Contribution of Small and Medium Scale Enterprises

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CHAPTER ONE
Introduction
The production of goods and services in the most efficient manner has continue to be the only viable and alternative for development of small scale enterprises in Nigeria and for the development, growth and survival of any economy. The development of small scale enterprises not only contributes significantly to imposed standard, they also bring substantial local capital formation and achieve high level of productivity. Small and medium scales are crucial to the development of all economies of the world. They are the modern day’s incubators of job opportunities, they provide the way for developing local technologies, raw materials and serve as the foundation of self-reliance to many countries of the world. Small and medium enterprises predominate all over the world with labor intensive method of production. The operation of small and medium enterprises not only requires less capital per worker, but also per unit labor added. Hence, cost industrialization and industrial job are not high SME’s offer the most efficient form of business. The definition of small and medium enterprises tends to differ among countries. Thus there is no universally accepted definition. This arises from difference in industrial organization of the countries at different level of economic development in part of the same country. It is also important to recognize that the definition change over time. For the purpose of this research however, small and medium scale enterprises is defined as a term used broadly to cover industries consisting of small firms ranging from household and cottage establishment to medium sized industries that are not large enough to be classified as large. In other words, small and medium enterprises are classified as enterprises embracing factories, farming and non-farming organization ranging from household to cottage enterprises. Small and medium scale enterprises are a dynamic, growing, profitable and innovative sector. It is in...
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