploit these opportunities and deal with her challenges. SMEs are constrained by limited access to finance, poor state of infrastructure and lack of effective institutional structures the removal of the constrains is a daunting task, calling for holistic SME support i.e an enabling environment for SME development consisting of macro and micro level institutions.
    UMEADI (2014:82) asserts that SME development requires a cross cutting strategy that touches upon many areas (e.g) ability of government to implement sound macroeconomic policies, capability of stakeholders to develop conduced micro economic business environments, through simplified legal and regulatory frameworks, good governance, abundant and accessible finance, suitable infrastructure supportive education sufficiently health and flexibly skilled labour as well as capable public and private institutions.
    Furthermore, Walter (2014:74) opines that SMEs must be able to respond quickly and efficiently to international market signals to take advantages of trade and investment opportunities and reap the benefits of the international trading systems. This means they need to be competitive and productive effective business support systems is also a key condition for the success of both trade and investment capacity building. It requires business support agencies, which are customers-oriented and which have a demonstrated capability of penetrating the SME sector.
    Moreover, the Nigerian government has been clamoring for a link between potential foreign partners and local entrepreneurs with a view to encouraging investment and also promoting investment in commerce industries, mines and agriculture. It is in the light of this tat this research examined improving the development of SMEs in Enugu state through the activities of the National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA).
1.2 Statement of the Problem
    The consequences of not improving SMEs in Enugu State through the activities of NACCIMA have resulted in high mortality rate of SMEs. The SMEs in Enugu State already have a high mortality rate and when their development is not improved the mortality rate will be higher.
    Another effect of not improving the development of SMEs in Enugu State is the high rate of unemployment. SMEs are known to create employment to a large numbers of unemployed people in Nigeria. When they are not developed, they cannot employ and the unemployment rate will increase.
    Furthermore, entrepreneurship will be effected as a result of not improving the development of SMEs. This is because SMEs development has a link with entrepreneurship through innovation, risk taking, generating business ideas etc.
    Finally, when the development of SMEs is not improved in Enugu State, it could affect the economy of the country as increase in SMEs increases the economic activities of the country.
1.3 Objectives of the Study
    The broad objectives of the study was improving the development of SMEs through the activities of the national association of chambers of commerce, industries, mines and agriculture. However the specific objectives include:
1.    To find out how linking foreign partners with local entrepreneurs by NACCIMA improves the developments of SMEs in Enugu State.
2.    To ascertain the relationship between promoting investments in Commerce, Industries, Mines and Agriculture and improving the development of SMEs in Enugu State.
3.    To determine the effect of collecting and disseminating relevant information that will assist entrepreneurs on improving the development of SMEs in Enugu State.
4.    To examine the relationship between initiating important training programmes for entrepreneurs and improving the development of SMEs in Enugu State.
1.4 Research Questions
    Based on the objectives of the study, the following research questions were raised.
1.    How does linking foreign partners with local entrepreneurs by NACCIMA improves the developments of SMEs in Enugu State?
2.    What is the relationship between promoting investments in Commerce, Industries, Mines and Agriculture and improving the development of SMEs in Enugu State?
3.    What is the effect of collecting and disseminating relevant information that will assist entrepreneurs on improving the development of SMEs in Enugu State?
4.    What is the relationship between initiating important training programmes for entrepreneurs and improving the development of SMEs in Enugu State?
1.5 Statement of Hypotheses
Based on the research questions, the following hypotheses were formulated
Hypothesis One
H0:    Linking foreign partners with local entrepreneurs by NACCIMA does not improve the development of SMEs in Enugu State.
H1:    Linking foreign partners with local entrepreneurs by NACCIMA improves the development of SMEs in Enugu State.
Hypothesis Two
H0: Promoting investments in commerce, industries, mines and agriculture does not have a positive relationship with improving the development of SMEs in Enugu State.    
H1:    Promoting investments in commerce, industries, mines and agriculture have a positive relationship with improving the development of SMEs in Enugu State.    
Hypothesis Three
H0:    Collecting and disseminating relevant information that will assist entrepreneurs have no effect on improving the development of SMEs in Enugu State.
H1:    Collecting and disseminating relevant information that will assist entrepreneurs have effect on improving the development of SMEs in Enugu State.
Hypothesis Four
H0: Initiating important training programmes for entrepreneurs have no positive relationship with improving the development of SMEs in Enugu State.    
H1:    Initiating important training programmes for entrepreneurs have a positive relationship with improving the development of SMEs in Enugu State.
1.6 Significance of the Study
This research work will beneficial to small and medium scale business owners because through the finding of this research, their business will be able to develop. Government will benefit from the research work as it will lead to economic development the researcher will benefit from this work as it is a partial requirement for the award of a Bachelor of Science (B.Sc) Degree in Business Administration. The university will benefit from this work as it increases it data bank. Finally, this research serves as reference material for further research on this topic.
1.7    Scope of the Study
    This research work covered how linking foreign partners with local entrepreneurs improves the development of SMEs, the relationship between promoting investment in commerce industries, mines and agriculture and improving the development of SMEs, the effect of collecting and dissemination relevant information that will assist entrepreneurs on improving the development of SMEs and the relationship between initiating important training programmes for entrepreneurs and improving the development of SMEs in Enugu State the organization covered is NACCIMA.
1.8    Limitation of the Study
    The researcher encountered some impediments in the course of carrying out this research work. Among them were finance and uncooperative attitude of the respondents.
Uncooperative Attitude of the Respondents: The respondents of NACCIMA were economical with information and this affected the research.
Difficulty in Collecting Materials: This researcher has difficulty in collecting materials from the various libraries uses.
1.9 Operational Definition of Terms
Development: This is a curse of action designed to enable the individual to realize his potential for growth in the organization.
Small Scale Enterprise: This is any enterprise having investment capital in land building, machinery and employing not more than 50 persons.
NACCIMA: This is a trade association that involved in promoting investment in commence, industries, mines and agriculture in Nigeria.
Medium Scale Enterprise: This is any enterprise having investment capital in land, building, machinery, equipment and working capital of up to N1m and employing not more than 100 persons.