general description of the area of study historical

background
chapter 1
1.1 BACKGROUND OF THE STUDY
Experience has show that industrial development in any country,
provides the brightest hope for generating sustenance growth
employment, saving and investment and indeed economic development.
Nigeria, like any other developing country with relatively low per-capital
income, looks unto industrialization and structural transformation, which
are imperative in the quest for the development. One of the most critical
development issues in Nigeria revolves around the need to design and
implement policies and strategies for an effective, competitive and
diversified industrial system. This is particularly important when one
considers the countrys endowment.
Giant business establishment make headlines in our news media,
people therefore think less of small scale business, but a clear
examination will show that small scale business venture are also
extremely important in our societal development. Most of today business
giant started from humble beginning, from dreams and dedication of
perhaps one person while backbone of our economic system hang on
those business e.g. (Oil and steel companies etc). but the small scale
industries constitutes the muscle that enable such business giant above
1
is obvious however; that the small-scale business cannot compete
directly with big business. Experiences shows that the small
businessman is mostly successful when he fulfills a need that cannot be
or is not currently being supplied by these big business competitors.

This act to provide something better and different, gives Nigerias small
business vitality.
The federal government of Nigeria in realization of the important of small
scale industries to the development of the economy. In her first National
development plan (1962 1968) she introduces import substitution
industries. In her second National Development plan in early 80s the
main strategies of the industrial policy were foreign exchange policies
and trade regulations investment incentives and special incentives to
provide credit and technical assistance to small scale industries.
Under the structural adjustment programmes (SAP) framework, having
recognized futile expenditure with increases revenue from petroleum, a
new industrial policy was launched in 1989, which re-emphasizes direct
government realization process for the first time, the national identified
small and medium scale enterprises or the main focus and strategy for
the attainment of the goal of economic self-reliance.
2

owing

A 270 million dollar World Bank Loan for small-scale enterprise

development.
Setting up of Nation Economic Reconstruction Fund (NERFUND),
Nigeria industrial Development Bank (NIDB) mandated to cover
small-scale enterprise to complement the Nigeria Bank for
commerce and industries (NBCI) activities in the sub-sector.
Central Bank guidelines to commercial Banks to allocate 20% of
loan able funds to small-scale enterprises.

 Setting up of National Directorate of Employment (NDE)

Creation of Micro-Finance Bank to aid cottage industries and small
scale enterprises
Setting up industrial training fund and entrepreneurship
development programme.
Due to the global economic depression and economic recession,
unemployment has become a serious phenomenon in Nigeria
today. To this end, one should not fold his hands and die in silence
but must leave for other ways of self employment.
3
The soap making industry provides on individual with a worthy
employment, as it is not only to meet the needs of the employer
but also those of the market at large. There is an indispensable
need for keeping body, clothes and surrounding making use of
soap for one purpose or another and this is what motivate a group
of fairly successful businessmen and women of Dadin Kowa in Jos
to give birth the idea of owing and running a small venture that will
fulfill the vacuum of satisfying and creating consumers for the
product. In this light, thus, twelve fairly successful businessmen
and women contributed enough as Dadin Kowa enterprises Jos,
with the aim of producing varieties of soap
advantages of small scale businesses in growing nigeria economy

STATEMENT OF PROBLEM
Despite the recognition and support accorded, the small
scale
industries sector by various bodies to enable it play its
traditional
roles. It has become less obvious recently whether this

sector
performing as expected as small scale business play a very
important role of the operators, populace and government
such
important as;
Employment generation, this could be easily identified in
nations.
As at present, 70% of labour force works under one small
business
establishment.
4

Step in rural urban migration formerly, young school

leavers
are found of running cities to seek for employment. Such
geographical migrate has been drastically reduced with
small
business in rural areas. Consequently, this deepest urban
areas
population.
Aids mobilization of domestic souring. An individual or
group of
people can organize their fund than spending on trivialities
to
establish small business.
These are reasons why successive government has their
weight
behind the small-scale industrial programme.
The aim of the study is to closely exercise the contribution
made
by small-scale industrial sector with a view to determine. Its
overall performance in the entire depressed economy of his
nation.
The problem of the study therefore, is how the small-scale
industrial sector can continue to perform its traditional role
in
changing a depressed economy and other associated
problems
encountered by the small-scale business.

