The Impact Of Small-Scale Industries In Rural Areas (A Case Study Of Umunwarahu Village In Obodoukwu, Ideato North Local Government Area Of Imo State

Project and Seminar Material for Urban and Regional Planning

The Impact Of Small-Scale Industries In Rural Areas (A Case Study Of Umunwarahu Village In Obodoukwu, Ideato North Local Government Area Of Imo State


The research is aimed at understanding the impact embraced by industrialization in terms of development.
In this regard, many small scale industries were sampled, analysis of the data proved that most industries are raw materials and market oriented. Also the problems of industrialization in the study area (Umunwarahu) includes: noise pollution, unemployment problem, inadequate infrastructural facilities, irregular power supply, and poor road network. Rural industries play an indomitable role in the economic transformation of nations, but unfortunately.

The development of industries in the rural areas has experienced some problems partly due to poor financial investment on them or due to lack of some economic base potential.

This has triggered the development of haphazard and uncompleted industries here and there. However, the researcher recommended that government should embark on enlightenment campaign so as to educate the rural people on the impact, and benefits derived from sitting or establishment of these industries.

Table of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 Background of study
  • 1.2 Statement of problems
  • 1.3 Goal
  • 1.4 Research questions
  • 1.5 Hypothesis
  • 1.6 Study area
  • 1.7 Scope of study
  • 1.8 Plan of the study

Chapter Two

2.0 Literature Review

  • 2.1 Meaning of small scale industry
  • 2.2 Kinds of small scale industries
  • 2.2.1 Characteristics
  • 2.2.2 Effects
  • 2.3 The Impacts

Chapter Three

3.0 Research Methodology

  • 3.1 Aim/goal
  • 3.2 Objectives
  • 3.3 Problem statement (research question) and hypothesis
  • 3.,4 Hypothesis
  • 3.5 Population of the study
  • 3.6 Sample and sampling technique
  • 3.7 Sampling procedure
  • 3.8 Method of data collection/data source
  • 3.9 Data analysis and presentation

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Presentation and analyses of data
  • 4.2 Testing of research questions

Chapter Five

5.0 Discussion of Findings, Summary, Recommendation and Conclusion

  • 5.1 Findings
  • 5.2 Summary
  • 5.3 Recommendations
  • 5.4 Conclusion
  • References
  • Questionnaire

Chapter One

1.0 Introduction

The purpose of this paper or project is to review the existing state of knowledge on decentralization as a strategy of rural development and examine empirical evidence on decentralization efforts with particular reference to rural industries (By D.r Enyinna Chuta – Modibbo Adama College University of Maiduguri, Nigeria).

Settlements grow in size and complexity with the passage of time. In fact, all present – day large cities were once village or small towns, and their growth to urban status is due to a combination of factors. All settlements are nuclei of population concentration, and each succeeding generation adds to the number of people merely by natural increase besides those who drift in from surrounding rural areas.

In recent years, many towns have experienced a rapid population crease from large numbers of people who flock into towns for one reason or another. Large towns and cities all over the world seen to be places of great excitement to rural flock, with many attractions that makes life worth living. Many move in from distance villages without any idea of how they are going to make a living and end up with problems for themselves and the urban authorities concerned.

It cannot be denied that employment opportunities are far greater in towns than in villages whether in shops, offices, factories, entertainment or other public services, but one must remember that the number of people competing for those jobs is proportionally great. Unless towns can grow at a rate which provides enough job opportunities to mach the influx of migrants from the country side, unemployment and urban congestion are bound to arise.

1.1 Background Of Study

The Rise of Manufacturing Industry

Men’s universal demand for food, clothing, shelter and other comforts of life has promoted the creation of many new things. Few people ever realize that all these changes have come about only within the last 200 years ago, beginning with the industrial revolution of the eightieth country.

We have many groups of industries but the one’s to discuss about are the small scale industries that can be practicable in the rural settings.

