Small-Scale Industries Development In Anambra State: Problems And Prospects (A Case Study Of Awka And Nnewi Industrial Areas)

Project and Seminar Material for Marketing

Small-Scale Industries Development In Anambra State: Problems And Prospects (A Case Study Of Awka And Nnewi Industrial Areas)


This research is aimed at small-scale industries development in anambra state: problems and prospects. Small-scale industries are those industries that are privately owned by its owners in a purely personalized way without a formalized management structure. Small-scale industries is needed for speedy growth and development especially for abilities to boost the larger industries, social infrastructure, agriculture etc. Small-scale enterprises is however faced with a lot of problems. It is against this background that this project is undertaken to take a critical look at small-scale industries in Awka and Nnewi. In chapter one which is the introduction, the researcher discussed the statement of the problem, purpose, significance of the study, research questions, hypothesis, scope and definition of terms. Chapter two death much on various literature review, problems and prospects and summary of the literature review. Chapter three reviewed the methodology of data collection. Chapter four shows how data was collected, presented the summary, conclusions, recommendations and references. Finally, my opinion based on the findings of this project, small-scale business is the mainstay of the Nigerian economy, providing almost seventy percent (70%) of employment to the society in the Anambra State.

Chapter One


The dynamic role of small-scale industries as engine of growth in developing countries has long been recognized. According to Ukeje (2004:108). It’s accelerative effect in achieving macro-economic objectives such as full employment, income distribution development of local technology, as well as diffusion of management skills and stimulation of indigenous entrepreneurship has been well documented in economic literature. Their importance has become such as to make them a pivotal focus of economic development.

That was exactly what Nigeria did since the second national development (1974-1979) that is development jof industries, because they have seen the need to be self-reliance which will lead to genuine development and survival as well as improve the effective management of local resources, both human and materials.

Development of small-scale industries was encouraged in the document found in the third and fourth national development plan, with the aids of providing empowerment opportunities, management of local resources, thereby recording rural urban migration. The above plans emphasized that paying attention to agriculture, manufacturing, education, manpower development, Infrastructural facilities will improve the quality of life for average Nigerians

1.1 Background of the Study

Economic history of various developed countries have shown that industrial revolution has been the led by small-scale industries which are indeed the bedrock of an industrial growth.

Nigeria as a developing nation is battling for her economic survival, which can however not be achieved without acquisition of industrial and technological power and enough manpower both skilled and unskilled to cope with the struggle.

Nigeria economy has in the last two decades passed through various phases, starting from the oil boom in the seventies and followed by the era of unplanned and reckless spending our wealth. This is followed with the emergence of economic doom which has necessitated the introduction of austerity measures and structural adjustment programme (SAP).

The industrial growth of the nation has no scientific approach. The planning in some measures did not analyze the backwardness in the economy. This is noted, as the various government did not provide adequate encouragement to industrial development of nation.

Before our economic problems, foreign capital was cheap and the business of importing and selling of finished products was most profitable. These importers generated excess liquidity and invested their funds making in acquisition of landed property. Investment was merely neglected because of tortuous process of establishing in Nigeria.

During the boom, therefore most industrial projects were sponsored by multinationals and the governments, small industries were neglected as there were little incentives in manufacturing at low level.

With the introduction of austerity measures and structural adjustment programme (SAP) import trade business become more difficult as many commodities were banned or put on license with high import tariff to conserve foreign funds and encourage local manufacturers.

Many businessmen therefore, started thinking of industrial ventures to produce their wares locally. Hence, the massive investment on small-scale business.

1.2 Statement of the Problem

  1. Insufficient finance
  2. Low technical base enabling environment and logic supply.
  3. Lack of managerial expertise
  4. Communication difficulties
  5. Inadequate infrastructures.

1.3 Purpose of the Study

  1. To increase the capital accumulation of the indigenous entrepreneurs in Anambra State.
  2. To increase the dispersal of industries
  3. To improve the technological skills and capabilities available in the state.
  4. To motivate inter-local government area relationship through industrial products patronage.
  5. To provide greater employment opportunities

1.4 Significance of the Study

  1. It will unveil some of the major problems facing the development of small-scale industries.
  2. To give the reader an overview of the problems, and the role developing small-scale industries play.
  3. To benefit both economists and students who may like to carryout further research.
  4. The findings and recommendations will be of great value to the small-scale industries as a way of improving and reducing such problems.