ADVANTAGES OF SMALL SCALE BUSINESS IN NIGERIA

1. Small scale business trade requires small capital.
2. It is located near the consumers residential houses
3. Customers are highly recognized and respected in small scale businesses
4. Small scale business is closely supervised and render efficient service than
their larger
counterpart
5. It serves as a stepping stone to bigger business.
6. Small scale business serves as a good medium for advertising goods.
7. The owner of the business may combine other forms of business with his
small scale
business.
8. Small scale business does not require high running expanses like rent and
wages.
9. It also provides employment to those who could not get white collar jobs.
disadvantages of small scale businesses in growing nigeria economy
DISADVANTAGES OF SMALL SCALE BUSINESS IN NIGERIA
1. These types of business face the problem of inadequate capital.
2. Limited expansion as a result of lack of enough capital.
3. Small scale businesses do not enjoy economic offsets.
4. The amount of profit it makes is low compared to larger ones.
WHY SMALL SCALE BUSINESSES CONTINUE TO EXIST DESPITE STIFF
COMPATITION FROM LARGE ONES
1. Small scale businesses require small capital and can continue to exist no
matter how
small its capital is
2. Customers patronize small scale business because it provides door-to-door
services and

they do not live to go far in order to get their needs.

3. The owner of a small scale business shows more personal interest and
attention to the
business.
4. Small scale business is carried out with flexible policies, rules and
regulation that are
easy to change with the changing conditions in order to suit the customers.
5. Customers are highly respected by the owners of small scale businesses.
6. Small scale business opens from early in the morning till late in the night,
on
Saturdays, Sundays and even on public holidays.
7. Price of goods sold in small scale retail trade are low which result in small
profit but
quick turnover.
8. As a result of the closeness of the owner of a small scale business to
customers, he
grants them credit facilities which make them to continue patronizing the
business hence,
it continues to exist.
9. Small scale business sells mainly popular goods like food items that are
always in high
RESEARCH QUESTIONS
The major objective of this study is the acceptance important of
small-scale business to the nation.
7
Therefore, with the study to acknowledge the fact of the
contribution of small-scale business in our depressed economy,
will this create awareness for the world investors or those already
on the sub-sector institution of higher learning, government

agencies and the populace, to see beyond present situation of the

economy and its relation to small-scale business? How does these
enumerated problems of small venture affect Dadin Kowa
enterprises in Jos and how are they better treated? To remain in
business.
SCOPE AND LIMITATION
The theme of this study in the contribution of small scale business
in changing a depressed economy in Nigeria; a case study of soap
industry in Jos. The small scale which are within the industry and
6
are potential beneficiary loan schemes, the researcher had
conducted a comprehensive study on the contribution of smallscale
industries in changing a depressed economy.
Thus, the research will only be centered on Dadin Kowa enterprise
in Jos. In the course of this research work, the researcher
encounters some problems that are common of this type of writeups.
These problems include trying to gather data from
uncooperative hands of department in related areas. The major
problem was that of collecting adequate data necessary for
research work such as detailed information, which bring at vital
point of conviction of study of such information, which was not
willingly given, as they are termed confidential. The knowledge of
the fact that the information would be needed purely and solely for
academic purpose did not help at all. The gathering and
compilation of the project had to be done concurrently with lecture,
test, and thus, the problem of time was a limit factor.

OBJECTIVE OF THE STUDY

It has been established that the small-scale business employ the
highest member of the work-force found in any nation, be it a
5
developing nation. It is in the light of the above, that the study is
focused on;
i. Investigating and trading out in changing of Nigerias depressed
economy.
ii. To determine the contribution of government towards
developing small-scale business in the Nigerias economy.
iii. To establish to what scale, small scale industries are producing
due to the low capital investment by entrepreneurs.
iv. To find out the problems faced by the sector and suggest
solution that will enhance their roles.
SIGNIFICANCE OF THE STUDY
This research is significant to potential or prospective and existing
small-scale industries, to the authorizes monitoring of small-scale
industries in changing the depressed economy. The need for the
study areas to examine the performance and contribution of smallscale
business in the countries economy
DEFINITION OF TERMS
i. SMALL SCALE BUSINESS: - These are small business
organization with the aim of producing or distributing certain
goods and service, to the public in order to make profit,
examples are industries producing soap, matches, and
polythene bag etc. not more that fifty people.

