THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES IN UNEMPLOYMENT REDUCTION IN NIGERIA

THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES IN UNEMPLOYMENT REDUCTION IN NIGERIA

CHAPTER ONE

1.0     Introduction

          An appraisal of small scale industries in employment creation in Nigeria: A study of Onitsha metropolis.

1.1     Background of the Study

          Many scholars have written widely on small scale industries and its potency to generate employment, thus, underscoring the quintessence, significance and relevance of this sub-sector in the development of any given economy. The experience of developed economies in relation to the roles played by small scale industries buttresses the fact that the importance of entrepreneurship cannot be over emphasized especially among the developing countries. In order to highlight its significance in relation to the growth and development of a given economy, small scale industries have been variously referred to as a “source of employment generation”. This is because small scale industrial activities have been found to be capable of making positive impacts on the economy of a nation and the quality of life of the people (Adejumo 2000). Studies have established its positive relationship with stimulation of economic growth; employment generation; and empowerment of the disadvantaged segments of the population, which include women and the poor (Olurermi and Gbenga, 2011; Thomas and Muller,2000; Reynolds, 1987).

Nigeria as a country has numerous business and investment potentials due to the abundant, vibrant and dynamic human and natural resources it possesses. Tapping these recourses requires the ability to indentify potentially useful and economically viable fields of endeavors. Nigerians have made their marks in diverse fields such as science, technology, academics, business and entertainment.

Thus, small scale industries activities and innovative ingenuity in Nigeria have developed enterprises in the following areas, agricultural/agro-allied activities where there are foodstuffs, restaurants, fast food vending etc. in the area of information and telecom business, there are manufacturing and repairs of GSM accessories and the printing and setting of recharge cards. In hospitality and tourism business, there are hotels, accommodation, resorts centers, films and home video production; in oil and gas business, there are construction and maintenance of pipelines, drilling, refining bye products. In the area of environment and waste management business, there is refuse collection/disposal, recycle plant and drainage/sewage construction job. In the area of financial banking services, there are banking, insurance and stock trading. In engineering and fabrication work, there are machines and tools fabrications there is also the building and construction, where there are plan and design services and material sourcing (Agbeze, 2012)

THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES IN UNEMPLOYMENT REDUCTION IN NIGERIA