appraisal of small scale industries in employment creation in Nigeria: A study
of Onitsha metropolis.
of the Study
scholars have written widely on small scale industries and its potency to
generate employment, thus, underscoring the quintessence, significance and
relevance of this sub-sector in the development of any given economy. The
experience of developed economies in relation to the roles played by small
scale industries buttresses the fact that the importance of entrepreneurship
cannot be over emphasized especially among the developing countries. In order
to highlight its significance in relation to the growth and development of a
given economy, small scale industries have been variously referred to as a
“source of employment generation”. This is because small scale industrial
activities have been found to be capable of making positive impacts on the
economy of a nation and the quality of life of the people (Adejumo 2000).
Studies have established its positive relationship with stimulation of economic
growth; employment generation; and empowerment of the disadvantaged segments of
the population, which include women and the poor (Olurermi and Gbenga, 2011;
Thomas and Muller,2000; Reynolds, 1987).
Nigeria as a country has numerous
business and investment potentials due to the abundant, vibrant and dynamic
human and natural resources it possesses. Tapping these recourses requires the
ability to indentify potentially useful and economically viable fields of
endeavors. Nigerians have made their marks in diverse fields such as science,
technology, academics, business and entertainment.
Thus, small scale industries activities
and innovative ingenuity in Nigeria have developed enterprises in the following
areas, agricultural/agro-allied activities where there are foodstuffs,
restaurants, fast food vending etc. in the area of information and telecom
business, there are manufacturing and repairs of GSM accessories and the
printing and setting of recharge cards. In hospitality and tourism business,
there are hotels, accommodation, resorts centers, films and home video
production; in oil and gas business, there are construction and maintenance of
pipelines, drilling, refining bye products. In the area of environment and
waste management business, there is refuse collection/disposal, recycle plant
and drainage/sewage construction job. In the area of financial banking
services, there are banking, insurance and stock trading. In engineering and
fabrication work, there are machines and tools fabrications there is also the
building and construction, where there are plan and design services and
material sourcing (Agbeze, 2012)
These human and natural resources
notwithstanding, Nigeria are still one of the poorest countries in the world
and Africa despite its alleged strong economic growth. Chukwubuikem (2008)
notes that youth’s full-time unemployment rate for 2006-2008 was 55.9 percent, 4
times higher (Salami, 2011). Many other industrial sub-sectors to such a
vibrant one that they have been able to reduce to the barest minimum their
unemployment and poverty level because of the immense contribution of the
sub-sector to their economic growth and development but such cannot be said of
Nigeria (Onugu, 2005). In respect of the above sad and deplorable situation,
the government has done little to reduce the misery and frustrations of the
citizen. This has foisted a state of hopelessness on majority of young people
who have resorted to any means including crime to succeed in life. They resort
to vices because they are not gainfully engaged. In other words, they are
unemployed; unemployed, not because they lack the qualification but because the
system has been crippled politically economically, socio-culturally and even
religiously. People especially youths and graduates became displaced
economically (Kuratko, 2009), a situation that clearly negates the millennium
development goals for 2015, I and II: to halve the proportion of people living
in extreme poverty and to halve the proportion of people suffering from hunger
The dexterity with which hunger and
poverty have devastated lives and future ambition of youths especially
graduates in Nigeria, have led to scholars prescribing small scale industries
development as the permanent cure for extreme hunger and poverty necessitated
as one of the external forces that influence the development of small scale
industries. The great need for small scale industries development in Nigeria
today, more than ever, is necessitated by the rate of unemployment and its
effect on both the people and the nation and the need for small and medium
In spite of the fact that small scale
industries development has been regarded as the bulwark for employment
generation and technological development in Nigeria, the sector nevertheless
has had its own fair share of neglect with concomitant unpleasant impacts on
the economy against this backdrop. Entrepreneurship when and if gallantly
developed in Nigeria will take its pride of place in fuelling unemployment and
thus generating employment among Nigerian youths especially the graduates and
once again, place the economy on a proper footing.
