CHAPTER ONE

INTRODUCTION
1.1

BACKGROUND OF STUDY
Prior to Nigeria independence and even for sometime after business

climate as almost totally dominated by the other European multinational

companies like U.A.C, P3, CFAO, levities and LITC just to mention but a few.
By the tail end of this pre-independence Nigeria industrial development
bank (NIDB) was founded to assist potential entrepreneur get involved in
agriculture exploration of natural resources commerce and industrial
production. However few Nigeria mostly the semiliterate benefited from the
generous government attitude in this era. These educated Nigeria then, were
uninterested in entire premiership mainly because they focused their eyes on the
post being vacated by the expatriate staff that were living the civil service to
return home because of imminent independence.
The breakthrough in small business development comes through the
indigenization decreases and later the Nigeria enterprises promotion decree. The
federal government of Nigeria in is 1990-1994 Nigeria development of small
scale industries in the rural areas.
In December 1985, Nigeria expressly rejected an INF standby facility.
However, following the collapsed of the international oil market in January
1986 which accelerated the rapid decline of heir external payment position,
protracted negotiations with the Paris and London club of creditors and close

consultation with the World Bank, the country in june11986 adopted a structural
adjustment programme (SAP) to run from July 1988.
Since, the promotion of small-scale industrials has been recurrent then in
the Nigerians development planning and welfare plan of 1946. If is hardly
surprising that one of the main industrial objectives stipulates for the
manufacturing sector under

SAP is generating employment

through the

encouragement of private sector and small-medium scale enterprises.

Consequently, both the federal and the state government and recently local
government have stepped up efforts to promote the development of small-scale
industries through various interventionist

polices an counter-act perceived

distortion in the policy environment as well as the capital market imperfection

that is to sub-optional level in investment in small-scale business . this has
been done

through increase incentive scheme, include

budgetary allocation for technical assistance

enhances budget

programmes, new lending

schemes and credit institutions such as the national economic reconstruction

fund (NERFUND), world bank assisted small-scale enterprises loans schemes
(SMAX) Nigeria Export and Import Bank (NEXIM). The peoples bank of
Nigeria (PBN) and the community bank have emerged at both the national and
local government levels to boast the flow of development finance to small-scale
business which have so far depended largely on personal funds and credits from
internal source from both investments and working capital.
A question thus arise as to the how small-scale business likely to fore in
this type of environment which the international monetary fund and world band
have sought to promote through the structural adjustment program (SAP) in
their struggling acute economic crises! On a prior grounds, it can of course be

argued that the general liberation thought of the market and outward oriented
policies of the typical structural adjustment program (SAP) will no long nonfavour the small-scale industries, those produces are expected to have a
comparative advantages in the African economics, empowered and they are
with relative abundance of unskilled and semi-skilled labour and operating with
simple technologies.
Unfortunately, all these programmes and the polices have not been able to
adequately redress the fundamental problems which have constrained the
growth of small-scale industries In Nigeria. This is due to some extend of
improper implementations and effective cor-ordination of these policies and
p0rograms.
1.2

STATEMENT OF PROBLEM
There is a wide consensus in Nigeria that the business policies have been

largely in the favour of the large enterprise to the detriment of small-scale

enterprise. For instance, while the large enterprise have routinely enjoyed such
direct benefits as access to credit foreign exchange. The small-scale enterprise
were often ignored or at best paid up service by the authorities enterprises and
individuals with this sector operate largely outside the system of government
benefits and regulations and thus have no access to formal credit institution and
the main sources of technology transfer.
1.3

PURPOSE OF THE STUDY

The purpose of the study can be analysis as follows:

1. To identify small-scale business and over view of their structure.

2. To highlight some government programmes and policies in assisting small-scale

business together with the future of small-scale business in Nigeria.
3. To highlight the problem and prospect of small-scale enterprises as well as the
role they play in facilitating industrial development in Nigeria.
4. To access the impact of government business policies on small-scale business.
5. To identify the credit facilities opened to small-scale business in Nigeria.
1.4

AIMS AND OBJECTIVES OF THE STUDY

The specific objective of this research work is to highlight some

government programmes and policies in assisting small-scale business together

with the future of small-scale business in Nigeria. Also to highlight the
problems and prospect of small scale enterprises as well as the role they played
in facilitating industrial in Nigeria.
1.5

RESEARCH QUESTIONS

For the purpose of the study, the following research questions have been
formulated.
i.
ii.

