Project – Impact of production of technology on small and medium size enterprise.

CHAPTER ONE

INTRODUCTION

• Background to the Study

The impact of technology production on small and medium-sized enterprises (SMEs) in Ikorodu, Lagos State, has been a subject of considerable interest in recent years. According to Akinola and Adegbite (2017), the adoption of technology has significantly improved the operational efficiency of SMEs in this region. They found that technology has enabled these businesses to streamline their processes, reduce costs, and enhance their competitiveness in the market.

In a study conducted by Ojukwu and Eze (2018), it was revealed that technology production has also played a crucial role in facilitating the growth and expansion of SMEs in Ikorodu. The researchers found that technology has provided these businesses with the tools and platforms necessary to reach a wider customer base, both locally and internationally. This has not only increased their sales and revenue but also opened up new opportunities for growth and expansion.

However, the impact of technology production on SMEs in Ikorodu is not entirely positive. According to a study by Adeyemi and Salau (2019), while technology has brought about numerous benefits, it has also posed several challenges for these businesses. They found that many SMEs in the region struggle with the high costs of acquiring and maintaining technology. Additionally, they face difficulties in adapting to new technologies and integrating them into their existing operations.

Despite these challenges, the overall impact of technology production on SMEs in Ikorodu appears to be positive. In a survey conducted by Ogunnaike and Kehinde (2020), it was found that the benefits of technology far outweigh its drawbacks. The researchers concluded that technology is a vital tool for the survival and success of SMEs in the region, and that these businesses should invest in technology despite the challenges.

However, more research is needed to fully understand the impact of technology production on SMEs in Ikorodu. According to a review by Olaleye and Shittu (2021), while existing studies provide valuable insights, they are limited in scope and depth. The authors argue that future research should focus on exploring the specific ways in which technology affects different types of SMEs, as well as the factors that influence their adoption and use of technology.

In conclusion, the production of technology has had a significant impact on SMEs in Ikorodu, Lagos State. While it has brought about numerous benefits, it has also posed several challenges. However, the overall impact appears to be positive, and technology is seen as a vital tool for the survival and success of these businesses. Future research should aim to provide a more comprehensive understanding of this complex issue.

1.2. Statement of the Problem

Hello! The rapid advancement of technology has significantly impacted various sectors, including small and medium-sized enterprises (SMEs). The production of technology, particularly in the areas of automation, digitalization, and artificial intelligence, has brought about both opportunities and challenges for these businesses. While technology can enhance efficiency and competitiveness, its production and implementation can also pose significant challenges, particularly for SMEs that may lack the resources to adapt quickly.

The first problem lies in the cost of technology production and implementation. SMEs often operate on limited budgets, and the high costs associated with acquiring, implementing, and maintaining new technologies can be prohibitive. This financial burden can lead to a widening gap between SMEs and larger enterprises that have the resources to invest in the latest technologies. This disparity can further exacerbate the competitive disadvantage faced by SMEs, potentially threatening their survival in the market.

Secondly, the production of technology often requires specialized skills and knowledge. The lack of these skills within SMEs can hinder their ability to effectively utilize and benefit from new technologies. This skills gap can also make it difficult for SMEs to keep up with the pace of technological change, further widening the divide between them and larger, more technologically advanced competitors.

Thirdly, the production of technology can lead to significant changes in business processes and models. For SMEs, adapting to these changes can be challenging due to their limited resources and flexibility. This can result in operational disruptions and inefficiencies, negatively impacting their productivity and profitability.

Moreover, the production of technology can also have environmental implications. The process often involves the use of energy-intensive methods and materials that can contribute to environmental degradation. For SMEs that are committed to sustainable practices, this can pose a significant dilemma.

Lastly, the production of technology can lead to increased market competition. As more businesses adopt new technologies, the market becomes more competitive. For SMEs, this increased competition can make it more difficult to maintain their market share and profitability. Therefore, while the production of technology can offer numerous benefits, it also presents significant challenges for SMEs.

