TITLE PAGE

THE ROLE OF SMALL AND MEDIUM HOSPITALITY AND TOURISM ENTERPRISES IN THE NIGERIAN ECONOMY: A CASE STUDY OF ADAMAWA STATE

BY

JALINGO, L. YUSUF HTI/BC/PGS/09/O87

BEING A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF TOURISM MANAGEMENT, NATIONAL INSTITUTION FOR HOSPITALITY AND TOURISM, BAUCHI, IN PARTIAL FULFILMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN TOURISM MANAGEMENT.

NOVEMBER, 2011

DECLARATION I hereby declare that this project title The Role of Small and Medium Hospitality and Tourism Enterprises in the Nigerian Economy: A Case Study of Adamawa State is purely my work and written by me in the department of Tourism Management, under the able supervision of Alh. (Dr) Kabir Momoh. All information derived from the literature has been duly acknowledged in the text and a list of relevant references provided. Also no part of this write up was previously used and presented for another or similar graduates or postgraduate certificate in any institution.

Jalingo, L. Yusuf Name of student

.. Sign Date

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CERTIFICATION We certify that this project work, The Role of Small and Medium Hospitality Tourism Enterprises in the Nigerian Economy: A Case Study of Adamawa State, has been duly presented by Jalingo L. Yusuf of the Department of Tourism Management, National institute for Hospitality and Tourism, Bauchi and therefore has been approved by the examiners.

.. Name of supervisor .. Signature . Name of Head of Department Signature Name of Head of Campus .. Signature External Examiner .. Signature Date... Date... Date... Date...

ABSTRACT

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It is worthy to note and acknowledge that small and medium sized Hospitality and Tourism enterprises in this country have expanded in the most recent years. They have continued to play an important role in contributing to the growth of the economy by its provision of employment opportunities, foreign exchange promotion of our country values and the improvement of the lifes of the people. It also contributes to a large extent to sustainable development of our societies/communities.

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TABLE OF CONTENTS

1.0 CHAPTER ONE: BACKGROUND TO THE STUDY

1.1

INTRODUCTION:

The concept of small and medium enterprises in the hospitality and tourism industry is an important phenomenon that requires some considerable attention. It simply relates to the act of entrepreneurship. The term entrepreneurship is used broadly in connection with the innovative modern industrial business leader. The entrepreneur is he or she who perceives business opportunities and takes advantage of the scarce resources to use them. It is the entrepreneur who gears the non-insurable risks in the enterprise and also directs the human and material resources in order to achieve set objectives. Definitions for small and medium enterprises are often considered to be obstacles for business studies and market research. The definitions are used today emphasis employment, turnover and assets. They also incorporate a reasonable amount of flexibility around year to year change in these measures so that a business qualifying as small or medium size enterprise in one year can have a reasonable expectation of remaining an SME in the Next year. In the present economic climate of the country, Governments alone cannot continue to bear the responsibility for and of everything in its attempt to bring up the National economy to appreciable levels. Hence the small and medium enterprises in the hospitality and tourism sector can play a much greater role in terms of creating job opportunities, goods, facilities and services that will reduce joblessness and improve the living conditions of the people, directly or indirectly. It should be noted that the motive to start a small business could range from mere adventure, lure for money, struggle for survival, interest, etc. Over the years, Nigerians have found new grounds in small and medium enterprises for their incomes and other needs of daily life. The credit goes to Governments that created the friendly environment that saw the growth

of small and medium scale enterprises. Not only in hospitality and tourism businesses, but also in whole sale and retail ventures, manufacturing, agriculture, etc. Small and medium scale businesses are key elements at the lower level to the country is economic advancement with the ability to diversify and revitalize the economy of the country. This work therefore, focuses on the role of small and medium hospitality and tourism enterprises in the National economy with special reference to Adamawa state. The state is endowed with much potential in the area of hospitality and tourism that need to be harnessed as hospitality and tourism activities remained the fastest growing economic sector the world over. 1.2 STATEMENT OF THE PROBLEM There is no doubt that business enterprises exit in different forms and sizes i.e small, medium and large. They engage in the provision of utility for its customers from which it fulfils its mission and goal. This work will identify the various Hospitality and tourism enterprises in Adamawa State, the environment in which they operate, their characteristics, etc. its overall all importance in the National economy, prospects and failures 1.3 SIGNIFICANCE OF THE STUDY
1.

Operators of small medium sized enterprises in Hospitality and tourism will find it a useful guide (How?)

2.

It will assist individuals or groups that want to strata small or medium business in Hospitality and tourism.

3.

Students and other researchers will find it useful and a reference material (How?)

1.4

OBJECTIVE OF THE STUDY.

(The broad objective should be stated follows by specific)

1. To establish the relevance of small and medium sized hospitality and Tourism

establishments in the national economy;

2. To narrate the level of involvement of these enterprises; 3. To identify areas of problems in their operations if any and offer possible solutions.