A natural resource based is one that is dependent on an agricultural, forest, fishing, mining, or other natural resources of the local area.

Examples include wineries, lumber mills and many kinds of food processing operations. Natural resource based industries or industry is appropriate and allowed in rural areas. Agriculture and forestry provides the economic base for a number of rural counties.

Small scales industries are those industries which are found or sited in rural areas in order to improved and increase the rural economics, rural sociology and rural geography of the rural dwellers.

Small scale industries helps in creation or providing employment opportunities, reduce poverty, it reduces crime rate brings development to such an area and improve the income per capital of the rural dwellers.

Examples are: Block industries, bakery, hair dressing mechanic workshop etc.

1.2 Statement of Problems

Since rural industrial production units have to depend on some nearby towns for marketing and other special services (such as banking) rural industry institutions have to consider problems related to the accessibility of essential services to their clients (CHUTA 1985).

Decentralization of services is essential for this the general poverty of rural people and the presence of sectoral (farm, rural non farm) and locational linkages characteristics of rural industry promotion, present difficult problems which cannot be solved without the cooperation, coordination and collaboration of government ministries or departments at all levels of administration. There is need to decentralize industries in the rural areas, despite the location and accessibility of such an area.

1.2.1 The Problems of Rural Industries Includes
  1. Poor road network
  2. Lack of basic infrastructural facilities and services like electricity, pipe borne water etc.
  3. Insufficient fund
  4. Poor communication system

1.3 Goal and Objectives of the Study


To assess the roles played by the industries in the development of the study area.

  1. To identify the small scale industries in the study area;
  2. To identify the factors responsible for industrial concentration in the study area.
  3. To identify the employment status of the industries
  4. To identify the production capacity of the industries;
  5. To identify the level of infrastructure facilities associated to the industries;
  6. To investigate the role splayed by the industries in the physical and socio-economic development of the community;
  7. To identify any problem militating against operations of the industries in the study area;
  8. To proffer solutions to such problems.

1.4 Research Questions

To guide the study, the following research questions have been framed.

  1. What factors have contributed to the concentration of small scale industries in the study area (Umunwarahu village) than any other village?
  2. What impact has industrialization made in the growth and development of the study area in relation to any village in Obodoukwu, Ideato north L.G.A Imo state?

1.5 Hypothesis

From the research questions or problems statement it is deducted that:

  1. Availability of raw-materials and market proximity had contributed to industrial concentration in the study area (Umunwarahu village).
  2. The concentration of industries in Umunwarahu has accelerated the rate and development of the study area more than any other village within the town.

From the research questions or problem statement the following hypothesis is formed.

  1. Hi Availability of raw-materials and market proximity has contributed to industrial concentration in the study area.
  2. H.O Availability of raw materials and market proximity had not contributed to industrial concentration in the study area.
    H.I Inadequate capital and poor management are not the major problems of rural industries.
  3. What are the major problems facing rural industries?
  4. How could the problems of rural industries be solved?

1.6 The Study Area

The study area is Umunwarahu village in Obodoukwu Ideato north local government area in Imo state.
The study area comprises of five (5) kindred’s which includes Umudimomere, Umudimewuzie, Obinese, Umueze-ekulie, and Umuezenyaka. The study area is bounded on the east by Akokwa, on the west by Akpulu and Isiokpo, by the north Osina and by south Urualla (the local government headquarters). It has population of about 3,000 persons and it is located at the centre of the town and it is the head among the other villages in Obodoukwu, they hold the highest post in terms or in regards to chieftaincy title and produce the ‘Eze” of the whole Obodoukwu town in general.

1.7 Scope of Study

The scope of the study area is both the geographical delimitation and the content of the research. The scope therefore, is limited to Umunwarahu village in Obodoukwu, Ideato north local government area in Imo state as indicated in the study area map. The content of the research is the impact of small scale industries in the rural areas.

