Contemporary Issues in Economic Development, Africa Prof. V.A. Adeyeye Director, Economics Policy Unit Nigeria Institute of Social & Economic Research (NISER) Ibadan, Oyo State, Nigeria and Dr. Olayiwola Olubodun Olaniyi Nigeria Institute of Social & Economic Research (NISER) Ibadan, Oyo State, Nigeria NEW INDIA PUBLISHING AGENCY New Delhi - 110 034
Contents Dedication Preface v vii 1. Small Scale Enterprises 1 1.1. Definition ofsmall-scale Enterprises 1 1.2. Problems of Small-scale Business 2 1.2.1. Classification ofsmes 2 1.2.2. Ways of owning a small-scale business 7 1.2.3. Forms ofsme ownership 7 1.2.4. Selecting the mode of owning a SME and form of ownership 8 1.2.5. Operation, ownership and management 9 1.2.6. Factors determining small and medium scale entrepreneurship choice 9 1.2.7. Policy formulation in SMEs 10 1.3. The SME Option: Its Problems 14 1.3.1. Past policies of government on SMEs 17 2. Medium and Small Scale Enterprises to Socio-Economic Development 23 2.1. Place ofsme in Remeding The Nigerian Economic Paradox 23 2.2. The Contributions of Small and Medium Scale Enterprises to Socio-Economic Development 24 2.3. Basic Record Keeping and Accounting for Small Business 26 2.4. Challenges of Entrepreneurship in a Growing Economy 28 3. Promotional Entrepreneurship Programmes in Nigeria 31 3.1. Approaches for Promotion Entrepreneurship Programmes in Nigeria 31 3.2. Appraisal of Past Policies of Government at Promoting Entrepreneurship 33 3.3. Strengths and Weaknesses of Small and Medium Enterprises 33
x Contemporary Issues in Economic Development, Africa 4. Issues in Employment in Nigeria 37 4.1. Issues in Employment 37 4.1.1. What is employment? 37 4.2. Unemployment in Nigeria 40 4.3. Vulnerable Groups in Africa 42 4.4. Entrepreneurial Education and its Consequence in Nigerian Economy 44 4.4.1. Who is an Entrepreneur? 45 4.4.2. Objectives of Entrepreneurial Education 45 4.5. Entrepreneurship in Higher Education is Critical to Development 45 5. Worldview Issues of Small and Medium Enterprises 49 5.1. Worldview on the Issue of Small and Medium Enterprises 49 5.2. Models of the Employment Relationship 51 5.2.1. Globalization and employment relations 52 5.2.2. Employment fraud/modem slavery 52 6. Issues in Growth and Development in Nigeria: Economic and Non-Economic 57 6.1. Issues in Growth and Development in Nigeria 57 6.2. Corruption and Governance Challenge in Nigeria 58 6.3. Addressing Poverty and Inequality 59 6.4. Building Human Resources 60 6.5. Making Agricultural Development apriority in Nigeria 61 7. Causes and Consequences of Poverty 65 7.1. Rural Poverty in Nigeria 65 7.2. Causes and Consequences of Poverty Today 66 7.2.1. Measuring poverty 67 7.3. Why Poverty Persist in Nigeria 67 8. Obstacles of Nigeria in Economic Growth 71 8.1. Major Obstacle to Nigeria Economic Growth 71 8.1.1. Transport costs and rates 73 8.1.2. Costs and time components 74 8.2. Monetary Policy Impacts on Growth, Inflation and Exchange Rates 78 9. Issues and Challenges for Growth in Nigeria 79 9.1. Challenges for Nigeria 79 9.2. Barriers of SMEs Trading 84 9.3. Foreign Trade Barriers in Nigeria 87
Contents xi 10. Challenges and Opportunities in Small and Medium Enterprises 91 10.1. Challenges and Opportunities in SMEs 91 10.2. Challenges withcurrent Financial Structures 92 10.3. Central Bank Support for Development Banking and Small-Scale Financial Institutions 94 10.4. Trade Policy and the Poverty Reduction in Nigeria 96 11. Approaches for Promotion Programmes in Entrepreneurship... 99 11.1. Support for Start-Up Finance 99 11.2. Activities by Entrepreneur in Small Scale Bussiness 100 12. Small and Medium Entrepreneurship in Africa- A Critical Review 105 12.1. Practice of SMEs in Africa- Critical Review 105 13. Internal and External Factors Affecting Small and Medium Enterprises 113 13.1. Internal and External Factors Affecting Small and Medium Enterprises 113 13.2. Agriculturc Growth Factors 115 13.3. Construction Growth Factors 116 14. Comparison with Social Entrepreneurs to Corporate Entrepreneurs 119 14.1. Characteristics of Social Entrepreneurs Compared to Corporate Entrepreneurs 119 14.2. Distinguishing Processes of Social Entrepreneurship as Compared with Corporate Entrepreneurship 121 14.3. Key Outcomes of Social Entrepreneurial Ventures Compared with Corporate Entrepreneurial Ventures (CEVs) 123 14.4. Relevance of IB Models For (Private Sector) Development 128 15. General Barriers 131 15.1. General Barriers and IB Strategies to Overcome 131 15.2. Organisation-Specific Strengths and Weaknesses 133 16. Medium and Small Enterprises - An Overview 137 16.1. Overview of Medium and Small Enterprises (MSE) Growth 137 16.2. Productivity and Growth 139 16.3. The Business Environment 139 16.4. Inter-Firm Cooperation 142
xii Contemporary Issues in Economic Development, Africa 17. Unemployment Issues and Steps Taken by the Government... 145 17.1. The Nigerian Unemployment Milieu: Control Measures taken by the Government 145 17.1.1. Defming poverty 146 17.1.2. Approaches to defming poverty 146 17.2. Absolute and Relative Poverty 148 17.3. The Reconciliation of Absolute and Relative 150 18. Fast Policies of Government - A Survey 151 18.1. Basic for Government Intervention in the Economy 151 19. Issues and Challenges in African Youths 155 19.1. Remediesto Combat Unemployment in Nigeria 155 19.2. Economic Growth and Economic Development 156 19.2.1. Features ofdeveloping Economy 158 19.2.2. Development Flanning and Nigeria's Economic Reform Programmes 159 19.3. Youth Issues on Sexual Exploitation 162 19.4. Child Protection 168 19.5. Child Pornography and Child Prostitution 170 19.6. Issues on African Youths 172 References 177