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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 inNigeria, 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 ofNigeria.
1.1 BACKGROUND OF THE STUDY
There is a tendency to confuseNigeriaentrepreneurship 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, and transportation etc.
Small scale industries as the name implies, are mostly run by individuals and are relatively small in size. The establishments 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 problems significant 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 its 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 large enterprises, that its 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 inNigeria. 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 Ethope 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 professiorta 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 fmdings 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.
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 has on it.
vi.) Economic Development: Connected with the growth of the trade or industry of the country, an area or a society.
REVIEW OF LITERATURE
2.1 SMALL SCALE INDUSTRIES IN NIGERIA
The small scale Industries, which can conveniently be referred to as indigenous enterprise occupies a unique
position in any free enterprise economy. In developing countries, the role of a small scale industries, indigenous, enterprise assumes greater significance.
Having attended Political independence, newly independent country like Nigeria also desire to rapidly restructure their economy in order to achieve economic self-reliance and independence.
The indigenous enterprise/small scale industries play a significant role in the industrial process. But providing the means by which productive activities are indigenous owned and controlled, it enable the economy to mobile resources talents, that might not otherwise be put into productive use. Small scale industries account for as much as 30% of non-agricultural wage employment in the Nigeria economy, and has a considerable potential for unemployment, both at the technical and management levels.
It providesNigeriathe opportunity of acquiring managerial and technical skills. It is also a potent means for acquiring or developing techno1o that are suitable to local needs.
Ensures even geographic spread of industries. Economic independence has become the bedrock of the policy of newly independent and developing nations. One major effort to realize these aspirations is through the organization of business enterprise. The Nigeria enterprise promotion Act of 1992 and 1997 are positive effect in this direction. The main objective of theNigeriaenterprise promotion Acts are:
1. Create opportunity forNigeriaindigenous business men.
2. Maximize local relation of profit
3. To raise the level of intermediate capital goods production.
4. To raise the proportion of Indigenous ownership of industries. Investment and
5. To increaseNigeriaparticipation in decision making in the larger commercial and industrial establishment.
2.2 FACTORS MILITATING AGAINST THE GROWTH OF SMALL SCALE INDUSTRIES
In the third world countries the effect of the factors militating against the growth of small-scale industries tends to be very acute and pronounced. Such militating factors include capital shortage, personal and manpower development problems, stiff competition from large firms, resistance to changes and expansion ownership interference in all activities etc.
(1) Organisation Problems
According to Okeke (1992), an• earlier study conducted in this areas tends to indicate that 20% failure among small scale industries is due to poor management and bad organization expertise arising from inefficient and unskilled activities of personal in such organization. The inability to recruit and retain competent skills personal harmpers the growth and development of small scale industries. Technical and management manpower is generally in short supply inNigeriaeconomy. For example, shortage of executives’ capacity has been identifying as a major bottleneck to the execution ofNigeriadevelopment plans. With respect to theNigeriaenterprise, the situation is especially critical for several reasons.
Firstly, the owner’s (Entrepreneurs) of small scale business have to compete with government establishment and foreign-owned business for limited pool of manpower available within the economy since the remuneration, prospects for advancement and public image or status are lower in the private indigenous enterprise they end up with lower quality personnel than others.
Secondly, small scale industries do not engage in positive recruitment efforts, rather they relay on referral from friends and relation to get their personnel. This method is unlikely to yiel.d suitable talented individuals who can execute complex business plans.
Thirdly, there is total neglect of educational institution and consultancy services, in the recruitment of managerial and technical staff, which indicate not only the: lack of knowledge of potential of these resources, but unwillingness to invest time and resources in the process.
ii. Capital Shortage:
He further stated that large firm are rarely capital- starved as against the experience of small scale industries, since the bank are often willing to help. Such big establishment could even float share to members of the public, a method that could readily raise money for them.
