THE ROLES OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA

• THE ROLES OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA INTRODUCTION It is an undisputable fact that Nigeria of the pre-independence era was predominately small scale in its productions and marketing activities. Industrial revolution brought about a shift from the orthodox trade by barter to a more sophisticated marketing system where consumers satisfaction becomes the ultimate goal of the most businesses. Thus small scale business becomes the next option since they stood a better chance of offering a more personal relationship with customers as well as socio economic satisfactions of societal needs. Unfortunately the over concentration on t he oil sector which Nigeria hoped will boost economic growth led to the negligence of the small scale industries until economic depression set in during the oil boom period. This and other factors led to the quest for private participation in the various economic sectors through the Small Scale Industries especially in the present civilian government where the Industrial Development Centres (IDCS ) have embarked upon a loan scheme for small business to enhance their contribution to national economic development. The question now is, will small scale contributes to nation’s economic development? One might wonder if this will be realistic, but it is quite obvious that Nigeria as a country developing very slow due to economic dependency of the country. It therefore becomes apparent that the way out of the problem lies within Nigeria. What are found in Nigeria are basically the large scale operations which have given the most contributions to the economy of the developed nations across the globe. One would therefore questioned the backwardness of small scale business to government negligence of the small industries. Nevertheless the immense contributions of small scale industries in terms of increased industrial output job creation, improvement of standard of livening and general economic development has reawakened government interest and support on these small scale industries. IT’S ROLE IN THE ECONOMIC DEVELOPMENT IN NIGERIA The growth of the country depends to a extent, on the standard and development of the small-scale business. In revolutionary economy, small-scale enterprises are a legitimate and viable component in any strategy for reconstructing the economy. The role played by small-scale enterprises and economic growth and development are highlighted below. 1. Employment Generation small-scale business has come to be know as a major source of employment. They employ the majority of all non-government workers in the country and this trend seem to be the increase. In 1970, of the estimated wages employment of 1.38 million, 622,000 persons(forty five percent) were employed in small non-agricultural enterprise. Nigeria is currently facing problems of unemployment and rural urban migration. This has been compounded by frightening turnover by post-primary school leavers, polytechnic, university graduates every year. In this case small scale enterprises can create job opportunities for this group of people and reduce the rate of rural urban drift. Enudu (1999:p222) stated that Nigeria today, small-scale business have offered employment to thousands of young school leavers and retired civil servants. Noted that in study carried out in 1962 in eastern Nigeria by the united state Agency for inter-National development, the number of small-scale enterprises was 10, 722 with total employment. Okafor(1996:p.114) posits that documented evidence suggests that about 3o% of the entire working population are employed by small-scale enterprise. This shows that small-scale plays an important role in reducing the rate of unemployment in our country. 2. PROMOTION OF CPMPETITION Small scale enterprises act as a check against monopoly and encourage competition, through improved prices and services to customers. The small entrepreneur is in intimate contact with market needs. Possessing practical technical competence is very necessary in competition. A small firm cannot, of course compete with large firm across the board. But a number of small business, each competing in its own particular area, and its own particular way, together have the desired competitive effect. 3. WASTE UTILIZATION Small scale enterprises make use of waste material from big enterprises for further production. Eze (2009: p.224) observed that the artisans at the ogbete industrial area popularly called “Tinker shade” for instance, produce lost of spare parts for industrial machinery and offer provide lost of maintains services. The graft bodies of obsolete different shapes, some toilet roll companies use waste paper from printing presses for the production of toilet roll. 4. INTRODUCTION TO BIG BUSINESS Every business has it starting points, small business serves as a nursery for entrepreneurial talent and they grow, in some cases, into large enterprises. Many large organizations all over the world today started small business, some individuals may have a faer for entrepreneurship in shortage of capital and other resources they are able to realize this only through the establishment of small firms. Conclusion and Recommendations As initially mentioned, the secrete behind the success of self reliant strategy is mainly in peoples positive attitudes to enterprise, and in the extent to which the right incentive, adequate enough to make risk worth taking rather than in any particular political philosophy. In the early stages of Japan’s Industrialization, her economy was dominated by a large number of small scale enterprises, who drew their strength not from an abundance of capital, but rather from her vast supply of labour, and the abundant advantages of small scale industries. Nigeria and Nigerians need to learn and follow Japan’s footsteps. The activities of modern marketing cover marketing research, market segmentation, marketing information systems, marketing planning and control , and other issues relating to product, price, promotion, and distribution. These activities are not properly handled in many Nigerian small business enterprises as Ogwo (1991) has rightly pointed out. One of the major advantages of marketing is that, when correctly used, subjective values may be added to a product. The consumer then perceives it as superior to that of competitors. Consequently, profit margins may be increased. But as noted already, poor quality, unawareness of competition, poor promotion, poor distribution, and poor pricing methods tend to be the major failings of small scale manufacturers in Nigeria. The production of generic products is often considered acceptable and economical by these small business enterprises (Onwuchuruba 2001) The adoption and application of marketing concept is one sure way by which small business enterprises can grow and secure for themselves places in the 21st century commerce and industry. But marketing skills and knowledge are teachable and can only be acquired through training and experience. Unfortunately, many small scale entrepreneurs lack the necessary time and funds to embark on such training. • What Is the Meaning of Public Sector Employment vs. Private? • What Is the Difference Between CIF & FOB? • Difference Between Tier 1 & Tier 2 Companies • Factory Resetting an Android Phone From a Computer • Why Won't New Apps Download on My iPhone? • How to Delete Recently Closed Tabs on Google Chrome