EFFECT OF SMALL-SCALE INDUSTRIES ON THE NIGERIA ECONOMY

ABSTRACT

Many economists developed and developing have come to realize the value of small scale industries, they are seen to be characterized by Dynamism Witty innovation, efficiency and their small size allows faster decision making process. This study seeks to find out the effect of small industries on Nigerian economy, the specific objectives are to ascertain the relationship between the product of small scale industries and the Gross Domestic Product of Nigeria and the effect of import restriction and operation of small scale industries, the hypothesis and research questions are formulated in line with the objectives of the study the validity and reliability of the instrument were tested. The statistical test was carried out at 0.05 level of significance, The findings are that product of small-scale industries significantly contribute to the Gross Domestic Product of Nigerian Operations of small scale industries or significantly affected by the import restriction based on the findings of this research, the study recommends that Government should review the nations and map out strategies to prevent the small scale entrepreneurs from total collapse, managers of small scale should ensure efficient planning at the idea stage to minimize future programs that may occur.

CHAPTER ONE

1.1 BACKGROUND OF STUDY

1.2 STATEMENT OF THE PROBLEM

Small scale industries have been facing plethora of financial problems that emanate from the absence of collateral security, high rate of business failure, low productivity, Poor management and effect of activities of small scale industries have not been felt by these drawbacks, the Nigerian government has been using the annual budgets and specialized agencies such as the small and medium enterprises development agency of Nigeria (SMEDAN). The product of these small scale industries have not even contributed to the growth of the Gross Domestic Product of the country. (OLUBI 1998) The import restriction of the federal government have not affected the operations of these industries in line with the above, the research seeks to fill in this gap by assessing the effects of the small scale industries on the Nigerian economy.

1.3     OBJECTIVES OF STUDY

The general objective of the study is to assess the effect of small scale industries on the Nigerian economy. The specific objectives are:
1)      To ascertain if there is any significant relationship between small industries and the Gross Domestic Product of Nigeria.
2)      To find out the effects of the import restriction on the operations of small scale enterprises in Nigeria.

1.4     RESEARCH QUESTIONS

The following research questions are used as guide to effective carrying out of the research.
1.       What is the significant relationship between small scale industries and the Gross Domestic Product of Nigeria.
2.       To what extent do import restriction of the federal Government affected the operations of small scale industries.

1.5     HYPHOTHESIS

The following hypotheses are formulated to guide the study:

Ho1:  There is no significant relationship between products of small scale industries and Gross Domestic Product of Nigeria.

HA:l  There is significant relationship between products of small scale industries and Gross Domestic Product of Nigeria.

HO:2 The operation of small scale enterprises are not significantly affected by the import restrictions.

HO:2 The operation of small scale industries are not significantly affected by import restrictions.

1.6     SIGNIFICANCE OF STUDY

This study will be significant to the Delta state Government on finding effective ways of improving and re- aligning the activities of the small scale industries to improve the economy of the state. The study will also be significant to the researcher and academic institutions in Nigeria especially Tansian University Oba Umnunya Anambra State as it would not only serve as a reference —point for further studies, but also the basis for the award of B.Sc in Economics.

1.7     SCOPE OF STUDY