ii. ENTREPRENEUR: - This refers to an individual who starts and

run a business and also who is optimistic in taking profitable risk
and innovating to satisfy needs of the consumer at a profit.
8
iii. ENTERPRISES: - It refers to the business organization itself, it
could be private enterprise owned by a person or group of
persons or public enterprises owned by the government
chapter two literature review
Thousands of enterprises fell into group of small business in
Nigeria, they include. According to Asha Benin (1983) carpentry paltry,
ceramis, weavery, soap making, mechanic and repairs services etc. The
majority of Nigerian small business is in the commercial sector and the
trend being to nard services industry and retail distribution. The next one
is the engineering and contribution industry. Ehalaye (1986) emphasized
on the decision and circumstances that motivate people into business
generally and specifically small scale business. Decision such as income
in the security of boss prosperous economic time, job satisfaction, family
support and external encouragement and venture opportunity.
It is viewed that more research into the development of small scale
business or industries will help in enhancing growth and development
which in turn contribute to the economic growth of the country.
Japan as an industrialized nation started with small scale industries and
went along way in developing them thus, becoming what it is today.
10
CHAPTER TWO

1.2 SMALL SCALE BUSINESS DEFINED

This has been a no consensus all over the globe as to what a
small business is in precise terms.
This is because:
- Differences in the pattern of overall industrial and economic
growth.
- Differences in size capital and personal.
- Insufficient standard criteria in a business enterprises
- Political and environment differences around the globe etc.
However, the third National Development Plan (1970-80) refers to the
term small business as the manufacturing establishment employing less
than ten (10) people on whose investment in machinery and equipment
do not exceed N600, 000.00 (six hundred thousand naira).
(Central bank of Nigeria (CBN) in its credit guideline (1983)
defined small business as those businesses with annual turnover of less
than N500, 000.00 (five hundred thousand naira).
The federal ministry of industries in 1973 defines a small business
enterprise as all manufacturing unit with a total capital investment of up
to N60, 000.00 (sixty thousand naira) and paid employment of up 50
(fifty) people.
However, due to changes in economic condition particularly with
the introduction of structural Adjustment programme (SPA) to the
11

economy, it defined (1983) a small industry as those industries with total

investment of between N100, 000.00 (one hundred thousand naira) and
2000, 000.00 (two million naira) exclusive of land including working
capital.
United States committee for Economic development (ED) in this
view suggested that a small scale business enterprise would have at
least two of the following features. They are:- Owner management character.
- Capital is supplied and ownership is held by an individual or
small group.
- The firm is relatively small by individual standard.
- Local area of operating through their product.
- The management is highly personalized.
- Local area of operating through their product.
- High mortality rate.
In view of the difficult of having accepted definition of small scale
business and following the contribution of united state, Committee for
Economic Development, we have to agree with Osaybemi (1983), who
regarded a small scale as one who scale of operations is less than the
average.
12
All that is needed is do is just to take an average figure of certain
variable and all business which fall below this average can be referred to
as small scale business.
2.2 THE CONTRIBUTION OF SMALL SCALE BUSINESS IN
CHANGING THE DEPRESSED NIGERIA ECONOMY

There are various reasons for stressing conscious planning and

development of small scale business industries in Nigeria, Some will be
enumerated in this project as found out in the course of this research
that small scale business have dot to contribute to the changing a
depressed Nigeria economy. Such contributions include the following:1. EMPLOYMENT CREATION : - Small scale industries create
employment to the Nigeria citizens which will reduce dependency
on government to provide job for every body and also to a large
extent reduce government expenditure in a way of contributing to a
balanced budget for the economy. The most cumbersome task
challenge in industrial promotion in any economy is the ability to
create employment with risking an unmanageable high rate of
inflation.
During the period, in 1984 to 1986, Nigeria witnessed an era of
retrenchment of works in both private and public sectors of the economy
coupled with the large number of graduates from our tertiary institution
every year. The level of unemployment rise to an alarming and
13
unbearable rate. Energetic men and women were seen everyday on the
street of urban cities and town struggling to sell stuffs like cigarettes
biscuits, drinks etc. just to earn a living, government did not go on to
depends entirely on large enterprises to private employment to the
generality of the public. It is to this end that the following questions arise:
(a) At what rate could new job be created to absorb large
member of graduate from tertiary institution and retrenched
workers in particular?

