APPROVAL PAGE This project has been read and approved as having satisfied the requirement for the Award of Higher National Diploma in the Department of Business Administration and Management, Federal Polytechnic Nasarawa, Nasarawa State.

………………………….. Supervisor

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…………………………… H.O.D. Business Administration

……………………………. Date

………………………….. External Examiner

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CERTIFICATION This project work titled, The Contribution of small scale in changing a depressed economy; A Case study of Dadin Kowa Enterprises Jos, Plateau State; is submitted by Osheidu Deborah to the Department of Business Administration and Management in Partial fulfillment of the requirement for the Award of Higher National Diploma in Business Studies, Federal Polytechnic, Nasarawa.

……………………………… Supervisor

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DECLARATION I hereby declare that all works done in this research are as the result of my efforts.

……………………………. Miss Osheidu Deborah Student

…………………………….. Date


DEDICATION This work is dedicated to the glory of God for his mercies and kindness towards my life throughout the course of my study. May his Holy name(Jesus) be praise forever Amen.


ACKNOWLEDGEMENT First and foremost, I thank the Almighty God for giving me long life, health and for his guidance, courage and protection throughout my period of study. No one can claim to be a monopoly of knowledge, which is why the world is independent. This project owes much of my brilliant lecturers who have nurtured my talents up to this stage; thank you all. My profound gratitude goes to my supervisor (Mrs.) Sadiya for her guidance, tolerance and understanding in the course of this study; her tight schedule and of course, the attendant, inconvenience, may the Almighty God in his infinite mercy reward her (Amen) My special thank goes to my parents, Mr. Adekunle Oyidi Osheidu and (Late) Mrs. Bosede Osheidu for their effort in sending me to school and for bearing all the cost and the problems, I may have encountered during my period of study. To my sisters Mrs. Christy, Juliana, and Yemisi and my brothers; Rotimi and Michael. I am strongly indebted to my beloved, Joshua Akenu and to all my friends who are too numerous to mention, as well as my course mates whom I would have love to be part for their immensely contributions, encouragement and assistance.


ABSTRACT The work is an academic exercise which attempt to study “the contribution of small-scale Business in changing a depressed economy”, with reference to Nigeria economy. The problems that stem government effort in promoting the development of small-scale sector, problem encountered by small-scale operations and it likely prospects. The researcher by undertaking this survey, she will be able to unearth the contribution of small-scale business toward changing a depressed economy. Research question were formulated from which the major finding were obtained and decision were made. Therefore, one of the findings is the employment generation which small-scale sectors contribute to any nation’s economy, if it is well managed. The information gathered through interview questionnaires and hysterical investigation were grouped into five chapters for easy analysis and logical presentation. Chapter one forms the research proposal, which confirms the introduction of the subject matter, background of the study, statement of the problem, objective of the study, significance of the study scope and limitation, research question and definition of terms. Chapter two is the literature review, introduction contribution of smallscale business in changing a depressed economy, factors militating against it and government agency (SMEDA) while chapter three forms research method and procedure, questionnaire, data presentation and analysis, personal interview. Chapter four with data presentation analysis and research findings hypothesis while finally chapter five give summaries, conclusion and recommendation for small-scale business in changing a depressed economy of Nigeria.


TABLE OF CONTENT i. ii. iii. iv. v. vi. vii. viii. Title Page Approval Page Certification Declaration Dedication Acknowledgement Abstract Table of contents

CHAPTER ONE: INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Background of the study Statement of the problem Objectives of the study Significance of the study Scope and limitation of the study Research questions Definition of terms References


2.0 2.1 2.2

Introduction Small business defined The contribution of small scale business in changing the depressed Nigeria economy. 2.3 Factor militating against the development of small and

medium scale enterprises. 2.4 Government agency responsible for small enterprises

development (SMDA). 2.5 The role of Nigeria Association of small scale Entrepreneurs

in the development of the sector. 2.6 References

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY 3.0 3.1 3.2 3.3 3.4 3.5 Introductions Population of the study The study sample size Research design Research instruments used Questionnaire distribution and collection

