ABSTRACT

This study focused on evaluation of the challenges and prospects of Micro and Small scale enterprises development (A study of MSEs in Umuahia North and South L. G.A). The objectives of the study are: to determine whether poor financing affects the development of micro and small scale enterprises; to ascertain whether inadequate infrastructural facilities constitute a major challenge in the development of MSEs; to determine whether lack of managerial skill constitute a major challenge in the development of MSEs, and to determine whether MSEs contribute in creating employment opportunities. A survey research design was adopted for the study. The study had a population size of 106438, out of which a sample size of 400 was realised using Taro Yamane 's statistical formula at 5% error of tolerance and 95% level of confidence. The main instrument for data collection was primarily source through the use of questionnaire. Four hundred (400) copies of the questionnaire were administered out of which three hundred (300) copies representing (75%) of the questionnaire were properly completed and retrieved while one hundreds (100) copies representing (25%) were not retrieved The hypotheses were tested using chi-square and Pearson Correlation statistical tools. Having analysed the data, the following were the major findings, that micro and small enterprises development depends on proper availability and access to finance (x'c = 138.129>xt= 23.85, P= 0.00 xt = 23.85, P= 0.00 x't = 23.85, P= 0.00< a =0.05). Hence, the study therefore recommends that government and other financial organizations should also adequately support micro and small scale enterprises financially to avoid lack of capital. More so, micro and small scale enterprises should ensure that they solve their internal problems which hinder the success of their business through ensuring that there is effective management practices or expertise, effective accounting standards, adequate manpower and avoid financial indiscipline and corruption in order to boost their performances, government should address the issue of poor infrastructural facilities through adequate power supply, good road network, adequate security etc.