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THE ROLES OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA
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 moreÂ personal relationship with customers as well as socio economic satisfactions of societal needs.
Unfortunately theÂ Â over concentration on t he oil sector which NigeriaÂ hoped will boost economic growth led to the negligence of the small scale industries until economic depression set in duringÂ the oil boom period. This and other factors led to theÂ Â 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 )Â haveÂ embarked upon a loan schemeÂ for small business to enhance their contribution to national economic development. The question now is, will small scale contributes toÂ nationâ€™s economicÂ development? One might wonder if this will beÂ realistic, butÂ it is quite obvious that Nigeria as aÂ 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 industrialÂ output job creation, improvement of standard of livening and general economic developmentÂ has reawakenedÂ government interestÂ and support on these small scale industries.
1.1Â Â Â Â HISTORICAL BACKGROUND OF THE CASE STUDY
It is against this background that the next generation computersÂ wasÂ establishedÂ 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 NairaÂ (N100,000) with the owners as the manager and noÂ organizational structure deals with booth computerÂ 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 organizationâ€™s and individuals within Kaduna North.
Nextgen computers as it is popularly know hasÂ over three hundred (300)customers patronizing theÂ business today and they have ten 10 trainees which is the maximum number accepted by the firm in order toÂ ensure they are given adequate and standard training and a lot of students haveÂ Â graduated from the school since inception. Each apprentice pays someÂ amount of money. Those on certificate course pay five thousand Naira (N5,000), while theÂ diploma course worth twelve thousand naira (N12,000.00), the mode of payment can beÂ done instalmentally. The certificate course isÂ Â underÂ taken for a period ofÂ six months while the diploma course Â takes a period of one yearÂ for completion. FinallyÂ the firm is still at its growth stage and itÂ trying its bestÂ to improve and expand itsÂ cervices so asÂ to contribute greatly to Kaduna andÂ Â subsequently Nigeria as aÂ whole.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
1.2Â Â Â Â 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 ofÂ small scaleÂ enterprises.Â
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 entireÂ populace?
Is there a positive correlation between small scale industries and economic development?Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
What is the position of the small scale enterprises under the computerÂ industry? Are there problems associated withÂ operation of both hardware and software?Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
How do businessÂ 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 Nigeriaâ€™s economic development? Or is there more to that?
These questions among others form the foundation upon which the researchÂ is built.
1.3Â Â Â Â OBJECTIVE OF THE STUDY
The purpose of this research is to assess the ROLE OF SMALL SCALE INDUSTRIES TO NIGERIAâ€™S ECONOMIC DEVELOPMENT, other objective include:
iii. Assessing the size and composition of small business, their marketing, financial, legal and management aspect government intervention an other environmental factorÂ whichÂ are likely to affect the small scaleÂ industries. Suggested solutions would be made necessary after drawing conclusions from the above.
1.4Â Â Â Â 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 theÂ 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.
1.5Â Â Â Â 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.
1.6Â Â Â Â 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 closeÂ 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 NextÂ Generation computer alone and the sample for the study restricted to Kaduna North LocalÂ Government area only.
It is however hoped that these characteristics of customers be further confirmed in other areas within the country to enable a comprehensiveÂ review of some of the recommendations.
1.7Â Â Â Â HYPOTHESIS
Ho:Â Â Â The small scale industries do not contribute significantly to Nigeriaâ€™s economic developmentÂ Â Â Â
Hi:Â Â Â Â The small scale industries do contribute significantly to Nigeriaâ€™s economic developmentÂ Â Â Â
1.8Â Â Â Â DEFINITION OF TERMINOLOGIES (CONCEPTS)Â Â Â Â Â Â Â
SME = Small and Medium Scale Enterprises
INDUSTRY = collection of undertakenâ€™s generally not under one control but connected with the same economic activity or similar ones.
SSI = Small Scale Industry
PAP = poverty AlleviationÂ Â 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.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
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