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Presentation of data and analysis

4.2 4.3

Test of hypothesis Research findings

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 5.2 5.3 xi xii Summary Conclusion Recommendation Bibliography Appendix


CHAPTER ONE 1.0 1.1 INTRODUCTION BACKGROUND OF THE STUDY Experience has show that industrial development in any country, provides the brightest hope for generating sustenance growth

employment, saving and investment and indeed economic development. Nigeria, like any other developing country with relatively low per-capital income, looks unto industrialization and structural transformation, which are imperative in the quest for the development. One of the most critical development issues in Nigeria revolves around the need to design and implement policies and strategies for an effective, competitive and diversified industrial system. This is particularly important when one considers the country’s endowment.

Giant business establishment make headlines in our news media, people therefore think less of small scale business, but a clear examination will show that small scale business venture are also extremely important in our societal development. Most of today business giant started from humble beginning, from dreams and dedication of perhaps one person while backbone of our economic system hang on those business e.g. (Oil and steel companies etc). but the small scale industries constitutes the muscle that enable such business giant above

is obvious however; that the small-scale business cannot compete directly with big business. Experiences shows that the small

businessman is mostly successful when he fulfills a need that cannot be or is not currently being supplied by these big business competitors. “This act to provide something better and different, gives Nigeria’s small business vitality”.

The federal government of Nigeria in realization of the important of small scale industries to the development of the economy. In her first National development plan (1962 – 1968) she introduces import substitution industries. In her second National Development plan in early 80s the main strategies of the industrial policy were foreign exchange policies and trade regulations investment incentives and special incentives to provide credit and technical assistance to small scale industries.

Under the structural adjustment programmes (SAP) framework, having recognized futile expenditure with increases revenue from petroleum, a new industrial policy was launched in 1989, which re-emphasizes direct government realization process for the first time, the national identified small and medium scale enterprises or the main focus and strategy for the attainment of the goal of economic self-reliance.


Government encourages small-scale business through the following measures:  A 270 million dollar World Bank Loan for small-scale enterprise development.  Setting up of Nation Economic Reconstruction Fund (NERFUND), Nigeria industrial Development Bank (NIDB) mandated to cover small-scale enterprise to complement the Nigeria Bank for commerce and industries (NBCI) activities in the sub-sector.  Central Bank guidelines to commercial Banks to allocate 20% of loan able funds to small-scale enterprises.  Setting up of National Directorate of Employment (NDE)  Creation of Micro-Finance Bank to aid cottage industries and small scale enterprises  Setting up industrial training fund and entrepreneurship

development programme. Due to the global economic depression and economic recession, unemployment has become a serious phenomenon in Nigeria today. To this end, one should not fold his hands and die in silence but must leave for other ways of self employment.


The soap making industry provides on individual with a worthy employment, as it is not only to meet the needs of the employer but also those of the market at large. There is an indispensable need for keeping body, clothes and surrounding making use of soap for one purpose or another and this is what motivate a group of fairly successful businessmen and women of Dadin Kowa in Jos to give birth the idea of owing and running a small venture that will fulfill the vacuum of satisfying and creating consumers for the product. In this light, thus, twelve fairly successful businessmen and women contributed enough as Dadin Kowa enterprises Jos, with the aim of producing varieties of soaps.


STATEMENT OF PROBLEM Despite the recognition and support accorded, the small scale industries sector by various bodies to enable it play its traditional roles. It has become less obvious recently whether this sector performing as expected as small scale business play a very important role of the operators, populace and government such important as;

 Employment generation, this could be easily identified in nations. As at present, 70% of labour force works under one small business establishment.