Do government policies encourage the growth of small-scale business?

What are the specific policies and programmes initiated by the government

iii.
iv.

aid
the growth and development of small-scale business?
Do small-scale businesses contribute to industrial development in Nigeria?
How have these policies and programs helped to do improve the activities

v.

of small-scale business?
Does government initiate entrepreneurship skill development programme
(ESDP)

1.6

SCOPE OF STUDY

By scope of study, it means the range of the area will be covered by the
researchers. The scope of study is very wide if it has to be carried out in all smallscale business in Nigeria! That is why this study is definite to (Ughelli) and the
findings may not reflect the situation in the whole country.
This research work will cover services manufacturing and wholesale and retail
outlets.
1.7
SIGNIFICANCE OF STUDY
This result of this study shall be useful for prospective entrepreneurs and
the Nigeria business community and the government. It will provide the required
information on problem faced by small-scale business and identify the prospect
available for small-scale business in Nigeria.
It will also provide insight into various government policies and
programmes and suggest policy measures to be adopted in promoting the
growth of small-scale business in the country (Nigeria).
1.8

LIMITATION OF STUDY
This group project work doubt has its limitation and among these

limitations are:
The research work base mainly on government polices to say that, this
research work is narrowed only to select small-scale business in this group
project work doubt has its limitation and among these limitations are:
The research work base mainly on government polices to say that, this
research work is narrowed only to selected small-scale business Ughelli and not
to all smallscale business in Nigeria.

Another basic limitation was the area of time that was required to source
of materials and to put them together. Unfortunately, time was very limited as
the researchers has to combine course work, examination and project work at
the same time, thus is become very difficult to dedicate enough time to the
project work to cover wider ground and large simple size.
Again another constrain encountered while putting this research work
together was finance. Finance was almost a non available at one time or the
other in the course of this work, since all the researcher were students far away
from home. This also limited the researchers to the small locate and small
sample size.
Lastly, the companies visited were sensitive in giving information and so
the researchers behaved they must have hoarded some sensitive information that
would have aided the quality of this work.
But after all said and done, the outcome of the result is still valid for the
sample and the population.
1.9

DEFINITION OF TERMS

The following terms that are used in the study should be taken to the following:
1. Capital: If is required as money used in forming a business and also money
values of real assets.
2. Entrepreneurs: A person who initiates, organize and manage a business
undertaking assuming the risk for the sake of profit.
3. Enterprises: It is used as an alternative firm industries enterprise bring together
other three factors of production which are scarce and hence have encouraged
cost so as to produce goods and services.

4. Equity: The network of a business consisting of shared capital, share premium,

reserves and surplus.
5. Finance: Provision of money where and when needed. Policy, direction issued
by government to provide the basic framework for development of small-scale
industries in Nigeria.
6. Industry: A group of firm competing against one another or simply a group of
firm in this it is used for inter-changeable and enterprises.
7. Productivity: The ratio of input to output, it is the relationship between result
achieved and resources used over a period of time.
8. Management: It is the carrying out of operation design to achieve results.
9. Strategy: It is good design for achieving objective strategies, a way of
responding to an environment or prevailing situation by small business firm.
Strategy is necessary for selecting future goals and the way of achieving them.

CHAPTER TWO
2.0

REVIEW OF RELATED LITERATURE

2.1

INTRODUCTION
This chapter has to do with review of related literature; it will be of

immense importance to the researcher to know what other scholar and

educationalist have written regarding this topic.
2.2

HISTORICAL BACKGROUND
Small scale business started long time ago since the days of our lord

Jesus Christ in all

over the world But in the course of this research the

researcher shall restrict the study of it origin or history in Nigeria.