(b) How fast could new jobs be created to absorb the

unemployment?
It is in answering these question that it be came clear that it is very
necessary adopt a strategy that would get the unemployed to start and
manage their own small scale business to generate unemployment for
them and others, this is how the National Directorate of Employment
(NOE) was established with the sole aim of training men and women in
manpower development so that new jobs would be created.
Information the National Economic reconstruction fund
(NERFUND) in December, 1996 indicate that expected employment to
be generated by the first twenty six enterprise that got approval for loans
stood at one thousand three hundred and one (1301) or an average of
fifty (50) workers or employees per-enterprise. Small scale industries are
14
generally labour intensive, means that a given unit of investment in that
sector directly increases employment opportunities.
2. THE DEVELOPMENT OF ENTERPRENEURSIP : - The small
scale industry is owned and managed mostly by individual who
leads to self fulfillment and self actualization. An entrepreneur
conceives and generates a business venture ideas, takes
moderate risk and beings into existence by putting available
resources together, a business enterprise that never was.
Since the entrepreneurs aim is to achieve and succeed he always
aims for a standard of excellence in his performance. It is very
encouraging to see that young Nigeria an especially graduate from
tertiary institution era taking to entrepreneurship which was not the

case a decade ago. The future of small scale business in the

country is very bright because more and more graduates
enlightened entrepreneurship will always be conscious of
producing high quality products to reflect their own image and that
of the country. Entrepreneurship development is therefore, a
proper oriented meaningful industrialization
3. COST CONSCIOUSNESS : - The spirit of cost consciousness is
well developed in the small scale business. With the introduction of
structural Adjustment programme (SAP) 1986 it has become
inevitable for successful entrepreneurs to be cost conscious in
15
their activities or spending so that profit can be taught and they
gradually develop, in so doing their finances will not only be
depended on government and other financial institution.
4. PROVISION OF SELF RELIANCE IN CONSUMER AND
INDUSTRIAL GOODS: - One of the objectives of the structural
Adjustment programme (SAP) is to achieve self-sufficiency and
self-reliance which will lead to independent and the ability to stand
above. The spirit of independence and individual basis can lead
eventually to national goal and economic grounds.
Many small scale industries depend on locally sources materials
rather than importing them for manufacturing processing or
servicing enterprise. Small scale industries are gradually forming a
habit of self-reliance, which will yield fruits in the long term and
motivate the industrial sector to grow thus, developing the Nigeria
economy and achieving the micro-economic aggregate.

5. DISPERSAL OF ECONOMIC ACTIVITIES :- The constitution of

Nigeria of 1979, chapter 1.1 section 16 provide that The state
shall direct it policy toward ensuring that the economic system is
not operated in such a manner of production and exchange in the
hands of a few individual or a group.
It is now clear that Nigerians cannot depend on government
entirely to provide equitable economic development. This is an
16
area of great challenge to the small scale industries in Nigeria.
Through viable small scale industries the nation can enjoy a rapid
widespread economic base, thereby making many people,
owners/managers and partners in economic advised development
of different part of the country by extending the benefit of economic
progress to the less development areas.
6. DEVELOPMENT OF INDIGENOUS TECHNOLOGY : - Machine
and equipment used in production does not constitute what we call
technology. It is impossible to know how to use such equipment
without acquiring the technology of which they are made up of.
Technology as Chief A.F Kolawale put it asbody
knowledge on the techniques of condemning materials to derive
desired product such as machine and equipment used in
producing consumer goods.
The federal government of Nigeria embarked on a massive training
programme abroad for Nigerian technicians, engineers and
scientists, just to acquire necessary knowledge but this has not
yield fruitful results because up to date Nigerians still import almost

everything. Studies carried out by professor S.A Aluko in 1972 and

Dr. Sonaike in 1975 have shown that small scale industries in
Nigeria acquires or Improve domestic technology in the production
of several goods such as:- e.g. bakery products, soft drinks,
17
textiles, footwear, jeaneries, soap production etc. and what
seemed to have been acquired was just further improvement in the
technology of production so as to improve the quality of these
goods. This suggests that one of the main potential contributions
of small scale business in changing Nigeria economy is truly
indigenous technology. With the introduction of SAP in 1986, the
federal government has no reason for importing technology from
developed countries instead it uses the funds to improve on
Nigeria indigenous technology.
In conclusion, use the past decade as case point one would
notice that small scale industries have been contributing their fain
share in changing Nigerias economic.
2.2 FACTORS MILITATION AGAINST THE DEVELOPMENT OF
SMALL AND MEDIUM SCALE ENTERPRISE
The following are considered as the factors militating against
development of small and medium scale enterprises:(1) Lack of business connection:- It is not clear from the
questionnaire whether lack of business signifies inability on the
part of the particular enterprises to faster fruitful relationship or
whether some non-business considerations pre-determinate
customers

