Page 1 of 11
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 06
July 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 319
Challenges of Small and Medium Scale Enterprising Farmers
in Osogbo Metropolis of Osun State, Nigeria
Ajayi Adeola1 & Jegede Charles Temitope Ph.D2
Institute for Entrepreneurship & Development Studies, Obafemi Awolowo University,
Ile-Ife, Osun State, Nigeria
Email: ajayifunso4christ@gmail.com; temitope.jegede@yahoo.com
Abstract
This study investigated the challenges of
small and medium enterprising farmers in
Osogbo Metropolis of Osun State, Nigeria
with a view to identifying the problems
militating against the performance of the
small and medium enterprises subsector to
the Nigeria economy and recommend
solutions to make the sub-sector strong and
vibrant in order to play the crucial role in
Nigeria economy growth and development.
Primary and secondary sources of data were
utilized for the study. Primary sources of
data were employed using structures
questionnaires while secondary sources were
from books, journals, newspapers, internet
sources and public lectures on the field of
industrial small and medium scale farmers.
Multi stage random sampling was used to
select a total of 120 respondents utilized for
the study. Both descriptive and inferential
statistics were used to achieve the objectives
of the study.
The results from the questionnaires revealed
that SMEs have performed below
expectation due to a combination of
challenges which ranges from financial
constraint, poor managerial skills, poor road
network, weakness in organizational
marketing and information, low and
dwindling consumer personal, multiple
taxes, insecurity of lives and properties and
lexies, attitude and habits of SME famers
themselves through frequent policy changes
and somersault government instability and
environmental related factor among others.
The paper concluded that government
should take a practical radical approach to
address the identified problems of SME
farmers in Osogbo Metropolis of Osun
State, Nigeria.
KEWWORDS: Small and Medium Scale
Farmers, Development, Income Generation,
Employment Generation, Poverty
Reduction.
Background to the Study
Small and Medium Scale Enterprising
farmers have drawn a lot of interest among
scholars, policy makers, business meant and
people in general.
SME farmers are one of the principal forces
in the development of a nation. SME
farmers stimulate private ownership and
entrepreneurial skills and can adapt quickly
to changing market situation, generate
employment help diversify economic
Page 2 of 11
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 06
July 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 320
activities and make a significant
contribution to exports and trade.
International agencies and organizations
(World Bank, United Nations Industrial
Development Organization (UNIDO),
Department for International Agencies and
Organizations (World Bank, United Nations
Industrial Development Organization
(UNIDO), Department for International
Development (DFID) Europe an investment
Bank (EIB) have invested in them. Locally,
several non-governmental organizations
such as Fate Foundation, Support and
Training Entrepreneurship Programme
(STEP) the Nigeria Investment Promotion
Commission (NIPC) have been promoting
the growth of SMEs in Nigeria through
advocacy and capacity building initiatives
and have continued to canvass for better
support structures for operators in the SME
subsector(Onugu, 2005).
Small and Medium Enterprising Farmers
(SME farmers) occupy a place of pride in
virtually every country of the world.
Because of their (SME farmers) significant
roles in the growth and development of
various economics, they have been aptly
referred to as “the engine catalysts for socio- economic transformation of any country”
(Ajagu, 2005).
They also represent a veritable vehicle for
the achievement of national economic
objectives of employment generation and
poverty reduction at low investment cost as
well as the development entrepreneurial
capabilities including indigenous technology
(Fatal, 2011).
It has however been worrisome that despite
the incentives, policies, programmes and
support aimed at revamping the SME
farmers, they have reformed below
expectation in Nigeria.
Thus this study sets out to investigate the
challenges of SME farmers in Osogbo
Metropolis of Osun State, Nigeria.
Statement of the Problem
Small and Medium Enterprises (SME
farmers) in Nigeria has fallen short of
expectation and hence have not played the
vital role to the economy growth of Nigeria.
This situation has been of great concern to
this government, citizenry, operators,
practitioners and the organized private
sector groups. This situation is more
disturbing and worrisome when compared
with the SME farmers in developed
countries. It has been shown that there is a
high correlation between the degrees of
poverty hunger, unemployment, economic
well-being (standard of living) of the
citizens or countries and the degree or
vibrancy of the respective country’s SME
farmers.
The time is now to do something surgical to
this situation of our SME farmers given the
aggravating level of poverty in Nigeria and
the need to meet up with time. It is against
these background problems that the
researcher investigates the challenges of
small and medium scale enterprising farmers
in Osogbo Metropolis of Osun State, Nigeria
and recommends solutions to reduce these
challenges.
Objective of the study
The objectives of the Study are to
i. review literature on Small and
Medium Scale Enterprising Farmers
Page 3 of 11
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 06
July 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 321
ii. identify challenges of Small and
Medium Scale Enterprising Farmers; and
iii. make appropriate recommendations
for solving or alleviating the identified
challenges of
the Small and Medium Scale
Enterprising Farmers in Osogbo Metropolis
of Osun State,
Nigeria.
Literature Review
Many scholars have written on Small and
Medium Scale Enterprising Farmers in
Nigeria. This fact underscores the essence,
importance and relevance of SME Farmers
to the development of any given economy.
It has drawn a lot of interest among scholars,
policy makers, businessmen and people in
general. The role played by SMEs in
developed economics buttresses the fact that
SME Farmers is an engine of growth and
development of many nations (Chowdhury,
2007).
This stems from the fact almost all countries
that focused on the SME Farmers have
succeeded in the significant reduction and its
enhancement in the quality and standard of
living, reduction in crime rate, increase in
per capital income as well as rapid growth in
EDP among other salutary effects (Mordi,
2005).
National Council on Industry (19992)
defined Small Scale Enterprises as those
with fixed assets above #1 million but not
exceeding #10million excluding land but
including working capital while Medium
Scale Enterprising Farmers are those with
fixed assets, excluding land but including
working capital of over #10 million but not
exceeding #40million.
This definition was revised in 1996 with
Small Scale Enterprises defined as
enterprises with total cost above #1 million
but not exceeding #40million, with a labour
size of between 11 and 35 workers while
Medium Scale Enterprises area defined as
enterprises with total cost above
#150million and a labour size over 100
workers.
Gbolami (2006) et al. (2010) regarded SMEs
as firms that have fewer employees and a
lower turnover and assets than large firms
such as multi-national companies.
According to Onugu (2005), SMEs are
increasingly recognized as the principal
means for achieving equitable and
sustainable industrial diversification and
dispersal .In most counties of the world,
SMEs account for well over half of the total
share of employment, sales and value added.
European Union also defined SMEs as
enterprises which employ fewer than
250persons and which have an annual
turnover not exceeding 50million euro or an
annual balance sheet total not 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,