Small scale business started when people produce more products they
needed as such they had to exchange surplus by this may producers came to
realize that they can concentrate in their areas of production to produce more
and exchange with what they needed as a result of this exchange of goods for
goods (trade by barter) that is how entrepreneurship started in Nigeria. In the
olden days where exchange in small scale business which is characterized with
production manifesting in which these the producer most often started with a
small capital, most of it from his own savings.
Modern started modern entrepreneurship in Nigeria started with the
coming of the technical market that bought in their wear and made Nigeria their
middlemen.

One of the major factors that has in many ways discourage the flow of
these business development in Nigeria is the value of system brought about by
formal education for many decades formal education has been the preserve of
the privilege with formal education people had the opportunity of employment
is civil service became in those days the economy was Lange enough to absorb
the prestigious occupation of all Nigeria and their goods as such that system
made Nigeria to be dependent in the colonial master to supply her with the need
expatriates.
The refusal of the expatriates to utilize the securities of local business
men inhibited skill and attitude because of this many eventually folded up. As a
result, the flow of small business in the country was slow down. But more
people became educated and government could no longer employ most school
levers, economic programmers to encourage individual to go into private
business and the self reliant were initiated (Enema B. ANI 1999)
2.3

CONCEPT OF SMALL SCALE BUSINESS

According to C.E.O Anuka (2004) started that people started their own

business for reason of profit, independent, opportunity need for achievement

and challenge; A small business according to nickel, McHugh 91999) is
dependently owned and operation is not diriment in it field of operation and
certain standard of suzerain terms of employees or annual receipt thus, a
business enterprise in relational to other business bin similar industries (of
course the concept used in small scale business can also apply with added detail
to bigger enterprise) .In the manufacturing sector, a plant with 180 employees

can still be considered to be small in relation for example to a mining company

with over 10,000 workers.
May- ifeoma Mwoye (1994) defined business profit oriented economic
or commercial activities carried out by an individual or a group of person as a
means of livelihood. It includes trade, industrial operation profession,
employment and related areas. The central Bank of Nigeria defines a small scale
industry as one whose for move does not exceed #500,000 in one year.
A small industry was identified in 1972 as a production outfit with
machinery and equipment valued at #50,000 national. Development plan, it was
raised to #150,000.
The CBN USE THE NIGERIA BANK FOR COMMERCAL and
industry, NBCI-SCALE industry NBCI, for reasons of inflation in 1983,
recollmended#750.00 as the ceiling for identifying a small scale industry, The
number of employees among plan various with nature of the enterprise. Hence ,
can be regarded as small in relation to other plants in the industrial sector.
The CDM define small scale - industry in June 1995 as a manifacturing,
processing or service industry involved in a factory or production type of
operation employing up to 50 full time workers. Investment in plant and
machinery (but exciting land buildings) shall not exceed #500.00 a national
workshop on small and medium scale enterprise at top bandager in 1985 uphold
his definition the above information was gotten from the published work done
by C.E.O Anuka Camera.

10

And also sule E.L.K. (1986) in his book stated that in the third national
development plan hand book 10 person or whose investment in machinery than
equipment do not exceed #600,000,00 (six hundred thousand naira)
2.4

CHARACTERISTICS OF SMALL SCALE BUSINESS

C.E.O Anuka (2004) characterized small scale business as the following.

1. Ownership and management are usually rested in the sure individual.
2. The area of operation is localized and work and owner are concentrated in
the local community.
3. The small firm control small share of the market.
4. Capital and policy decisions are made available by the owner
5. The owner has rigid control in all decision making situation.
Sale E.L.K (1986) also contributes to small scale business as follows.
1.
2.
3.
4.
5.
6.
7.

Capital supplied by ownership groups.

In term if industrial standard they are relatively small.
They operate within their local area.
Due to lack of truth management of such business is highly personalized.
Its financial dependent id on internals source to carry out its project.
Raw materials are usually supplied by domestic means.
Formal and management education may not be required and some other
could be found out with further research work.