(Numbering the specific obj. should be in roman No.) 1.4 HYPOTHESIS OF THE STUDY For the purpose of analysis and prediction, two hypothetical statements are stated below. Hypothesis .1 Strategies towards developing small and medium Hospitality and Tourism Enterprises will not make any impact not make in Adamawa state. Hypothesis 2 Strategies towards developing Small and Medium Hospitality and Tourism Enterprises will make much impact in Adamawa State. 1.5 SCOPE AND LIMITATION OF THE STUDY The scope of the study shall cover the role of small and medium hospitality and tourism enterprises in the National Economy with respect to Adamawa State in the North East Geopolitical zone of Nigeria. The research will engage areas such as the scope of entrepreneurship, strategies and practices of entrepreneurship skills, risk, rewards, marketing and management of enterprises of the hospitality and tourism industry among others.

Limitation Project thesis, research work, dissertations and any kind of publication are always and usually associated with limitations. This particular work is not an exception. The researcher was faced with so many problems ranging from collation of date, lack of enough literature on the subject and of course the tress in visiting the areas covered in the study. 1.6 1. RESEARCH QUESTIONS To establish the role of small and medium hospitality and tourism enterprises in the national economy. A Case Study of Adamawa State

2.

What are the problems that militate against the development of small and medium enterprises in Adamawa state?

3.

What are the agencies that are contributing to the growth and development of small and medium enterprises in the state?

4.

Which are the examples of small and medium hospitality and tourism enterprises in Adamawa state?

5. 6.

Which problems are these enterprises contributing to solve in the national economy? Can hospitality and tourism enterprises generate income, and revenue in Adamawa State?

1.7

DATA COLLECTION AND ANALYSIS The collection of data for this work involved the following procedure or steps.

a.

The administration of questionnaire to staff of some outfits in the area of small and medium Hospitality and Tourism Enterprises in the state.

b. c.

Administration of questionnaire to some customers met at these outfits. The collection of filled questionnaire from respondents.

The analysis of data collected from respondents was based on the percentage system. It also involved the use of optional questions Yes or No and thereafter the analysis of data collection was made.

1.8

DEFINITION OF TERMS

Analysis This means a careful examination of a business venture in order to understand it better and to take action where necessary. Capital Money or the properly that are used for business activities e.g machines, buildings etc. Data The raw facts and figures that are to be further processed. Entrepreneur Somebody who identifies and takes on a business opportunity by setting up one in order to make profit. Inflation A continuing increase in prices when much money is in circulation or when there is a fall in supply of goods ProfitThe reward of the entrepreneur for investing his/her resources, energy and time in a business activity. Consumers Those who purchase products/Services that are reasonably priced and safe for use. Financial Institutions They are generally lenders to business undertakers. Small Business/Small Scale Enterprises A business whose total investment it between N 10,000 = and N 2 millions including working capital but excluding land (Federal Government Industrial Policy 1989). Skills The general knowledge of necessary operational aspects of a particular line of business. Business An economic activity, an occupation or an enterprise. It is also a legitimate activity embarked upon by one person or group of persons.

EmployeesThe sets of people that carryout the activities of a business or organization to achieve objectives. RiskThis is chance of loss or degree of uncertainty about the outcome of a management or business decision. MarketingMeans Selling or Advertising NeedsMay be goods, or and services to satisfy consumers. Product This is a need satisfying offering of a business eg. Physical good or services or a blend of both. DevelopmentTo convert on idea into say a physical product Medium Scale Enterprise This is a business venture that is not smaller large in character. Hospitality Industry An Industry that provides food, drink, accommodation and other auxiliary services to the public for either profit or welfare reasons. TourismIt is the sum of the phenomena and relationship arising from the travel and stay of non-residents, in so far as they do not lead to permanent residence and are not connected with any earning activity.

CHAPTER TWO 2.0 2.1 LITERATURE REVIEW INTRODUCTION Employment and job creation activities and the boosting of income opportunities are some of the main challenges today in the country. Government policies and strategies have encouraged and supported the private sector in generating growth of self employment in the Hospitality and tourism sector of the economy. Although Government is the major employer in the Nations formal sector, the development of the economy and growth of employment opportunities actually depends on the investment decisions of the private sector made up mainly of major corporate investors and medium scale businesses. But these also include small scale entrepreneurs, artisans, and innovators. In other words, peoples participation must form the basic element in any strategy to reduce unemployment, joblessness and poverty affecting the larger population in this country in particular and the world at large. To Omoile, (2005) pg.5, the rise in the unemployment figures in the country, prompted the administration of former president Olusegun Obasanjo to set up an economic planning committee to strategies on how Nigeria could become one of the worlds top 20 Economies in the year, 2020, popularly known as the vision 20-20-20. One of the key options was to ensure a technology driven environment, known as techno-preneurship through the institutionalization of skill based curriculum designed to boost entrepreneurship development in the hospitality and tourism industry. 2.2 Small and Medium Enterprisers: A conceptual Review. The term small and medium businesses are predominantly used in the United States, but now universally applied. However, the European member states traditionally have their own definition of small and medium enterprises. For example in Germany SMES have a limit of

