ABSTRACT

            The project is designed to talk on contribution of small-scale industry to economic development of the Nation with particular reference to Enugu South local government Area with a view of identifhying the prevailing problems that beset their establishment.

            From the result, the researchers was able to know the number of small scale industries, which is eleven of them.  The researcher was also able to find out the total number of employees working in Enugu South local government Area.  To achieve the above objective, the researcher proceeded together data from both primary and secondary sources.

            Based on what was observed in this research, the researcher made her recommendations that small-scale credit guarantee scheme will be established to reduce the risk of lending to small industrialists.

TABLE OF CONTENTS

CHAPTER ONE

1.0              Introduction

1.1       Statement of the Problem                              

1.2       Significance of the Study                              

1.3       Objective of the Study                                  

1.4       Researcher Hypothesis                                               

1.5       Scope of the Study                                                    

1.6       Limitation of the Study                                             

            References                                                     

CHAPTER TWO

2.0              Literature Review                                                      

2.1       Definition of Small scale Industry     

2.2       Reasons why people own Business               

2.3       Benefits of Small scale Industry                                

2.4       Characteristics of Small scale Industries       

            References                                                                 

CHAPTER THREE

3.0              Number of Establishment and Discussion Types and Industry

3.1       Types of Industry                                                      

3.2       Number of Employee                                     

3.3       Types of Workers                                                       

3.4       Amenities the Establishment have access to  

3.5       Utility                                                 

3.6       Disposal of by Product.                                             

3.7       Concentration of industry and the Attraction of Infrastructure

3.8       By Products                                                               

 3.9      Conclusion                                                                 

3.10     Bibliography                                      

CHAPTER ONE

INTRODUCTION

            Small scale industry or business can be a farm which produces crops for sale, it can be a factory which produces goods such as radios or it can be a shop which buys from one group of persons and sells to another.  Anyone can start a business of an industry if he can obtain capital and if he is prepared to risk losing it.  He can borrow the capital from friends, relatives or from Banks.

            Economy defined businessmen as entrepreneur.  The various governments of this country local, state and federal had directed attention on the establishment of gigantic industries in the urban and rural centres of the country. They believed that large scale industry is the only yard stick of measuring the economic power of any country.

            In realization of this and in pursuance of its attainment, the federal government created various agencies such as the Directorate of food, Roars and Rural infrastructure (DFRRI) to work in partnership with the rural and urban communities towards the provision of amenities such as rural roads, pipe born water and electricity which are essential for the setting up of small scale industry in Enugu South local government to enhance Economic development.

            In addition, the National Directorate of employment was created to train and develop school leavers skill for independence.  The directorate also provides financial and Technical assistance to individual wishing to start business of their own.  The federal government also established people’s Bank, community Bank, small-scale business fund scheme and similar bodies whose function are to provide financial assistance to individuals to set up small – scale business.  Commercial Banks were also directed to give part of their loans to small scale industry in Enugu South local government.

1.1       STATEMENT OF PROBLEMS

            The neglect of the nation’s rural areas vis-a vis small scale industry left a serious break in the economic development and progress of the country.  This gap has resulted in the scarcity of essential goods and services with a spiral effect of high inflation and general high price level and unequal distribution of incomes.

            Task of rural development also resulted in the mass Exodus of people from rural areas to our urban centres.

            Most of the traditional skills possessed by one people such as wood carving, cloth – wearing and dyeing, mat making, iron smelting etc, have been deserted in search of white collar jobs.  As a result, most of these skills, which could have been improved upon through encouragement and assistance of individuals to set up modern small-scale industries have been neglected.

            Besides, large scale industries which we thought formed the bed rock of economic development have become white elephant projects, that do not serve what they are established to serve.  Some of them are producing under capacity.  Some have been shut down due to lack of spare parts and raw materials.  Others have become a breading ground for embezzlement by their various boards of directors and top government officials.

            Therefore, the inclusion of small-scale industrial policy in our economic plan will serve as a milestone in the Technological takes off of our great country.  It will also encourage the spirit of entrepreneurship, which is the highest hinge of free market economy and capitalism.

1.2              SIGNIFICANT  OF THE STUDY

The role of small-scale industry in rural development cannot be over emphasized.  The research is being conducted with a view to ascertaining the benefit of sitting small scale industry in rural areas.  The study will be useful to the government, public and private institutions, entrepreneurs, individuals, student and above all the nation.

The government will find it very useful in drawing up programmes and policies for rural development.  Equally economic planers in the government will take small-scale industries into consideration while planning for the development and growth of the economy.  Public and private organization will also benefit from this study through making them realize the importance of developing our rural areas.

Entrepreneurs will also gain from the study by way of encouraging them to set up business in our rural areas.

Moreover, it will encourage individuals’ especially young graduates to get into business without depending on government for employment.  It will also serve as a driving force for development of entrepreneurship in people.

Finally, student will find it very useful guide on the conduct of a research relating to small-scale industry.

1.3       OBJECTIVES OF THE STUDY

            The objectives of this research is to ascertain the role and contribution of the small scale industries play in the employment of people and in the attraction of infrastructure and also in the development of rural areas of the local government.

1.3              RESEARCH HYPOTHESIS

Ho:      There is a significant different in proportion between concentration of small-scale industry and the attraction of infrastructures in the locality.

Hi:       there is no significant different in proportion between concentration of small-scale industry and the attraction of infrastructure in a locality.

Ho:      There is a problem of unconcerned attitudes between concentration of small-scale industry and the attraction of infrastructure in Enugu South local government council.

1.4              SCOPE OF THE STUDY

This research work only cove5rs the contribution of small-scale industry to Economic Development of Enugu South local government and proffer suggested solutions to effective implementation of these roles to economic development.

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