CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The last decades has witness a tremendous change in attitude to small scale business in the life of the people of Isoko North in Delta State.

Government and Individual alike has taken steps to encourage the promotion and development of small scale business. This change in orientation can be attributed to an acknowledgement of the continue important of this sector to the economical development of Isoko North Local Government Area. In terms of provision of employment, Increasing standard of living and avenue for fund generation to the government.

Small scale business is never a strange term among the people of Isoko North Local Government Area. It is as old as man and as well a household term in this area. The early occupants of this area ofDeltaStateengage in one way or the other in small scale business. It has been a source of employment to so many people especially those who can not be gainfully employed in the civil service probably due to educational background. Never the less small scale industries were looked upon as a hobby for the less privilege and the uneducated, yet they can not do without it for it provide for the essential commodity. But in the recent even the educated are small scale entrepreneur for example some of the primary school teachers take small scale business as an extra employment and some school leavers and graduate as well that small scale business has given self employment after a long search for white collar job, establish small scale industry.

Growth and/or development is evidence of existence when something fails to grow it implies that it is dead or is no longer existing. Different thing contribute to the development of Isoko North Local Government Area economy of which small scale business is a major one.

Small scale business contribute to the economic development of Isoko North Local Government Area in the following ways which makes it worthy to identify those factors that hinder its success and map out strategies to rectify them.

A majority of rural craftsmen are part time workers also employed as traders, teachers and herbalist. Rural crafts provide alternative employment to many people during less busy period. This therefore helps in raising levels of their income thereby increasing their purchasing power.

Small scale business helps in the reduction of waste in Isoko North Local Government Area economy. This it does in various ways many craftsmen uses scrap materials from large firms not only as their raw material but also for the manufacturing of serviceable improvised tools and machinery for themselves and others. They also provide for the necessary apprenticeship training skills and entrepreneurship which enable the beneficiary get self employed and many entrepreneurs who serve as apprenticeship in their sector rim their entrepreneur as productivity as entrepreneur who were trained in vocational centers or large firm.

A small firm cannot of course compete with a large firm across the board but a number of small business each competing in its own particular area in its own particular way have together the desire competitive effect. Small scale can be an aid to personal and national self reliance. This is because they utilize their resource for the benefit of themselves and the whole local government.

They ensure a supply and service within the reach of the large majority of the population in the Local government.

1.2  STATEMENT OF THE PROBLEM

If the economy development of Isoko North Local Government Area is of important to the people of Isoko North Local Government Area then those factors that contribute to the development of the economy must not be taken for granted.

This project work try to establish a relationship between

small scale business and the development of the economy of Isoko North Local Government Area.

This project work seeks to know:

The contribution of small scale business to the economy development of Isoko North the fate of Isoko North in absence of small scale industries.

The problem of small scale business in Isoko North and the viability of small scale business in Isoko North Local Government Area.

1.3  PURPOSE OF THE STUDY

The objectives of this study include:

1. Determine the relevance of small scale business to the economy development of Isoko North Local Government Area.
2. To ascertain the extent to which small scale business is relevant to the economy development of Isoko North Local government economy.
3. The state of Isoko North local government economy in absence of small scale business.
4. To ascertain the problem of small scale business in Isoko North.
5. To determine the viability of small scale business in Isoko North local Government Area.

1.4  RESEARCH QUESTIONS

1. Does small scale business have any contribution to the development of Isoko North local Government Area?
2. Can Isoko North local Government Area economy survive the absence of small scale business enterprises?
3. Is there any problem of small scale business to the economy of Isoko North Local Government Area?
4. Is small scale business viable in Isoko North local Government Area?

1.5  HYPOTHESIS

H_o:  Small scale businesses contribute to the economy development of Isoko North local Government Area.

H_i:   Small scale business does not contribute to the economy development of Isoko North local Government Area.

1.6  SIGNIFICANCE OF THE STUDY

This study will be relevant to three groups of people: the policy maker. Small scale entrepreneur and future researchers.

To the policy makers the research will reveal the necessity of the small scale business and expose the ineffectiveness of the conventional source of finance to the small scale business and the need to make such policy that will enhance availability of finance to the small scale industries.

For the small scale entrepreneurs, this study is an attempt increasing awareness of this business concern and the finance option available among them.

Finally, future researcher in this area of study will need this research work for reference purposes.

1.7  SCOPE/DELIMITATION OF THE STUDY

This project work cover areas around Isoko North local Government Area and nearby local Government Area. It is based on selected area like Ozoro, Ellu, Ofagbe, Emevor, and Otor-Owhe all in Isoko North local Government Area and Oleh in Isoko South Local Government Area and Kwale in Ndokwa West Local Government Area. These places were chosen for the noticeable presence of numerous small scale enterprises in them.

1.8  LIMITATION OF THE STUDY

Financial constrain and distance were major problem to this project work, reluctance in the part of some small scale business entrepreneur issued with questionnaire also make up the bulk of set back experience during this research work thus only data that the researcher collect amidst this set-back were used for this project work.

1.9  OPERATIONAL DEFINITION OF TERMS

The following terms were use in this project work

Performance: The degree or measure of how efficient and effective an assignment is being carried out.

Organisation: Two or more individual who work together in a structured manner to achieve a specified goal.

Motivation: The drive or urge that energizes people to perform effectively.

Organization: An organized body, persons whose purpose is to achieve a specific goal.

Employees: People employed to work in the organization.

Employers: Group of people who are authorized to employ people to work in an organization.

Environment: The atmosphere or surrounding at which an organization operates.

Personnel: Human resources of an organization.

Manager: some one that manages or supervises the activities of the employees under him on behalf of the owner, though sometimes the owner of the firm. He is also known as the entrepreneur.

Administration: Management of public or private affairs.

Economy: economical system of a place

Development: The gradual growth of something so that it become more advance, stronger etc.