two hundred and fifty employees, while in Belgium, it could have lone hundred employees. But the European Union (EU) has started to standardize the concept. Its current definition categorizes companies with fewer than 10 employees as micro,. while those with fewer than fifty employees as small and those with fewer than twenty as medium, by contrast, in the United States, when small business is defined by the number of employees, it often refers to those with fewer than one hundred (100) employees as small, while, medium sized businesses are often refers to those with fewer than five hundred (500) employees. In most economies however, smaller enterprises are much greater in number. In the European Union (EU) for example, small and medium Enterprises comprise approximately 90% of all firms and employ between then about sixty five (65) million people. In many sectors small and Medium Enterpriser account for 99% of business members and 40%, 50% of Gross Domestic product (GDP). In a United Nations World Trade Organization (UNWTO) report (2009 pp.10), Indias micro and small enterprises (MSE) sector plays a pivotal role in the overall industrial economy of the country. It is estimated that in terms of value, the sector accounts for about 39% of the manufacturing output and about 33% of the total export of the country. Furthermore, in recent years, the Micro and Small Enterprises (MSE) sector has consistently registered higher growth in India compared to the overall industrial Sector. The Major Advantage of the Sector is its employment potential at very low capital cost. This sector employs an estimated thirty one (31) million people; spread over 12 18 million enterprises and the labour intensity in the micro and small Enterprises (MSE) Sector is estimated to be almost four (4) times higher than the larger enterprises. In the observation of the European commissions definition for small and medium enterprises (SMEs) is often considered to be an obstacle for business studies and market research. They also incorporate a reasonable amount of flexibility around year to year changes in these measures so that business

qualifying as small and medium enterprise (SME) in one year can have a reasonable expectation of remaining a small and medium Enterprise in the next proceeding year. 2.3 Basic Principles of Tourism According to Ritchie and Geoldner (1994 p. 112) the tourism industry was presented by the United States Senate committee on commerce in 1976 as the inter-related amalgamation of businesses and agencies which totally or in part provide the means of transport, accommodation, goods, services and other facilities as well as programmes and resources for travels out of the home community for any purpose not related to a local day to day activity. Tourism industry therefore, can be regarded as labour intensive and service oriented since most of its products are services that are tangible and intangible products. Today, hospitality and tourism has become an important factor the world over and a major element in balance of payments. It is also considered to be the largest single item in international trade, which constitutes a worldwide activity, which is why Honziker and Kraft (1985 pg 55) said that Tourism is the sum of the phenomenon and relationship arising from the travel land stay of non-residents, in so far as they do not head to permanent residence and are not connected with any earning activity. Many experts and authors have postulated divergent views on the concept of tourism, but above all, they go to share same meanings. 2.4 HISTORY AND DEVELOPMENT OF ENTREPRENEURSHIP IN ADAMAWA

STATE Although some people contend that the earliest beginning of entrepreneurial theory dates back to the writings of Richard Cantillon (1955), most scholars agreed that there are no serious theoretical studies and formulations on entrepreneurship until the works of Max Weber and Joseph Schumpeter. Other prominent writers in the field include David McClelland, Le Vine, Everett Hagen, Edit Penrose, Thomas Cochran, Frank Young, John Kunkel, Aminu Ayuba among others.

In the contention of Schumpeter, the theories postulated by these authors mentioned above are aggressively empirical and diverse. They, he maintained, range from sociological, psychological and economic imperatives among others. Some authors attempt to relate the emergence of entrepreneurs to religions, social and social characteristics. The only conclusion from these theories can only be that several factors tend to explain why an individual goes into business. In life, certain kinds of experiences and situational conditions rather than personal or ego are the major determinants of whether or not an individual becomes an entrepreneur or otherwise. There have been some studies of Nigerian entrepreneurship industry of which Adamawa State is a part. Some studies and findings about the Nigerian entrepreneurship environment reveal among others that: i. Most Nigerian business men/women believe that inadequate capital is their main problem, ii. Most of them complained about lack of proper organizational and management skill, and
iii.

Some Banks advanced that most entrepreneurs mis-applied loan received from them for other purposes. These and others seem to be the greatest and most common problems facing Nigerian

entrepreneurs today. However, other studiers agreed that Nigerian entrepreneurs perform well in: i. ii. The perception of opportunity, and The gaining of command over the resources to establish a business but performs badly in the management of the on-going enterprise. From the above, and incidentally the positions canvassed above reflected exactly the situation in Adamawa State which of course, is a state in Nigeria. Furthermore and in general,

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the Nigerian business environment in the present day offers entrepreneurial opportunities and encourages business pursuits and reduces dependence on Government to provide jobs and other services. 2.5 POLICY IMPLICATION OF SMALL AND MEDIUM ENTERPRISERS IN ADAMAWA STATE Governments at all levels and over the years developed strategies and demonstrated the need for conscious programmes and activities for the development of small and medium enterprises in the development of the National Economy. Also, governments at all levels are responding positively to this situation. The problem of finance/capital is handled through the encouragement of specialized banks and other credit institutions to cater for the needs of small and medium scale enterprises in the state. This can be seen by support and loan granted to some of these enterprisers by Bank of Industries (B.O.I), National Directory Employment (NDE), Nigerian Agricultural, Cooperative and Rural Development Bank (NACRDB), etc in the state. 2.6 i) THE ROLES OF SMALL AND MEDIUM IN A DEVELOPING ECONOMY Small and Medium Enterprises (SMEs) provide more employment per unit of capital invested because they are generally more labour intensive. ii) Small and Medium Enterprises (SMEs) generally act as a catalyst to larger industries thereby generating the desired forward and backward linkages required to build a healthy vibrant iii) industrial base.

