APPRAISING THE IMPORTANCE OF SMALL-SCALE INDUSTRY IN RURAL COMMUNITY DEVELOPMENT – A STUDY OF SELECTED SMALL BUSINESSES IN ANAMBRA STATE

ABSTRACT                

This research project appraising the importance of small-scale industry in Rural Community Development-A Study of Selected Small Business in Anambra State. The research was aimed at investigating the importance of small-scale industries as well as the problems and prospects of small-scale industries in a locality.  Suggested solutions to the problems facing small scale businesses in Nigeria were made. The sample used for the study is three small-scale industries which was statistically determined.  The research instrument design was questionnaires which formed the sources of primary data, while materials from libraries and other research units served as sources for secondary data.  The method of analysis was the use of table, figures and percentage. The test statistic for the hypothesis was chi-square test of independence and homogeneity. The result of the analysis showed that small-scale industry faces lot of problems.  The study also revealed that proper planning, proper recording, proper accountability can be used to solve some of the problems faced by the small scale businesses. From the analysis and findings, the recommendation that the establishment of small-scale industries should be evolved as a strategy for effective & sustained development of the nation was also drawn.  

TABLE OF CONTENTS                                   vi

Title page: …   …     …     …     …     …     …     …     … i

Certification: …        …     …     …     …     …     …     … ii

Dedication: …  …     …     …     …     …     …     …     … iii

Acknowledgement: …     …     …     …     …     …     … iv

Abstract: …      …     …     …     …     …     …     …     … v

Table of content: … …     …     …     …     …     …     … vi

CHAPTER ONE: INTRODUCTION

1.1    Background of the study:               …      …      …      …      1

1.2    Statement of problem: …      …      …      …      …      …       3

1.3    Objective of the study:          …      …      …      …       …      …       4

1.4    Importance of the study: …  …       …       …       …       …       5

1.5    Research Question:              …       …       …       …       …       6

1.6    Hypothesis:        …       …       …       …       …       …       …       8      

1.7    Scope of the study:     …       …       …       …       …       …       9

1.8    Limitation of the study:         …       …       …       …       …       …       10

          References:        …       …       …       …       …       …       …       11

CHAPTER TWO:                  LITERATURE REVIEW

2.0    Introduction:       …       …       …       …       …       …       …       12

2.1    Definition of Small Scale Business: …   …       …       …       13

2.2    Features of Small Scale Business:        …       …       …       …       25

2.3    The Role of Small Scale Business in Rural

Economic Development:      …       …       …       …       …       27

2.4    Personal Characteristics of Successful Small

          Business Owners:       …       …       …       …       …       …       38

2.5    Types of Small Business in Rural Area in Nigeria: …       48

2.6    Advantages of Small Business:    …       …       …       …       54

2.7    Disadvantages of Small Business:        …       …       …       …       56

2.8    Problems and Causes of Small Business

          Failure in Nigeria:        …       …       …       …       …       …       58

          References:       …       …       …       …       …       …       …       68

CHAPTER THREE

3.0    Research Methodology:       …       …       …       …       …       72

3.1    The population Sample:       …       …       …       …       …       72

3.2    Sources of Data:         …       …       …       …       …       …       …       73

3.2.1 Primary Source: …       …       …       …       …       …       …       73

3.2.2 Secondary source:      …       …       …       …       …       …       74

3.3    Instrument and Procedure:  …       …       …       …       …       74

3.3.1 Questionnaire Design:         …       …       …       …       …       …       75

3.4    Questionnaire Collection:     …       …       …       …       …       75

3.5    Data Analysis Instrument:    …       …       …       …       …       76

          References:       …       …       …       …       …       …       …       77

CHAPTER FOUR:    DATA PRESENTATION AND ANALYSIS

4.1   Data Presentation and Interpretation:     …     …     78

4.2   Data Analysis: …     …     …     …     …     …     …     83

4.2.1 Test of Hypothesis:        …     …     …     …     …     …     83

CHAPTER FIVE:      SUMMARY OF FINDINGS,

          RECOMMENDATION AND CONCLUSION

5.1   Summary of Findings:    …     …     …     …     …     87

5.2   Recommendations: …     …     …     …     …     …     89

5.3   Conclusion:     …     …     …     …     …     …     …     91

5.4   Area of Further Studies:  …     …     …     …     …     92

        Bibliography:   …     …     …     …     …     …     …     93

        Appendix:        …     …     …     …     …     …     …     97

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Before, the various governments of this country – Local, State and Federal had directed attention on the establishment of gigantic industries in the urban centres of the country. This they believed, though erroneously, that large scale industry is the only yardstick of measuring the economic power of any country. This crave for large scale industry was dominant during the oil boom (Isemin, 1988:19).  This resulted in the utter neglect of the nation’s rural areas which contain about 85% of the nation’s total population.  However, with dwindling of the oil money coupled with the oil crisis in the mid 80s, there was a sudden awareness on the part of the Federal Government that rural development should be the centre piece for industrial transformation (Omorodion,1989:8).

          In realization of this, and in pursuance of its attainment, the Nigerian Government created various agencies such as the directorate of food, roads and rural infrastructures (DFRRI) to work in partnership with the rural communities towards the provision of amenities such as rural roads,

Pipe-born water and electricity which are essential for setting up small scale industry.  In addition, the National Directorate of Employment was created to train and develop school leavers’ skills for independence.  The directorate also provides financial and technical assistance to individuals wishing to start business of their own.  Also they provide credit/loan scheme to help provide financial assistance to individuals to set-up small-scale business.

In spite all these efforts by the government, small scale businesses are still faced with lot of problems. Under capitalization creates the problem of not buying merchandise independently at best price, in adequate quality and qualities. Poor business accountability makes it difficulty to assess the operating results of the business and at times starves the firms of its liquid resources. Some of the Government polices and Regulations brings distortions in the structure and management of these businesses.  Inadequate and poor maintenance of infrastructural facilities, inadequate capital/funding, lack of managerial skill and project counseling, misappropriation of funds by government officials, to mention but a few, it has helped to increase the problems small scale businesses in  Nigerian rural communities (Chukwujekwu, 1987:3) .

1.2    STATEMENT OF PROBLEM