2.5

ROLES OF SMALL SCALE BUSINESS IN THE SOUND

ECONOMIC DEVELOPMENT OF A NATION
The role of small scale business a society cannot be over emphasized

numerous survey came out have revealed that over 10% of about force available

11

in Nigeria are employed by the small scale sector role of small scale
business is vital they help in no small measure to climate the negative society
consequence of population congestion in the urban area.
This has created room for the development of ingenious entrepreneurship
due to low financial risk involved compared to large scale business. It is a
possible mean for the mobilization of savings and encourages individuals to put
their resources together toward business venture, small scale business enhance
opportunity for self reliance goal of national and her citizenry. They are the
taproot for the survival of large scale business concentrate on the area where
they are more effective. They serve as mediator to large scale business due to
interdependence role played by small- scale business units.
According to Adeeko as at (2001) The roles of small scale business
provision of goods and service the society

needs and supply them at the

appropriate price and time faire trading practices they provide employment to
the society paying tax as when due.
To provide investment opportunity to the member of the society by
allowing them to buy shares.

2.6

PROBLEM FACING SMALL SCALE BUSINESS IN NIGERIA

Sale (1986). Noted some of the numerous problem or obstacle hindering

the smooth growth of this small scale sector

12

Review has revealed that low availability of capital due to high cost of
security fund (high rate for interest paid on borrowing comparable large firms).
The inflation rising rate, sometimes government reaction on credit guideline is
light against the small scale industries.
The small scale business some time find it difficult on low to cope with
initial establishment in firms of purchasing equipment transportation problems,
at the same time required to pay tax as through nobody sympathized with them,
lack of economic and business information, lack of basic data for proper records
and statistical information has also pose difficulty upon the small scale
business sector.
Improper decision making due to unequipped management personnel and
so misused of the scare available resource is the end result of the interacted
profit oriented motive of small scale sector.
The problem managerial system

2.7

Poor managerial system

High rate of business failure.
Low productivity.
Under capitalization.
Shortage skilled manpower.
Indiscipline.
POSSIBLE WAYS TO REDUCE OR ERADICATE THOSE
PROBLEMS
In all problems there must be a solution let alone the problem of small

scale business off course since it has discovered that small scale business

13

actually is of great contribution to the growth of a nation in 2.5, that is why the
problem of small scale business needs to be solved.
Anni (1999) POINTED OUT THE FOLLING WAYS BY WHICH THE
PROBLEM OF small scale business can be reducing in Nigeria.
Provision of local finance through it particularly the NDB [Nigeria
Industries Development Banks].
Provision of infrastructural facilities by setting up industrial states and
area to reduce overhead costs on industrialists. .
To direct the bank through its monetary policy to great specified
minimum credit to SMES.
To facilitate and find institutions like the centre for industrial research
and development.
The government and individual had not art any time been silent over
finding solution to the problem facing the small scale business sectors.
2.8

GOVERNMENT PARTICIPATION IN THE PROMOTION OF

THE SMALL SCALE BUSINESS
Sule 1980 started how government promotes small scale business.
The government of any nation is always vigilant over the role played by

small scale business in one ways or the other.

Over the time government have tried in different methods assisting small
scale business toward the growth and development of small scale business.
In the early years of operation the small scale business are always
exampled from the payment of tax.

14

Management participation plan for the growth and survival of small scale
business sectors.
Granting of equity to both the affairs of small scale business and strict
adherence to management policies is part of government participation.
Government regulation of business in the political and government
impacts legal obligation on business through legislation under the control of
administration law, facilities the exploitation of raw material in Nigeria for
British industries. The development of indigenization of the ownership and
control of industries, the development of indigenous technology and the
development of the industrial sectors.
This chapter is concluded awaiting further research as to the effectiveness
of all the above mea tined in fended solution to the problems facing small scale
business.

15

CHAPTER THREE
3.0

RESEARCH METHODOLOGY

3.1

INTRODUCTION
This chapter deals with the sources, methods, and procedures

adopted

for the purpose of collecting the data for this research work.
It deals with the problems encounter in gathering the research material for
the project work. Other includes research design of study, sample size and
sampling technique research instruments, method of gathering data e t c.
Some of the research questions are listed below.
In order to achieve these objectives the following are the area were
emphasis would be laid on.
RESEARCH DESIGN OF THE STUDY
The research design of study of this project work is the description
survey. There will be vivid description information gathered through the
questionnaires.
3.2

POPULATION OF STUDY
This is a group identified to be studied for the purpose of making some

references.
In this case the population of this study comprises of all employees in a
small-scale business in SAPELE.