Most small scale industries inNigeriaare sole proprietorships which stated with personal savings of the owners or loans from friends and relatives. Okeke (1992) stated that small scale industries cannot obtained such assistance due to limited resources, which do not suffice as securities, they work with limited resources because they do not get capital assistance to expand adequately. In the process, for some of them a vicious circle of under- development emerge and most small-scale industries would therefore resort to waiting indefinitely for help from government and commercial banks help, which often elude from another sources for long-term capital which can be used to purchase equipments to expand business is usually money realized from the sales of shares, profits that is retained in the business, long terms loan for financial institution and a few cases from friends. Since majority of the business are sole-proprietorships they cannot sell shares.
In a prosperous business retained earning are a very good source of additional capital for expansion. In most cases, lower and very little profit is generated. In the other case were sustained profit is earned, the entrepreneur have the tendency to use such resources to establish new businesses, or to invest them in real estate. Thus very limited funds are available from this source for expansion.
Long term loan are usually available from financial institution and the banks, but they usually requires some security and a demonstrated ability to utilize the loan profitably.Nigeriaentrepreneurs are generally unable to satisfy the stringent requirement of the banks/institutions.
In addition, small scale owners are not attractive borrowers because of lack of efficient organizational structures. Inadequate commitment of long-term survival of the business, and poor management practices. Thus, even through a sole proprietor may have a liable business proposal, he may not have the capacity to afford them (the loan), because of the inadequacies of the company. Those who are likely to attract loans have a tendency to waste them on expensive parties, burial ceremonies, colorful marriage ceremonies or expensive cars.
According to Olashore (1998), the small business men is fund of complaining that his desire to expand his business or develop a new ideas is thwarted by the caution and conservation of the bankers, whom he accuse of always wanting to cover their rates hundred percent by guarantee or tangible collateral as security against losing their money. He does not accept the fact that it is his poor organization, in adequate planning and lack of management coupled with his unwillingness to seek professional assistance. Where proper accounting records are non-existent, let alone regular management information to guide decision making without sufficient assurance for its safe return. This lack of financial supplication in the dealings is often the result of his inability to divorce himself and his personal resources from those of the business. Under such a confused situation therefore who will fault the cautions of the bankers in lending out the depositors money? This exactly is what the banks do. Added to this is the act that the servicing of small scale business account is relatively expensive risky and difficult to monitor with it’s low account turnover.
He also pointed out that the communication gap between small business and the banks proprietors of small business whatever their financial expertise to put together bankable propositions. They find themselves in a completely new environment when they come to the bank for assistance. It is rare to see such customer coming to the bank with cash flow projections, projected balance sheets and so on. They usually have some ideas of their needs based on their regimenting information and speculation, but when it comes to putting every thing on paper, the problem starts.
It pointed out that, even where they seek the advice of outside consultants. Experience has shown such consultant to prepare report and projection to suit their client’s requirement and earn their fees. Conclusions are made and data projected on some basic assumption that cannot be justify or explained.
Consequently, the proposal get rejected by the banks, or where as border line cases, the facilities are granted, the business proprietor soon find themselves in trouble when faced with real life situation as distinct from the rosy picture pointed on the initial projections. Many banks customers submit credit proposal to banks which in their own estimation are good and potentially profitable but which according to the bank’s appraised are potently speculative highly risky.
No amount of explanation by their bank managers can convince them about the folly of going ahead with such ventures. In other cases, the demands of the customer may not be in compliance with existing government monetary policy which is obliged to observe in conduct of their business and hence, such proposals are invariably rejected.
2.3 TYPES OF RESOURCES OF CAPITALS
Raising the money to lunch a business venture is a major obstacle for an entrepreneur to over-come, and under-capitalization often leads to failure. To avoid this the entrepreneur must understand his firm capital requirement where to go for needed funds.
According to Zimmerer (1995), he defines capital as any form of wealth businesses employ to create more wealth. He further stated that there are three types of capitals namely:
i. Fixed Capital:
This money is used to purchases the permanent (fixed) assets of business.
This is the temporary fund of the business needed to deal with the even flow cash into and out of the business.
This is the type of capital needed when an existing business is expanding or changing it’s primary direction.
Entrepreneurs get funds in the following ways.
This represent the personal investment of the owners in the business, it is called “risk capital” the primary advantage of equity capital is that it does not have to be rapid instead investors are granted a voice in operating the business and a share of it’s profit (if there are any).
