Solving Unemployment Problem Through The Establishment Of Small Scale Industries In Nkanu East Local Government Of Enugu State

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Solving Unemployment Problem Through The Establishment Of Small Scale Industries In Nkanu East Local Government Of Enugu State


Chapter One


1.0 Introduction

1.1 Background of Study

Unemployment Problem –In adequate appreciation of how unemployment could be solved through the establishment of small scale business I Nigeria and in particular or Nkanu East Local government Area of Enugu State, there also the need for the initial performance of defining unemployment? As well as small scale business and inter worse both for our purpose. However, the Oxford dictionary of recent English defined unemployment as the state being unemployed and the amount of usual labour. Unemployment is also people who are willing and able to work but have no job. On the other side of small-scale business has been defined by a list of authors more precily by a man called peter. Ejiofor (1989) in this book.

Foundation of Business Administration

As these enterprises that relating small capital investment that produces in small qualities and a result control of a small share of the market, that em ploy more than sixty percent of workers in which the management, marketing and an entrepreneur function are rested in the proprietor.

Also according to Klott Lawrence in 1973, that small-scale industry is any industry which is independently owned and operated and not dominant in it’s area of operation, industries whether a business is small fair sized or by. The says that a small business requires at least one man who is not engaged in any other financial work required. Although it’s true that small scale business create job opportunity and facilitate the economy of the nation still confirmed to the large scale business.

Moreover, small-scale business is known also to have certain indispensable, which differentiate them from large-scale business. Finally the main point for measuring what constitutes a small-scale business attract the following, as to continue;

The Size Of The Business:  Since they are small in nature, most of them are normally small in size and occupies a small share market.

Type Of Management: – it’s characterizes by one man management, it is owner domination, that is Purism of ownership and control. They owner management participates activity in all level of decision. Making a day-to-day operation and management of the business. Information Flow: – In small scale business as a one man business, the information is known to come from the owner to they workers and feed back is encourage effectively. Sole Proprietorship: – They are always polited by they sole proprietorship who does not want to go into partnership with others i.e they are ruled solely. Cheap Labour:– Most of them in these case due to the type of their business, they search for cheap labour to do work for them, so that they can pay at the end of the day. Small Outlay: – Due to the nature and size. They normally have small invest able capital to run their business. Some illustrations of small business are small-scale poultry farming, Fashion and hair dressing, phone called business etc.

According to yakass, (1990) over the years there has been controversy over the definition of small scale industry. The absence of universal acceptable definition has compounded the problems of many industrialists.

The control bank of Nigeria definition of small scale over does not exceed N 500, 000. 00 to 600, 000. 00. For commercial bank or capital investment not N2 millions and turn over to million for merchant banks.

The NERFUND (National Economic Reconstruction Fund) defines a small-scale operation, as the medium scale enterprise is any business requirement between N 6 millions and N10million also depart lend to start.

The federal ministry of industries defines small-scale industry as a manufacturing, processing or serving enterprises whose capital investment does not exceed N 250, 000 in machinery and equipment only.

The definition is to bring down the parameliar under which an industrialist may take advantages different machineries created by the government such machinery include the granting of loans equipment and raw materials.


1.2 Statement of the Problems

In these recent days Nigeria, the country has been afflicted with so many unemployment problems. This accounts largely for the social ills that have been devilled, the country today such as, obtaining by false, pretence or advance fees found move popularly known as “419” robbery, bribery and corruption which has become the bane of Nigeria potion and otherwise.

However, it is well common that graduates produced from various institutions of higher learning and other highly skilled professionals hardly secure jobs takes less of suitable employment opportunity in our country Nigeria in particular. Youth coppers for example on passing out move from one street to other in searching of job or an employment but no way.


1.3 Purpose of the Study

The general objectives aims of the study is to identify some of major small scale business in Nkanu East local government area with a view to unveil how far, it all these established business have helped in acerbating the unemployment problems Enugu State.


1.4 Scope of the Study

In these case, this research work is limited to Nkanu East Local Government Area in Enugu State in Nigeria and the unemployment level is also considering which is seriously eradicated by the establishment of small-scale business.


1.5 Research Hypothesis

H0: The establishment of small scale industries has no significant effect on the level of unemployment in Nigeria.

H1: The establishment of small scale industries has no significant effect on the level of unemployment in Nigeria


1.6 Significance of the Study

This study based it’s impact of establishment of small scale business on the unemployment state of the Nigeria economy and Nkanu East local Government Area in particular. The major problems and finding places to our rural job seeker could be pacified by the establishment of small scale industries through the endeavor to know whether or not the establishment of the small scale business in the study area could decrease the unemployment problem of the study area.


1.7 Limitation of the Study

There were many constraints in the gathering of information for this research work. But most important fellows:

Finance and Highest of Transportation:

Due to problem of finance and high transportation rate I cannot be able to carry out my research work, as I wanted it to be.

Time:

In report to the theoretical and practical work, the time allowed for this project was limited resides these was also carried along with other academic assignments.


1.8 Definition of Terms.

The most aim of having these term defined is to enable the reader to know the measuring of these words is by any means he/she do not know them before with regard this reader has not come across any of them before, it tends to be immense help Small Scale Business. Oxford paperback (1979) defined it as on industry, which can be carried out in the home.

Unemployment:

The state of being unemployed, is one who has no job to do regardless as his strength and qualification.

Entrepreneurship:

This is an individual who has the power to view and evaluate his business opportunities, gathering the necessary resource to take advantage of them and initiate appropriate actions to make sure there success.

Data:

This is known as a facts given which means data collected by research for the work.

The Study Area:

They are area usually chosen for research (examination) Nkanu East Local Government Area with regards to this research. and it’s located at the eastern part of the Enugu state of Nigeria. It was covered out along with other during the local government reforms of 1976, and has projected population of 2324, 000 as at then. The study area falls within the tropical rain forest zone at West Africa. The nature engage mostly in farming for subsistence and most of them are petty trader and artisans.


Chapter Five


5.0 Summary Conclusion and Recommendation

The general objectives aims of the study are to identify some of major small scale business in Nkanu East local government area with a view to unveil how far, it all these established business have helped in acerbating the unemployment problems Enugu State.


5.1 Findings

From the responses of the respondents we were able to find out that:

  1. The establishment of small scale industries has no significant effect on the level of unemployment in Nigeria.
  2. Small scale industries has significant impact on the economic development of Nigeria
  3. The establishment of small scale industries has increased overtime in Nigeria.
  4. Government policy has significant effect on the level of unemployment in Nigeria.

5.2 Conclusion

From the findings and the result of data analysis, we conclude that the establishment of small scale industries has no significant effect on the level of unemployment in Nigeria.


5.3 Recommendation

We therefore recommend that:

  1. The federal government of Nigeria should encourage the establishment of small scale industries
  2. There should be a reduction on the level of tax levied on the small scale industries so as to motivate them
  3. The federal government of Nigeria should be ready to assist any upcoming small scale business through giving out of loans etc.

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