16

3.3

SAMPLE OF THE STUDY/SAMPLING TECHNIQUES

Sample refers to a small portion or a population deliberately selected for

the study. A sample size of small scale business was selected for the study due
to the nature of this research work, a sample random sampling techniques was
considered suitable.
Sample should be adequately described and comprehensive of the
research subject.
Therefore the sample size of the research comprises of randomly selected
persons and they were 20 in number.
As for the sampling techniques, the sample randomly sampling method
was used and all the 20 was administered questionnaires randomly and
collection of the questionnaires and the distribution was done by hand
3.4

SOURCES OF DATA
In this case the source of data of this work is base on primary and

secondary sources. The primary source is made up of questionnaires item.

a) PRIMARY DATA COLLECTION
1) Questionnaire: This question was the major source of primary data
which provides information base for this research work.
The question was directed to both bankers and customers alike. The
questionnaire comprised multiple choice questions requiring yes or no
response although some open ended questions were included which
require yes or no respondent to express their personal opinions.

17

The first part of the questionnaires was designed for both bankers and
customers while the final part for bank only because of the technical
nature. The research administered with questionnaire through personal
contact with respondent. 50 copies of the questionnaires were printed and
administered to some selected business. Small scale business in SAPELE
and it is also the opinion of the researcher that sample over the area of
government policies on small scale business. The questionnaire questions
were simple questions and statement. This requires them to tick the
appropriate places
2) Oral interview: personal interview was conducted which was
supplement by interview guides. This form of information gathered make
the researcher to take information, which could not be obtained from the
questionnaire.
b) SECONDARY DATA COLLECTION
The major secondary source of information used by the questionnaire was
annual report obtained from a small scale business at SAPELE. Other source of
secondary data explored by the researchers are news papers, text books
journals, project of others researchers on similar project and other and other
relevant printed materials.
RESEARCH INSRUMENTS
The instrument used in this study was questionnaire.
The questionnaire contains both open and close questions.

18

 ADMINISTRATION OF INSTRUMENT
In the research work, the questionnaire method was used to gather data.
The questionnaires were personally distributed to the workers, economics
and state holders by hand.
This was adopted in other to get a wilder view of the respondents.
DATA ANALYSIS TECHNIQUE
Information was gathered analyzed and summarized to enable the
researchers address the earlier stated problems
The summarized information was interpreted and conclusion draw and
recommendation made at the end. The questionnaires questions were divided
into two parts.
The first part was designed for workers only, the questionnaire contain 12
questions while question to five were directed at customers and workers.
Question nine to twelve were directed to the company only.
The information collected was analyzed using simple percentage method.
This method was used to determine the authenticity of the primary data
details of analysis as it shown in the chapter.

19

CHAPTER FOUR
4.0

DATA PREPERATION ANALYSIS INTERPRETATION

4.1

INTRODUCTION
The chapter provides information from the data collected on the

characteristics of the sample and the analysis of the research questions. The
questionnaire was distributed amongst the proprietor or managers of some
selected small scale business in SAPELE industries. The type of business
covered manufacturing, whole or retailer business and services industries. Each
copy of questionnaires was clearly written instruction which makes the
respondent complete them without any difficulty and their responses were
guaranteed strict confidence.
CHARACTERISTICS OF SAMPLES
4.1 Age Distribution
Age

Response Number
20-30
10
31-40
20
41-50
10
51-above
10
total
50
Source: researchers field survey

%
20
40
20
20
100

The table above shows the age distribution of the respondent ,and 10
respondents 20%are between the age range of 20-30,20 respondent representing
40% are between the age range of 31-40,10respondents representing 20% are
between the age of 41-50 and 10 respondent representing 2000% are 51 years
and above.

20

Therefore from the table, it was clear that majority the respondent was
between the ages of 40 years above.
4.2 Distributions by Sex
Sex
Response number
Male
30
Female
20
Total
50
Source: researcher field survey

Percentage
60
40
100

The table shows the sex distribution of the respondent .male respondent were 30
while the female respondent were 20,60% and 40% respondent representing
male and female respondent respectively.
4.3 Marital Status of Respondents
Marital status
Responses Number
Single
40
Married
10
Divorced
Widow
Total
50
Source researchers field survey

%
80
20
100

The table shows the distribution o f that marital statue of respondent. 40

respondents representing 80% are single and 10 respondent representing 20%
are married
This shows that majority of the respondent are single.
4.4

Educational Qualifications of Respondents.