 Step in rural – urban migration – formerly, young school leavers are found of running cities to seek for employment. Such geographical migrate has been drastically reduced with small business in rural areas. Consequently, this deepest urban areas population.  Aids mobilization of domestic souring. An individual or group of people can organize their fund than spending on trivialities to establish small business. These are reasons why successive government has their weight behind the small-scale industrial programme. The aim of the study is to closely exercise the contribution made by small-scale industrial sector with a view to determine. It’s overall performance in the entire depressed economy of his nation. The problem of the study therefore, is how the small-scale industrial sector can continue to perform its traditional role in changing a depressed economy and other associated problems encountered by the small-scale business.


OBJECTIVE OF THE STUDY It has been established that the small-scale business employ the highest member of the work-force found in any nation, be it a


developing nation. It is in the light of the above, that the study is focused on; i. Investigating and trading out in changing of Nigeria’s depressed economy. ii. To determine the contribution of government towards

developing small-scale business in the Nigeria’s economy. iii. To establish to what scale, small scale industries are producing due to the low capital investment by entrepreneurs. iv. To find out the problems faced by the sector and suggest solution that will enhance their roles.


SIGNIFICANCE OF THE STUDY This research is significant to potential or prospective and existing small-scale industries, to the authorizes monitoring of small-scale industries in changing the depressed economy. The need for the study areas to examine the performance and contribution of smallscale business in the countries economy.


SCOPE AND LIMITATION The theme of this study in the contribution of small scale business in changing a depressed economy in Nigeria; a case study of soap industry in Jos. The small scale which are within the industry and

are potential beneficiary loan schemes, the researcher had conducted a comprehensive study on the contribution of smallscale industries in changing a depressed economy. Thus, the research will only be centered on Dadin Kowa enterprise in Jos. In the course of this research work, the researcher encounters some problems that are common of this type of writeups. These problems include trying to gather data from uncooperative hands of department in related areas. The major problem was that of collecting adequate data necessary for research work such as detailed information, which bring at vital point of conviction of study of such information, which was not willingly given, as they are termed confidential. The knowledge of the fact that the information would be needed purely and solely for academic purpose did not help at all. The gathering and compilation of the project had to be done concurrently with lecture, test, and thus, the problem of time was a limit factor.


RESEARCH QUESTIONS The major objective of this study is the acceptance important of small-scale business to the nation.

Therefore, with the study to acknowledge the fact of the contribution of small-scale business in our depressed economy, will this create awareness for the world investors or those already on the sub-sector institution of higher – learning, government agencies and the populace, to see beyond present situation of the economy and its relation to small-scale business? How does these enumerated problems of small venture affect Dadin – Kowa enterprises in Jos and how are they better treated? To remain in business.

1.7 i.

DEFINITION OF TERMS SMALL SCALE BUSINESS: - These are small business organization with the aim of producing or distributing certain goods and service, to the public in order to make profit, examples are industries producing soap, matches, and polythene bag etc. not more that fifty people.


ENTREPRENEUR: - This refers to an individual who starts and run a business and also who is optimistic in taking profitable risk and innovating to satisfy needs of the consumer at a profit.



ENTERPRISES: - It refers to the business organization itself, it could be private enterprise owned by a person or group of persons or public enterprises owned by the government


REFERENCES Mrs. Adama Idris; Small-scale Management, (2008) unpublished lecture note. Mr. Salihu; Entrepreneurship Development, (2009) unpublished lecture note.


LITERATURE REVIEW 2.0 INTRODUCTION: Thousands of enterprises fell into group of small business in Nigeria, they include. According to Asha Benin (1983) carpentry paltry, ceramis, weavery, soap making, mechanic and repairs services etc. The majority of Nigerian small business is in the commercial sector and the trend being to nard services industry and retail distribution. The next one is the engineering and contribution industry. Ehalaye (1986) emphasized on the decision and circumstances that motivate people into business generally and specifically small scale business. Decision such as income in the security of boss prosperous economic time, job satisfaction, family support and external encouragement and venture opportunity. It is viewed that more research into the development of small scale business or industries will help in enhancing growth and development which in turn contribute to the economic growth of the country. Japan as an industrialized nation started with small scale industries and went along way in developing them thus, becoming what it is today.


