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

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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

…………………………….. Date…………………...

Signature

……………………………….

Name of Head of Department

……………………………… Date…………………...

Signature

………………………………

Name of Head of Campus

…………………………….. Date…………………...

Signature

External Examiner Date…………………...

……………………………..

Signature

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ABSTRACT

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 life’s of the people. It also contributes to a

large extent to sustainable development of our societies/communities.

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TABLE OF CONTENTS

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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

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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. it’s 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.

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(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 Geo-political 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.

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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 RESEARCH QUESTIONS

1. 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. Which problems are these enterprises contributing to solve in the national economy?

6. 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. Administration of questionnaire to some customers met at these outfits.

c. The collection of filled questionnaire from respondents.

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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

Profit–The 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.

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Business –An economic activity, an occupation or an enterprise. It is also a legitimate

activity embarked upon by one person or group of persons.

Employees–The sets of people that carryout the activities of a business or organization to

achieve objectives.

Risk–This is chance of loss or degree of uncertainty about the outcome of a management or

business decision.

Marketing–Means “Selling” or “Advertising”

Needs–May 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.

Development–To 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.

Tourism–It 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.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 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 Nation’s 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, people’s 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 world’s 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

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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), India’s 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 commission’s 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

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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.

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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. The perception of opportunity, and

ii. 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 THE ROLES OF SMALL AND MEDIUM IN A DEVELOPING ECONOMY

i) 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 industrial base.

iii) 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.

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iv) Small and Medium Enterprises (SMEs) help form the technological base, where such

industries would start from small units operating and innovating indigenous

technology 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 one’s 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. Transporters – Airlines, Roads, Transporters and Ship operators

2. Travel agencies and Tour operators

3. Hoteliers, Hotels, Motels, Restaurants, Inns, Pensions, etc.

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4. Resort Owners

5. Souvenir Industry

6. Amusement Parks

7. Small – Scale business: Theatre and Cinemas, Car Wash, Retail Shops, etc.

8. 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

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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.

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 world’s

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.

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These hospitality and tourism concepts and practices are grouped into two basic

categories and support services, as follows:

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.

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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

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 state’s 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.

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S/N ATTRACTION DESCRIPTION

1 Gashaka Gumti National Party Sukur

(UNESCO World Monument Heritage Site)

Lamurde Hot Spring Madibbo Adam’s

Tomb 34 Sisters Rock Monument Mandara

Mountains Kiri Dam.

Eco – Tourism

Monument

Natural/Physical

Monument

Monument

Natural/Physical

Natural/Physical

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2.12 SMALL AND MEDIUM SCALE BUSINESS OPPORTUNITIES IN

HOSPITALITY AND TOURISM IN ADAMAWA STATE.

1. Irrigation / Gardening

2. Restaurant Services

3. Home Laundry Services

4. Arranging foods for parties

5. Arranging Drinks for Parties

6. Raising of flowers

7. Portrait Painting

8. Raising of Flowers

9. Lands-capping

10. Making Baskets and Cages from Palm Fronts

11. Taxi Driving

12. Amateur Painting

13. Production of Conference Bags

14. Home made Breads and Cakes

15. Car Washing

16. Hair Weaving

17. Consultancies

18. Organizing cultural groups for occasion performances

19. Fast Foods

20. Running Catering Institute

21. Tailoring

22. Hunting and Fishing

23. GSM Business: Selling Recharge Cards and phone Accessories.

2.13 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 country’s 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

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and 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

22

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.

23

24

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:

Name of Enterprise No of Questionnaire issued

No of Questionnaire received

Percentage %

Bagale Hotel 10 10 100%

Yola Holiday Inn 10 10 100%

Jambas Guest Inn 5 5 100%

Detamd lodge 5 5 100%

Total 30 30 400% How?

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 4.4Names of Enterprises No of Ques.

issuedNo of Ques. Received

Percentage %

Jimeta Transport Service 10 7 70% how ?

Vulma Cultural Troop 5 5 100% how ?

Total 15 12 170% how ?

Source: Field Survey Nov. 2011

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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 life’s 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, let’s 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.

29

National Institute for Hospitality and Tourism Department Tourism Mgt.Bauchi Campus

Dear Respondent’s

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. YusufUTI/PGS/BC/09/087

30

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_______

5. Do you like the job/assignment given to you?

Yes______ No_______

6. Would you like to continue working here?

Yes______ No_______

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_______

31

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______ No_______

9. Is the present economic situation good for this business?

Yes______ No_______

ABBREVIATION /DEFINATION OF COMMON TERMS

BOI – Bank of Industry

CBN – Central Bank of Nigeria

GDP – Gross Domestic Product

GNP – Gross National Product

32

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?

33

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 Leaner’s 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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