ROLE’S OF SMALL-SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA
(A CASE STUDY OF ETHIOPE EAST L.G.A OF DELTA STATE)
This project work is derives from a concern, with the contemporary Nigerian situation. Our quality of life or standard of living and our total well being depend to a large extent on the roles of small scale Industries in the Economic Development of Nigerian. Therefore, this project work tries to examine the factors militating against the growth of small scale industries. In the face of the problems associated with the growth of small scale industry in Nigeria, the researcher will now examine how to improve on the growth of small scale and contributions of the sectors of the economy to the Economic development of Nigeria.
1.1 Background of the study
1.2 Statemen.t of the problem
1.3 Research Questions
1 .4 Significant of the study
1.5 Purpose of the study =
1.6 Scope and delimitation
1.7 Definition of terms
REVIEW OF LITERATURE
2.1 Small scale Industries in Nigeria
2.2 Factors militating Against the growth of small scale
2.3 Types of resources of capitals
2.4 Lack of delegation of Authority
2.5 Technology problems
2.6 Competition from expatriate companies and foreign
2.7 Infratrauctural problems
2.8 Improving funding of small scale industries = 34
2.9 The Role of sma’l scale Industries in the economic
3.2 Research design
3.3 Population of the study
3,4 Sample and Sampling techniques
3.5 Research Instrument
3.6 Validity of instrument
3.7 Reliability of Instrument
3.8 Method of data
4.1 Data presentation, Analysis and Interpretation
4.2 Presentation of data
4.3 Reponses to Research questions
4.4 Interpretation of data and findings
4.5 Discussion of findings
SUMMARY, CONCLUSION AND RECOMMENDATION
Appendixl = =
1.1 BACKGROUND OF THE STUDY
There is a tendency to confuse Nigeria entrepreneurship with small scale industries and indigenous enterprise, this is because indigenous enterprises and small scale industries are used interchangeably. This is understandable because Nigerian owned enterprises are invariably small scale enterprises.
The enterprises abound in the country ad cover almost every sector of the economy. Mining crafts, consumer goods construction, printing, services such as repairing, servicing and supply of various items, retailing, transportation e.t.c.
Small scale industries as the name implies, are mostly run by individuals and are relatively small in size. The establishment are on the average small, both in terms of capital, investments, turnover and number of people employed. The word small is highly subjective The Central Bank of Nigeria Credit guidelines defined a small industry as any manufacturing or service enterprise whose annual business turn-over does not exceed N500,000.OO (Five hundred thousand naira.
The difficulties of deriving a single , simple definition of a small scale firm were amply illustrated in the Botton Committee report (1971).
The Committees terms of reference had defined small firms as broadly those with not more than 200 employees, but in practice.
It found this definition totally inadequate. Instead it suggested that a definition was needed which emphasized those characteristics that a definition was needed which emphasized those characteristics of small firms which might be expected to make their performance and their problemssignificant different from those of large firms. They conclude that the main characteristics had to be taken into account.
i. A small scale industry is one that has a relatively small share of its market.
ii. It is managed by it’s owners or part owners in a personalized ways, and not through this medium of a formalized management structure.
iii It is independent, in the sense that it does not form part of a large enterprises, that it’s owner/managers are free from outside control when taking their principal decision.
These characteristics formed the economics definition of the small scale industries. However to make this operational, the committee needed a statistical definition although it recognized that no single quantifiable definition could be entirely satisfactory. In attempting to reflect the three characteristics above, the committee found that for statistical purposes, the criteria for a small industries would have to vary from sector for manufacturing, it retrained the usual “200 employees or less” through in construction and mining the upper unit for small-scale industry was reduced to 25 employees or less.
Griffths and wall (1984) pointed out that the definition often used for small-scale industries varies widely from less than 50 employees to less than a thousand employees.
Retrospectively, one would see that although, Nigerians have engaged in economic activities since their immemorial, such activities. Continued to be on substance basis. Agriculture for example, was i most cases carried on simply to feed, the immediate families other activities, such as poultry, rearing etc caterers, for personal needs and markets in the immediate localities only.
Thus, rubber and saw-milling were among the early industries in Nigeria. The establishment of the mass production of such crops. These industries were established in order to commodities which previously were being imported.
This study is meant primarily to show the role of small-scale industries in Nigerian economy, in order to enable a metropolis like Ethoipe East local governments of Delta State to trap It’s abundant natural and human resources that are necessary for laying the foundation for building advanced mechanized economy, there is need to encourage the establishment of small-scale industries.
1.2 STATEMENT OF PROBLEM
Since time immemorial, small scale industries have
been in existence, but it seems that there are certain problems militating against the growth of small industries in Nigeria.
i. There is the problem of raising the money to launch a business venture by an entrepreneur and to avoid under capitalized which often leads to failure.
ii. Another problem is that of poor organization, inadequate planning and lack of management skill and experience coupled with his unwillingness to seek professional advice, which built the barrier between him and form of f assistance.
iii. Technological problems: Many Nigerian entrepreneurs face difficult problem in the selection and purchase of the technology needed to run their business.
iv. Competition from expatriate companies and
v. Infrastructural problems.
1.3 RESEARCH QUESTIONS
To guide the conduct of this research, answers will be sought to the following research questions:
i. Do small scale industries provide employment opportunities for skilled and unskilled labour?
ii. Does the establishment of small scale industries bring about socio-economic development of the area?
iii. Do small scale industries produce goods and render services needed by the growing population?
iv. Has the existence of small scale industries improved the problem’s standard of living?
1.4 SIGNIFICANCE OF THE STUDY
The purpose of this study is to find out the roles of small scale industries in the economy development in Nigeria and to help industries and entrepreneurs to effectively manage the causes of failure of small scale industries.
1.5 PURPOSE OF THE STUDY
This study is of great importance because the fmding and recommendation of this study will help to effectively manage, if not eliminate the causes of failure of small scale industries.
The study will also add to the field of academics by providing a reference to other researchers and interested parties in the future.
1.6 SCOPE AND DELIMITATION
This study will examine, explain and evaluate strategies aimed at solving problems related to the management of small-scale business.
This research work is expected to cover all the areas where these small scale industries exist. The investigation is based on the roles of small scale industries in the development of Ethiope East Local Government Area of Delta State,
1.7 DEFINITION OF TERMS
In this context, the following terminologies were defined in regard to her frequent use in the research work so as to aid their understanding:
i.) Small-Scale Industries: A business that is owned and operated by relatively few persons, who has a relatively small sales revenue and possesses relatively little capital.
ii.) Standard of Living: A composite quantities and qualities of goods such as foods, clothing and house furnishing and services, such as housing, transportation and medical care, which economic unit (an individual family or group) considers essential. to
iii. Sole Proprietor: A type of business organization in which one individual owns the business.
iv.) Partnership: An association of two or more persons joining in business, each providing labour, capital, skill either together or separately with the ultimate aim of making profit.
v.) Roles: The degree to which something is involved in a situation or an activity and the effect that it have on it.
vi.) Economic Development: Connected with the growth of the trade or industry of the country, an area or a society.