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ROLE OF SMALL SCALE
INDUSTRIES TO NIGERIA ECONOMIC DEVELOPMENT
CHAPTER ONE
1.0 INTRODUCTION
It is an undisputable fact that
Unfortunately the over
concentration on t he oil sector which Nigeria
hoped will boost economic growth led to the negligence of the small
scale industries until economic depression set in during the oil boom period. This and other factors
led to the quest for private
participation in the various economic sectors through the Small Scale
Industries especially in the present civilian government where the Industrial
Development Centres (IDCS ) have embarked upon a loan scheme for small business to enhance their contribution
to national economic development. The question now is, will small scale
contributes to nation’s economic development? One might wonder if this will be realistic, but it is quite obvious that
1.1 HISTORICAL BACKGROUND OF
THE CASE STUDY
It is against this background that the next generation computers was
established on the 15th
February 2000 to boost the computer industry without which Nigeria economy
development cannot be fully achieved. The firm which started with capital base
of one Hundred Thousand Naira (N100,000)
with the owners as the manager and no
organizational structure deals with booth computer hardware and software.
The services rendered by the organization include Typing, photocopying,
internet services, computer assembling supply and installation of computers
maintenance and training of manpower through apprenticeship. The firm has so
far been able to meet the needs of business organization’s and individuals
within Enugu North.
Nextgen computers as it is popularly know has over three hundred (300)customers patronizing
the business today and they have ten 10
trainees which is the maximum number accepted by the firm in order to ensure they are given adequate and standard
training and a lot of students have
graduated from the school since inception. Each apprentice pays
some amount of money. Those on
certificate course pay five thousand Naira (N5,000), while the diploma course worth twelve thousand naira
(N12,000.00), the mode of payment can be
done instalmentally. The certificate course is under
taken for a period of six months
while the diploma course takes a period
of one year for completion. Finally the firm is still at its growth stage and
it trying its best to improve and expand its cervices so as to contribute greatly to Enugu and subsequently
1.2 STATEMENT OF GENERAL
PROBLEMS
Small and enterprises are everywhere in every sector and are seen in
every community. However
There are some questions however that should be asked where answers could
suggest solutions to the problem under study.
1.
What is the relationship between small scale industries and
standard of living of
2.
Is there a positive correlation between small scale industries
and economic development?
3.
What is the position of the small scale enterprises under the
computer industry? Are there problems
associated with operation of both
hardware and software?
4.
How do business owners
asses the success or otherwise?
5.
Does the success of the small scale industries rest only on
the activities of small scale enterprises or it also depends on some macro
economic variables in the environment?
6.
Does the success of next generation computer academy
guarantee
These questions among others form the foundation upon which the
research is built.
1.3 OBJECTIVE OF THE STUDY
The purpose of this research is to assess the ROLE OF SMALL SCALE
INDUSTRIES TO NIGERIA’S ECONOMIC DEVELOPMENT, other objective include:
i. Assessing the
possible problems which could hinder small business success.
ii. Why some
small business succeed
iii. Assessing
the size and composition of small business, their marketing, financial, legal
and management aspect government intervention an other environmental
factor which are likely to affect the small scale industries. Suggested solutions would be made
necessary after drawing conclusions from the above.
1.4 SIGNIFICANCE OF THE
STUDY
The research is beneficial to policy makers,
-
To policy makers the
research will acquainttem with the joy and frustration.
-
To
-
To general public the research will serve as an asset to
students especially those who intend to be come self employed, lecturers and
other researches particularly in marketing accountancy and business studies.
1.5 SCOPE OF THE STUDY
The study is restricted to small scale business in the computer industry
in Enugu North and covers the operations of next generations computer academy
from year 2005 till date.
1.6 LIMITATION OF THE STUDY
Given the economic hardship in the country and prevailing cost of living
it was not easy to meet up with the financial requirements of the study. Time
indeed was another major consideration with too many things to met up within a
short space of time preparation for test and examination.
In administering the questionnaires, the respondents were quite
cooperative but some of the respondents have to fill under close supervision to avoid irrelevant answers
especially where the questions were open ended. Another limitation that applied
to this study is the fact that the study focuses on Next Generation computer alone and the sample for
the study restricted to Enugu North Local
Government area only.
It is however hoped that these characteristics of customers be further
confirmed in other areas within the country to enable a comprehensive review of some of the recommendations.
1.7 HYPOTHESIS
Ho: The small scale industries do not contribute significantly to
Hi: The small scale industries do contribute significantly to
1.8 DEFINITION OF
TERMINOLOGIES (CONCEPTS)
SME = Small and Medium Scale Enterprises
INDUSTRY = collection of undertaken’s generally not under one
control but connected with the same economic activity or similar ones.
SSI = Small Scale Industry
PAP = poverty Alleviation
programmes
EDP = Entrepreneur Development programme
NDE = National Directorate of Employment
CNP = Cross National Product
Apprentices =
Those who are on the job training.
EEC =
NIDB = Nigeria Industrial Development Bank
ICON =Investment Corporation of
UNIDO = United Nations Industries Development Organization
IDC = Industrial Development Centre
NACRDB =
NBCI = Nigeria Bank for Commerce and Industry
NERFUND = National Economic Reconstruction Fund
SSICS = Small Scale Industries Credit scheme
FMB= Federal Mortgage Bank
LGA = Local Government Areas
FIRM = Refers to individuals factories,
shops, mines etc or a number of them grouped together.
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