THE ROLES OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA
CHAPTER ONE
1.0 INTRODUCTION
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 needs.
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 industries.
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 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 whole.
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 enterprises.
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 Nigeria
businessmen and entire populace?
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 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 EFFECT 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 revelations.
-
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 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 Kaduna 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 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
FIRM = Refers
to individuals factories, shops, mines etc or a number of them grouped
together.