The most common sources of equity funds in a typical small business is the entrepreneur’s personal savings. Few entrepreneurs’ are able to lunch the venture on their personal assets alone.
F They is funds that must be repaid with interest. (often above the prime rate).
Unsecured Term Loans
These are granted primarily to small firms with past operating experience offering a high profitability of repayment.
Installation loans are made to finance equipment, facilities, real estate etc.
This is the most common sources of credit for small firms. It renders and supplies financing the small business owner’s purchase of goods, suppliers of equipment for a few days for as long as several months.
Discounting Installment Contract
These are loans extended to the business using installment contract as collateral. Commercial banks as part of the financial markets provides the greatest number and a variety of loans, they are primary short-terms lenders.
These are loans regains as a lump some within three to six month and are unsealed
Line of Credit
Lines of credit are agreement allowing borrowing up to a specific limit during the year.
The bank lends money to small scale firms and receives account receivable as collateral.
2.4 LACK OF DELEGATION OF AUTHORITY
Delegation of authority is an anthem in a small scale industries in the country. The problem of education, lack of expertise lead to another problem that of delegation of authority. This is attributed to the tradition, bordered on the ‘eliljst’ role of the father which must never be delegated. In good number of small scale industries, the executives director is the marketing managers, the sales director the production, engineer, the personal director, and the chief account, all at the time. Here inefficiency. Set in since no man can be a good specialist and the best generalist at the same time. If growth is to be achieved, such a proprietor would have to give us some of his independence and personal involvement in the firm and conform to conventional pattern of management practice. Here delegation of authority and responsibility come to play.
2.5 TECHNOLOGY PROBLEMS
Nigeria entrepreneur glibly assume tat the acquisition of modern technology will automatically raise the level and standard of living of operations to that observed elsewhere. Implicitly built into modern technology is an organization system that is capable of lending the production process and output of the technology.
Many small scale industries face difficulties in the selection and purchase of the technology needed to run their business. While some general purpose equipment are retailed within the country, entrepreneurs or their agents have to travel to other countries to shop for special purpose equipment. Even if entrepreneur can place orders for the equipment from the country, foreign exchange requirements, shipping delays, and difficulties in clearing the equipment from the ports increase their cost substantially. Installation is almost invariably undertaken by an expatriate further increasing the cost of the equipment.
Nigeria entrepreneurs have not developed the habit of caring for machines and equipments. Machines are operated with out any regard for operating instruction and guidelines. Apart from the foregoing, the entrepreneurs face others infrastructure problems. Operators are unskilled and unable to do minor maintenance services. There are very few business enterprises capable of proving efficient maintenance service. Spare parts have to be ordered from overseas and technicians, specially flown into the country to under take sometimes minor repairs work. In-spite of these entire problems, technology being used in Nigeria is more likely to need repairs, than similar ones being used in advance countries.
This is due to poor handling by operators’ voltage fluctuation which is rampant in the country and general lack of strict maintenance policies. This is why machines which ought to have a life span of upward of fifteen years are often discussed after only five years, not due to obsolesce, but being that they can no longer be repaired.
2.6 COMPETITION FROM EXPATRIATE COMPANIES AND FOREIGN MADE PRODUCTS
Technological and other problems faced by indigenes enterprises raise their cost of production and lower the quality of their production. However these products are sold in the same market place as those produced by technological superior expatriates companies, at home and overseas. Besides, since indigenous entrepreneur do not possess an efficient sales organization, they have difficulties marketing their products. Indigenous entrepreneurs also face stiff competition from fellow entrepreneurs. The entry of one entrepreneur into one line of business an invitation to a swarm of others to go into the same field, especially if the technology and organisation needed are simple.
2.7 INFRASTRTJCTURAL PROBLEMS
Infrastructural development in the country is low, although huge sums of money are being invested in this area annually. Road not work, Postal and communication (the exorbitant cost i.e. the regular buying of recharge cards infaciliting the use of G.S.M, in relation to the profits that is rained in small-scale industries per months). Power, water supply, banking, services, social infrastructure such as school and hospitals are general inadequate what is available is poorly distributed, such that there is an apparent shortage of these facilities everywhere. Lack of infrastructural support affects both foreign and indigenous entrepreneur, since they are largely marginal firms. For instance, inadequate and irregular power supply causes business enterprises to invest huge sums of money and power generating plants to maintain minimum levels of production. While this cost can be absorbed by a large scale industries or an indigenous firm.