18
(2) When it is noted that almost 16% percent of the respondents also
ascribe the cause of their business failure, it would seem that
many entrepreneurs believe that their success in business is not
strongly related to their ability to perform.
One of the entrepreneurs interviewed by the authors maintains that
business success in Nigeria especially in the retailing, wholesaling,
distribution and contracting sectors is more of a result of who you
know, to what part you belong and from what state you come, from
or father than whether that you can perform effectively.
(3) Lack of capital was the primary factor militating the development.
Experience has shown however that the amount of capital or fund
available is less important than how we use money your own and
that which you can borrow is a very important factor for success.
There was a case of a particular entrepreneur who want to
establish a printing business, had sufficient money only to buy the
printing machine. He depend on a loan to buy an office, purchase
the different printing materials own the business, when his loan
from the bank was not forth coming because of lack of transitional
security of collateral, he had to auction on the machine.
(4) In our investigation, about 101 confess that lack of prior or proper
business experiences constitute their main worry. To know the
tricks and short cuts in business management practice, there is
19
no alternative to experience. Aspiring business should learn as
possible from practitioners regarding the art and science of

business management.
A year or two will be sufficient to acquire reasonable experience in
any profession. In most case and contrary to opinion, the
importance of experience is not the time spent, but what is learnt.
(5) The level of ignorance of some entrepreneurs in record keeping
and financial management is appalling many of them cannot or do
not want to employ the service of qualified accountants on their
part, many owner-manager are not knowledgeable through to
understand the basic principle of accounting and book keeping.
The cannot interpret or use the practical application of the
accounting figure if provided.
The result is that many businesses operate in confusion unable to
differentiate between periodic gains and lose. Profit tends to be
over stated most of the time and personal expenses often are not
distinguishable from business expenses.
2.4 GOVERNMENT AGENCIES RESPONSIBLE FOR SMALL
ENTERPRISES DEVELOPMENT (SMEDA)
Government in an attempt to promote small enterprises in the
country, Government set up some agencies that are change with the
20
responsibility of promoting and fostering the growth of the business
sector:
These agencies are mention below:(i) The Federal Ministry of Commerce and Industry
(ii) The Bank of Industry
(iii) The Agricultural Research Institutes

(iv) The National Planning Commission

(v) The Development Bank for Small and Medium Scale Industries
(vi) The Manufacturer Association of Nigeria
(vii) The National Association of Small Scale Industries
(viii) The Indigenous Fabricators and Manufacturer of Machinery
(ix) The Federal Ministry of Finance
2.5 THE ROLE OF NIGERIA ASSOCIATION OF SMALL SCALE
ENTERPRISES ON THE DEVELOPMENT OF THE SECTOR
The Associations play a vital role in promoting small scale
enterprises in the country. Some of the roles are view below:
(1) It is the Nigeria Association of small scale enterprise that initiate
and articulate the idea for small medium scale industries policy
thrusts
(2) These Association serve as a vanguard agency and total point for
rural industrialization which gives raise to poverty allocation,
21
technology acquisition and adaptation, job creation and
sustainable live Laird
(3) The Agency promote and facilitates development programme,
instrument and support service to accelerate development,
modernization net-working and linkage of small and medium
industries.
(4) They also assist in mobilizing internal and external resources,
including technical assistance for small and medium industries
their support institution, trade and associations and nongovernment
organization.

(5) They oversee, coordinate and monitor development in small scale

industries sub-sector
(6) These association help in designing, promoting collage and micro
small and medium scale industries project.
(7) It provides industrial extension services to small scale industries,
fabricator of machinery and beneficiaries of micro-credit loans.
(8) It establish liaison between research institution local fabricator
and finance, technology, technical skill development and
management of small and medium enterprises.
The Association liaises with external bodies for support and
development of small scale industries in Nigeria.
22
The Association monitors the implementation and compliance with
Federal Government directives, incentives and facilitate for
development of small function of the agency in order to promote
government policies in and outside Nigeria.
(9) Finally, the association plays a vital role in recommending the
small scale industries to the federal government, from time in
consultation with other relevant agencies and organization, and
applicable tax and tariffs and other financial incentive for
promoting the development of small and medium scale industries.

