EFFECT OF MANAGEMENT CONSULTANCY ON THE DEVELOPMENT OF SMALL AND MEDIUM SCALE BUSINESSES IN NIGERIA
(A STUDY OF SELECTED SMALL AND MEDIUM SCALE BUSINESSES IN ENUGU STATE)
ABSTRACT
This research work, examined the Effect of Management Consultancy on the Development of Small and Medium Scale Businesses in Nigeria, with Selected Small and Scale Businesses in Enugu State as a case study. The objectives of the study include to find out the extent-management consultancy has developed small and medium scale business in Enugu State, to examine the services offered by management consultants to small and medium scale businesses in Enugu State, to identify the challenges militating against the effective use of management consultants in small and medium scale business in Enugu state and to investigate the criteria used by small and medium scale businesses to select management consultants. The research method adopted was the survey research method. The sources of data used were the primary and secondary sources of data. The population of the study was 196 while the sample size of 132 was determined using Taro Yamane’s formular. The major instrument of data collection was the questionnaire. The data collected were presented in tables using frequencies and percentages and analysed using inferential statistics. The hypotheses were tested using the chi-square distribution formular. The findings include that Management consultancy has developed small and medium scale businesses to a significant extent, the services offered by management consultants include the technical area, corporate strategy and organizational development, financial and administrative system.  The challenges militating against the effective use of management consultancy by small and medium scale business owners include lack of fund, fear of exposure of business secrets and naivety. The researcher concluded that Management consultancy has a significant effect on the development of small and medium scale business in Nigeria. The research recommends that Small scale business owners should adopt management consultancy in the management of their businesses, Small scale business owners should also consider the integrity, competence, capacity to deliver etc before choosing management consultants, small scale business owners should also allow management consultants to carryout their business without interference and Small scale business owners should also learn from management consultants as they have more experience and knowledge in business management.
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1    Background of the study                        
1.2    Statement of the Problem                        
1.3    Objectives of the Study                        
1.4    Research Questions                            
1.5    Hypothesis of the Study                                              
1.6    Significance of the Study                    
1.7    Scope of the Study                            
1.8    Limitations of the Study                        
1.9    Operational Definition of Terms                 
References                                    
CHAPTER TWO  
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study            
2.1.1 Concept of management consultancy            
2.1.2 Features of management                    
2.1.3    The consultancy                          
2.1.4 Reason for using consultancy                    
2.1.5  Areas of management consultancy services         
2.1.6  Criteria and method consultancy selection           
2.1.7 Concept of development                        
2.1.8 Concept of small and Medium Scale Business   
2.1.9 Criteria Used by Small and Medium Scale
Businesses to Select Management Consultant        
2.1.10 Challenges Militating Against The Effective
Use Of Management Consultants By Small And
Medium Scale Business.                        
2.1.11 Services Offered by Management Consultant
to Small and Medium Scale Businesses            
2.2.    Theoretical Framework of the Study            
2.2.1 The Integrative Theory2.3 Historical Background
of Small Scale Business                        
2.3    Historical background of small scale business    
2.4    Empirical review                            
2.5    Summary of Literature Review                    
References                                    
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1    Research Design                             
3.2    Area of the Study                            
3.3    Sources of Data                            
3.3.1 Primary Source of Data                        
3.3.2 Secondary Source of Data                    
3.4    Population of the Study                        
3.5     Sample Size determination                    
3.6    Sampling Procedure                        
3.7    Sample Size Distribution                     
3.8    Method of Data Collection/Instrumentation        
3.9    Validity of the instrument                    
3.10 Reliability of the Instrument                    
3.11     Techniques of Data Analysis                     
References                                    
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1    Data presentation and analysis                 
4.2    Testing of Hypothesis                        
4.3    Discussion of findings                        
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                        
5.2    Conclusion                                
5.3    Recommendations                             
5.4    Suggestion for further research                
5.5    Contribution to knowledge                    
Bibliography                                    
Appendix                                     
Questionnaire                                     
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
    Before the profession of management consultancy was introduced in 1886 by Arthur O. little, there was no established tradition of using outside specialist by small and medium scale business owners, when their business runs into problem (O’ Maheney, 1967:106). This resulted in higher rate of mortality of small and medium scale businesses as a result of lack of knowledge and experience in management. This and more prompted the need for the effect of management consultancy on the development of small and medium scale business in Nigeria.
    According to Ile (2010:195), the management profession because of its nebulous nature, has become an all comers game in this country and it is thus difficult to distinguish the charlatan from the professional. Even among the individuals who could be counted among the professionals, we have in addition to firms, many retired executives, unemployed persons forced to take to consultancy as a last resort, tertiary institutions lecturers doing consultancy work on a part-time or full-time basis, lawyers, engineers, accountants and other professionals also engage in consulting with or without additional full time jobs. Moreover, some individuals claim to be consultants who in reality are freelance workers than consultants.
A management consultant is an outside specialist, who upon invitation, examines problems brought to his attention or which he himself sees (Oparanma, 2011:72). He then recommends desirable course of action. The management consultant is a considerable help to ailing or excellent organization, private or public sector organizations etc. Kabur (2009:170) expressed the fact that managers turn to consultants, if they perceive a need when the problem at hand requires special knowledge and skills that can be provided only by consultants. In several cases, organizations do not have all the expertise it requires in all its operations and so requires the assistance of the consultants who have special expertise in that particular area where it is lacking. It may involve knowledge of new techniques and methods.
