INDUSTRIAL DEVELOPMENT IN DEVELOPING NATIONS (A CASE STUDY OF NIGERIAN SMALL AND MEDIUM BUSINESS ENTERPRISES)
ABSTRACT
The main purpose of this research work was to study the rate of industrial development in developing nations, considering a case of Nigerian small and medium scale business enterprises (SMEs) in order to unlock the potentials that are eminent in the manufacturing sector. Hence, in the absence of basic social amenities and infrastructures (good road for easy access to the market, low interest source of financing and so on) which aided the actualization of industrialization amidst other industrial developmental challenges; this study intended to understudy what strategies have been designed by the new Small and Medium scale Enterprises (SME) for survival and how these strategies can be improved with respect to Nigeria.
A total of 600 SMEs owners and managers were administered questionnaires to. The analysis of this research work was based on the opinion of the successful 517 respondents.
The result obtained from this research suggested that there are no special techniques employed by the SMEs other than the fact that they were able to manage the situation and still ensure business profitability despite the huge economic deficiencies present in the economy.
It was recommended that the government should ensure that there is positive atmosphere for business development and growth by providing basic infrastructural facilities that ensures the actualization of this aim.
1 INTRODUCTION
Industrialization has been the basis for economic development of any serious minded nation; this is the reason why it is obvious that no advanced nations reached the developed stage without industrialization. ‘’Industrialization has been seen as a veritable channel of attaining the lofty desirable conception and goals of improved quality of life and the populace. This is because; industrial development involves extensive technology-based development of the productive (manufacturing) system of the economy. In other words, it could be seen as a deliberate and sustained application and combination of suitable technology, management techniques and other resources to move the economy from the traditional low level of production to a more automated and efficient system of mass production of goods and services’’(Ayodele and Falokun, 2003). As clearly stated by Falokun and Ayodele, industrialization involves developing the economy from its presently low state to a more efficient system of mass production of goods and services in order to improve that quality of life and standard of life of the citizenry.
1.1 Background of the study
The main goal of industrialization is to increase output using the more mechanized system of production. It is evident from above that industrialization is the central them of economic development and growth.
One of bottlenecks facing emerging countries and which has impeded economic growth over the years is how to improve her industrial capabilities. Nigeria as a nation is a typical example of this incident. Industrialization is an increase of manufacturing sector in the Gross Domestic Product (GDP) via better utilization of technologies, materials and good labour capabilities. The industrial development comprises of good communication, basic infrastructural facilities and transportation networks as well as all other resources for better production operations (Iwuagwu, 2011). Developing nations lack the basic infrastructural facilities needed to launch them into industrialization as a result of improper and unimplemented policies, thereby make their industrial development slow (Adejumo and Olaoye, 2012; Iwuagwu, 2011). The bureaucratic nature of government policies set up and likewise delay or non-implementation of government approved projects are some of the factors that robbed Africa, Nigeria as a case its destined place in industrialization in global economic stage.