1.6 Research Questions

  1. How much money did you start your business with?
  2. Do you think you have really progress if you compare your initial with the amount you have now?
  3. What type of business do you operate?
  4. Do people patronize your industry very often?
  5. How efficient are your staffs?
  6. Do you think there will be need to employ more people in your industry?

1.7 Hypothesis

  1. Ho: Insufficient finance does not affect the development of small-scale in Anambra State.
    H1: Insufficient finance affects the development of small-scale in Anambra State.
  2. Ho: Lack of managerial skills does not affect the growth of small-scale industries in Anambra State.
    H2: Lack of managerial skills affects the growth of small-scale industries in Anambra State.
  3. Ho: Inadequate infrastructures does not affect small-scale industrial development in the state.
    H3: Inadequate infrastructures affects small-scale industrial development in the state.
  4. Ho: Low technical base does not affect the development of small-scale.
    H4: Low technical base affects the development of small-scale.

1.8 Scope of the Study

This research work carried out in Awka and Nnewi in Anambra State, which makes it suitable for carrying out marketing research work on small-scale industrial development.

1.9 Definition of Terms


Central bank of Nigeria (CBN) defines small-scale business as one which annual sales turnover is less than half a million Naira.


The initial capital used to start and maintain a business.


Any organization established for economic purpose.


The process of planning, organizing, directing and controlling the work done by members of an organization, utilizing available resources within the organization to achieve its main goal.


It has to do with the changes in positive direction in order to improve in a country.


It is goal that has a comparative short life span and specific measurable achievement.


It is where raw materials are converted into finished goods, or it could be people and activities involved in producing a particular thing or services.


It refers to industries that produce goods in large quantity in factories.


It is a difficult situation

Chapter Five

Summary, Conclusion and Recommendation

Summary of Findings

From the research carried out so far, the following findings were made:

  1. The study revealed that development industries results in the developed economy and that once industries are developed, the standard of living of the masses will improve for better.
  2. The study revealed that government and banks have a role to play by providing loans and advanced/aids, subsidizes, grants that will be used to manage these industries.
  3. Meanwhile, the problems of insufficient finance high interest rate present challenges for industries.
  4. Finally, the study revealed that communication system and transportation pose a serious problems for industries, lack of sufficient and stable power supply are also included among the challenges.

5.2 Conclusion

Based on the findings, the researcher was able to draw these conclusions:

  1. Development of industries contributes much in the employment generation, raw materials and serve as a vehicle for bridging the rural area problems of devices.
  2. It provides infrastructural facilities such as electricity, hospitals, water supply, good network of roads, and improve standard of living for the masses.
  3. Owners of these industries has much to contribute to the development of industries, by utilizing the services of professionals to improve their accounting and marketing operations.
  4. They should put in more effort in expanding their equity base so as to be in a better position to attract more fund from banks and public credit institutions.

5.3 Recommendations

  1. Government should do everything possible to encourage rural industrialization.
  2. Both the federal and state government should provide the needed basic social amenities in the industrial areas of Awka and Nnewi.
  3. The central bank should make provisions to give incentives to popular rural industrialists.
  4. Commercial banks should as well help in financing business ventures in the rural areas.
  5. There should be mass literacy and public enlighten campaign to increase the local literacy level.

5.4 Limitations of the Study

  1. The researcher of this study is limited to productivity organization. It is limited to highlighting only the issues that concern the development of small-scale industries.
  2. There was difficulty in administering questionnaires in all the industries and among all the workers who are the main focus of this study.
  3. The difficulty was also as a result of time constraints, as well as financial constraints, to move from one place to another especially getting the questionnaires back from the respondents.

5.5 Suggestions for Further Research

  1. It is suggested that further research still be carried out to find out areas of loophole and possibly upgrade the research work.
  2. It is subjected to further research work in areas such as the role of government in the development of small-scale industries in Awka and Nnewi metropolis.

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