Olowu (2009:62),explained that changing times and the risks and uncertainties associated with the modern small and medium scale business environment have created the need for the provision of wide range of professional services for small and medium scale businesses and bearing in mind that small and medium scale businesses are the engine of economic development, it is very imperative that anything that contributes to the growth of small and medium scale business, should be given adequate attention.
Steele (2012:134), states that small and medium scale businesses are a veritable tool for economic development. They play an active role in job creation, favourable balance of payment for a country etc, they also act as a springboard for the large scale industries.
Unfortunately, small and medium scale business owners for not make use of the services of management consultants. Their reasons being that the fees charged are enormous. They see the fees, without the result that will be obtained when the services are put into use. It is based on this backdrop that the researcher has decided to examine the effect of management consultancy on the development of small and medium scale business in Nigeria, with selected small scale business in Enugu State as a case study.
1.2 Statement of the Problem
The effects or consequences of small and medium scale business owners not making use of management consultants have led to increase in the mortality rate of small and medium scale businesses. The mortality rate of small and medium scale business in Nigeria is high and it has gone higher without the business owners consulting management consultants.
Moreso, it has led to decline in economic development as the small and medium scale businesses are the engine of economic development. Majority of the developed Nations, achieved their feat because they paid attention to small and medium scale businesses and their survival.
Furthermore, it has led to increase in social vices like armed robbery, kidnapping, prostitution etc. there is increase in social vices in Nigeria and as a result of the high mortality rate of small and medium scale businesses, the social vices in Nigeria have increased higher.
1.3 Objectives of the Study
The general objective of the study is to examine the effect of management consultancy on the development of small and Medium scale business in Nigeria. however, the specific objectives are to:
1)    Find out the extent management consultancy has developed small and medium scale business in Enugu State.
2)    Examine the services offered by management consultants to small and medium scale business in Enugu State.
3)    Identify the challenges militating against the effective use of management consultants to small and medium scale business in enugu state.
4)    Investigate the criteria used by small and medium scale businesses to select management consultants.
1.4    Research Questions
    Based on the objectives of the study, the following research questions were raised.
1)    To what extent has management consultancy developed small and medium scale businesses in Enugu metropolis?
2)    What are the services offered by management consultants to small and medium scale businesses in Enugu State?
3)    What are the challenges militating against the effective use of management consultants by small and medium scale business owners?
4)    What are the criteria used by small and medium scale businesses to select management consultants?
1.5 Research Hypotheses
Based on the research questions, the following hypotheses were formulated
Hypothesis one
H0: Management consultancy has not developed small and medium scale businesses to a significant extent
H1: Management consultancy has developed small and medium scale businesses to a significant extent
Hypothesis Two
H0: There are no services offered by Management consultancy to small and medium scale businesses in Enugu metropolis  
H1: There are  services offered by Management consultancy to small and medium scale businesses in Enugu metropolis
Hypothesis Three
H0: There are no challenges militating against the effective use of Management consultancy by small and medium scale businesses owners  
 H1: There are challenges militating against the effective use of Management consultancy by small and medium scale businesses owners
Hypothesis four
H0: There are no criteria used by small and medium scale business to select management consultants  
H1: There are criteria used by small and medium scale business to select management consultants  
1.6 Significance of the Study
This research work, will be beneficial to the owners of small and medium scale businesses, management consultants, the general public, the researcher and the university. The owners of small and medium scale businesses will benefit as the study will help to develop their businesses. Management consultants will benefit as they will improve their professional competencies. The general public will benefit as it will reduce unemployment. The researcher will benefits from this study as it is a partial requirement for the award of a Bachelor of Science (B.Sc) in Business Administration. The universities will benefit as the study increases their data bank. The research, also served as a reference material for further research.
1.7    Scope of the Study
    This research covered the effect of management consultancy on the development of small and medium scale business in Enugu State. The research work was carried out between 2015-2016.
1.8    Limitation of the Study
    The researcher encountered some impediments in the course of carrying out this research work. Among them were finance, time and uncooperative attitude of the respondents.
Finance: the research spent some money on transportation to location of these small and medium scale businesses. The researcher also spent some money printing out relevant materials related to the research work.  
 Time: The researcher carried out part of this research work during working hours, this almost created a conflict between the researcher and the employers
Uncooperative attitude of the respondents: Some of the small and medium scale business owners were economical with information, but when they confirmed that the research was purely for academic purpose, they gave out useful information related to the research work.   
1.9 Operational Definition of Terms
Management Consultant: A management consultant is defined as an outside specialist, who upon invitation, examines problems brought to his attention or which he himself sees and then recommends desirable course of action.
Development: This refers to change that is continuously taking place in man and his physical, social cultural and other environments.
Small-Scale Business: This can be defined as any enterprise whose investment capital or total cost of total assets range from one naira (1.00) and employing not more than one hundred (100) employees.
Medium Scale Business: Medium scale Business can be defined as any enterprise whose investment is not as big as large scale Business but greater than small scale business.  
REFERENCES
Ile, N.M (2010) Comparative And International Management.  Enugu; Bencelia ventures
Kabur, A (2009) Management consulting. New Jersey; Prentice-Hall
Olowu, F (2009) The effect of management consulting on small-scale businesses in Nigeria. Journal of management science. 3(5);72
Oparanma, P (2011) How to select and use consultants. International Journal of business management. 3 (5); 72
Steele, B (2012) The effective way to engage management consultants. Journal of Human resource management. 7 (11); 134.