SMALL-SCALE INDUSTRIES DEVELOPMENT IN ANAMBRA STATE: PROBLEMS AND PROSPECTS. 

(A CASE STUDY OF AWKA AND NNEWI INDUSTRIAL AREAS)

CHAPTER ONE

INTRODUCTION 

The dynamic role of small-scale industries as engine of growth in developing countries has long been recognized. According to Ukeje (2004:108). It’s accelerative effect in achieving macro-economic objectives such as full employment, income distribution development of local technology, as well as diffusion of management skills and stimulation of indigenous entrepreneurship has been well documented in economic literature. Their importance has become such as to make them a pivotal focus of economic development.

        That was exactly what Nigeria did since the second national development (1974-1979) that is development jof industries, because they have seen the need to be self-reliance which will lead to genuine development and survival as well as improve the effective management of local resources, both human and materials.

        Development of small-scale industries was encouraged in the document found in the third and fourth national development plan, with the aids of providing empowerment opportunities, management of local resources, thereby recording rural urban migration. The above plans emphasized that paying attention to agriculture, manufacturing, education, manpower development, Infrastructural facilities will improve the quality of life for average Nigerians 

1.1  BACKGROUND OF THE STUDY       

        Economic history of various developed countries have shown that industrial revolution has been the led by small-scale industries which are indeed the bedrock of an industrial growth.

        Nigeria as a developing nation is battling for her economic survival, which can however not be achieved without acquisition of industrial and technological power and enough manpower both skilled and unskilled to cope with the struggle.

        Nigeria economy has in the last two decades passed through various phases, starting from the oil boom in the seventies and followed by the era of unplanned and reckless spending our wealth. This is followed with the emergence of economic doom which has necessitated the introduction of austerity measures and structural adjustment programme (SAP).

        The industrial growth of the nation has no scientific approach. The planning in some measures did not analyze the backwardness in the economy. This is noted, as the various government did not provide adequate encouragement to industrial development of nation.

        Before our economic problems, foreign capital was cheap and the business of importing and selling of finished products was most profitable. These importers generated excess liquidity and invested their funds making in acquisition of landed property. Investment was merely neglected because of tortuous process of establishing in Nigeria.

        During the boom, therefore most industrial projects were sponsored by multinationals and the governments, small industries were neglected as there were little incentives in manufacturing at low level.

        With the introduction of austerity measures and structural adjustment programme (SAP) import trade business become more difficult as many commodities were banned or put on license with high import tariff to conserve foreign funds and encourage local manufacturers. 

        Many businessmen therefore, started thinking of industrial ventures to produce their wares locally. Hence, the massive investment on small-scale business.

1.2  STATEMENT OF THE PROBLEM

i.            Insufficient finance 

ii.          Low technical base enabling environment and logic supply.

iii.        Lack of managerial expertise 

iv.         Communication difficulties 

v.           Inadequate infrastructures.

1.3  PURPOSE OF THE STUDY

i.            To increase the capital accumulation of the indigenous entrepreneurs in Anambra State.

ii.          To increase the dispersal of industries 

iii.        To improve the technological skills and capabilities available in the state.

iv.         To motivate inter-local government area relationship through industrial products patronage.

v.           To provide greater employment opportunities 

1.4  SIGNIFICANCE OF THE STUDY

i.            It will unveil some of the major problems facing the development of small-scale industries.

ii.          To give the reader an overview of the problems, and the role developing small-scale industries play.

iii.        To benefit both economists and students who may like to carryout further research.

iv.         The findings and recommendations will be of great value to the small-scale industries as a way of improving and reducing such problems.

1.6     RESEARCH QUESTIONS

1.          How much money did you start your business with?

2.          Do you think you have really progress if you compare your initial with the amount you have now?

3.          What type of business do you operate?

4.          Do people patronize your industry very often?

5.          How efficient are your staffs?

6.          Do you think there will be need to employ more people in your industry?

1.7  HYPOTHESIS

Ho:   Insufficient finance does not affect the development of small-scale in AnambraState.

H1:  Insufficient finance affects the development of small-scale in Anambra State.

Ho:   Lack of managerial skills does not affect the growth of small-scale industries in Anambra State.

H2:  Lack of managerial skills affects the growth of small-scale industries in Anambra State.

Ho:   Inadequate infrastructures does not affect small-scale industrial development in the state.

H3:  Inadequate infrastructures affects small-scale industrial development in the state.

Ho:   Low technical base does not affect the development of small-scale.

H4:  Low technical base affects the development of small-scale.

1.8  SCOPE OF THE STUDY 

This research work carried out in Awka and Nnewi in Anambra State, which makes it suitable for carrying out marketing research work on small-scale industrial development.

1.9  DEFINITION OF TERMS

SMALL-SCALE:     central bank of Nigeria (CBN) defines small-scale business as one which annual sales turnover is less than half a million Naira. 

FINANCE:             The initial capital used to start and maintain a business.

BUSINESS:             Any organization established for economic purpose.

MANAGEMENT:     The process of planning, organizing, directing and controlling the work done by members of an organization, utilizing available resources within the organization to achieve its main goal.

DEVELOPMENT:    It has to do with the changes in positive direction in order to improve in a country.

OBJECTIVES:        It is goal that has a comparative short life span and specific measurable achievement.

INDUSTRY:            It is where raw materials are converted into finished goods, or it could be people and activities involved in producing a particular thing or services.

MANUFACTURING: It refers to industries that produce goods in large quantity in factories.

PROBLEM:             It is a difficult situation