Okeke (1996) observed another serious ailment confronting small scale industries. Some forms are resistant to charge and expansion they do not want to grow. “Out of hand” simply because they are meant to cater for family members, or they do not expect any form of “delusion from outside”.
The status quo-must remain, they say. However, this is dangerous to our small-scale industries since such inhibition towards expansion is negatively related to continuous economic growth in the system.
Okeke (1992) suggested (among others) that the various militating constraint listed must be rectified through continuous and consistent training and education of employer and employees through research and development and through a forms of innovative effect do accompany, expansion and development of small scale business.
He added that it is normal for small business to start in a small way before and form of expansion this is the idea behind the formation of small-scale industries. As a result of the above conception the relevant managerial and technical assistance to operating enterprises.
Moreover, eliminating negative factors that militate against business growth would definitely increase business efficiency, thus, leading expansion.
Okeke (1992), started conclusively that the business tenets of planning, organization effective supervising, controlling, directing are co-ordinating nevertheless, have relevant roles to play in terms of managing small-scale business effectively.
2.8 IMPROVING THE FUNDING OF SMALL-SCALE INDUSTRIES
In surveying the problem of small-scale industries in the foregoing paragraphs. Olashore (1988) have made some observations on what should be addressed to remove some barriers standing in the way of small-scale industries from attracting bank loans more of a reality than a dream.
Olashore (1988) stated that there is the urgent need to evolve a new financing philosophy by the government. He further observed that the governments have a lot to do, which include the stimulation of bank lending to the small scale sub-development of credit information arg exchanged, credit guarantee schemes and development of a completely new orientation towards lending criteria.
In essence, the government should try to induce rather than the commercial bank to extend credit to the sub-sector in the light of the fact that credit extended under compulsion and agent prudent credit judgment of the bank have not in the past proved successful or beneficial to the economy.
In order to reduce the risk associated with leading to the sub-sector to the minimum, and encourage the banks to increase their assistance, Olashore (1998) suggested (among other) that the government should consider, setting up a small business loan, guarantee scheme like the United State and United Kingdom, etc. such a scheme according to him will be cost effective means of increasing banks Lending to a small firm with viable projects but lacking proven tracks record or sufficient personal security.
He further suggested that small scale industries would do a lot to minimizing these problem if only they can realize that hank exist for good or are in business to caters for their financial and technical needs, and that much could be achieved only through better organization of their business, better preparation of their book accounts and proposition of bankable and viable projects. They should learn to put down their proposal in concrete terms.
According to Jegede (1990), finance is the engine of growth in an economy, the government has enumerated financial polices through the national development plans and annual budget as well as through its agencies to fund and provide necessary extension services to small scale industries. He further stated that the federal government has actively been involved in the development of small scale industries by:
i. Initiating and promoting the much needed financial banking for numerous scheme such as the work for yourself programme (WFYP), Opening Apprenticeship Programme.
ii. Initiating funding and setting up of industrial area/estate, export free. Zone and industrial incubator to reduce overhead cost of small scale industries.
iii. Providing local and foreign finance through it’s agencies.
iv. Facilitating and guaranteeing external fiancé through the World Bank, ADB, etc.
v. Initiating in its policies, taxation, tariff subsides, customs an.d excise duties and income policies.
vi. Setting up as funding the national development of employment for the purpose of generating employment and initiating the setting up of small scale enterprises.
2.9 THE ROLE OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT
The small scale industry in Ethiope East L.G.A of Delta State has a strategic role to play in the development of Nigeria Economy.
According to Olafemoyin (1973), and Oyebola (1990), these role includes: the provision of employment for a handful of jobless people in the metropolis. In this respect, if small scale industries are established, tree categories would benefit directly. Such categories are unskilled, semi-skilled and skilled able personal that are not employed will be used to fill up many positions were their services will be needed in various industries. Hence the number of job seekers in the labour market will be reduced.