CHAPTER3

chapter three research design and method

INTRODUCTION
The research methodology in any study reflects the native of the
subject understudy in carrying out this research work. This is basically a
descriptive survey. Information needs were used on data collection
through primary and secondary service. Questionnaires, interview
observations and consultation with journals were mainly the techniques
of investigation adapted
method of data collections
the method of data collections to b used in this project was secondary
sources
secondary sources are already compilied pieces of informations which are
useful for research purposes
the secondary data was collected and used for this research work with the aid
of published scholarily journals internet text book of some management
writers current review of literature on management writes up which was also
for gathering relevant information and data for the study
THE STUDY SAMPLE SIZE
This study sample size based on the correctly completed and
returned questionnaire.
Therefore, out of the twenty (20) questionnaires administered, fourteen
(14) questionnaires were correctly completed and returned. From the
25
sample size of fourteen (14) and (9) nine people were joint owners of
Dadin-Kowa Enterprises, while five (5) people were selected working

staff of Dadin-Kowa a soap factory.

Furthermore, the researches interview (15) people five (5) people
were traders and ten (10) people cutting across members of the public
the major problem experienced in this research are as follows
the major problem of this research is financial factors other escalations where
transportation fares andmaterials to b used in this project
on the part of financial funds are inadequate toprocure stationary and l;ack of
adequate time which affected many researchers movement in collecting the
data for study
some respondant where relunctant to answer the questionare given for the
fear of beingb sacked by authoruty some senior officers where not easily
located as a result of either beimg on leave seminars or government
sponsoree assiginment outside the shores of the country

CHAPTER4

DATA PRESENTION AND ANALYSIS

4.1 HYPOTHESEIS
This chapter analyzed the date collected based on the following
research questions.
RESEARCH QUESTION: I will the study help to acknowledge the
fact of the contribution of small scale business in our depressed

economy
In the light of this, the flowing questions were asked: Do you
think that if small business is properly manage effectively in term of
minimization of costs 17 contribution to changing a depressed
economy?
Table 1: management of small scale business
Options Response Percentages(%)
Yes 9 64.29%
Total 14 100%
Sources: Questionnaire 2009
From the about table, the responsible indicate that
respondent who are of the view that if small scale business is properly
manage effectively in term of minimization of cost, it contribution to
27
changing a depressed economy, represented 64.29%is therefore evident
that if small scale business is effectively it a useful contributor to the
economy.
Question: How much capital do you need in term of cost to establish
and run succefully you small-scale?
Table 2: Soap Industry in N Nigeria of today
Options Response Percentages (%)
#5000 - #49000 7 50%
#50000 - #99999 4 28.57%
#100000 and above 3 21.43%
Total 14 100%
Sources: Questionnaire 2009

From the above total, it can observed that to established and run
successfully a soap industry investor would need between #50.00 to
#99,999.This represent 50%of the represented. In this view they agreed
that small sale business would contribute to the development of
depressed economy with the available cost as state above initial capital
outlay to operate efficiently.
Question: Does small scale business create employment opportunity?
Options Response Percentage(%)
Yes 14 100%
No _ _
Total 14 100%
Source: Questionnaire 2009
From the above table all respondent agreed that small scale business
contributed to the development of a de pressed economy mainly by
28
creating employment opportunities event illustrates semi illustrate and
educated people.
Question: Does small scale soap industry promote or stimulate
indigenous technology?
Table 4: Indigenous Technology
Option Response Percentage(%)
Yes 14 100%
No _ _
Total 14 100%
Source: Questionnaire 2009
The above total table shows that all 100% of the responses as indicate

