ABSTRACT

This study focused on evaluation of the challenges and prospects of Micro and Small scale enterprises development (A study ofMSEs in Umuahia North and South L.G.A). The objectives ofthe study are: to determine whether poorfinancing affects the development ofmicro and small scale enterprises; to ascertain whether inadequate infrastructural facilities constitute a major challenge in the development ofMSEs; to determine whether lack ofmanagerial 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 ofwhich a sample size of400 was realised using Taro Yamane's statisticalformula 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 ofwhich three hundred (300) copies representing (75%) ofthe 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 tofinance (x2c = 138.129 > x2t = 23.85, P= 0.00< a = 0.05). That micro and small enterprises development depends on adequate provision of infrastructural facilities (x2c = 138.129 > x2t = 23.85, P= 0.00< a = 0.05). That micro and small enterprises development depends on adequate managerial skills (x2c = 138.129 > x2t = 23.85, P= 0.00< a = 0.05). That micro and small enterprises have positive relationship with employment creation, (r = 0.817, sig. 0.023 < a = 0.05). Hence, the study therefore recommends that government and otherfinancial 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 avoidfinancial 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