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

Authors in this study analyzed data from 180 small scale enterprises (SMEs) in Yobe State, Nigeria. The study was limited to only SMEs in the three geopolitical zone of the State. The constraint was depicted, that ethics are not practice and respected in the domain of SMEs in the state. The study confirms that greater percentage of SMEs did not practice nor respect the fact that ethic is necessary for business. In a developing economy like Nigeria, SMEs play tremendous role in reengineering the socio-economic landscape of the country. These enterprises largely represent a stage in industrial transition from traditional to modern technology. The variation in transitional nature of this process is reflected in the diversity of these enterprises. Most of these SMEs use simple skills and machinery as well as local raw materials and technology. SMEs are vital in developing Yobe State economy for the following reasons: social and political role in local employment creation, balanced resources utilization, income generation, utilization of local technology and raw materials and in helping to promote change in a gradual and peaceful manner. Alas! There a death and paucity of research in this sector considering the vital elements that this sector possess in the economy. The authors realized that ethics is one of live wire that connect and engineered any business to its feet, as such was chosen to serve as the enlightening factor which will bring the sector to its required standard. SMEs are known as a catalyst for the growth productivity and competitiveness of the economy. Not only are they the seedbed for wealth creation, employment generation and poverty reduction, they have been recognized as critical breeding and nurturing grounds for domestic entrepreneurial capacities, technical skills, technological innovativeness and managerial competencies for the development of a vibrant and productive economy. Therefore, the need for strong and accelerated research that will enhance the sector is required. A lot of literature on business ethics has been developed and is still developing.  In recent years, increasing attention has been given to the concept of business ethics as a postulate for ethical behaviour of business and as a basis for good corporate citizenship, there is insistence that business can and should act in a manner that respects the legitimate goals and demands of all stakeholders [1]. However, the scholarly interest has so far been limited to ethical study and exploration on large corporations. Authors argue that findings based on the practices of large corporations have little applicability in the small scale enterprises due to their unique financial circumstances and sole ownership, especially for the start ups. This paper argues that since many of the ethical principles are centered on developed countries. This paper sees a need to encourage toward putting up finding on ethics that do exist in SMEs sector in the developing countries. Because, in both developed and developing countries, the government is turning to small and medium scale industries and entrepreneurs, as a means of economic development and a veritable means of solving problems. It is a seedbed of innovations, inventions and employment. SME is as old as Nigeria and had contributed to the growth of the economy. Presently in Nigeria, SMEs assist in promoting the growth of the country’s economy, hence all the levels of government at different times have policies which promote the growth and sustenance of SMEs [2].  As ethics been one of the principles that accelerate the development of business. Ethics issue are wide, the author concentrated on ethics that has to do with SMEs employees and customers.