Educational

Response Number

21

qualification
Apprenticeship
5
FSLC
10
WASE/GCE
10
ND/HSC/NCE
10
HND/BSC
12
HSE and above
3
Total
50
Source: researchers field survey

10
20
20
20
24
6
100

The table shows the academic qualification of the respondents. Respondent

representing 10% holds apprenticeship certificate and 10 respondent
representing 20% hold first school learning certificate while 10 respondent
represent 20% have WASE /GCE again 10 respondent representing 20 that have
ND/HS/NCE while 12 respondent representing 24% that holds HND/NCE
finally 3 respondent representing 6% hold MSC and above .

4.5 Number of Years in Business

Years
Response Number
1-5years
7
6-10years
20
11-15years
15
16 and above
8
total
50
Source: researchers field survey

%
14
40
30
16
100

The table shows the distribution of numbers of the respondent ,7 representing

14% respondent have been in business between one to five years and 20

22

respondent represent 40% of 6-10 years and 15 respondent represent 11-15

years and 8 respondent representing 16 and above year respectively.
4.6

Types of Business

Types of business
Response Number
Manufacturing
14
Wholesale /retail
6
Service
30
total
50
Source: researchers field survey

%
28
12
60
100

The table show the type of business of the respondent representing 28% engage
in manufacturing business 6 respondent representing 175 engage in
wholesale/retail business and 30 respondent representing 60% engage in service
business.
4.3

Analyses of Responses
Instruction: please tick your choice as applicable

SA-strongly agreed
A -agreed
U undecided
D- Disagreed
SD strongly disagreed
Statement one: small scale industries contribute to the industrial development of
the country

23

Table 4.1

Importance of Small Scale Business in Nigeria

Response
Number
Strongly agreed
15
Agreed
30
Undecided
Disagreed
5
Strongly disagreed
_
MSC and above
3
Source; researchers field survey

%
30
60
10
6

The table above shows the distribution of the respondent. There are 15
respondent representing 30% that strongly agreed and 5 respondent representing
105 that disagreed respectively .while there is no undecided and strongly
disagreed
Statement two: government policies on small scale business encourage its
development
Table 4.8

The Importance of Government Policies on Small Scale

Business
Response
Strongly agreed
20
Agreed
20
Undecided
_
Disagreed
10
Strongly disagreed
_
total
50
Source: researcher field survey

Number

%
40
40
_
20
_
100

The table above shows the distribution of the respondent to the above statement.
There are 20 respondent representing 40% respondent out with response each

24

strongly agreed and disagreed respectively 10 respondent represent 20% that

agreed with the statement and this are no strongly disagreed undecided.
Statement three the government is playing adequate role in financing and
promoting small scale enterprises

4.9

Role Played By Government in Financing and Promoting Small Scale

Business

Response
Strongly agreed
15
Agreed
25
Undecided
Strongly disagreed
Disagreed
10
Total
50
Source: researchers field survey

Number

%
30
50
20
100

The table shows the distribution of the respondent to the statement. there are 15
respondent is representing 30% that strongly agreed and 25 respondent
representing 50% that agreed which to respondent representing 20% that
disagreed , no undecided and strongly disagreed
Statement four: the credit facilities available to small scale enterprises are
accessible and assisting.
Response
Strongly agreed
Agreed
Undecided

Number
15
30
-

%
30
60
-

25

Disagreed
5
10
Strongly disagreed
total
50
100
The table above shows the distribution of the respondent in the statement. there
are 15 respondent representing 30th that strongly agreed and 30 respondent
representing 60% agreed and 5 respondent representing 10% disagreed with this
statement while undecided and strongly disagreed were not given
Statement five: newfound were able to provide loan for small scale enterprises
when and where need
Table 4.11 Assistance Rendered To Small Scale Enterprises
Response
Strongly agreed
10
Agreed
25
Undecided
Disagreed
9
Strongly disagreed
6
Total
50
Source: researchers field survey