Specifically, the research identifies the small scale industries in the area, the production capacity, the role they play in physical and socio-economic sections, the problems encountered by the industries in operation and suggestions for improve production.

1.8 Plan of the Study

This research comprises of five(5) chapters.

  • Chapter one deals with the introduction aspect of the study, covering the problem statement, aim and objectives, research questions, hypothesis, study area, scope of study, limitations, plan of the study.
  • Chapter two reviews the relevant literature. The chapter three covers the research methodology adopted in the research, research design, population of the study, sample and sampling technique, method of data collection and their sources, mode of data analysis.
  • Chapter four deals with data analysis and findings using percentage distribution table. It also coves the testing of hypothesis which is the direct application of the methodology as stated in chapter three.
  • Chapter five is mainly on findings, summary, conclusion and recommendation.

Chapter Five

Research Findings, Summary, Recommendation and Conclusion

5.1 Findings: Impact of Industrialization

In the cause of this research, we have been able to identify some impacts of industrialization in the study area (Umunwarahu Village in Obodoukwu, Ideato North Local Government Area. Imo State.

Based on this, we shall look at findings as resealed by the analysis and make recommendations that will help to improve on the management of industries in the rural areas.

In research question I, the researcher observed that the average of 63% of the respondents agreed to the questions concerning the problems of sitting industries in the rural areas, indicating that the research question was positively answered. This could be as a result of many factors which led to this problem like the problem of inadequate finance or lack of enough capital to establish the business, business requires large financial outlay which the intending developers could not afford.

Secondly, inadequate infrastructural facilities and power supply have also contributed to this problem. This can be traced to the facilities that aid business activities are still inadequate and lack of enough energy and epileptic power supply is a major problem facing the small scale owners or the entrepreneurs who cannot afford gas and fuel and the maintenance of power when they do, it takes their profit away thereby making it difficult for them to survive.
Again, the poor road network is another challenge facing the sitting of industries in the rural areas, this is because a lot of rural people who likes to establish their own firms doesn’t have enough money for the establishment let alone having extra money or fund to maintain the roads so as to have access to their working places.

Furthermore, poor road network has constituted a lot of problems in the location of industries in the rural areas. This is true because many Nigerian roads are in bad states and the government is not even showing any regards towards maintaining them. This has cause a lot of setbacks to the development of the rural areas and on the rural dwellers who have the intension of establishing their own business but this ideas has been tampered with because there is no good road for them to transport their goods / products, and even bringing in the raw materials needed for the productions are impossible.

The researcher also discovered from the respondent that they needed a standard market where they can be going on daily to market their products and goods, this is because after production and there is no nearby standard market where they can go and make much profit, the entrepreneur will leave in a vicious circle of poverty and eventually go out of business. So, marketing is one of the most important functions of business. Because when you produce and you don’t sell, you go out of business.

In research question 2, the total average of the 57% of the respondents shows that the purpose of industrialization is to improve their standard of living, improve in income level, helps in providing infrastructural facilities like electricity, pipe borne water, good road, and also assembling scarce resources that is making proper utilization of his resources to achieve his goals, the operation of his business is handled in the most economical sense.

The researcher also discovered that whenever an industry is been silted in a rural areas, it helps to improve their income level and reduces the level of poverty and also can equally create employment opportunities for the rural dwellers, thereby reducing the rate of crime and corruption in the area.

In research question 3, the researcher discovered that 54% of the respondents agreed that availability of raw – materials in the rural areas has accelerated the rate of development in the study area. The researcher agreed with them, lets take for instance, in garri milking, they have almost all the raw – materials needed in preparing it, like cassava, Firewood, local sieve which they normally use in sieving it after frying, the palm oil is there for colouring, and at cheaper rates. The same thing is applicable in oil milking, they have the palm fruit block moulding, they have many rivers around the study area where they can go and escarvate sand and drean water, expect camel which they can only but from the mini deports around in the study area.