It is in this respect that this paper
seeks to investigate the connection between small scale industries and
employment generation in Nigeria; assessing the level of unemployment in
Nigeria and how far entrepreneurship has thrived, and also examines the major
problems of entrepreneurship and thus proposing some plausible strategies that
can promote effective small scale industries that will help quell unemployment
and thus generate employment for the Nigerians youths especially. Based on the
above background, the study intends to investigate the role of entrepreneurial
development in unemployment reduction in Nigeria with particular reference to
of the Problem
is a country with numerous business and investment potentials due to the
abundant vibrant and dynamic human and natural resources it possesses. As good
as the foregoing sounds, Nigeria continues to experience its share of social,
economic and political upheavals which have often stunted its growth and development
into the regional economic power that it strives to attain. Nigeria has a
relative high rate of violent crimes (Onurubiko, 2009). The fact is that the
Nigeria is becoming hostile to investment due especially to lack of steady and
sustainable power supply/energy crises in spite of the various attempts are
reviving this sector landing to firms depending on generators for their
operation whose cost of buying, fueling and maintenance are high, thereby
increasing the cost of operation in Nigeria.
Besides, high and multiple levies and
taxations being paid by these companies, energy crises have combined to make
the cost of doing business in Nigeria to be very exorbitant when the industries
and factories closed shops or relocated to a friendlier economic environment,
workers were laid off and prospects of recruiting new ones were dashed. All
these exacerbated the crisis of youth unemployment in the labour market
(Adeloye, 2010; Onifade, 2011). Therefore this research work intends to
investigate the role of entrepreneurship development in unemployment reduction
in Nigeria with particular reference to Awka, Anambra state.
of the Study
The study intends to achieve the
determine the role of small scale industries in unemployment reduction in
determine if government has a key role to play in ensuring that small scale
industries help in quelling unemployment.
The following research questions were
formulated to guide the direction of this research work.
small scale industries development help in unemployment reduction in Nigeria?
government have a key role to play in ensuring that small scale industries
development help in quelling unemployment.
The hypothesis formulated for this
research study include hypothesis one
There is no significant relationship between small scale industries and
unemployment reduction in Nigeria.
is significant relationship between small scale industries and unemployment
reduction in Nigeria.
has no key role to play in ensuring that small scale industries help in
has a key role to play in ensuring that small scale industries help in quelling
and Limitations of the Study
The study focuses on entrepreneurship
development as a panacea for unemployment reduction in Nigeria. The economic
potentials of entrepreneurship shall also be explained as well as the benefit explained
with particular reference to residence of Onitsha metropolis.
The limitations the researcher
encountered during the survey are time constraint, lack of finance, respondent’s
attitudes andtransportation constraints.
Research of this nature requires sufficient time for the execution. But in the
case of this project, the allotted time was quite insufficient. In this regard,
the researcher was under pressure throughout the while work in order to meet
Some of the respondents appeared to be biased in their response and the greater
percentage of the bias is during peak sales periods when the respondents had
little or no time for non business discussion.
Finance has always been the pilot around which the success of any research
revolves. In this case, the researcher was constrained financially because the
researcher had a little stipend from the guardian.
Due to the bad roads the researcher find it difficult to access the
This is one of the impediments of this research when the researcher visited the
enterprise under study to make certain investigations; the authorities involved
never gave him a free hand to make such investigations.
Finally, it is worthy to note that in
spite of all these limitations, the researcher was able to cover meaningful the
scope of the study.
of the Study
It is worthwhile to lay great emphasis
on the significance of this study target groups and potential recipients
showing how it will add knowledge, contribute to knowledge or aid practice.
Hence, this study will be indispensable to many. To the entire Nigerian
populace, this study will broadly enlighten them on the concept of
entrepreneurship and how small industries development brings about unemployment
reduction in Nigeria scale.
Also, the Nigerian government is not
left out. This promising research piece will clearly show the public
authorities and government officials how to effectively develop small scale
industries as they have been identified as engine of economic growth and
development hereby providing employment for the teeming unemployed youth. The
study will help the policy makers to recognize the importance of small scale
industries in the provision of employment to the labour force for economic
development. This shall further guide them to make trade policies to enhance
the performance of small scale industries as regards their activities to
accommodate mushrooming population that is attributed to high birth and fertility
rates as well as rural urban migration within the country.
Also, to students and other scholars
where intend to widen their knowledge in the study of the small scale
industries development as a panacea for unemployment reduction, this study shall
be a basis of reference since it focuses on the cause of the establishments,
how the unique characteristics of the industries have facilitated their role in
the provision of employment undertaken to harness their activities and how
their activities contributes to economic growth and development.
Unemployment refers to a situation where people who are willing and capable of
working are unable to find suitable paid employment.
This is the willingness and ability of an individual to identify and
successfully carry out investment opportunities in and environment.
This means new stage or event, new product or invention. It is when a country
is able to provide initially.
This is a term that is generally refers to the sustained, concerted efforts of
policy makers and living and economic health of a specific area or is a
phenomenon of marked productivity and increase in gross domestic product (GDP).