The establishment or small-scale industries have inferable improved the standard of the people. This is because most of the worker have moved from a lower income bracket to or bit of higher income bracket. Majority of them now live in better business, eat better food and enjoy other social amenities such as light, good roads, portable waters, imitated health facilities etc.
These small-scale industries serve as a source of income both to the owners and the government. This is quite true because the aim of the producers is to produce goods and services which are then sold to make profit to the customers. They also serve as vehicle for meeting the needs of large firms by providing them raw materials and the much needed component service. For example the production of eggs by a poultry farm serves as raw material for hatchery (places were eggs are hatched for chicks). Eggs are also used in soap industries in bakeries, in cooking paints and production of vaccines it’s chopping is excellent fertilizer for enriching poor soils.
Olafamoyin (1973), and Oyebola (1990), observed that small-scale industries have serves and a testing ground for young industries most of the under-utilized reserved that are considered wasted by products from agricultural industries are directly employed and utilizes by industries.
The establishment of small-scale industries is vital for social-economic development of the nation. This has given the government the incentive to provide social amenities such as good road pipe born waters, telecommunication, electricity, recreational centers and hospitals. These also enrich the standard of living of the people.
The federal government has even recognized the role of small scale industries known as small industries.
Oyeho (1990) concluded by saying that small scale industries contributed immensely in areas such as retailing. Servicing, wholesaling and agriculture. There is no doubt that their impact has effect in the economy.
This chapter is intended to highlight the method used in conducting the research work. It entails the following:
i.) Research design,
ii.) Population of the study
iii.) Sample and Sampling techniques
iv Research instrument
v.) Validity of Instrument
vi.) Reliability of the Instrument
vii.) Method of data collection
viii.) Method of data Analysis
3.2 RESEARCH DESIGN
The research design used for this study is the survey method. In this research work both primary and secondary data collected were used. Data were gotten from the internet, journal, textbooks and questionnaires were administered to selected small-scale industries in Ethiope East Local Government Area of Delta State, so as to generate data needed to find out the roles of small scale industries in the economic development of Nigeria.
3.3 POPULATION OF THE STUDY
The population of the study consists of all workers in small scale industries in Ethiope East Local Government Area of Delta State, Nigeria.
3.4 SAMPLE AND SAMPLING TECHNIQUES
In order to present a correct and comprehensive data, a random sampling of small-scale business in Ethiope East L.G.A was done. Six (6) small scale industries were selected, they are:
1. Bravo Catering Services
2. Umudum Cyher Cafe
3. Ufuoma Clinic
4. Osioh Blocks Nigeria Enterprises
5. Synonyms Fast Food.
6. Double delight fast food.
The sample consisted of 50 randomly selected workers (respondents) from the above small scale business in Delta State.
3.5 RESEARCH INSTRUMENT
The research instrument that were used in carrying out the study is questionnaire, containing fifteen (15) questions which were framed in response to the research questions raised in chapter one. The questionnaires were distributed to some small-scale business owners and their worker in the metropolis. The questionnaire were not given to illiterate business owners, rather a personal direct interview was adopted by the researcher wit the local language as a medium of communication. This requires the researcher going directly into the field to gather the necessary information needed.
3.6 VALIDITY OF THE INSTRUMENT
The questions used in the research which were constructed to reflect the problem area of the study, were first drafted and passed on to the project supervisor who critically examine them and approved their administration on the sample size. All questions were aimed at finding out the roles of small scale industries in the economy of Nigeria.
3.7 RELIABILITY OF THE INSTRUMENT
The instrument is reliable in that respondents gave their candid opinions which are collated for analysis.
3.8 METHOD OF DATA COLLECTION
Data collection for this research was obtained from two major sources: Primary and Secondary.
Primary data source: The key instrument used were questionnaire which were personal administered by the researcher. The researcher also used oral interview to obtain direct first hand information from the respondents. Secondary data source: The secondary data used in this study was derived textbooks and journals.
3.9 METHOD OF DATA ANALYSIS
The data collected from the questionnaire were analyzed in a table with the aid of percentages.
DATA PRESENTATION, ANALYSIS AND
The research information presented and analysed below are responses from small-scale industrialist, businessmen as well as, members of the public.