by the table above agreed that small scale industries stimulate indigenous
technology.
Questions: Rural Development.
Table5: Rural Development
Option Response Percentage(%)
Yes 14 100%
No _ _
Total 14 100%
Source: Questionnaire 2009
From the table signifies that 100%of the respondent agreed that small
scale industry contribute to the development of depressed economy by
29
encouraging rural development and maintaining a healthy economic in
general.
Research question2: Whether government policies towards the
development of small side business aid in changing a depressed
economy.
Question: do government policies in restructuring the economic affect
you business?
Table 6 : Government policies in restructuring economy
option Response Percentage(%)
Yes 11 79%
No 3 21%
Total 14 100%
Source: Questionnaire 2009
79% of the response were of the view that government economic and

fisted policies such as structural Adjustment programmer (sap) after the

operation of the business. It is therefore evident that there is a reasonable
apprehension that small scale enterprises do not survive under such
government policies in restructuring the economy.
Question: Do you joy efficient supervision from government agencies to
give necessary advice to you as regards your business operation?
Table7: Supervision from Government
30
Option Response Percentage(%)
Yes 2 14%
No 12 86%
Total 14 100%
Source; Questionnaire 2009
The above tables indicate 86%of the response agreed that small scale
business do not often enjoy efficient supervision from the government
agencies established to assist in the development of small scale sector.
Question: Do you receive sufficient funds from government?
Table8: Funds from Government:
option Response Percentage(%)
Yes(sufficient fund) 3 21%
No(insufficient fund) 11 79%
Total 14 100%
Source: Questionnaire 2009
Research question: How does these enumerated problems of small.
scale affect Dadin kowa Enterprises in joss and how are they better
treated? To remain in business. In the high of the above the following

question were asked.

Question: Do you experience difficulties in acquiring the capital needed
for you business?
Table9: Acquisition of needed capital
31
Option Response Percentage(%)
Yes (there is difficulty) 12 86%
No (no difficulties) 2 24%
Total 14 100%s
Source: questionnaire 2009
From the above table it can be seen that 86% of respondents
experiences defaulters in acquiring capital needed for efficient operation
of the business;
Question: How do you rate the loan procurement procedure?
Table10: Loan Procurement procedure
Option Response Percentage(%)
High 14 100%
Moderate _ _
Low _ _
Total 14 100%
Source: Questionnaire 2009
The above table vividly indicates that all the respondents (%)were of the
view that loan procurement for small scale industry operator is very
vigorous, which demoralized most of the operator often.
Question: What is your opinion about the interest rate charged on small
scale industry by financing institutions

Table11: Interest rate

Option Response Percentage(%)
High 14 100%
Moderate _ _
Low _ _
Total 14 100%
Source: Questionnaire 2009
32
All the respondent rate of the view that small scale business find it
difficult to contributed its quota toward changing a depressed economy for
the fact that by interest rate charge on loan advances by financing
institution otter very high.
Question: Do you think there is bias treatment in the loan
Disbursement?
Table12: Loan Disbursement
Option Response Percentage(%)
Yes(there is bias
treatment)
14 100%
No(there is no bias
treatment)
__
Total 14 100%
Source: Questionnaire 2009
The whole respondents were of the view that small scale experience
was treatment from official concerned about loan disbursement which

make difficult for small scale sector to contribute it quota toward

changing a depressed economy.
4.2 TEST OF HYPOTHEIS
The hypothesis was formulated prior to view of the relevant
from literature. The first of hypothesis is a contribution of
finding response in the questionnaire.
33
Overall total
Indeed business of ease of application and accuracy,
method used for the research is the chi-square donated by
Greek letter x2, it is frequently used in a hypothesis
concerning the difference between a set of expected or
theoretical frequencies.
Sex Group of the Respondents.
Response Male Female total
Yes 7 4 11
No 2 1 3
Total 9 5 14
Sources: Questionnaire 2009
The above table is known as observed table or critical vane. But to
complete the expected frequency table we adopt this formula:
= (O E) 2
Where: 0=observed frequency
E=expected value of frequency then to get expected value ($) it
will be:
Total row x total columns

For Yes row

(A) 11 x 9 = 99
E
14 14
= 7.1
34
(B) 11 x 5 = 55
For No row
(a) 3 x 9 = 27
(B) 3 x 5 = 15
Formulation of contingency table (observed frequency and
expected values
Sex Group of the Respondents
Responses Male Female
Yes 7(7.1) 4(3.9)
No 2(1.9) 1.(1.1)
Note: The bracket figures are expected frequency to get x2
X2 = (0 - E) 2
X2 = (7-7.1) 2 x (4-3.9) 2 x (2-1.9) 2 x (1-1.1) 2
14 14
= 3.9
14 14
= 1.9
14 14
= 1.1
E