Number

%
20
50
18
12
100

The table above shows the distribution of the respondent 10 respondent

representing 20th

that strongly that strongly agreed and 25 respondent

representing 50% that agreed 9 respondent representing 18% that disagreed ,

while 6 respondent representing 12% that strongly disagreed ,there is undecided
statement.
Statement six: the policies and programme helped to improve t5he activities of
small scale business

26

Response
Strongly agreed
20
Agreed
20
Undecided
Disagreed
10
Strongly disagreed
Total
50
Source: researchers field survey

Number

%
40
40
20
100

The table above shows the distribution of the respondents

There are 20 respondent representing 40% that strongly agreed and
agreed and 10 respondent representing 20% that disagreed with the statement
,while none undecided and strongly disagreed .
Statement seven: government initiate entrepreneurship development programs
(ESDP)
Response
Strongly agreed
14
agreed
23
Undecided
Disagreed
10
Strongly disagreed
3
total
50
Sources researchers field survey

Number

%
28
46
20
6
100

Table above shows the distribution of the respondents there are 14

respondent representing 28% that strongly agreed , 23 respondent representing
46% that agreed and 10 respondent represent 20% that disagreed while 3
respondent representing 6% that strongly disagreed ,no undecided
Statement eight: entrepreneurship skill development programs aid to the growth
and development of small scale business.

27

Table 4.4

Entrepreneurship Skill Development Programme

Response
Number
Strongly agreed
15
Agreed
30
Undecided
Disagreed
5
Strongly disagreed
total
50
Sources: researchers field survey

%
30
60
10
100

The table above shows the distribution of the respondent

There are 15 respondent representing 30% that strongly agreed ,30
respondent representing 60% that agreed and 5 respondent representing 10%
that disagreed while none neither strongly disagreed nor undecided
Statement nine: government initiates the agro-based industrial policies to aid the
growth and development of small scale.

Table 4.15 Importance of Government Programme and Policies.

Response
Strongly agreed
17
Agreed
29
Undecided
Disagreed
9
Strongly disagreed
total
50
Source: research fold surveys

Number

%
34
58
18
100

28

The table above show the distribution of the respondent seventeen 17]
respondent representing 34% that strongly agreed and respondents, representing
8% that disagreed. There is no undecided and strongly disagreed.
Statement ten; business benefit from the small scale industries credit
scheme provided by the government.
Table 4.16 The benefit of small scale industrial credit scheme.
Response
Number
%
Strongly agreed
15
30
Agreed
25
50
Undecided
Disagreed
10
20
Strongly disagreed
total
50
100
The table above shows the distribution of the respondents fifteen [15]
respondents representing 30% that strongly agreed, 25 respondents representing
20% that disagreed. There is no undecided and strongly disagreed. Industries
provide loans for small scale business to impacts their activities.
Table 4.17 Help Rendered By Nigeria Bank for Commerce and Industries.
Responses
Strongly agreed
Agreed
Undecided
Disagreed
Strongly disagreed
Total

Number
20
27
3
50

%
40
54
6
100

The table above shows the distribution of the respondents there are 20
respondents representing 40% that strongly agreed, 27 respondents representing

29

54% that agreed and # respondents representing 6% that disagreed. There is no

undecided and strongly disagreed.
4.2

DISCUSSION OF FINDINGS.
The first research statement try to explain the various categories of

workers in the unfiled services in the small scale business based on their grade
and their qualification. The outcome shows that there is a larger number of
senior staff compared to the junior staff in the organization and most of their
staff are HND/B SC holders.
The statement one show that that 60% OF THE RESPONDENTS AGREED
THAT

SMALL

SCALE

INDUSTRIES

CONTRIBUTES

TO

THE

INDUSTRIAL DEVELOPMENT OF THE COUNTRIES.10% of them

disagreed,there is no undecided and strongly disagreed.
Again the statement three tries to explain that majority of the respondent agreed
that government is placing adequate role in financing and promoting small scale
enterprise. While respondents strongly agreed. Disagreed respectively there was
no undecided and strongly disagreed.
Finally, the statement shows that 58% of the respondents agreed that
government initiate the agro based industrial policies to aid the growth and
development of small scale business, 34% of them strongly agreed while 8% of
them disagreed. This shows that the researchers found out that there is impact of
government policies on small scale business.