Small and Medium Enterprises (SMEs) encourage indigenous entrepreneurship, which help to develop manpower techniques. SMEs also help develop our non-oil sector especially the agro-allied industries and the hospitality and tourism industry, which may offset rural migration.

iv)

Small and Medium Enterprises (SMEs) help form the technological base, where such industries would start from small units operating and innovating indigenous technology

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to suit our particular needs and utilizing local value of resources, products, equipments and manpower. v) Small and Medium Enterprises (SMEs) generally source their raw materials locally while a good number of larger units rely on imported raw materials. In this era of scarce foreign exchange, industries that source their raw materials locally stand a better chance of becoming more prosperous. vi) An overall look at the Small and Medium Enterprises (SMEs) sector would reveal macro-economic factors pointing to developments that would enhance more income parity, raise capacity utilization of industries, lower inflation by producing more and creating competition. vii) Further development of Gross Domestic Product (SMEs) would also increase GDP and will overall raise the standard of living of all Nigerians. 2.7 SELF-EMPLOYMENT/SELF RELIANCE IN THE HOSPITALITY AND TOURISM SMALL MEDIUM ENTERPRISES (SMEs ) Self reliance or employment according to Webster 3rd New International Dictionary means Reliance upon ones effort, judgment or ability. The hospitality and tourism industry is exceptionally heterogeneous and combines large number of small businesses of self employed persons (partly dependent on tourism) with large-scale companies. Overtime, the industry has been subject to two major tendencies: International and concentration. These factors comprises of the following. 1. 2. 3. 4. 5. Transporters Airlines, Roads, Transporters and Ship operators Travel agencies and Tour operators Hoteliers, Hotels, Motels, Restaurants, Inns, Pensions, etc. Resort Owners Souvenir Industry

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6. 7.
8.

Amusement Parks Small Scale business: Theatre and Cinemas, Car Wash, Retail Shops, etc. Cottage Industries: Weaving, Pottery, Carving, Bronze, Silver work, Black Smiting, Dyeing, Hair dressing etc. Hospitality and Tourism industry is therefore very dynamic and multi dimensional with varying activities.

2.8

SMALL AND MEDIUM HOSPITALITY AND TOURISM ENTERPRISES IN A DEVELOPING ECONOMY The satisfaction of basic human needs such as self sufficiency in food production,

good water supply, politics and cultural fulfillment requires the spirit of solidarity and mutual enrichment in order to strive towards a successful business and yielding a positive outcome by directing and determining objectives to be attained and the means of attaining them. According to Harper (1996: 202), Planning for business objective to identify the critical information that is needed to plan a new business, which must be well organized, requires a proper planning so as to meet the targeted objectives. This shows that planning is a vital thing in any business establishment, be it small, medium or large. The role can be achieved through small scale enterprise such as kiosk, Retailing, Shop-services, Snack, Bar, Restaurants and other forms of businesses in order to meet the needs of the consumers which can only be achieved through collective ideas. Financial Self reliance and sustainability has taken full responsibility for and succeeding in balancing income and expenditure over the long term entrepreneurship development in the hospitality and tourism industry which creates jobs to citizens and individuals that want to use their limited resources to generate appropriate returns, but requires things such as proper planning, cost consideration, financial background, the level of profitability, kind of environment and customer turnover in order to achieve a better outcome.

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Hospitality and Tourism is growing faster in the developing countries, which received 30% of international arrivals in 1988 and a proportion is predicated to grow in the next coming years (UNWTO, 1997). The tourism industry is the largest fastest growing service industry in the world having increased 25 times since 1950 and it is already the most important service industry for many developing countries like Nigeria, where it brings in about 20% of Gross National Product) GNP to the economy. Also in the light of this, current report of the UNWTO shows that tourism has taken over from the export of petroleum products, making it the worlds largest growing industry. While the government provides an enabling environment for the overall progressive development of tourism and hospitality industry, it is the private sector that provides the supply such as accommodation, transportation, entertainment and shopping among others. Even though the private sector operates in Nigeria on comparatively free market by separate corporate entities and sole proprietorship, it has been found necessary that for obvious business reasons, there should be some areas of collective cartel. This is to promote and protect their individual and collective interests in some particular business interest through the formation of Associations and Unions, peculiar to each supply industry or combined with some related businesses. In many countries of the world, the private sector plays a key role on tourism policy development. The services include a broad spectrum of components, including accommodation, food and beverages, amusements, recreation and entertainment. Travel arrangements (including travel agencies and tour operators) as well as souvenir shop and foreign exchange establishments. These hospitality and tourism concepts and practices are grouped into two basic categories and support services, as follows:

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i)

The First Category: These are regarded as direct providers which include business typically associated with travels such as Airlines, Hotels, Ground transportation; travel agencies, Restaurants and retail shops interface directly with travelers in that they provide service activities purchased directly by the visitors.

ii)

The Second Category: Below the surfaces a large variety of business lending support to direct providers. This second category, support services that include specialized services such as tour organizers, travel and trade publications, and hotel management firms. It also include basic supplies and services such as contract laundry and outdoor catering services such as those listed above are dependent upon the market for almost all of their businesses.

