SMALL SCALE BUSINESS AND EMPLOYMENT CREATION IN DELTA STATE
scale business and employment creation in Delta state: A study of Delta state
1.1 Background of the Study
scholars have written widely on small scale business 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 businessesbuttresses 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 businesses 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).
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
small scale businessesactivities 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)
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 respectively.
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 businessesdevelopment 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
businesses 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 enterprises.
spite of the fact that small scale businessesdevelopment 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.
is in this respect that this paper seeks to investigate the connection between small
scale businessesand 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 businessesthat 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 Delta state metropolis.
1.2 Statement 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.
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
1.3 Objectives of the Study
study intends to achieve the following objectives:
determine the role of small scale businesses in unemployment reduction in
determine if government has a key role to play in ensuring that small scale
businesses help in quelling unemployment.
1.4 Research Questions
following research questions were formulated to guide the direction of this
small scale businesses development help in unemployment reduction in Nigeria?
government have a key role to play in ensuring that small scale businesses development
help in quelling unemployment.
1.5 Research Hypothesis
hypothesis formulated for this research study include hypothesis one
There is no significant relationship between small scale businesses and
unemployment reduction in Nigeria.
is significant relationship between small scale businesses and unemployment
reduction in Nigeria.
H0: Government has
no key role to play in ensuring that small scale businesses help in quelling
has a key role to play in ensuring that small scale businesses help in quelling
1.6 Scope and Limitations of the Study
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 Delta state metropolis.
limitations the researcher encountered during the survey are time constraint,
lack of finance, respondent’s attitudes and transportation constraints.
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 the deadline.
Attitude: 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
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.
it is worthy to note that in spite of all these limitations, the researcher was
able to cover meaningful the scope of the study.
1.7 Significance of the Study
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
businesses as they have been identified as engine