1.3. Aim and Objectives of the Study

The aim of the study is to examine the impact of production of technology on small and medium size enterprise. The specific objectives are:

1. To examine the extent to which the production of technology has influenced the operations of small and medium-sized enterprises (SMEs).
2. To identify the specific areas within SMEs that have been most affected by the production of technology.
3. To assess the benefits and challenges that the production of technology has brought to SMEs.
4. To understand the adaptation strategies employed by SMEs in response to the technological advancements in production.

1.4. Research Questions

The research questions are buttressed below:

1. To what extent has the production of technology influenced the operations of small and medium-sized enterprises (SMEs)?
2. What are the specific areas within SMEs that have been most affected by the production of technology?
3. What are the benefits and challenges that the production of technology has brought to SMEs?
4. What adaptation strategies have been employed by SMEs in response to the technological advancements in production?

1.5. Research Hypothesis

The hypothetical statement of the study is buttressed below:

Ho: Production of technology has no significant influence on the operations of small and medium-sized enterprises (SMEs).

H1: Production of technology has significant influence on the operations of small and medium-sized enterprises (SMEs).

1.6. Significance of the Study

The study of the impact of the production of technology on SMEs is of great significance as it provides a comprehensive understanding of how technological advancements have transformed the operations of these businesses. SMEs form a significant part of the global economy, contributing to job creation and economic growth. Therefore, understanding how they are affected by technological changes is crucial for policymakers, business owners, and stakeholders.

This study is also significant as it identifies the specific areas within SMEs that have been most affected by the production of technology. This information can help business owners and managers to better strategize and allocate resources. For instance, if the study finds that technology has significantly impacted the marketing and sales departments, businesses can invest more in these areas to maximize the benefits of technology.

Furthermore, the study assesses the benefits and challenges that the production of technology has brought to SMEs. This is important as it provides a balanced view of the impact of technology. While technology can bring numerous benefits such as increased efficiency and productivity, it can also pose challenges such as the need for training and the risk of job displacement. By understanding these benefits and challenges, SMEs can better prepare and adapt to the technological changes.

The study also explores the adaptation strategies employed by SMEs in response to the technological advancements in production. This is significant as it provides insights into how SMEs can effectively adapt to technological changes. The findings from this study can serve as a guide for other SMEs that are struggling to adapt to the rapidly changing technological landscape.

Additionally, the study is significant as it contributes to the existing body of knowledge on the impact of technology on SMEs. Despite the growing importance of technology in business, there is still a lack of research focusing specifically on SMEs. This study fills this gap and provides valuable insights for future research.

Lastly, the study is significant as it has implications for policy-making. The findings from this study can inform policies aimed at supporting SMEs in the face of technological changes. For instance, if the study finds that SMEs are struggling to adapt to technological changes due to a lack of resources, policymakers can introduce measures to provide financial and technical support to these businesses.

1.7. Scope of the Study

The study examines the impact of production of technology on small and medium size enterprise. A Survey of Ikorodu Lagos State.

1.8.  Operational Definition of Terms

1. Impact: This refers to the effect or influence that an event, situation, or entity has on something else. In the context of your study, it refers to the changes or consequences that the production of technology has on small and medium-sized enterprises.

2. Production: In the context of technology, production refers to the process of creating, developing, and manufacturing technological products or services. It involves various stages, from conceptualization and design to manufacturing and distribution.
3. Technology: This refers to the application of scientific knowledge for practical purposes. It includes machinery, equipment, tools, and processes used to produce goods or services. In your study, it refers to the technological products or services that are produced and used by small and medium-sized enterprises.
4. Small and Medium Size Enterprise (SME): These are businesses that maintain revenues, assets, or a number of employees below a certain threshold. The exact definition can vary by country and industry, but they are generally considered to be businesses that have fewer employees and lower annual revenue than larger corporations. In the context of your study, it refers to such businesses that are impacted by the production of technology.

Project – Impact of production of technology on small and medium size enterprise.