CHALLENGES OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) OPERATORS IN JIMETA MAIN MARKET: A DESCRIPTIVE ANALYSIS

Ibrahim Mohammed Babbuli

Ibrahim Mohammed Babbuli Adamawa State University, Mubi

Keywords: Entrepreneurship, Small and Medium Scale Enterprises, Field of Research

Abstract

Small and medium enterprise experiences difficulties in raising equity capital from the finance houses or individuals. Even when the finance house agrees to provide equity capital, the conditions are always dreadful. All these result to inadequate capital available to the sector and thus lead to poor financing. This is the bane of most cottage industries in Nigeria. About 80% of small and medium enterprises are stifled because of this problem of poor financing and other problems associated with it. The method of data collection comprises primary and secondary method, the study sample size is 50, i.e. systematic randomly sampling technique is used to select the sample from the population where the researcher divided the sample in 50 groups, i.e. each group represents 10 respondents and the researcher selected the 10th number from each group and arrived at the sampled unit of 50. Simple percentages were also used to put together the data concerning responses about the causes of failure of SMEs in Jimeta market. In order to identify the cause and effect relationship, chi-square was used to test hypothesis. The finding revealed that the majority of respondents agreed that government does not provide financial assistance to enhance the success of small business in Jimeta Main Market. Therefore, it recommends that, government and other private sector should assist in establishing a small scale business bank that will cater for entrepreneurs in terms of loans and other incentives to help them develop their business and the development of the whole community and Nigeria at large.

Author Biography

Ibrahim Mohammed Babbuli, Adamawa State University, Mubi

Department of Business Administration

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