The contributions of small-scale industries towards the development of Nigeria Economy cannot be over-emphasize because, it has contributed heavily to the Nigeria Economy. It is important and necessary to map out the contributions of these small-scale industries in the Nigerian economy.

            This research work tries to X-ray the contributions of these small-scale industries to the Nigeria economy using Enugu urban as a case study, despite the numerous problems it has encountered over the years.

            Nowadays, the Nigerian economy cannot stand from without the contributions of these industries and this study will surely go a long way to identifying the important to these industries to the development of our national economy. The source of credit to this sub-sector of the economy and impediment to industrial take off in Nigeria.

            Before, we don’t talk about locally made goods in Nigeria due to poor economy of the country and that they preface imported goods to locally made goods. But now, Nigerians cannot do without some locally made goods.

            Furthermore, in this project work, I will deliberately and considerably on the importance of these industries in the Nigerian Economy and the reason government should support the development of these small-scale industries. And this reasons when considered by the government will go along way to contribute more and more to the development of Nigerian Economy.

            Finally, this project work intends to inquire into the factors than hinders the effective contributions of small-scale industries to the development of Nigerian economy.



1.0       Introduction                                                  

1.1       Background of the Study                          

1.2       Statement of the Problem                          

1.3       Objectives of the Study                                          

1.4       Statement of Hypothesis                           

1.5       Significance of the Study                          

1.6       Scope of the Study                                     

1.7       Operational Definition of the Terms        


2.0       Literature Review                                        

2.1         Introduction                                                  

2.2         The Meaning of Small-Scale Industry    

2.3         New National Policy on Small-Scale Industries           

2.4         Development Organization and features of Small-Scale Industry                                                                

2.5         Enugu State Government Incentives to Investors

2.6         The Contribution of Small-Scale Industries to National Development                                                         

2.7         Sources of Capital and Factors Impending the growth of small-scale Industry.                             


3.0       Research Methodology                                         

3.1       Methods of gathering data                        

3.2       Validation of Instrument for Data Collection

3.3       Method of Data Analysis                                       

3.4       Analysis, presentation and Interpretation of Data39

3.5       Demographic feature of the Respondent           


4.0         Summary of Findings, Recommendation and Conclusion

4.1       Recommendation               

4.2       Conclusion                                      






            Small scale industries as a sub-sector of the economy has contributed enormously to the economic growth and development of our nation despite the numerous problems it has encountered over the years. These small-scale industries which would have been a blue print for our technological and industrial take off among country of nations have suffered various forms of neglect. This stemmed from the fact that Nigerians preferred imported to locally produced goods and government policies have favoured large-scale enterprises.

            These big industries failed to restore a strong technological base for our country. These enterprises were unable to exploit local raw materials for their plants. More so, they failed to create adequate employment opportunities and development of our crude technology.

            Similarly, because of the size of these industries, they spent a lot of foreign exchange on importation of raw materials. Thus the lofty aim of setting up these plants conservation of foreign exchange, transfer of technology human capital development and creation of employment remained a mirage.

            Based on these paraphernaha problems of large-scale industry, government has arisen to promote and encourage as a means to our country’s industrial take-off.

            Government believes that small-scale industrial posses the qualities needed in industrializing the country. However, in the second national development were in full year to ensure the development of small-scale industry. Similarly in the Hurd plan (1975-1980) government started the setting up of small scale industries in her priority list the objectives of the plan were to realize through provision of incentives and technical know-how in order to enhance the welfare of the populace.

            The industrial development centres and various states small scale industrial credit schemes are the officer channels by which incentives and assistance are administered to young prospective enterprises.

            After word, there was a review of the institutional frame work but the objectives were left untouched, perhaps state and local government were at liberty to formulate policies that will ensure industrialization of their states and local areas of which Enugu urban is one.

            Generally speaking, small-scale industries are believed to require small-scale amount of capital to set economic predicament. It demands enormous sum of money which requires special expertise and identification of the providers of credit (financial institutions).

            Provisions of credit to small scale industries and rendering assistance to those industries and in order to reap the numerous advantages are perennial problems in Nigeria and Enugu urban in particular. Often these establishments experience high business mortality andnare diligent credit deployment.

            Small-scale enterprises are vulnerable and unattractive to banks for credit. It is even more difficult for them to raise credit through the capital market. There sole dependence for credit is on government agencies and finance houses. Problems of small-scale industries are compounded because of lack of infrastructure and social amenities. Their implicates raises initial capital quality and over head cost of small scale enterprise in Nigeria.

            The afore-mentioned problems and others including the incessant depreciation of naira, unstable exchange rate and high cost of capital have virtually placed all small-scale enterprises above the limit of indirect financial assistance of African Development Bank and World Bank.

            It is, therefore, the intention of this project to inquire into the factors that hinder the effective contribution of small-scale industries to the development of Nigeria.


            Despite the recent advancement in the industrial development of the country, Nigeria industrial development is still at the formation stage. Entrepreneurs in the sector control the economy with little or no expertise, inadequate fund and above all auricle.               

            In view of the role of capital in the development and expansion of small-scale industries, the important question that comes to mind is the capital available to entrepreneurs in this area enough? To what extent have small-scale industries been receiving financial assistance from financial institutions.

            Are there prospects of  integrating these enterprises to make them bigger and to begin to enjoy economics of scale? What will be the contribution of this sector to National development?


            This research work aims at investigating the various contributions of small-scale industries to the development of Nigeria. It will also investigate the source of credit to this sub-section and impediment to industrial take-off in Nigeria. It is hoped that by the end of the study, the problem facing small-scale industries and their contribution to national development would be identified and solution proffered.


Ho:      Small-scale industries do not increase the living standard of Nigerians.

Hi:       Small-scale industries increase the living standard of Nigerians.

Ho:      Small-scale industries do not need government incentives.

Hi:       Small-scale industries need government incentives.

Ho:      Small-scale industries do not encourage self-employment.

Hi:       Small-scale industries encourage self-employment.


            The researcher saw the important role played by the small-scale industries in development of any nation. They are done through the creation of employment opportunity for the citizens of the nation production of raw material inputs for big or large scale industries, utilization of local raw materials thereby saving foreign exchange for the country. Given these considerable roles played by small-scale industries in National development. It calls to mind to look into problems facing it and to devise means of taking them.



            The study in brief examines the operations and contributions of small-scale industries to national development using Enugu urban as the case study.

            Enugu urban is chose because of her position and role in the political and economic development of Nigeria. Moreso, there is wide concentration of state, the private owned industries in Enugu urban more harmony offer are in the state.


            For comprehension of the issues that will come up later, it is better to define some terms. Small-scale industries. According to the 1987 Cred guidelines, the central Bank of Nigeria defined small-scale industries; “as enterprise with annual turn over not exceeding five hundred thousand naira (N500,000.00) the small-scale industry division of the Federal Ministry of industries defined small-scale industry as “enterprises having investment capital of about sixty thousand naira (N60,000.00) with not more than fifty workers on her pay roll.


Industry – Those business firms that are engaged in the production of a given or similar commodity/services/products.

National – A nation can be defined as large community of people associated with a particular territory usually speaking a single language and usually having a political character or political aspirations.    


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