DETERMINATION OF HUMAN RESOURCE MANAGEMENT PRACTICES OF MANAGERS OF SMALL AND MEDIUM ENTERPRISES IN ANAMBRA STATE
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- 1-5 Chapters
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- Recommended for : Student Researchers
- NGN 3000
Background to the Study
Small and Medium Scale Enterprises (SMEs) are deemed to be integral to the growth and development of any forward thinking nation. Small and medium enterprises (SME) are seen as agents of economic development and contribute to improved living standards, substantial local capital formation, and achieve high levels of productivity and capability for individuals and nations. Muogbo (2013) was of the opinion that SMEs are very important because they are the key drivers of employment and economic growth. According to Ahmeti and Marmullaku (2015), SMEs constitute 90 to 95 percent of all enterprises worldwide and account for more than 70 percent of the products and services in the world. SMEs are seen also as key factors in employment and account for approximately 60 percent of private sector employment worldwide. Besides the fact that SMEs play a significant role in developing countries economies, they also play a crucial role in regional development. The development of SMEs has been recognized as a veritable tool for promoting poverty eradication, job creation, rural development and sustainable livelihood for the populace. Small and medium-scale enterprises make up the largest proportion of business all over the world and play tremendous roles in 2 employment generation as well as immensely contributing to the Gross Domestic Products (GDP) of many countries. Yusuf and Dansu (2013) reported that SMEs make up about 97 percent of businesses in Nigeria and provide an average 50 percent of Nigeria‟s employment and industrial output. Small and medium enterprises are largely present in Anambra State. Anambra State is a State where a large percentage of her citizens are entrepreneurs or owners of SMEs. The presence of small and medium scale enterprises has increased economic activities in the State and has helped to improve the revenue base of the State. SMEs have been a major engine of economic growth and technological progress. Eniola (2014) stated that the characteristics of SMEs not only reflect the economic patterns of a country but also the social and cultural dimensions. These differing patterns (economic, social and cultural) are noticeable within different definitions and criteria of SMEs adopted by different countries. Whereas some refer to the number of employees as their distinctive criteria for defining SMEs, others use invested capital, and some others use a combination of the number of employees, invested capital, sales and industry type (Kraja & Osmani, 2013).
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