THE ROLE OF NATIONAL DIRECTORATE OF EMPLOYMENT AND SMALL SCALE ENTERPRISES IN REDUCING UNEMPLOYMENT IN THE ECONOMY

ABSTRACT

          The purpose of this study was to investigate the role of National Directorate of Employment and Small Scale Enterprises in reducing unemployment in the economy. Emphasis was placed on the role of government agencies like the National Directorate of Employment and related policies in curbing the menace of unemployment in the economy. The methodological approach adopted was the survey method. The literature reviewed the works done by eminent scholars, professionals, government gazette on small scale enterprises, unemployment and other management practitioners. Secondary and primary data were used for this study. The primary data were questionnaires administered and oral interview conducted on the target population. The data collected were tabulated and analyzed using chi-square statistical tools. The findings of this research show that, The activities of National Directorate of Employment contribute to the reduction of unemployment rate in the economy, Government agencies and policies in Nigeria provide a reasonable solution, to an extent in tackling the unemployment problem, The existence of Small Scale Enterprises in no mean measure, boast employment generation in Nigeria, There should be a re-appraisal of government aids to Small Scale Enterprises and maintenance of agencies set up to support the programmes, There should be motivation and incentives to Small Scale Entrepreneurs and government agencies to boast the fight against unemployment, There should be a proper maintenance and establishment of a data bank on unemployment and vacancies in the country with a view of acting as a clearing house to link job seekers with vacancies in collaboration with other government and non government agencies.  

TABLE OF CONTENTS

Title page                                 –       –       –       –       –       i

Certification                             –       –       –       –       –       ii

Approval Page                          –       –       –       –       –       iii

Dedication                               –       –       –       –       –       iv

Acknowledgment                     –       –       –       –       –       v

Abstract                                   –       –       –       –       –       vi

Table of Contents                     –       –       –       –       –       vii

List of Tables                           –       –       –       –       –       x

CHAPTER ONE

1.1   Introduction                             –       –       –       –       1

1.2   Statement of the Problem        –       –       –       –       4

1.3   Objectives of the Study            –       –       –       –       6

1.4   Research Questions                 –       –       –       –       7

1.5   Research Hypotheses               –       –       –       –       7

1.6   Significance of the Study         –       –       –       –       8

1.7   Scope of the Study                   –       –       –       –       10

1.8   Limitations of Study                –       –       –       –       11

References                              

CHAPTER TWO

LITERATURE REVIEW

2.1   Small Business in Nigeria: An Overview –       –       14

2.2   Definition of Small Scale Business          –       –       17

• Historical Development and Orientation of Small

Scale Industry in Nigeria          –       –       –       –       21

2.4   What Is Unemployment           –       –       –       –       24

2.5   Unemployment in Nigeria                –       –       –       –       26

2.6   Types of Unemployment          –       –       –       –       32

• Government Policies to Reduce Unemployment –    37

2.8   Effects of High Rate of Unemployment             –       –       44

2.9   The National Directorate of Employment (NDE) As

a Guide Towards Enhancing Small Scale Industries

in Nigeria                                         –       –       –       –       45

2.9.1        Mission and Vision of NDE      –       –       –       –       46

2.9.2        Service Delivery                       –       –       –       –       48

2.9.3        Obligations/Expectations                –       –       –       –       48

• Existing Limitations                 –       –       –       –       49

2.9.5 NDE Collaboration with Stakeholders    –       –       50

        References      

CHAPTER THREE

RESEARCH METHODOLOGY

3.1   Introduction                             –       –       –       –       58

• Research Design                      –       –       –       –       59

3.3   Sampling Procedure                 –       –       –       –       60

3.4   Sampling Technique                –       –       –       –       60

3.5   Validity & Reliability Test of Instrument –       –       62

3.6   Operational Measure               –       –       –       –       63

3.7   Data Analysis Techniques        –       –       –       –       64

References

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1   Introduction                             –       –       –       –       66

