ABSTRACT

Unemployment situation in Nigeria has regarded economic development and growth ever since 1981  after the declaration of Austeinsy measure. The evil effects of unemployment is a visions circle that cripples and economy. 

It is against this background that I was motivated to choose this topic to identify how small scale business can provide the necessary solution with particular reference to Aniocha geo political territory.

I believe that unemployment is a major problem in Nigeria especially in Aniocha local government area and that this problem can only be solved by the establishment of small scale business. This study is embarked upon with qualitatively that employment potentials of small scale business is the necessary solution to our employment and economic malaise.

The researcher while embarking on this study intends to make use of primary data through the use of questionnaire to be distributed to some selected small business operating in Aniocha.

This data had been analysed using Test Hypothesis  to show  whether a relationship exist between increase in small scale business and employment in Aniocha local government area.

Also secondary method of data collection through the use of information from small scale business in Aniocha area; and federal office of statistics would be employed with a view of showing the number of and increase in small scale industry and increase or decrease in unemployment in Aniocha. Besides, there are journals news papers and delivered papers would be examined as they relate to this topic.

The analysis and testing of the data would suggest whether the null or alternative hypothesis would be accepted. The writer intend to draw an inference from the conclusion given by the result and on that basis recommend to the government, especially  Aniocha local government area, on what direction she is expected to follow and direct her policies, this is because this study is particularly significant to the locality.

 CHAPTER ONE

1.0     INTRODUCTION

There is no doubt whatever that small scale and medium scale enterprises constitute the real public of a nations economy. And to say that the present and future economic advancement of this our great country (Nigeria) and Aniocha local government area (which is the topic of this study). Lies in the dynamism and growth of small scale business is not an overstatement. At least this is the unanimous is opinion of an economic conference at the instance of two bodies.

A       -        The Nigeria institute of social and economic research       

                   (NISER)

B       -        The National Association of small scale industries     (NASSI) and Riedrich Allber foundation held in Lagos in 1989.

In other words, small scale business constitute a vital engine to economic growth   and development. Hwoever, the environment in which this sector operates in Nigeria is both challenging and rewarding it is challenging because it is fraught with the dangers of risks ensuring from having in the first place to invest money in small-scale business  in Nigeria and the problems of managing it in the country recessed economy. Nevertheless, this study shows that, there is, the smiling countenance of success should the small scale business be given dynamic leadership and be properly managed in the present economically recessive climate in the country.

This introductory chapter will attempt to highlight the basic facts the reader should know about small scale business in Nigeria and Aniocha local government Area in general.

1.2     STATEMENT OF PROBLEMS

At this time and age, being a paid employee is a very risky business, because the state of economic well being of the Nigeria economy is in the least stable. This has motivated both the government and individuals, to focus their interest on small scale industrial development etc. least to solve the problems of unemployments for owners and create some employment opportunities for others.

This enthusiasm not withstanding only very few individuals in the final analysis succeed in establishing their own small scale business. This further delays our desire t attain to great economic heights. The dynamic role of small scale business in our national economic progress and the motivation of entrepreneurs are into being realized to the great disadvantages of the whole economy.

The problem that now arises are if encouragement of small scale business has the potential of solving the nations unemployment problems. This major problems crops up a number of question as follows:

(a)              Does small scale business have enough employment potentials for the over growing Nigeria.

(b)             What favour constraints the growth of small scale business

(c)              How significant are lack of capital and infrastructure in the establishment of small scale business as it relates to Aniocha Local government area

(d)             What role does government policy play to encourage small scale business in Aniocha local government area.

With all these challenges, this study intends to reveal how the low productivity of small scale business in Aniocha Local government area caused by the prevailing economic recession has affected their performance.

1.3     SCOPE OF THE STUDY

The study’s area of coverage is Aniocha local government area but due to some other limiting factors small scale how to be shortened to some selected small scale business firms in Aniocha. Also this study will show how small scale business help to build up management  skills in the local populace. The study will also show the basic characteristics of small scale business in the country.

1.4     OBJECTIVE OF THE STUDY

Realizing the employment and other prospects of small scale industrial development in any up and coming economy such as ours, the fundamental question that arise is, how can the dynamic role of this sub-sector be more effective and economically enhanced.

Infact, there are  two ways about it other than, by creating serious awareness among be people emphasizing more on small scale Monday as best  alternative to our more towards industrialization and all talk about technology transfer.

Most importantly, if we believers economists that then half of our total economic problems area over when we have full employment  than there is need to see if small scale business among all sectors can help us attain full employment of human and material resources. Thus, the reed for this study,

Consequently, upon the above, this research is armed at identifying the core problems that hinder people from establishing and operating their own small scale business, find out what remedial actions that have taken to ameliorate the problems it is also  armed at finding possible suggestions as to show the problem can be solved.

1.5            STATEMENT OF HYPOTHESIS

Ho:    Small business holds no employment creation potentials in Aniocha

HI:     Small business holds no employment creation potentials in Aniocha

Ho:    There is no relationship between the establishment of small scale business and increased employment opportunities in Aniocha. 

HI:     There is no relationship between the establishment of small scale business and increased employment opportunities in Aniocha

Ho:    Besides other problems lack of capital and infraturctural facilities do hinder the establishment  of small scale business in Aniocha.

HI.     Besides other problems lack of capital and infrasturctural facilities do hinder the establishment  of small scale business in Aniocha.

1.6     SIGNIFICANCE OF STUDY

Small scale industry ownership is the route to the ownership of capital and of course participation or contribution towards, the economic and industrial growth of the nation. Therefore, “people are beginning to see a blind alley in purely distributed trade and are exploiting possibilities in the small scale sector”.

Based on the problems and objective of this research the following questions have to asked: -

(a)              Does small scale business hold any employment potential in Aniocha?

(b)             Is there any relationship between the establishment of small scale business and increase in employment in Aniocha?

(c)              Besides other problems, are lack of capital and infrastructure hinder the establishment and growth of small scale business in Aniocha?

All these questions are very important as it provides an opportunity to person who may read it to appreciate what constitute a small scale business expected problems to be encountered by new entrants. This  study is particularly significant to the Nigeria government as it afford the government an opportunity to appreciate the problems facing the establishment of small scale business in Aniocha.

However, only very few have actually realized their aspirations in this direction thereby cutting short too soon their enthusiasm and aspirations. On the other hand there has been a negative perception on the part of most indigenous citizens for having business their own. The practice for themselves is to work for others for payment. It then becomes apparent to note that existing business and up and coming ones are owned and operated  by setters.    

This research is particularly of importance to this group of people as it provides an opportunity to person who may read it to appreciate what constitute  a small scale business and the expected problems to be encountered by new entrants, their profit and employment potentials among others.

1.7     LIMITATIONS OF THE STUDY

There was numerous problems and limitations faced by the researcher, but out of all, time and finance imposed great limitation to the work as enough time and money had to be made available to travel to Aniocha as often as necessary in order to successfully accomplish the set goals. And as a poor students still striving to find a career, these are what I do not have.

Again the unco-operative attitude of the owners and makers of small scale business who despite the researchers elaborate explanation will believe that the study in are way or the other will jeopardize their business and therefore with holding information imposed another constraint to this work. There was even the year that they would be unwilling to fill the questionnaires when given. Given the use of the questionnaire was discouraging because may only of the respondents are either illiterates or semi literates, so the researcher was forced to adopt empirical observation interview and documentation to obtain the necessary and available data for the study.

1.8     DEFINITIONS OF TERMS

1)      WHAT IS BUSINESS: For the purpose of this study, business is taken to mean an organized efforts of individuals to produce and sell goods and services geared at profit oriented.  .            

2)                ENTREPRENUERS: They are the risk take, who create business, the people who assemble all the other factors of production  in an effort to start and operate a business and to make profit.

3)                PRODUCTIVITY:    This is the measurement of efficiency by company how much is produced with the resources used.

4)                WHAT IS SMALL BUSINESS:   A small business is one that is independently owned and operated for a profit and is not dominant in its filed.

5)                MANAGEMENT: Working with and through people and other organizational resources to achieve the organizational goals and objectives.

REFERENCES

Omobile, D (1985)         Business and Economy News watch Vol. 1 No 8 Pg 24

Onwuka, K (1987)         Small scale business reeds  attention business times

Nzelube, C.G (1990)      Management of small scale Business forth Dimension.

Omorodian, G.O (1987)Small scale industrial development process, business concord vol. 40. No 30 pg 12.

Oshaghani, T.A (1993)  Small business management in Nigeria, Longman publishers, Pg 2

Todora, P.M (1983)       Business and Economy News watch Vol. 1 No 8, Pg 24.

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