2.9

SOURCES OF FINANCE TO SMALL AND MEDIUM ENTERPRISES IN ADAMAWA STATE. Business enterprises finance their operations through direct and indirect financing. The

ability to utilize various financial resources depends on the circumstances of each enterprise. These sources include the following. 1) Personal Finance / Resources: such as through personal savings or and contributions by group that form the organizations. 2) Loan from individual such as friends, relatives and financial assistance through borrowers.
3) Loans from financial Institutions such as commercial banks like Nigerian Industrial

Development Bank and Insurance Company etc. 4) Returned or ploughed back profit 5) Government subsidiaries, subvention or grants. 6) Tax holiday and rebates This allows new firms time to establish themselves before they are exposed to full taxation
7) Trade credits and installment purchases

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8) Bank overdrafts/facilities

9) Aids from other donors, NGDs and international organizations abroad. 2.10 HOSPITALITY AND TOURISM SMEs IN ADAMAWA STATE. When we talk of hospitality and tourism, SMEs; we mean businesses required by tourists to enhance their visitation experience in the destination. According to NTDC Gazette Vol. 4 (2006), government, in recognition of its passion for tourism and hospitality, has equally accorded it a maximum attention to enable its growth through private sector participation, which s done through partnership or the outright acquisition of existing sites by entrepreneurs investing in this sector in any of the geo-political state would be a rewarding experience to the investor especially in the development of resort, holiday, homes, camps, restaurants, and transport services thereby providing employment and job opportunities to the unemployed people in the state. Opportunities are opened to investors this very viable sector of the states economy. The first that comes in mind in this area is the local handicrafts engaged in by the local populace such as pottery among the Lunguda people; mat weaving, blacksmithing, artifacts and fast food vendors and suya sports. All these can be further developed and their knowledge be oriented in order to expand their business and adopt a new technological methods / skills that will meet the need of the tourist. Businesses in this state also exist, such as shopping complexes, retail shops, restaurant business, liquor shops, bar houses, canteens, souvenir shops and the likes. 2.11 SOME SELECTED TOURIST ATTRACTIONS N ADAMAWA STATE

Source: UNESCO, 2008. S/N 1 Gashaka ATTRACTION Gumti National Party DESCRIPTION Sukur Eco Tourism

(UNESCO World Monument Heritage Site) Lamurde Hot Spring Madibbo Adams Tomb Monument

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34

Sisters

Rock

Monument

Mandara Natural/Physical Monument Monument Natural/Physical Natural/Physical

Mountains Kiri Dam.

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2.12

SMALL

AND

MEDIUM

SCALE

BUSINESS

OPPORTUNITIES

IN

HOSPITALITY AND TOURISM IN ADAMAWA STATE. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 2.13 Irrigation / Gardening Restaurant Services Home Laundry Services Arranging foods for parties Arranging Drinks for Parties Raising of flowers Portrait Painting Raising of Flowers Lands-capping Making Baskets and Cages from Palm Fronts Taxi Driving Amateur Painting Production of Conference Bags Home made Breads and Cakes Car Washing Hair Weaving Consultancies Organizing cultural groups for occasion performances Fast Foods Running Catering Institute Tailoring Hunting and Fishing GSM Business: Selling Recharge Cards and phone Accessories. HOSPITALITY AND TOURISM BASED ENTREPRENEURSHIP AND JOB CREATION IN SMALL AND MEDIUM ENTERPRISES. According to Adelodun, (2002), Tourism has diverse needs ranging from tangible, physiological or basic needs such as food, water, warmth and accommodation to abstract or psychological needs such as love of an athletics, creative and performing arts, painting, music

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dance, etc. These needs present business opportunities in the tourism industry. Given the variety of these needs and the fact that human needs are insatiable and constantly changing. In addition to the fact that the satisfaction of one need yield another, it could be said that there exist vast tourist based entrepreneurship opportunities arising from the needs outlined above in the state. Adelodun, (2002) Hospitality and tourism based entrepreneurship referred to all commercial enterprisers or activities whether micro or macro in nature, located in urban or rural areas, owned by individual small enterprises or group of business partners or large scale private and public limited companies that provide array of services in the hospitality and tourism industry. The hospitality and tourism based entrepreneurship can be broken into three basic groups, namely: 1) Major Hospitality and tourism based entrepreneurship 2) Complimentary or Ancillary Hospitality and Tourism based entrepreneurship. 3) Self-Scale information Hospitality and Tourism based micro businesses. 2.14 1) MAJOR TOURIST BASED ENTREPRENEURSHIP IN THE STATE

This is made of all business outfits that provide major tourist services in the tourism industry. They include but are not limited to the following:
a) Transportation Industry

b) Hotel and Catering Industry c) Entertainment Industry d) Production and Marketing of works of Arts e) Sports Tourism f) Development of Games, Parks, Zoological and Botanical 2.15 2) COMPLEMENTARY OR ANCILLARY HOSPITALITY AND

TOURISM BASED ENTREPRENEURSHIP IN THE STATE.