7.1 3.9 1.9 1.1

35
= (-0.1) 2 x (0.1) 2 x (0.1) 2 x (-0.1) 2
=0.0014 + 0.0026 + 0.0053 + 0.0091 x 2
=0.0275
Computation of Degree of frequency (DF)
Where R=Row
K= Column
From the observed table 2 column and we have
Two (2) rows
(2-1)(2-1)
1x1=1
DF=1
4.3 RESEARH FINDINGS
From the demographic date it can be seen that out of
100%of the respondent that answer the question the ration
percentage was 62:75 for the made and female respectively.
Consequently the contribution of small scale business in
clanging depressed economy cannot be over emphasized.
As such effects it has on the economy includes, creation of
employment aid s the development of entrepreneurship cost
consciousness is created encourage nation to be self
7.1 3.9 1.9 1.1
36
reliance as well as the development of indigenous
technology.

More so the various government agencies possible for small

enterprises d development such as federal ministry of
industry and l scale industries the bank of industries and
other establishment under this umbrella should invariably
pave ways for the successes recorded by smalls scale
business in changing depressed economy.

chapter 5

CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATION
5.0 SUMMARY
A. The researcher found out that most writers, these served with
questionnaires and those interviewed, viewed small scale business
as a tool to development of the Nigeria depressed economy since
it creates employment opportunities. That employment generation
accounted for about 4% of the contribution made by small scale

industries in changing a depressed economy like Nigeria economy.

By creating employment, it has added to the growth of
standard of living of people which is a major factor in determining
the economy development in any nation, provide that small sector
are effectively and efficiently managed.
B. Government, in its effort in promoting the growth of small scale
business in order to contribute mean fully to the depressed
economy in the process, there are certain problems that hinder
the effort of the government towards the development of small
scale sector which make it difficult for small scale industries to
contribute to the development of a depressed economy.
These problems in the domain of government are highlighted
below:
38
i. Man power shortage:- Government specialized institution for
industrial development and promotional agencies are
inadequate skilled man power to evaluate and asses loan
applicants.
ii. Ineffective supervision:- monitoring of business performance of
the enterprise to which loans have been given, provision of
efficient and effective extension etc do not receive the attention
they deserve.
iii. Insufficient fund:- In the face of competing needs of government
researches, sufficient funds are not available to promote the
needs of the small scale industries.
iv. Effects of government economic policy:- There is apprehension

that small scale enterprise does not survive the government

fiscal and monetary policies such SAP, SFEM etc.
5.2 CONCLUSION
The future of small business in Nigeria bright and promising,
considering the growing awareness of the importance of small
scale industries by the government, financial institution and other
agencies to sustain this, the financing of small scale sector needs
the combined and concentrated efforts of the government and the
provide sectors for it has become evident that both developed and
developing countries. The government importance and potential
39
contribution of small scale business in changing a depressed
economy cannot be ignored.
This research work has shows the contribution of small scale
business in changing a depressed economy. It has also shows that
small scale business in Nigeria are confronted with problems,
these problems are disserve and cannot be combusted by just are
measure but through different means. With various bodies
concerned unrelated efforts and sufficient enlightenment about the
prospect that lies ahead of would be operated self interest
development will arise and this will guaranteed industrial
development.
Finally, this study calls for government cementation of
suggested solution which she believes would bring industrial
improvement and economic buoyancy for small scale business.
5.2 RECOMMENDATION

Small scale business has greatly helped the macroeconomic

aggregate of the nation by generating
employment,
Reducing regional depositories and the development of
indigenous technology. Government has also contributed to
the development of the sub sector by establishing agencies
associated to it.
40
Such agencies as the federal ministry of industry, the
National planning commission, the federal ministry of science and
technology, the Agricultural or industrial research institutes, the
indigenous fabricators and manufactures of machinery the federal
ministry of finance, the development Banks for industry, the
manufacturer Association of Nigeria .
Director General of the Agency is to contribute or coordinate,
financial and boost their moral of small scale industries and to
increase their productive base. Therefore in order to effect the
development, growth and structural of small scale industry in
Nigeria and to be consistent with this study, recommendation for
tackling those problems are also considered in there part in
starting with the government, the commercial banks and small
scale business operations.
demand