CONTRIBUTION OF SMALL SCALE INDUSTRY TO ECONOMY DEVELOPMENT OF ENUGU

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CONTRIBUTION OF SMALL SCALE INDUSTRY TO ECONOMY DEVELOPMENT OF ENUGU (A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT AREA)

 

ABSTRACT

The project is designed to talk on contribution of small-scale industry to economic development of the Nation with particular reference to Enugu South local government Area with a view of identifhying the prevailing problems that beset their establishment.

From the result, the researchers was able to know the number of small scale industries, which is eleven of them.  The researcher was also able to find out the total number of employees working in Enugu South local government Area.  To achieve the above objective, the researcher proceeded together data from both primary and secondary sources.

Based on what was observed in this research, the researcher made her recommendations that small-scale credit guarantee scheme will be established to reduce the risk of lending to small industrialists.

CHAPTER ONE

INTRODUCTION

Small scale industry or business can be a farm which produces crops for sale, it can be a factory which produces goods such as radios or it can be a shop which buys from one group of persons and sells to another.  Anyone can start a business of an industry if he can obtain capital and if he is prepared to risk losing it.  He can borrow the capital from friends, relatives or from Banks.

Economy defined businessmen as entrepreneur.  The various governments of this country local, state and federal had directed attention on the establishment of gigantic industries in the urban and rural centres of the country. They believed that large scale industry is the only yard stick of measuring the economic power of any country.

In realization of this and in pursuance of its attainment, the federal government created various agencies such as the Directorate of food, Roars and Rural infrastructure (DFRRI) to work in partnership with the rural and urban communities towards the provision of amenities such as rural roads, pipe born water and electricity which are essential for the setting up of small scale industry in Enugu South local government to enhance Economic development.

In addition, the National Directorate of employment was created to train and develop school leavers skill for independence.  The directorate also provides financial and Technical assistance to individual wishing to start business of their own.  The federal government also established people’s Bank, community Bank, small-scale business fund scheme and similar bodies whose function are to provide financial assistance to individuals to set up small – scale business.  Commercial Banks were also directed to give part of their loans to small scale industry in Enugu South local government.

1.1       STATEMENT OF PROBLEMS

The neglect of the nation’s rural areas vis-a vis small scale industry left a serious break in the economic development and progress of the country.  This gap has resulted in the scarcity of essential goods and services with a spiral effect of high inflation and general high price level and unequal distribution of incomes.

Task of rural development also resulted in the mass Exodus of people from rural areas to our urban centres.

Most of the traditional skills possessed by one people such as wood carving, cloth – wearing and dyeing, mat making, iron smelting etc, have been deserted in search of white collar jobs.  As a result, most of these skills, which could have been improved upon through encouragement and assistance of individuals to set up modern small-scale industries have been neglected.

Besides, large scale industries which we thought formed the bed rock of economic development have become white elephant projects, that do not serve what they are established to serve.  Some of them are producing under capacity. Some have been shut down due to lack of spare parts and raw materials.  Others have become a breading ground for embezzlement by their various boards of directors and top government officials.

 

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CONTRIBUTION OF SMALL SCALE INDUSTRY TO ECONOMY DEVELOPMENT OF ENUGU (A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT AREA)

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