4.2   Data Analysis                           –       –       –       –       66

4.3   Test of Hypotheses                           –       –       –       –       77

4.3.1 Test of Null hypotheses           –       –       –       –       78

References                      

CHAPTER FIVE

DISCUSSION, CONCLUSION AND RECOMMENDATION

5.1   Introduction                             –       –       –       –       87

5.2   Discussion of Research Findings     –       –       –       87

5.3   Conclusion                              –       –       –       –       88

5.4   Recommendations                   –       –       –       –       89

5.5   Suggestions for Further Research    –       –       –       90

Bibliography

Appendix

LIST OF TABLES

Table 4.2.1:      Response Return Rate and Distribution

(Demographic Data of Respondent)  –       66

Table 4.2.2:      Distribution of Questionnaire among Six        

Business Types and Response Rate –       68

Table 4.2.3:      Motives for Establishing Small Scale

Business.                         –       –       –       –       69

Table 4.2:         Source of Finance for Small Scale  

Enterprises             –       –       –       –       70

Table 4.2.5:      Contribution of Small National Directorate

of Employment toward the Reduction

of Unemployment in the Economy.          –       72

Table 4.2.6:      The General Assessment of the Government

Policies toward the Reduction of

Unemployment in the Economy.      –       73

Table 4.2.7:      Contribution of Government Incentives

to Small Scale Enterprises toward

the Reduction Of Unemployment

in the Economy.              –       –       –       74

Table 4.2.8:      Contributions of Small Scale Enterprise

to Employment Generation      –       –       75

Table 4.2.9:      Contribution of Small Scale Enterprises

Generate Revenue            –       –       –       76

Table 4.2.10:    Contribution of Small Scale Enterprises

in Consonance with Government Policies        76

Table 4.2.11:    Contribution of Government Policies

in Tackling the Problem of Unemployment

in the Economy       –       –       –       –       –       77

Table 4.3.1:      Calculation of Chi-Square for Hypothesis

One                          –       –       –       –       79

Table 4.3.2:      Calculation of Chi-Square for Hypothesis

Two (H₀₂)                  –       –       –       –       81

Table 4.3.3:      Calculation of Chi-Square for Hypothesis

Three (Ho₃).              –       –       –       –       83

Table 4.3.4:      Calculation of Chi-Square for Hypothesis

Four = H₀₄                –       –       –       –       84

CHAPTER ONE

1.1   INTRODUCTION

        The population of every economy is divided into two categories, the economically active and the economically inactive. The economically active population (labor force) or working population refers to the population that is willing and able to work; including those actively engaged in the production of goods and services (employed) and those who are unemployed. Whereas, unemployed refers to people who are willing and capable to work but are unable to secure suitable and paid jobs.

        The next category, the economically inactive population refers to people who are neither working nor looking for jobs. Examples include: house wives, full time students, and invalids, those below the legal age for work and retired persons.  The unemployment rate is expressed as a percentage of the total number of persons available for employment at any given time. Unemployment is a problem that each society faces, and each society must find a way of reducing it to the nearest minimum. Thus the involvement of government in setting up employment agencies to aid and enhance the operation of small scale entrepreneurs in reducing the rate of unemployment.

        A business whether big or small, simple or complex, private or public is created to provide competitive prices. Small scale business is also seen as one which is owned, managed, controlled by one or two persons, it is family influenced in decision making, has an undifferentiated organizational structure, has relatively small share of the market and employ les than 50 people. Big businesses can hardly survive without the Small Scale Enterprises as they give the important links between the big business and the consumers.  

        Before the advent of Small Scale Business enterprises Nigerian economy from 1970-1979 was grossly over dependent on crude oil. The oil boom of the 1970’s offered an opportunity for true national economic development. Despite the oil boom, there was massive corruption, deficient policies, poor policy implementation, favoritism and total lack of sensitivity on the part of government.

The oil boom could not alleviate poverty or reduce unemployment especially graduate unemployment, due to the mismanagement that engulfed the resources which would have been used to tackle the menace of unemployment. But this research work will show the role of Small Scale Enterprises and government agencies in reducing unemployment in the economy. There were genuine attempts by the federal government to make sure that Nigerian’s play active and important role in the development of the economy, thus, special attention was paid into the development of Small Scale Enterprises in the 1970-74 national development plan. This was in recognition of their role sin the development of the economy. In an attempt to fight the unemployment crises-unemployment, under employment, law wage employment and outright social exclusion which have resulted in human resources wastage, several attempts have been made by the government, which to a large extent have not yielded the much expected results. Among these includes the Green Revolution, Structural Adjustment Programme (SAP) the National Directorate of Employment, which was established in 1986 and launched in 1987 and the current seven point agenda born out of the vision 20-2020 of the present administration.

1.2   STATEMENT OF THE PROBLEM    

        Unemployment is one of the development problems that face every developing economy in the 21^st century. International statistics shows that industrial and service workers living in developing region accounts for about two-third of the unemployed population.

        Small Scale Enterprises and other governmental agencies are expected in every economy, community or society to play vital role towards the reduction of unemployment rate, among the roles include: