CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

Experience has show that development countries in the world like USA, Canada, Germany, Spain and others have shown that he development of small scale industries has helped their industries has always been recognized by developing countries with similar identified problems such as unemployment, lack of adequate supply of raw materials for production and other economic problems with identification of problems, the developing countries tend to create necessary avenue for their solution.

The small-scale industries can be said to be stepping stone for any growing economy. This could be believed to true because nearly 90% of the large scales industries existing today in Nigeria spring up as well as small scale industries before there were able to acquire enough capital for expansion. In 1965, the government of Eastern region of Nigeria invited the international labour organization (ILO)

This was as a result of realizing that small scale industries have sprang up in the region. These small scale industries include bakery, garri, milling wood work, etc.Due to more pleading outcome of the survey, the government had to speak for another international agency, the united states agency for international development to conduct on survey of labour intensive industries in the Eastern region as first step in the development of a full scale assistance programme that would necessary information on small scale industries, identify problems to growth and set out necessary to encourage further expansion of this sector.

1.2      STATEMENT OF PROBLEM

the bleak employment features that is facing many countries in African especially Nigeria, emphasized the need for a more employment intensive path of development in the future. Achieving their will entail in one way or the other a large contribution by small scale industries.

Youth unemployment has led to massive increase in crime wave in this country. One to lack of small-scale industries especially in the rural areas, there have been an increase in rural urban migration especially for the youths in search of no existence white-collar jobs.

It is obvious for instance that quite a number of people may have no option but engage in small-scale industries as entrepreneurs, self-employed person as a means of survival. This is why various government have through one program or the other to encourage the establishment of small scale industries more especially in rural area to provide employment opportunity for this youths and indeed reduce rural urban migration. Based on all those problems of unemployment, the researcher is compelled to carry out through study on how small scale industries can contribute to the economic development especially the Hardis and Dromedas Ltd.

1.3      OBJECTIVES OF THE STUDY

The study seeks to find out:

·        The extent to which is necessary for the government to support the small and medium scale Industries.

·        Examine the effectiveness and ineffectiveness of the various government or environmental issues like financialinstitutions; power sectors and level of corruption in the stage.

·         To determine the role and importance of small and medium scale Industries in the economic development.

1.4      RESEARCH QUESTIONS

In order to achieve the objectives of this research study, theresearch study will attempt to provide answer to the followingresearch questions:

·        What are the roles of small scale Industries oneconomic development?

·        How does small scale Industries create job in economic development?

·        Are small scaleIndustries in the market the engine of economic development?

·        Howe does small and medium scale Industries improve the standard of living?

1.5      RESEARCH HYPOTHESIS

Testing the following hypothesis will provide answers to the research questions:

Ho:     Small scale Industries does not play any role in theeconomy development

Hi:       Small scale Industries plays a vital role in the economydevelopment

Ho:     Small scale Industries does not create jobopportunities in the economy development.

Hi:       Small scale Industries creates job opportunities in theeconomy development.

Ho:     Small scale Industries in the market are no: the engineof economy development.

Hi:       Small scale Industries in the market are the engineof economy development.

1.6      SCOPE OF THE STUDY

The scope of this study titled “The Role of Small scale Industries in Economic development of Nigeria is Limited to the Hardis and Dromedas in Emene, Enugu North Local Government Area of Enugu State.

The study covers development strategies, contributions of the industry to the national economy constraints and management practical employed by the industry

1.7      LIMITATIONS OF THE STUDY

These are the constraints on the research work:

·        Financial constraint: when research work suffers frominsufficient fund to execute, it affects smoothness of theresearch work.

·        Time constraint: in a situation where the time available forthe research work is short, this limits the effectiveness ofcollecting and analyzing the research data.

·        Attitude constraint: the research work can be negativelyaffected where the experts and the others concern are not readily responding adequately on the research work.

1.8      SIGNIFICANCE OF STUDY

 This research of great significance in many respects.

1.     The work will be of great important to Emene, Enugu State and Nigeria in general.

2.     The availability of small-scale industries in rural area will definitely reduce unemployment to the bearest minimum.

3.     It will equally help the researcher o exploit the potential of rural areas in establishing similar small-scale business.

4.     The finding on this work will help the school leavers embarks on meaningful small scale business of their choice.

5.     The study will provide a vivid and clear understanding of the mode of operation of small scale industries in general and Hardis and Dormedas in particular.

6.     This research is also of a tremendous of small-scale industries to the socio development of Nigeria and Enugu state in particular.

DEFINITION OF IMPORTANT TERMS

ILO: International Labour Organization Industrialize: to create

CONSTRAINT: Hindrance

STEPPING STONE: Beginning or statement of any thing.

REFERENCE

Osuagwu L. (2001): Business Entrepreneurship Management, Lagos

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