30

CHAPTER FIVE
5.0

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1

SUMMARY
This chapter discusses the findings, conclusion and makes effort to

outline some recommendation and areas for further studies.

The research study, the fact that small-scale enterprises contributed to the
economic development of Nigeria is not in doubt and that the government of
Nigeria is not in doubt and that the government is playing adequate role in
financing and promoting them. Toward the end, it was discovered that the
various government policies or programmes and there is prospect for the smallscale business in the present economic dispensation.
According to table 4.7, the statements on one was clear that 60% of the
respondents agreed that small scale industries contribute to the industrial
development of country, 30% of them strongly agreed that it brings about
industrial development while 10% disagreed.
This shows that majority of them are in favour of small-scale business.
More so the table 4.8 statement made mention of government policies put in
place to encourage the small-scale business. In the table, it shows that 40% of
the respondents agreed that government policies and programmers on smallscale business bring about development of the country: some still disagree in the
sense that lack of proper implementation of various government policies on
small-scale enterprises affect its development and hinders the industrial

31

development objective as well as provision of employment opportunities among

other objectives.
5.2

CONCLUSION
Over the years, government has recognized the vital role played by small-

scale enterprise in ensuring meaningful and sustainable economic growth.

Towards this end a number of policies and programs have been introduced to
assist the growth of this class of enterprises.
Small-scale businesses posses a great potentiality to advance the national
goal of economic self-enhance through increase usage of local resource and
indigenous technology.
Constraint on the capacity of small-scale enterprise to melt the above
objective including low level of technical financial and management skills,
credit to finance working capital and demand efficiencies.
5.3

RECOMMENDATION
The government should evolve a new financing policies and proper

implementation of existing one. This may be inform of business loan guarantee

scheme similar to what obtained in developed countries like U.S.A, U.K etc.
such a scheme will be less effective means of increasing bank lending to small
scale firm with viable project.
Also government financial institution and programme for small-scale
enterprise such as Nigeria industrial development bank (NIDS), national
directorate of employment (NDE) and Nigeria agricultural and co-operation

32

bank (NACB) etc. be renationalized an reorganized to strengthen their

performance.
More so a national form should be recognized for discussion on the
problems of small-scale enterprises and how it could be solved. Likewise
government should make it mandatory for every student in tertiary institution to
take courses in entrepreneurship development program (EDP). Still it should be
possible to design imaginable programme using the national youth service corp.
scheme to disseminate relatively simple skills to small-scale industries.
However, it would appear that a more promising approach would be adopt more
generalized policies that affect the demand, supply conditions facing small-scale
industries.
Lastly, wealthy individuals and corporate bodies should set up trust and
foundation that could still support the effort of the government in an effort to
increase small-scale business activities.
5.4

SUGGESTED AREAS FOR FURTHER STUDIES

The researcher is suggesting that to enhance positive impact of

government policies on small-scale industries.

There will be need for further research to be conducted on the following
topics:
1. Efficient and effective management of small-scale industries in Nigeria.
2. The impact of unavailability of capital on the improvement of small-scale
industries.
3. Marketing strategies and its effect on management of small-scale business
in Nigeria.

33

4. Application of marketing concept in small-scale business in Nigeria.

34

REFERENCES
Anuku, C.E.O., (2000). Foundation in business administration, boji-boji,
Agbor, Anuku Clan Communications.
Adeeko, et al., (2001). Exams focus commerce for WASCE and SSCE, Ibadan
University press plc.
Bebemone, O.E., (2007). Small business management nature, principles and
application: Warri: Onos graphics
May Ifeoma Nwoye, (1994). Small business enterprise (how to start and
succeed/Benin City, Benin social science series for Africa.
Sule E.I.K., (1986). Central Bank of Nigeria; Economic and financial Review;
small scale industries in Nigeria concept Appraisal of government
policies and suggestion solutions to identified problems. Vol 24, No2
December.

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