1.2 SMALL SCALE BUSINESS DEFINED This has been a no consensus all over the globe as to what a small business is in precise terms. This is because: - Differences in the pattern of overall industrial and economic growth. - Differences in size capital and personal. - Insufficient standard criteria in a business enterprises - Political and environment differences around the globe etc. However, the third National Development Plan (1970-80) refers to the term small business as “the manufacturing establishment employing less than ten (10) people on whose investment in machinery and equipment do not exceed N600, 000.00 (six hundred thousand naira). (Central bank of Nigeria (CBN) in its credit guideline (1983) defined small business as those businesses with annual turnover of less than N500, 000.00 (five hundred thousand naira). The federal ministry of industries in 1973 defines a small business enterprise as “all manufacturing unit with a total capital investment of up to N60, 000.00 (sixty thousand naira) and paid employment of up 50 (fifty) people”. However, due to changes in economic condition particularly with the introduction of structural Adjustment programme (SPA) to the

economy, it defined (1983) “a small industry as those industries with total investment of between N100, 000.00 (one hundred thousand naira) and 2000, 000.00 (two million naira) exclusive of land including working capital. United States committee for Economic development (ED) in this view suggested that a “small scale business enterprise would have at least two of the following features. They are:- Owner management character. - Capital is supplied and ownership is held by an individual or small group. - The firm is relatively small by individual standard. - Local area of operating through their product. - The management is highly personalized. - Local area of operating through their product. - High mortality rate. In view of the difficult of having accepted definition of small scale business and following the contribution of united state, Committee for Economic Development, we have to agree with Osaybemi (1983), who regarded a small scale as one who scale of operations is less than the average.


All that is needed is do is just to take an average figure of certain variable and all business which fall below this average can be referred to as small scale business. 2.2 THE CONTRIBUTION OF SMALL SCALE BUSINESS IN

CHANGING THE DEPRESSED NIGERIA ECONOMY There are various reasons for stressing conscious planning and development of small scale business industries in Nigeria, Some will be enumerated in this project as found out in the course of this research that small scale business have dot to contribute to the changing a depressed Nigeria economy. Such contributions include the following:1. EMPLOYMENT CREATION: - Small scale industries create

employment to the Nigeria citizens which will reduce dependency on government to provide job for every body and also to a large extent reduce government expenditure in a way of contributing to a balanced budget for the economy. The most cumbersome task challenge in industrial promotion in any economy is the ability to create employment with risking an unmanageable high rate of inflation. During the period, in 1984 to 1986, Nigeria witnessed an era of retrenchment of works in both private and public sectors of the economy coupled with the large number of graduates from our tertiary institution every year. The level of unemployment rise to an alarming and

unbearable rate. Energetic men and women were seen everyday on the street of urban cities and town struggling to sell stuffs like cigarettes biscuits, drinks etc. just to earn a living, government did not go on to depends entirely on large enterprises to private employment to the generality of the public. It is to this end that the following questions arise: (a) At what rate could new job be created to absorb large member of graduate from tertiary institution and retrenched workers in particular? (b) How fast could new jobs be created to absorb the unemployment? It is in answering these question that it be came clear that it is very necessary adopt a strategy that would get the unemployed to start and manage their own small scale business to generate unemployment for them and others, this is how the National Directorate of Employment (NOE) was established with the sole aim of training men and women in manpower development so that new jobs would be created. Information the National Economic reconstruction fund

(NERFUND) in December, 1996 indicate that expected employment to be generated by the first twenty six enterprise that got approval for loans stood at one thousand three hundred and one (1301) or an average of fifty (50) workers or employees per-enterprise. Small scale industries are


generally labour intensive, means that a given unit of investment in that sector directly increases employment opportunities.

