Industrial Development In Nigeria

exceeding 43million euro.

Gholami et al. (2010) regarded SMEs as firms that have fewer employees and a lower annual turnover and assets than large firms such as multi-national companies. Hudson et al. (2001) also agreed that SMEs may be differentiated from larger companies a number of key characteristics such as personalized management with devolution of authority, resource limitations in in terms of management and manpower, finance, reliance on a number of small customers, limited market operations, flat and flexible structures, high innovatory potential, reactive fire-fighting mentality and informal dynamic strategies.

There is a consensus that if all stakeholders are to show serious commitment to the development of the SMEs sub-sector it

It also serves a major variable for economic private sector, development and partnership. A various governments development agencies and experts as well as multilateral institution do appreciate this facts such that they positively respond to any recession and situations, which could permit their contributing to or creating opportunities for promoting this lot of standards (Ebringa, 2011).

One major drawback in Nigeria’s quest for industrial development over the past years has been the absence of a strong, vibrant and mile sub-sector. A number of reasons have been adduced as to why the expectations from the SMEs have not been meet. They are: (1) devaluation of Naira (2) Political instability (3) Privatization

According to Zaman (2011), the roles of SMEs in the economy include: (1) Theybooster an entrepreneurial spirit and put forward electricity in the economy. (2) SMEs are efficient in resource allocation as compare to that of large scale companies from social point of view.(3) They play significant contribution in the transition or agriculture led economics to industrial ones. (4) They contribution to improved living standards, substantial local central formation and high level of productivity. (5)They generate employment and alleviate

(ii)They serve as major source of employment. (iii) They provide a training avenue for the creation of future entrepreneur in several area of economic activity.(iv) SMEs are a major source of domestic capital formation through their mobilization of savings and channelling of such in productive investment. (v)They aid the process of redistribution of incomes.(vi) SMEs provide intermediate/semi-processed goods for use by large-scale firms. (vii) SMEs engage in manufacturing serve as channels for import substitution and promotion of exports. (viii) They provide sound development for improving the standard of living of the citizenry. (ix) SMEs provide a variety of choice to the customer. (x)They also constitute a critical source of specialization for most large organizations operating in the economy. (xi)SMEs facilitate structural transformation to the rural areas. (xii)SMEs help in improving rural incomes and general rural living conditions and by extension the country per capital income. (xiii) They also serve as a strategy for checking rural-urban migration and;(xiii)They in their limited ways help in reducing the development gap between these areas and the urban centres and in this way help sustain economic