THE
ROLE OF SMALL SCALE INDUSTRY IN THE DEVELOPMENT OF NIGERIA ECONOMY
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Small-scale industries have been in
existence since time immemorial. They are earliest form of business that the
early men use to get their needs, basically food, cloths and shelter. They
exchanged what they had for what they wanted. It was latter on that large-scale
business started to emerge and they are now found in a large number, in every
country of the world.
However,
small-scale industries still form a dormant part of business enterprises
particularly in developing nations, which includes Nigeria. In recent years,
since the adoption of the economic reforms program in Nigeria (1986), there
have been a device switch of emphasis from the grandiose capital intensive
large-scale industrial project to small and medium scale enterprises linkages
for rapid sustainable industrial development based on the philosophy of input
substitution. Small-scale industry is an industry whole total project cost
excluding cost of land but including working capital above #1million but does
not exceed #10million. However, in most developed countries and the newly
industrializing countries of the world, Small and Medium Enterprises (SME) are
generally defined on the basis of number of people employed to take account of
Small and Medium Enterprises (SME) labour intensive characteristics
At
independent in 1966, Nigeria economy was mainly agrarians industry plays a
vital role in economic development in fact, it provided the brightest hope for
generating sustained growth employment improved spinning and investment.
1.1 AIMS AND OBJECTIVES OF THE STUDY
This project has been designed to
serve as an aid to the understanding of the roles played by small-scale
enterprises to the development of Nigeria economy and also to suggest effective
possible ways of improving small-scale enterprises in Nigeria so as to feel the
contribution of small-scale industries. The following are considered to be the
basic objectives of the aims or the study:
(i)
To examine the activities and
contributions of small-scale industries.
(ii)
To identify the need for
improving the small-scale industries.
(iii)
To identify problems associated
with small-scale industries.
(iv)
To provide with useful
suggestions and solutions how to improve small-scale industries in an economy.
IMPORTANCE
v It will help an individual to know the necessary requirement need in
setting up small-scale industry.
v An individual will be able to know what appropriate types of
business ownership one should choose.
v It will help an individual to identify the various problems
associated with small-scale industry.
v It will provide useful suggestions and solutions on how to improve
small-scale in an economy.
1.2
THE SCOPE OF THE STUDY
The research carried out covers
Federal ministry of Small and Medium scale industry Abuja. The research could
have been successful but unfortunately, the minister for the Federal ministry
of information went out with the Director for the Federal ministry of
Small-scale industry in order to conduct an interview for new employee of NBC,
which is a bank under the ministry of (SSI). Later a member of staff of the
industry gave a note on the promotion of small scale and medium scale
enterprises as a strategy for Nigeria economic development.
1.3
STATEMENT OF PROBLEMS OF
STUDY
Despite the achievement recorded in
the Small-scale Enterprises (SSE) sub-sector, we are mindful of the fact that
we need to further address certain issues in order to match or even surpass
those recorded by developed and the newly industrializing countries of this
world. These issues includes:
(a)
Inadequate infrastructural
facilities: both the Federal and State government are currently intensifying
their programmes to provide industrial estate layouts and technology for
promotion of SME.
(b)
Lack of inter and intra
sectorial linkages: as at now, there are low level of linkages between the
cottage industries and Small-scale Enterprises (SSES) ministry has conducted
studies and recommendation of the studies are currently being appraised.
(c)
Poor managerial capacity: since
1986, the Federal Government has been exposing our small and medium scale
industries to training through various entrepreneurship development programme
like EDPI working- for yourself programme.
(d)
Lack of stable and generally
acceptable definition for small and medium enterprises: such tends to question
the basic policy under which activities and programmes an SMES evolve.
1.4
SIGNIFICANCE OF THE
STUDY
I
hope this extended essay will be of a greatz significance to an organization as
suggestion which shall be given in this study will go a long way in assisting
them to improve on small scale management. The study will also help those who
want to start small business especially in rural areas.
1.5 LIMITATION OF THE STUDY
Small-scale business is not easy to
define as viewed casually due to certain reasons, which are stated below:
(i)
The term Small medium and large
relatively differs from industrial countries to country and they’re no unique
or universally accepted definition of these terms.
(ii)
It is also important to
recognize that the definition change over a period of time and depend to a
large extent or countries level of development. For example, “what large scale
is in the 1950s may be regarded as small-scale today.
(iii)
Different parameters are used
in defining small business. Among the yard stick used are asset value. Turnover
rates number of employees and size within the industries. However, examples
find it difficult to give a single sentence in defining Small business that
could be accepted universally. Reference to the British committee that was set
up in 1969 to enquire on Small firms. They found it difficult to agree on a
single definition that will cover manufacturing, whole selling and retailing
industries thus, the committee used eight (8) definitions for various groups
which ranged form 200 employees for manufacturing under 50 turn over for
retailing 5 vehicles or less for transport.
1.6 DEFINITION
OF KEY TERMS
Small – Scale Industries: This can be
define an industry with a total capital employed of at least N 1.5 million,
includingworking capital but
excluding cost of land, or a labour size of 11 – 150 workers.
Development: Can be seen as a process of
acquiring new ideas and skill process of Acquiring new ideas and skill for the
purpose of achieving individual growth and societal advancement. Thus
development involves a complex of mutual related economic social and political
changes.
Quality and Standard: Small entrepreneur
are generally unaware of the importance of standard and quality. They may not
have the facilities for and knowledge about standard.