scale industry is owned and managed mostly by individual who leads to self fulfillment and self actualization. An entrepreneur conceives and generates a business venture ideas, takes moderate risk and beings into existence by putting available resources together, a business enterprise that never was. Since the entrepreneur’s aim is to achieve and succeed he always aims for a standard of excellence in his performance. It is very encouraging to see that young Nigeria an especially graduate from tertiary institution era taking to entrepreneurship which was not the case a decade ago. The future of small scale business in the country is very bright because more and more graduates enlightened entrepreneurship will always be conscious of

producing high quality products to reflect their own image and that of the country. Entrepreneurship development is therefore, a proper oriented meaningful industrialization
3. COST CONSCIOUSNESS: - The spirit of cost consciousness is

well developed in the small scale business. With the introduction of structural Adjustment programme (SAP) 1986 it has become inevitable for successful entrepreneurs to be cost conscious in

their activities or spending so that profit can be taught and they gradually develop, in so doing their finances will not only be depended on government and other financial institution.







INDUSTRIAL GOODS: - One of the objectives of the structural Adjustment programme (SAP) is to achieve self-sufficiency and self-reliance which will lead to independent and the ability to stand above. The spirit of independence and individual basis can lead eventually to national goal and economic grounds. Many small scale industries depend on locally sources materials rather than importing them for manufacturing processing or servicing enterprise. Small scale industries are gradually forming a habit of self-reliance, which will yield fruits in the long term and motivate the industrial sector to grow thus, developing the Nigeria economy and achieving the micro-economic aggregate.

Nigeria of 1979, chapter 1.1 section 16 provide that “The state shall direct it policy toward ensuring that the economic system is not operated in such a manner of production and exchange in the hands of a few individual or a group”. It is now clear that Nigerians cannot depend on government entirely to provide equitable economic development. This is an

area of great challenge to the small scale industries in Nigeria. Through viable small scale industries the nation can enjoy a rapid widespread economic base, thereby making many people, owners/managers and partners in economic advised development of different part of the country by extending the benefit of economic progress to the less development areas.

and equipment used in production does not constitute what we call technology. It is impossible to know how to use such equipment without acquiring the technology of which they are made up of. Technology as Chief A.F Kolawale put it as…………body knowledge on the techniques of condemning materials to derive desired product such as machine and equipment used in producing consumer goods”. The federal government of Nigeria embarked on a massive training programme abroad for Nigerian technicians, engineers and scientists, just to acquire necessary knowledge but this has not yield fruitful results because up to date Nigerians still import almost everything. Studies carried out by professor S.A Aluko in 1972 and Dr. Sonaike in 1975 have shown that small scale industries in Nigeria acquires or Improve domestic technology in the production of several goods such as:- e.g. bakery products, soft drinks,

textiles, footwear, jeaneries, soap production etc. and what seemed to have been acquired was just further improvement in the technology of production so as to improve the quality of these goods. This suggests that one of the main potential contributions of small scale business in changing Nigeria economy is truly indigenous technology. With the introduction of SAP in 1986, the federal government has no reason for importing technology from developed countries instead it uses the funds to improve on Nigeria indigenous technology. In conclusion, use the past decade as case point one would notice that small scale industries have been contributing their fain share in changing Nigeria’s economic. 2.2 FACTORS MILITATION AGAINST THE DEVELOPMENT OF

SMALL AND MEDIUM SCALE ENTERPRISE The following are considered as the factors militating against development of small and medium scale enterprises:(1) Lack of business connection:- It is not clear from the questionnaire whether lack of business signifies inability on the part of the particular enterprises to faster fruitful relationship or whether some non-business considerations pre-determinate customers