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These are enterprises that provide necessary support services to tourisms in particular and hospitality and tourism industry in general. They include, but by no means restricted to the following entrepreneurship activities: a) Travel agencies b) Advertising Industries c) Banking Services d) Communication and Tourist information Post e) Video Coverage and Photography f) Suit cases and Bags factory g) Tourism and Hospitality Training Centers. 2.16 THE VARIOUS ENTREPRENEURIAL SECTORS OF THE HOSPITALITY

AND TOURISM INDUSTRY.

SOURCE: Retchie, J.R. and Geolder, C. R. (1994) 2.17 CONTRIBUTIONS OF HOSPITALITY AND TOURISM INDUSTRY TO THE NATIONAL ECONOMY The following contributions are identified as part of the impact it has on the economy at large.

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1) Employment generation: the industry is one of the largest employers of labour world

over, ranging from skilled to unskilled labour. 2) Job Creation: The industry is an amalgam of so many activities, thus the existing attractions cannot alone satisfy the tourist; but the need for souvenir products and other ancillary services which leads to job creation in cottage industrial activities. 3) Regional Integration: the industry comprises of people traveling to various countries, regions and cities, which further results to integration of different people and with a different ideologies, at different regions. 4) Cultural Exchanges: it brings about cultural exchanges, through experiencing new people, places, culture, dialect, norms and values, which different people experience at such destinations. 5) Social Interaction: It enhances social interaction and acquisition of new methods and way of life.
6) Socio l- Economic Development: through Hospitality and Tourism many remote places

are developed with social amenities or infrastructures as well as other facilities that support life. 7) Balance of payment: This shows the relationship between a countrys total payments to all other countries and its total receipts from them.

CHAPTER THREE RESEARCH METHODOLOGY 3.1 INTRODUCTION This chapter is concerned with the methods employed by the researcher in obtaining the information required for the accomplishment of the research. This chapter also helps us to understand the philosophy or rationale of the methods used which includes the assumptions and

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values that have been stated and the standard of criteria used for the interpretation of data and reaching conclusion. Research methodology is the most important tool for enabling man to relate more effectively to his environment, to accomplish his purpose and to resolve his conflicts. 3.2 METHOD OF DATA COLLECTION The methods employed by the researcher in obtaining pertinent data are basically in two forms namely: Primary and Secondary methods. The primary method of data collection involves the use o f structured questionnaire, which will be administered to the target population within the area under study. This method was adopted because of its reliability in obtaining a first hand information directly from the respondents regarding the subject matter. Qs. Is the work have been done or to be done?

The secondary method of data collection involves the use of secondary sources such as textbooks, Dictionaries, Encyclopedia, projects and the electronic media via the internet. 3.3 POPULATION SIZE The study covers Adamawa State. The number of the population size of say 100 respondents selected for the purpose of this research will represent the total population in the state as 100% of the population. ( Qs. Can we say that, the population of the study will cover all the hospitality and tourism in Adamawa State?) fellows by sample size 3.4 SAMPLING TECHNIQUES The method of sampling the population size for this research is by use of simple random sampling techniques. This method is adopted because of its scattered population area so that each item or respondent within the area has an equal chance of being selected in the total population without being biased. 3.5 RESEARCH INSTRUMENT

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The main instrument for this research is the structural questionnaire. The questionnaire consists of two parts namely: Section, A which is the personal data of the respondents such as the age, sex, status, and occupation level. The other parts, which is the section B is research questions, which consist of 8/9 structured questions deduced from the statement of the problem and are expected to achieve the stated objectives. 100 questionnaires will be administered to represent a 100% of the population of the area. (Not Meaningful ) 3.6 VALIDITY OF THE INSTRUMENT The research instrument shall be validated using a test retest method of validation?. This will involves administering the questionnaire to a selected sample of 20 people on two weeks each to ensure that their responses are consistent; that will imply that the instrument is reliable. Also, the supervisor shall go through the questionnaire to correct and readjust the instrument where possible in order to ensure that the instrument measured what it is expected to measure in the research. Not Necessary,,,,,,

3.7

RESEARCH DESIGN The research design covers the role of small and medium hospitality and tourism in the

National Economy with emphasis to Adamawa State. Other areas the research focuses on include the strategies for small and medium enterprises, entrepreneurship development and practice of entrepreneurship. 3.8 METHOD OF DATA ANALYSIS The method of data analysis adopted in this research is basically the simple tabulation method using the mean score to find percentage of the various responses.

