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PROJECT TOPIC -Impact of Small Scale Industries on the Pattern of Production and Wealth Formation of the People of Ebonyi State ( A Study of Selected Small Scale Industries In Ebonyi State)

Impact of Small Scale Industries on the Pattern of Production and Wealth Formation of the People of Ebonyi State ( A Study of Selected
Small Scale Industries In Ebonyi State)



This research is aimed at discovering the impact of small-scale industries especially as it relates to economic development of Nigeria. Survey was made to find if government aids the small-scale with loans and grants. The survey revealed that every small-scale industry, at one stage or the other needs additional capital. However, they do not always these loans because of high collateral security required by financial institutions. Notwithstanding, small-scale industries are aware of how and where to get fund. The researcher discovered that small-scale industries encounter further difficulties in their operations apart from finance. Such other difficulties include lack of industrial facilities, inadequate factor of production, inefficient accounting system. In order to
solve these problems, this recommendation should be followed.

i Effective accounting system should be recommended to be used.
i i Organized workshops, and lectures will really stimulate small-scale entrepreneurial interest.
iii The government should develop the infrastructural facilities such as road, vehicular, transport, communication system, cheap power supply will really
solve to stimulate interest.




Research has been conducted on large scale industries in conjunction with the Federal office of statistics Lagos, but due to limited resources at their disposal, no similar effort was made to small scale industrial sector until recently. As very little was done to provide data on small industries, their crucial economic role and importance were not sufficiently revealed. It therefore, becomes imperative to research on the role and impact of the small-scale industrial units in the economic development. Furthermore, the only available source of information in small-scale industries was the Kilby report published in 1972, that report represents the only attempt made to inquire into the structure of this sector of the economy. The report was however; made for a
purpose, namely, to collect the basic information on small-scale industries, identify obstacles to growth and outline appropriate measure for expansion. It was also aimed to provide information on the nature and level of assistance to be made available to small scale industries. With the passage of time, various governments in the country have been trying to put in place healthy industrial policy to stimulate industrial and economic development. It
may not be out of place here to observe that the various government efforts and emphasis have been on the favor of large-scale industries.

Government had intended to transfer foreign technology on large-scale basis for her economic development, but this has been inappropriate. As it stands now, Nigeria has only achieved a fragile industrial development; in the past ten years of adopting an industrialization strategy based large scale industries which were set up tending to be capital intensive but has been inappropriate because of the country’s resource endowment. The capital equipment and technical manpower of these large scale industries have continued to be large imported. As a result of the triple government objective of self sustaining the industries which include achievement of high level value-added, saving of foreign exchange and transfer of technology appear not to have materialized.
According to some economic analysts, the assembly plants have not achieved up to fifteen percent in local raw materials sourcing, instead they more or less systematic foreign exchange guzzlers with neither the will nor the capacity to transfer any significant technology beyond the primitive type.

As regards these weaknesses of large-scale industries, government has sought to promote small-scale industries as a strategy for self-reliant industrialisation. However, theoretically, small-scale industries have potentials worth relying on in promoting Nigeria’s industrialization. Thus in the second National Development Plan (1970-1974) “Both the Federal and State government were to achieve or actively promote the development of small-scale industries”. Also in the third National Development Plan (1975-1980), government explicitly state the main objective of a programme for the development of small scale industries as the creation of employment opportunities, mobilization of local resources, mitigation of rural-urban migration and more even distribution of industrial enterprises in different parts of the country. These were to be achieved through complementary assistance to small-scale
entrepreneurs in financial, management and technical aspects.

However, in subsequent years after 1979, the institutional arrangement and structure of the programme were modified while object remained the same. Today, as the economy faces perhaps its most fundamental transformation since independence, the number of persons and institutions as one of the ways of restructuring the economy continued to grow. The basic presumption behind the desirability of nurturing the sector are the perceived multiplier effect which small scale industries have on the performance of the economic growth in general. An element of urgency in supporting the sub-sector is
apparent today because of the climatic impact of the National Directorate of Employment and other components of the Structural Adjustment Programme, which without doubt, complicated the production cost components of the industry in general. It is also widely believed in some quarters that in order to solve the crucial problems of unemployment in Nigeria, all that government need to do is to stimulate rapid growth of small-scale industries.

However, while this sound simple, the appropriate strategy and incentive are yet to be evolved, that is small-scale industries are hindered in their role as
catalysts for economic growth. In essence, it is apparent that small-scale industries are legitimate and liable components in any strategy for restructuring the economy.

Impact of Small Scale Industries on the Pattern of Production and Wealth Formation of the People of Ebonyi State ( A Study of Selected
Small Scale Industries In Ebonyi State)



The following are important problems area in this research. Even though the government should diversify her economic and industrial base, small scale
industry, which constitutes bedrock to development, should be primarily encouraged.” To see how Ebonyi State acquires entrepreneurial skills, and how much they move into entrepreneurship. To find out why there are many rural areas and little or no small businesses. To find an alternative way of reducing unemployment. To put in place sound policies and strategies that will sustain the present pace of economic and industrial development.


Impact of Small Scale Industries on the Pattern of Production and Wealth Formation of the People of Ebonyi State ( A Study of Selected
Small Scale Industries In Ebonyi State)

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