(2) When it is noted that almost 16% percent of the respondents also ascribe the cause of their business failure, it would seem that many entrepreneurs believe that their success in business is not strongly related to their ability to perform. One of the entrepreneurs interviewed by the authors maintains that business success in Nigeria especially in the retailing, wholesaling, distribution and contracting sectors is more of a result of who you know, to what part you belong and from what state you come, from or father than whether that you can perform effectively. (3) Lack of capital was the primary factor militating the development. Experience has shown however that the amount of capital or fund available is less important than how we use money your own and that which you can borrow is a very important factor for success. There was a case of a particular entrepreneur who want to establish a printing business, had sufficient money only to buy the printing machine. He depend on a loan to buy an office, purchase the different printing materials own the business, when his loan from the bank was not forth coming because of lack of transitional security of collateral, he had to auction on the machine. (4) In our investigation, about 101 confess that lack of prior or proper business experiences constitute their main worry. To know the tricks and short cuts in business management practice, there is

no alternative to experience. Aspiring business should learn as possible from practitioners regarding the art and science of business management. A year or two will be sufficient to acquire reasonable experience in any profession. In most case and contrary to opinion, the importance of experience is not the time spent, but what is learnt. (5) The level of ignorance of some entrepreneurs in record keeping and financial management is appalling many of them cannot or do not want to employ the service of qualified accountants on their part, many owner-manager are not knowledgeable through to understand the basic principle of accounting and book keeping. The cannot interpret or use the practical application of the accounting figure if provided. The result is that many businesses operate in confusion unable to differentiate between periodic gains and lose. Profit tends to be over stated most of the time and personal expenses often are not distinguishable from business expenses. 2.4 GOVERNMENT AGENCIES RESPONSIBLE FOR SMALL

ENTERPRISES DEVELOPMENT (SMEDA) Government in an attempt to promote small enterprises in the country, Government set up some agencies that are change with the


responsibility of promoting and fostering the growth of the business sector: These agencies are mention below:(i) (ii) (iii) (iv) (v) (vi) The Federal Ministry of Commerce and Industry The Bank of Industry The Agricultural Research Institutes The National Planning Commission The Development Bank for Small and Medium Scale Industries The Manufacturer Association of Nigeria

(vii) The National Association of Small Scale Industries (viii) The Indigenous Fabricators and Manufacturer of Machinery (ix) 2.5 The Federal Ministry of Finance


ENTERPRISES ON THE DEVELOPMENT OF THE SECTOR The Associations play a vital role in promoting small scale enterprises in the country. Some of the roles are view below: (1) It is the Nigeria Association of small scale enterprise that initiate and articulate the idea for small medium scale industries policy thrusts (2) These Association serve as a vanguard agency and total point for rural industrialization which gives raise to poverty allocation,









sustainable live Laird (3) The Agency promote and facilitates development programme, instrument and support service to accelerate development, modernization net-working and linkage of small and medium industries. (4) They also assist in mobilizing internal and external resources, including technical assistance for small and medium industries their support institution, trade and associations and nongovernment organization. (5) They oversee, coordinate and monitor development in small scale industries sub-sector (6) These association help in designing, promoting collage and micro small and medium scale industries project. (7) It provides industrial extension services to small scale industries, fabricator of machinery and beneficiaries of micro-credit loans. (8) It establish liaison between research institution local fabricator and finance, technology, technical skill development and

management of small and medium enterprises. The Association liaises with external bodies for support and development of small scale industries in Nigeria.


The Association monitors the implementation and compliance with Federal Government directives, incentives and facilitate for development of small function of the agency in order to promote government policies in and outside Nigeria. (9) Finally, the association plays a vital role in recommending the small scale industries to the federal government, from time in consultation with other relevant agencies and organization, and applicable tax and tariffs and other financial incentive for promoting the development of small and medium scale industries.



REFERENCES:Entrepreneurship Programme. “Rapid industrialization cannot afford to relegation the Development

J.O. Asa and A.W. Balogun:

development of small and medium enterprise” Murduck .J: Information management. Published (2000), 2nd Edition, New Jersey Eajle wood Difa. “Research development of small scale industries will help in enhancing the growth of the country” system of modern


