Small Scale Enterprises (SMES) and Ethics: Yobe State Experience, Nigeria

Abstract

Authors in this study analyzed data from 180 small scale enterprises (SMEs) in Yobe State, Nigeria. The study was limited to only SMEs in the three geopolitical zone of the State. The constraint was depicted, that ethics are not practice and respected in the domain of SMEs in the state. The study confirms that greater percentage of SMEs did not practice nor respect the fact that ethic is necessary for business.

In a developing economy like Nigeria, SMEs play tremendous role in reengineering the socio-economic landscape of the country. These enterprises largely represent a stage in industrial transition from traditional to modern technology. The variation in transitional nature of this process is reflected in the diversity of these enterprises. Most of these SMEs use simple skills and machinery as well as local raw materials and technology. SMEs are vital in developing Yobe State economy for the following reasons: social and political role in local employment creation, balanced resources utilization, income generation, utilization of local technology and raw materials and in helping to promote change in a gradual and peaceful manner. Alas! There a death and paucity of research in this sector considering the vital elements that this sector possess in the economy. The authors realized that ethics is one of live wire that connect and engineered any business to its feet, as such was chosen to serve as the enlightening factor which will bring the sector to its required standard. SMEs are known as a catalyst for the growth productivity and competitiveness of the economy. Not only are they the seedbed for wealth creation, employment generation and poverty reduction, they have been recognized as critical breeding and nurturing grounds for domestic entrepreneurial capacities, technical skills, technological innovativeness and managerial competencies for the development of a vibrant and productive economy. Therefore, the need for strong and accelerated research that will enhance the sector is required.

A lot of literature on business ethics has been developed and is still developing.