It is an undisputable fact that Nigeria of the pre-independence era
was predominately small scale in its productions and marketing
activities. Industrial revolution brought about a shift from the
orthodox trade by barter to a more sophisticated marketing system where
consumers satisfaction becomes the ultimate goal of the most
businesses. Thus small scale business becomes the next option since
they stood a better chance of offering a more personal relationship
with customers as well as socio economic satisfactions of societal
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 Nigeria as a country
developing very slow due to economic dependency of the country. It
therefore becomes apparent that the way out of the problem lies within
Nigeria. What are found in Nigeria are basically the large scale
operations which have given the most contributions to the economy of
the developed nations across the globe. One would therefore questioned
the backwardness of small scale business to government negligence of
the small industries. Nevertheless the immense contributions of small
scale industries in terms of increased industrial output job creation,
improvement of standard of livening and general economic development
has reawakened government interest and support on these small scale
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
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 Kaduna 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 Kaduna and subsequently Nigeria as a
1.2 STATEMENT OF GENERAL PROBLEMS
Small and enterprises are everywhere in every sector and are seen
in every community. However Nigeria has witness the proliferation of
small business aimed at increasing industrial output and subsequent
economic growth and development through the efficiency of small scale
There are some questions however that should be asked where answers could suggest solutions to the problem under study.
- What is the relationship between small scale industries and standard of living of Nigeria businessmen and entire populace?
- Is there a positive correlation between small scale industries
and economic development?
- What is the position of the small scale enterprises under the
computer industry? Are there problems associated with operation of
both hardware and software?
- How do business owners asses the success or otherwise?
- 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?
- Does the success of next generation computer academy guarantee Nigeria’s economic development? Or is there more to that?
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, Next Generation
Computer Academy and the general public in view of the following
- To policy makers the research will acquainttem with the joy and frustration.
- To Next Generation Computer Academy it will expose the strength and or weaknesses of their operations.
- 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 Kaduna 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
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 Kaduna North Local Government area
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.
Ho: The small scale industries do not contribute significantly to Nigeria’s economic development
Hi: The small scale industries do contribute significantly to Nigeria’s economic development
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 = Europe Economic Community
NIDB = Nigeria Industrial Development Bank
ICON =Investment Corporation of Nigeria
UNIDO = United Nations Industries Development Organization
IDC = Industrial Development Centre
NACRDB = Nigeria Agricultural Cooperative and Rural Development Bank
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
= Refers to individuals factories, shops, mines etc or a number of them grouped together.