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CHAPTER FOUR 4.1 DATE PRESENTATION, ANALYSIS AND DISCUSSION Introduction: This chapter is concerned with the presentation, analysis and discussion of the data collected that were administered to both staff and customers (Should be stated in the population of the study) of selected small and medium size of Hospitality and tourism enterprisers in Adamawa State, particularly in Yola, the State capital and Mubi, as the major commercial and business town, However, in Yola the enterprises are:
i.

Bagale Motel

ii. Yola Holiday Inn iii. Jimeta Transport Service. While in Mubi, they include Jambas Guest House, Detamd Lodge, and Vulma Cultural Troop. (above places should be stated in the population and sample size) Two sets of questionnaire were used for the study, one set for the staff of the selected enterprises, while the other set went to the customers and patrons of these enterprises. (to be taken to methodology) 4.2 Summary of Questionnaire ( PRESENTATION OF TABLES/ responses) Administered to the staff of Jambas Guest Inn, Detamd Lodge, Bagale Hotel, and Yola Holiday Inn.

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Table 4.1

Summary of Staff of Hospitality Enterprises: No of Questionnaire issued 10 10 5 5 30 No of Questionnaire received 10 10 5 5 30 Percentage % 100% 100% 100% 100% 400% How?

Name of Enterprise Bagale Hotel Yola Holiday Inn Jambas Guest Inn Detamd lodge Total

Source: Field Survey, Nov. 2011 ( What happened your samle size here are just 30 instead of 100?) Analysis and Discussion From the above presentation one can see that staffs of Hospitality enterprises selected agree that these enterprises are good for the economics of the country and Adamawa State in particular. 4.4 Summary of questionnaire administered to staff of Jimeta Transport Service and Vulma Troop cultural. Table 4.4 Names of Enterprises Jimeta Transport Service Vulma Cultural Troop Total Source: Field Survey Nov. 2011 No of Ques. issued 10 5 15 No of Ques. Received 7 5 12 Percentage % 70% how ? 100% how ? 170% how ?

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Analysis and Discussion The above presentation is clear that staffs of these outfits are very interested to continue with the business, indicative that they benefit from being employees of the business, where they earn salaries and other benefits that contributes to lifes existence. On the other hand the many customers and patrons of the businesses involved in this research are of the view that being customers and consumers of the products of the establishments, has given them joy and happiness whenever they visit or patronize them. They further started that there is value for their money as customers of the businesses.

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CHAPTER FIVE 5.0 SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 SUMMARY OF FINDINGS Adamawa State is blessed with both human and Materials Resources, developed as well as undeveloped. That includes a good number of small and medium scale Hospitality and Tourisms resources. Seen from the points mentioned above, it is apparently evident that engaging in varied hospitality and tourism ventures and activities has pivotal role in the economy of the state in particular and the country in general, particularly when viewed from the many positive benefit that will be derived from their development and encouragements. However, haven drawn that opinion, one can say with a reasonable level of confidence that the majority of the people of the state are aware of the many opportunities that can be found in engaging in small and medium scale activities in hospitality and tourism. 5.2 CONCLUSION This work has been undertaken in order to identity and come to terms with the real happenings in the world of small and medium Hospitality and Tourism Enterprises in Adamawa State and how the general public respond or react to its development, growth the and encouragement by Governments at all levels. Perhaps this may be and will be a major solution to joblessness, economic downturn and results in appreciable levels in the socio-economic, development in the area of transport, Hotel and Restaurant, etc by generating revenues and incomes that will meet the needs of the large society. So, lets make it. The relevance of entrepreneurial activities and business to the country towards the vision 20-20-20 con not be overstated. Such ventures and activities are noted for their contributions to a nations economic and industrial growth. Small and Medium Hospitality and Tourism outfits plays loading roles as employers of labour, providers of infrastructure, revenue earner, creation of awareness and good will among others.

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5.3

RECOMMENDATIONS Haven seen the importance of Small and Medium Hospitality and Tourism enterprises

in Adamawa State and their contributions to the economic growth of the state and the wellbeing of the people, it becomes apparent that the following recommendations are made.

1.

Adamawa State Government and all local Government Councils should encourage and attract private participation, local and foreign investor, etc. to invest in the hospitality and Tourism sector of the economy.

2.

The Government at all levels should direct and encourage entrepreneurs that are already in business to look inwards in sourcing their raw materials for the good of the sector.

3.

Indigenous enterprises in the state should seek technical assistance from counter parts in other parts of the country that have developed similar businesses in order to enhance and improve their output and service.

4.

Government should direct and encourage the teaching of Entrepreneurship in the curriculum of its secondary and tertiary institutions in the state.

5.

Young graduates should learn simple skills that will empower them and even extend assistance to others around them.

6.

Entrepreneurs in Hospitality and Tourisms small and medium business to seek loans from relevant financial institutions in order to expand and boast their entrepreneurial activities.

