The Role Of Small Scale Industries On The Economic Development In Nigeria (A Case Study Of Hardis And Dromedas In Emene, Enugu State)

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The Role Of Small Scale Industries On The Economic Development In Nigeria (A Case Study Of Hardis And Dromedas In Emene, Enugu State)


This study, sets to investigate the role of small scale industries on the economic development in Nigeria. The introduction part of this study is contained in chapter one, extensively dealt with the purpose of the study. Enumeration of problem in Small Scale Industries in Nigeria.

In Chapter two, literatures related to the study are reviewed.

Chapter three was devoted for questionnaire design and research methodology. The questionnaire contains fifteen questions. Chapter four deals with data analysis including the best of hypothesis. Three hypothesis were tested to draw conclusion about the research work.

The hypothesis are:

  • Small Scale Industries play vital role in economic development
  • Small Scale Industries create job in the economic development
  • Small Business Industries in market are the engine of economic development.

Chapter five embrace summary of finding, conclusions arrived at and recommendation base on the findings.

Chapter One


1.1 Background of the Study

Experience has show that development countries in the world like USA, Canada, Germany, Spain and others have shown that he development of small scale industries has helped their industries has always been recognized by developing countries with similar identified problems such as unemployment, lack of adequate supply of raw materials for production and other economic problems with identification of problems, the developing countries tend to create necessary avenue for their solution.

The small-scale industries can be said to be stepping stone for any growing economy. This could be believed to true because nearly 90% of the large scales industries existing today in Nigeria spring up as well as small scale industries before there were able to acquire enough capital for expansion. In 1965, the government of Eastern region of Nigeria invited the international labour organization (ILO)

This was as a result of realizing that small scale industries have sprang up in the region. These small scale industries include bakery, garri, milling wood work, etc.Due to more pleading outcome of the survey, the government had to speak for another international agency, the united states agency for international development to conduct on survey of labour intensive industries in the Eastern region as first step in the development of a full scale assistance programme that would necessary information on small scale industries, identify problems to growth and set out necessary to encourage further expansion of this sector.

1.2 Statement of Problem

The bleak employment features that is facing many countries in African especially Nigeria, emphasized the need for a more employment intensive path of development in the future. Achieving their will entail in one way or the other a large contribution by small scale industries.

Youth unemployment has led to massive increase in crime wave in this country. One to lack of small-scale industries especially in the rural areas, there have been an increase in rural urban migration especially for the youths in search of no existence white-collar jobs.

It is obvious for instance that quite a number of people may have no option but engage in small-scale industries as entrepreneurs, self-employed person as a means of survival. This is why various government have through one program or the other to encourage the establishment of small scale industries more especially in rural area to provide employment opportunity for this youths and indeed reduce rural urban migration. Based on all those problems of unemployment, the researcher is compelled to carry out through study on how small scale industries can contribute to the economic development especially the Hardis and Dromedas Ltd.

1.3 Objectives of the Study

The study seeks to find out:

  1. The extent to which is necessary for the government to support the small and medium scale Industries.
  2. Examine the effectiveness and ineffectiveness of the various government or environmental issues like financial institutions; power sectors and level of corruption in the stage.
  3. To determine the role and importance of small and medium scale Industries in the economic development.

1.4 Research Questions

In order to achieve the objectives of this research study, the research study will attempt to provide answer to the following research questions:

  1. What are the roles of small scale Industries on economic development?
  2. How does small scale Industries create job in economic development?
  3. Are small scale Industries in the market the engine of economic development?
  4. How does small and medium scale Industries improve the standard of living?

1.5 Research Hypothesis

Testing the following hypothesis will provide answers to the research questions:

  1. Ho: Small scale Industries does not play any role in theeconomy development
    Hi: Small scale Industries plays a vital role in the economydevelopment
  2. Ho: Small scale Industries does not create jobopportunities in the economy development.
    Hi: Small scale Industries creates job opportunities in theeconomy development.
  3. Ho: Small scale Industries in the market are no: the engineof economy development.
    Hi: Small scale Industries in the market are the engineof economy development.

1.6 Scope of the Study

The scope of this study titled “The Role of Small scale Industries in Economic development of Nigeria is Limited to the Hardis and Dromedas in Emene, Enugu North Local Government Area of Enugu State.

The study covers development strategies, contributions of the industry to the national economy constraints and management practical employed by the industry

1.7 Limitations of the Study

These are the constraints on the research work:

Financial Constraint:

When research work suffers frominsufficient fund to execute, it affects smoothness of theresearch work.

Time Constraint:

In a situation where the time available forthe research work is short, this limits the effectiveness ofcollecting and analyzing the research data.

Attitude Constraint:

The research work can be negativelyaffected where the experts and the others concern are not readily responding adequately on the research work.

1.8 Significance of Study

This research of great significance in many respects.

