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PROBLEMS AND PROSPECT OF ESTABLISHMENT OF SMALL -SCALE INDUSTRIES

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ABSTRACT

This study was conducted to ascertain the problems and prospect of establishment of small-scale industries in Enugu State using PATONY BLOCK INDUSTRY as a case study.

The researcher using the questionnaire method collected first hand information from the management and staffs of the company in question.  Interviews were also granted to some selected management staff. 

Based on the findings, the researcher was able to draw reasonable conclusions from where he was able to give useful recommendations which he strongly believe that if religiously and rightfully followed we eliminate some of the problems and prospect of establishment small-scale industries in Enugu State and Nigeria as a whole.

CHAPTER ONE

1.0     INTRODUCTION

1.1            THE GENERAL BACKGROUND OF THE STUDY

The survival and stability of any economy be it in the developed or unroler developed countries requires the involvement of private individuals (entrepreneurs) in the production of some goods and services.  In the developed countries of the world, the success of the small-scale business firms have contributed a lot towards the economic stability and development of such countries.

It is believed that for a country to be developed, great proportion of the labour force must be engaged in the private sector.  This factor has necessitated the setting up of companies such as manufacturing, construction, financial institution transportation and other services companies by private individuals to mobilize the idea of industrialization.

These companies set up by private individuals at a very small level is called small-scale industries.

Nigeria’s desire to concentrate on developing the small indigenous firm sector has always been buttressed by and reflected in a wide range of economic policies.  Infact the present consciousness on the part of every segment of the society including the government for small/medium industrial growth, cannot be a surprise, and delay in appreciating this sector as an catalyst is frustrating.  It could be understood from economic history that many advanced countries of the world, which have attained the height of industrialization, started as mere small-scale firm, which later metamorphosed into giant corporations.  In the past, industrial development processes were as slow and painful and the further advancement in technology in developed countries resulted from the survival of cottage firms, which were nurtured, pampered and breastfed to grow up as big industrial corporations of today.

Developing countries as a whole have now realized that they lack much behind than the developed countries not only in industrial base but also in material standard of living.  As a result these countries now seem to have hastened the pole of their industrial developmental process in order to increase their living standard and thus reduce the present rate of unemployment.


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