EVALUATION OF THE CHALLENGES AND PROSPECTS IN THE TABLE WATER INDUSTRY OF ONDO STATE, NIGERIA

Abstract

This study examined the challenges and prospects in the table water industry of Ondo State. Small and Medium Scale Enterprises (SMEs) have been regarded as an instrument of economic growth and development worldwide. In other words, many governments especially in the developing countries have placed high premium in establishing policies to boost their capacity. Despite these efforts, SMEs seem to have performed below expectation, hence, this study. A descriptive research design of the survey type was used for the study. The population comprised of all Small and Medium Scale Enterprises (SMEs) in the table water industry in nine (9) Local Government Areas (LGAs) of Ondo State. The sample size was made up of ninety (90) table water production factories which were selected using the multistage and purposive sampling techniques. The research tool used was a structured questionnaire titled “Questionnaire on the Evaluation of the Challenges and Prospects in the Table Water Industry of Ondo State”. The questionnaire was divided into three sections namely A which contained the demographic variables of the respondents, B which highlighted the challenges of the industry and C which concentrated on the prospects of the industry. Data collected were analysed using both descriptive and inferential statistics such as simple frequency distribution tables, polygons, graphs, pie charts, percentages, cumulative frequency and Pearson Product-Moment Correlation Coefficient (PPMCC) . Four research hypotheses were formulated and tested at 0.05 level of significance. The result from the first hypothesis indicated that there exists significant positive relationship (r=0.655) between management knowledge and the performance of the table water industry in Ondo State. In the second hypothesis, the result showed that there exists significant positive relationship (r=0.822) between taxation and the performance of the table water industry in Ondo State. The third hypothesis revealed that there exists significant positive relationship (r=0.698) between access to finance and the performance of the table water industry in Ondo State. The fourth hypothesis indicated that there exists significant positive relationship (r=0.558) between the table water industry and employment generation in Ondo State. The findings of the study highlighted poor management knowledge, multiple taxation and poor access to finance as the major challenges confronting the performance of the table water industry in Ondo State as obtained from the first three hypotheses. Notwithstanding, the last hypothesis revealed that the table water industry has contributed to employment generation in the state. Based on the findings of this study, it was therefore recommended that government should assist the table water industry with loans and other credit facilities at a minimal interest rate. The existing tax policies that result in double taxation of SMEs should also be reviewed. Furthermore, government should embark on capacity building workshops for table water producers to improve their management knowledge.