  1. The work will be of great important to Emene, Enugu State and Nigeria in general.
  2. The availability of small-scale industries in rural area will definitely reduce unemployment to the bearest minimum.
  3. It will equally help the researcher o exploit the potential of rural areas in establishing similar small-scale business.
  4. The finding on this work will help the school leavers embarks on meaningful small scale business of their choice.
  5. The study will provide a vivid and clear understanding of the mode of operation of small scale industries in general and Hardis and Dormedas in particular.
  6. This research is also of a tremendous of small-scale industries to the socio development of Nigeria and Enugu state in particular.

1.9 Definition of Important Terms


International Labour Organization Industrialize: to create



Stepping Stone:

Beginning or statement of any thing.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Introduction

In this chapter, the comprehension summary is based on the findings which will allow the recommendation to be made on the role of Small Scale Industries on the economic development in Nigeria.

5.2 Summary of Findings

This research work is designed to identify the role of small scale Industries on the economic development. They are stated below.

  1. The first chapter of the research study showed light on the introduction, statement of problem, purpose of the study, research question, hypothesis, significance of study, scope of the study, limitations of the study.
  2. The second chapter of this study dealsframework for the researcher area of importance where extensively deal with, in this chapter such areas include, introduction, definition of small scaleIndustries, types ofwith theoreticalsmall business Industries, roles of smallscaleIndustries, causes of small scaleIndustries failure in Nigeria, marketing management problems of small scaleIndustries, canning and launching of small business and the Nigerian government participation in small scale business.
  3. The third chapter discussed through the method and design used in conducting this research projects. It express us to restatement of research hypothesis and research question, sample, method of gathering data, data analysis.
  4. The fourth chapter deals with the presentation and analysis of the data collected this study as well as findings of the research. The data gathered for this study were arranged in tabular form, expressed in percentage (%) and chi-squares method to test the research hypothesis.

The major findings in this chapter are expressed as follows.

  • Small Scale Industriesplays a vital role on economic development
  • Small Scale Industriescreates job in the economic development
  • Small Scale Industriesin the mark—t are the engines of economic development.

5.3 Conclusion

The conclusion drawn from this research work shows thatSmall Scale Industriesplay a major role in the economicdevelopment of a country.

Furthermore, it is needless to reiterate that Small Scale Industrieshave been found useful in many countries of the worldand their development should be highly developed. They optimallyutilize local input and tend to be more labour intensive in theirproduction processes. They easily absorb surplus labour especiallyfrom the small business sector.

Small Scale Industriesgenerally contribute to the rapiddevelopment in the society, Small Scale Industries also useful in the areas of reducing congestion in urban areas; drift by supporting immobility and removes pressure from land.

Entrepreneurship in an economy; however, to reap from these benefit, entrepreneurship management must be very effective in taking cognizance of the numerous environmentalreducing rural-urbanterritorialfactor that influential the performance and activities of these small scale Industries. They :rust take productive measures to adapt to these environments.

5.4 Recommendation

The problems facing small scale Industries as a role in economic development highlighted earlier can be grouped into two major parts viz the management (technical ability) and the government.

1. The Management

Problem related to management arise from entrepreneur -limited education and training, limited knowledge in project planning and appraisal and little or no exposure to modern technology. Also problem of organized market survey and product distribution channel, poor environmental perception suggested solution drawn from the result of the data are as follows.

  • The high rate of failure among entrepreneurship due to poor management that are success bound to poor management that are success bound should endeavour to invest in themselves in terms of acquiring the necessary skills; education and training to successfully manage.
  • The use of experts; which permits the distribute in between owner and manager should be highly encouraged.
  • To meet up with the contemporary global challenges, entrepreneur should upgrade their knowledge in the usage of modern technology.
2. The Government
  • In countries where entrepreneurship development have maderapid progress; they have been directly or indirectly assistedby the government. This could be achieved through theestablishment of department for small scaleIndustries for small business administrator which will assist small firms in arranging finances and dealing with management.
  • The appropriate business Industries that support entrepreneur training and development in academic institution should be matter of exigency.
  • In most advanced countries where entrepreneurship have faired well, government had taken the bold step of periodically organizing technical training and development of curriculum that support small scale created as an entrepreneurs. This will be in the areas of b-hiding the necessary entrepreneurial skills, and potential updating them in the modern trend of doing business.

5.5 Suggestion for Further Studies

To provide an in-depth knowledge of small and medium operation, survival and success in addition to those necessary factor needed to encourage the sustainable growth and development of small and medium scale Industries in the country the following suggestion into further areas of study are as follows:

The effect of supportive policies and protectionist measures as necessary ingredient for entrepreneurs development.
Since the government plays an important part in entrepreneurship success, study should be made into the government role as agent of small and medium scale Industries growth and development.

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