4.2 PRESENTATION OF DATA
Table 1: Information on the responses to item 1-15
Number of Response of questionnaire the administered alternatives
4.3 RESPONSE TO RESEARCH QUESTIONS
Research Question One
Do small scale industries provide employment opportunities for skilled and unskilled labour?
The table below seeks to sought answer to the above research question.
Table 2 Response to Item 1 and 12
No of Responses
From the table above, it is shown that a total of 98% of the respondents admitted that small scale industries should employ above five people in the industry, while 2% of the respondents disagreed that small scale industries should employ above five people. Also, item 12 as indicated in the table above shows that a total of 98% of respondents agreed that the operation of small scale industries has provided employment opportunities for skilled and unskilled workers, while 2% of the respondents disagree that the operation of small scale industries has not provided employment opportunities for skilled and unskilled workers.
Research Question Two
Does the establishment of small scale industries bring about socio-economic development in the area?
The table below seeks to provide answer to the above research question.
TABLE 3 Response To Item 9 And 10
Item No of Responses Total
The analysis above shows that a total of 94% of the respondents agreed that entrepreneur have been able to accumulate a lot of capital wealth for expansion, as a result of the establishment of small scale industries, while 6% of the respondents disagreed that entrepreneur has not been able to accumulate a lot of capital wealth for expansion, as a result of the establishment of small scale industries. Also item. 10 as indicated in the table above shows that a total of 88% of respondents admitted that the establishment of small scale industries in vital for socio development of the nation and this has brought about, the provision of social amenities in the area, while 12% disagreed with the statement above.
Research Question Three
Do small scale industries produce goods and render services needed by the growing population?
The table below seeks to sought answer to the above research question.
TABLE 4 Response To Item 6 And 8
No of Responses
From the table above, it is shown that a total of 92% of the respondents admitted that small scale industries produce goods and render services needed by the growing population, while 8% of the respondents disagreed that small scale industries do not produce goods and render services needed by the growing population. Item 8 above, shows that a total of 92% of the respondents agreed that the existence of small scale industries led to the establishment of larger market in the area, while 8% donot agreed that the existence of small scale industries has not led to the establishment of larger market in the area.
Research Question four
Has the existence of small-scale industries improved the people’s standard of living?
The tables below seek to generate answer to the above research question.
TABLE 5 Response to Item 7 And 11
No of Responses
The table above signifies that, a total of 96% of the respondents agreed that the existence of small-scale industries has improved the standard of living of the people, while 4% disagreed that the existence of small scale industries has not improved the people’s standard of living. Also, to further confirm the improved standard of living of the people, responses to item 11 shows that 82% of the respondent agreed that the government provides infrastructure and transport facilities as a result of the existence of small scale industries in the metropolis, while 18% disagreed that government do not provide infrastructure and transport facilities as a result of the existence of small scale industries in the metropolis.
Based on the background, it can be concluded that the existence of small scale industries has improved the people’s standard of living.
4.4 TABLE 6: INTERPRETATION OF DATA AND FINDINGS
Research Question Response
Do small-scale industries provide Yes employment opportunities for skilled and unskilled labour? Has the establishment of small-scale YES industries brought about socio economic development of the metropolis?
Do small-scale industries produce YES goods and render services needed by the growing population? Has the existence of small scale YES industries in the metropolis improved the people’s standard of living?
4.5 DISCUSSION OF FINDINGS
From the above information collected it can be inferred that small- scale industries provides employment opportunity for skilled and unskilled labour. A sizeable percentage of labour forces under the employed small- scale entrepreneur small-scale industries attract job, seekers, hence there is an increase in population, development larger markets, a high demand and supply of commodities. These are indication that small-scale industries play a significant role in the economic development of Ethiope East L.G.A.
The establishment of small-scale industries has brought about socio-economic development to the metropolis. This as resulted in the provision of infrastructural and transportation facilities such as goods, roads, pipe-bone water, electricity, telecommunication and hospitals.