From research question 4, the researcher found out from the respondents that the average of 53% agreed that unemployment, poverty, lack of basic infrastructures and services are the major causes of rural – urban migration.
All these problems can be solved by sitting industries in the study area, it can also be solved through public enlightenment programmes. The researcher also found out that another way of reducing poverty in the study area is through social welfare service scheme which aim at boosting quality educational training and skills acquisition centres as a tool to combat the incidence of poverty in the study area at affordable cost. Again, the scheme should also provide and rehabilitate the existing social infrastructures in the area in order to increase productivity and the level of income of poor rural residents.

From the research question 5, the average of 59% of the respondent agreed that there are a lot of benefits attached to the location or sitting of industries in the rural areas.
Government decentralization approaches are very important in achieving sustainable cities and poverty reduction.

The decentralization approach deals with the integration of three tiers of government, federal, state and local government to fight against the incidence of poverty in the study area through increasing democracy at the local level, enhancing population mobility for development to create employment opportunities for the poor and revival of the local economy. This will go along way in increasing investment opportunities in the study area and encourage resource mobilization at the local level of the municipality, and enhance the feeling of ownership of rural projects.

5.2 Summary

This study tends to explore the impact of small scale industries in rural area. (a case study of Umunwarahu Village in Obodoukwu, Ideato North Local Government Area of Imo State. From the data collected and analyzed, the project is been arranged into five (5) chapters in order to achieve a successful research work.

In chapter one, the research discussed how the cities grow in size and complexity with the passage of time. All present day large cities were once village or small towns and their growth to urban status is use to a combination of factors, like population increase and industrial concentration.

In the background of the study, the researcher explained that men’s universal demand for food, shelter, clothing and other comforts of life has promoted the creation of many new things and these changes have come about only within the last 200 years ago, beg giving with industrial revolution of the eighteenth century.

In order to assess the roles played by the industries in the development of the study area, five (5) research questions were also formulated to guide the researcher in carrying out acceptable research work and generalization of this research work.

In chapter two, which is literature review has been dealt with. This chapter contains the extraction of views, opinions from learned authors, books and journals. This chapter is been divided into six (6) sub-headings namely; the development of small-scale industries, the meaning of small scale industries kinds of small scales industries, characteristics, effects and impacts of small scale industries/industrialization in economic development.

Chapter three (3) deals with research methodology and sample procedure, method of data collection and data source were also analyzed. The list of data requirement and data analysis and representation are also enclosed.

Chapter four (4) focuses on the presentation and analysis of data collected through questionnaire and oral interview, and it has been analyzed using simple percentage as well as testing the five (5) research questions in order to get the correct result.

Chapter five deals with research findings, summary, recommendations and conclusion. The findings is based on the observations made in the field while summary, it is mainly based on the contents of the whole project, starting from chapter one to chapter five. And recommendations were made based on the researchers contribution to the topic which is basically on the things that should be done in order to improve the well being of the rural dwellers.

5.3 Recommendation

In other to boost and improve productivity in our society at large, the researcher is pleased to recommend the following:

Government should embark on public enlightenment campaign so as to educate the rural people on how to improve and standardize their firms.

Government should declare free education to both primary and secondary schools in the rural areas so that they can equally have the opportunity of being educated and helps in eradicating the high level of illiteracy among them which will go along way in making them to have knowledge of things and how to do them because when one is not informed, he is deformed.

Lastly, the government should use the power of EFCC that is economic financial crime commission on the corrupt leaders who failed to execute any project and make the person no matter their gender and status to face the wrath of the law.

5.5 Conclusion

In this research work, has been proved that the impact of small scale industries in Umunwarahu and the surrounding neighbourhood have brought about development to the community and Imo state at large. It has caused a positive change in the social, political, environmental, and economic well being of the people.
It also educates the owners and the workers on the new approaches and methods on how to improve on the production and the management of their industries.

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