CHAPTER ONE
1.0 INTRODUCTION
The usefulness of statistical tools for analysis has become invaluable in recent years. Nowadays, it has become an indispensable tool of investigation and research in virtually every day of human activities. Most statistical analysis methods are concerned with making inference from the observed data.  That is, drawing valid conclusion using sample information.
1.1             BACKGROUND INFORMATION
The small and medium enterprises development of Nigeria (SMEDAN) is a major structure designed to provide institutional support for Small and Medium scale industries. It was established in Nigeria in 2003.
Responsibilities of SMEDAN
Initiating and articulating ideas for SME’s policy thrust
Overseeing, monitoring and co-coordinating the development of the SME sector.
 Promoting and providing access to industrial infrastructure such as layouts.
 Policy development.
The dearth and paucity of credible and reliable MSME database is one of the main constraints to evolving a strategic action plan towards an efficient and sustainable MSME sector.
This survey conducted by the Small and Medium Enterprise Development Agency Of Nigeria in collaboration with National Bureau Of Statistics covers business enterprises in Nigeria employing below 200 persons (Micro, Small and Medium Enterprises). The survey was conducted in all the 36 States of the Federation and the Federal Capital Territory, Abuja. The pre-test was conducted in Lagos and Kano states. For micro enterprises (employing 1-9 persons) data were canvassed through the National Integrated Survey of Household (NISH) Schedule. Also rural and urban areas where small (employing 10-49 persons) and medium (employing 50-199 persons) enterprises are located were covered through the National Integrated Survey of Establishment (NISE) Module.
Thirty Enumeration Areas comprising of 3 replicates in which each replicates contain 10 Enumeration Areas were selected per state and FCT, Abuja. These replicates are subsets of twenty (20) with each state of the Federation and FCT, Abuja having Ten micro enterprises which were systematically selected per Enumeration, Area making a total of 300 micro enterprises visited in each state and FCT, Abuja.