Small scale industries, provided goods and render services needed by the growing population. The existence of this sector of the secondary has reserve dependence or importations of essential commodities. this means that
SUMMARY, CONCLUSION AND RECOMMENDATION
The Role of Small-Scale Industries is numerous. They provide employment opportunity to thousands of jobless Nigerians and over 60% of the population in Nigeria is under their employment. They utilize available local raw materials like cotton, timber, rubber etc. In the area of raw materials provision, small scale farmers fix instance produce raw materials for domestic consumption and export and technical skills in small scale industries enable industries to acquire management experience supporting the adage ‘practice more perfect’ and the technical skills acquire from small-scale business have in no way led to the technical expertise of most workers in the large industries.
Small-scale industries have also enable Nigeria to reduced her dependence on import of essential goods such as rice, beans, ground nut oil, detergent, body formular milk, etc, and finally the addition of values to primary product through local processing.
The existence of small-scale industries has given the government and private entrepreneur incentive to provide infrastructure and transport facilities as good roads, telecommunication, electricity, pipe bone water recreational centers and hospitals.
In conclusion, the researcher would like to emphasize that Industrialization is very important for economic development; hardly can there be economic development in any country without industrialization.
The Federal and State Government as well as industries have take steps towards this direction. It is however, said to note th enough more that would sufficiently match the challenge have not been adequate rooted.
Small-scale industries would do a lot to minimize the problem of funds, if only they can realize that banks exist for their good or are in business to cater for their financial and technical needs, and that much could be achieved only through better organization of their business, better preparation of their books of accounts and proposition of bankable, and viable projects. They should learn to put their proposal in concrete terms.
With respect to the analysis which has been cared out on this study, the following recommends were made.
There is need, therefore for a re-orientation of our small- scale business. Small- scale entrepreneur need massive education in our system so as to ensure a change of this import-oriented-attitude.
Provision of training for potential entrepreneur as well as those in need for effective monitoring of small-scale industries and this only can be possible where adequate knowledge of the rudiments of business management has been acquired.
Seasoned Research undertakings on the job training as well as formal training are all necessary tools, in this direction.
It is, perhaps disheartening to note that calls from seasoned experts and technocrats, from various field df endeavour on the establishment of an institution for small-scale industries have been ignored by our successive government. Such institutions when established are meant to train, advice and provide information on quality control, product design, marketing and financial management to existing and potential small-scale industries.
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Tech, and Bus. Edu. Department,
Business Education Unit,
This questionnaire is aimed at sampling opinion from individuals on “roles of small scale industries in the economic development of Nigeria”.
Your views shall be used for academic purpose only, and shall be treated with utmost privacy. Please tick the correct answer only.
I sincerely solicit for your anticipated co-operation.
Role’s of small scale industries in the economic development of Nigeria.
Name of Establishment:
Please tick like this (
1. Do you think small scale industries should employ more than 5 workers?
Yes ( ) No ( ).
2. Do you have more than 5 people working in your establishment?
Yes ( ) No ( ).
3. Do you like the nature of the business in your establishment? Yes ( ) No ( ).
4. Has the establishment of small scale industries made raw material available?
Yes ( ) No ( ).
5. Has the establishment of small scale industries reduced dependence on importation of essential commodities?
Yes ( ) No ( ).
6. Do small scale industries produce goods and render service by the growing population?
Yes ( ) No ( ).
7. Has the presence of small scale industries improved the people’s standard of living?
Yes ( ) No ( ).
8. Has the existence of small scale industries led to the establishment of larger market in the area?
Yes( )No( ).
9. Have entrepreneur been able to accumulate a lot of capital wealth for expansion, as a result of the establishment of small scale industries?
Yes( )No( ).
10. Has the establishment of small scale industries brought about socio-economic development of the area?
Yes ( ) No ( ).
11. Has the existence of small scale industries given the government the incentive to provide infrastructure facilities and transport?
Yes( )No( ).
12. Has the operation of small scale industries provided employment opportunity for both skilled and unskilled labour? Yes ( ) No ( ).
13. Has there been an increase in population as a result of small-scale industries being establish in the area? Yes( )o( ).
14. Has the existence of small scale industries serve as a testing ground for young industries to venture into the business world? Yes ( ) No ( ).
15. Has the presence of small scale industries served as a source of income to both owners and government?
Yes ( ) No ( )