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National Institute for Hospitality and Tourism Department Tourism Mgt. Bauchi Campus Dear Respondents I am a postgraduate Student of the above Institution Undertaking a research work on The Role of Small and Medium Hospitality and Tourism Enterprises in The National Economy (A Case Study of Adamawa State of Nigeria). This research is part of the requirement for the requirement for the award of a Postgraduate Diploma (PGD) in Tourism Management. The research and findings will only be used for the purpose stated and any or all information provided by you will be treated as confidential please. Anticipating your kind understanding and cooperation. Yours faithfully

Jalingo, L. Yusuf UTI/PGS/BC/09/087

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QUESTIONNAIRE FOR STAFF Please kindly tick where appropriate and application SECTION A Personal Data Age______________________________Not reflected in the analysis Sex______________________________ Not reflected in the analysis Marital Status _____________________ Not reflected in the analysis Occupation/Edu. Level_____________ Not reflected in the analysis SECTION B 1. Do you like small business? Yes______ No_______ 2. Are you an Entrepreneur ? Yes______ No_______ 3. Are you the owner of this business ? Yes______ No_______ 4. Are you paid for the job you are doing here? Yes______ No_______ No_______ No_______ 5. Do you like the job/assignment given to you? Yes______ Yes______ 6. Would you like to continue working here? 7. Do you like working in a private business like this one? Yes______ No_______ 8. Are you customers always happy with the services here? Yes______ No_______

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QUESTIONNAIRE FOR CUSTOMERS NB: Please kindly tick where appropriate and applicable. SECTION A Personal Data Age______________________________ Sex______________________________ Marital Status _____________________ Occupation________________________ SECTION B 1. Are you a business Man/Woman Yes______ No_______ 2. Do you always patronize this place? Yes______ No_______ 3. Are small medium scale business good for the state? Yes______ No_______ 4. Do you like the services here? Yes______ No_______ 5. Are hotels good for the economy? Yes______ No_______ 6. Is tourism good for the people? Yes______ No_______

7. Do you frequent travel by this transport company?

Yes______ No_______ 8. Do you think this business can create employment for young people? Yes______ Yes______ No_______ No_______ 9. Is the present economic situation good for this business? ABBREVIATION /DEFINATION OF COMMON TERMS BOI Bank of Industry CBN Central Bank of Nigeria GDP Gross Domestic Product GNP Gross National Product

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MSE Mecro small Enterprise NACRDB Nigerian Agricultural Cooperative and Rural Development Bank NDE National Directorate of Employment NGO Non Government Organization NIHOTOOR National Institute for Hospitality and Tourism NT DC Nigerian Tourism Development Corporation SME (S) Small and Medium Enterprises (s) SSC Small Scales Enterprises UNNTO United Nations World Trade Organization QS. Are all the above terms in the literature?

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Selected Bibliography/ REFERENCES Ahmed, B.K (2009) Entrepreneurship Skills in Nigeria. Ideal Morning Star Publishers Kaduna, Nigeria. Aminu, A.A (2009) Entrepreneurship Theory and Practice Compact Publishers Ltd. Maiduguri Nigeria. Bello, Y.O and Adesuyan, A.J (2009) Hospitality Economics (A simplified Approach) Ondo, Grace Excellent Publishers. Chukwunla, P.D (2005) Modifications for Teaching Entrepreneurship in Technical Education. Workshop Paper on Capacity Building for Lecturers by Education Trust Fund (ETF) Yola, Nigeria. 4th 6th September, 2005. David N. and Robert D (1990) Business Studies Mchrawhill Books Company Europe, U.K. Ghosh, B (2008) Tourism and Travel Management, New Delhi Vikas Publishing House PVT Ltd. Hornby, A.S (2009) Oxford Advance Leaners Dictionary Oxford University Press 6th Edition. Inang, E.E and Vlang, G.E. (1990) Previous of Small Scale Enterprises Credit Delivery in Nigeria CBN Economic and Financial Review, Vol. 30. No. 4th December. ITF Journal of Manpower Training and Development 2006 Programme Vol. 2 (July December). Mohammed, A.A (2010) Cultural Tourism The Nigeria Perspective Kaduna, Mubaal Global Invest Ltd. Musa, I.P (2010) Fundamentals of Entrepreneurship Development (Theory and Practice) Jofra Modern Printers Mubi, Nigeria. NAPEP (2005) The Obasanjo Reforms Fmippenigelia.com fedinfoppd@yahoo.com NBI (2003) Small and Medium Scale Enterprises and Funding in Nigeria. http/www.nigeriabusinessinfor.com. NDE (2003) National Directorate of Employment Annual Report. Nwaye, M. (1974) Small Business Enterprises Benini: Social Science Series for Africa University Benin. Ogedengbe, B.A (2007) Small Business Management (A Contemporary Approach) Kaduna, Data Prints

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Okpara, F.O (2002) Entrepreneurship (Text and Cases) Enugu Nigeria Precision Printers and Publishers. Sadiq, Y.A and Konduya, A.M (2004): Small Business Management Yola Paraclete Publishers Wale, A. O.I (2002) Entrepreneurship Development 2nd Edition. Lagos. Gilgal Publications

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