CHAPTER THREE RESEARCH, DESIGN AND METHODOLOGY 3.0 INTRODUCTION The research methodology in any study reflects the native of the subject understudy in carrying out this research work. This is basically a descriptive survey. Information needs were used on data collection through primary and secondary service. Questionnaires, interview observations and consultation with journals were mainly the techniques of investigation adapted. 3.1 POPULATION OF THE STUDY The population size under is thirty five (50) people. This comprises: - The joint owners of Dadin-Kowa Enterprises twelve (12) people - Selected working staff of data of Dadin-Kowa factory eight (8) people - Members of general public ten (10) people - Traders five (5) people 3.2 THE STUDY SAMPLE SIZE This study sample size based on the correctly completed and returned questionnaire. Therefore, out of the twenty (20) questionnaires administered, fourteen (14) questionnaires were correctly completed and returned. From the

sample size of fourteen (14) and (9) nine people were joint owners of Dadin-Kowa Enterprises, while five (5) people were selected working staff of Dadin-Kowa a soap factory. Furthermore, the researches interview (15) people five (5) people were traders and ten (10) people cutting across members of the public 3.3 RESEARCH DESIGN The questions, highlighted in the questionnaires and interview of open ended and closes ended types, with the open ended questions, the respondent were allowed to air their view and hence it made for flexibility of opinion. But in the close ended questions, the respondents and multiple choice questions from which answers were to be chosen. 3.4 RESEARCH INSTRUMENT USED The research instruments used in this work were mainly the questionnaire interview an observation method. These were predicated on the statement of problems while confining this work was on descriptive and historical survey. 3.5 QUESTIONNAIRES DISTRIBUTION AND COLLECTION A total of twenty (20) questionnaires were distributed and fourteen (14) were completed and returned.


CHAPTER FOUR DATA PRESENTION AND ANALYSIS 4.1 HYPOTHESEIS This chapter analyzed the date collected based on the following research questions. RESEARCH QUESTION: I will the study help to acknowledge the fact of the contribution of small scale business in our depressed economy” In the light of this, the flowing questions were asked: Do you think that if small business is properly manage effectively in term of minimization of costs 17 contribution to changing a depressed economy? Table 1: management of small scale business Options Yes Total Response 9 14 Percentages(%) 64.29% 100%

Sources: Questionnaire 2009 From the about table, the responsible indicate that

respondent who are of the view that if small scale business is properly manage effectively in term of minimization of cost, it contribution to

changing a depressed economy, represented 64.29%is therefore evident that if small scale business is effectively it a useful contributor to the economy. Question: How much capital do you need in term of cost to establish and run succefully you small-scale? Table 2: Soap Industry in N Nigeria of today Percentages (%) 50% 28.57% 21.43% 100%

Options Response #5000 - #49000 7 #50000 - #99999 4 #100000 – and above 3 Total 14 Sources: Questionnaire 2009

From the above total, it can observed that to established and run successfully a soap industry investor would need between #50.00 to #99,999.This represent 50%of the represented. In this view they agreed that small sale business would contribute to the development of depressed economy with the available cost as state above initial capital outlay to operate efficiently. Question: Does small scale business create employment opportunity? Options Response Yes 14 No _ Total 14 Source: Questionnaire 2009 Percentage(%) 100% _ 100%

From the above table all respondent agreed that small scale business contributed to the development of a de pressed economy mainly by


creating employment opportunities event illustrates semi illustrate and educated people. Question: Does small scale soap industry promote or stimulate indigenous technology?

Table 4: Indigenous Technology Option Response Yes 14 No _ Total 14 Source: Questionnaire 2009 Percentage(%) 100% _ 100%

The above total table shows that all 100% of the responses as indicate by the table above agreed that small scale industries stimulate indigenous technology. Questions: Rural Development.

Table5: Rural Development Option Response Yes 14 No _ Total 14 Source: Questionnaire 2009 Percentage(%) 100% _ 100%

From the table signifies that 100%of the respondent agreed that small scale industry contribute to the development of depressed economy by


encouraging rural development and maintaining a healthy economic in general. Research question2: Whether government policies towards the

development of small side business aid in changing a depressed economy. Question: do government policies in restructuring the economic affect you business? Table 6 : Government policies in restructuring economy option Yes No Total Response 11 3 14 Percentage(%) 79% 21% 100%

Source: Questionnaire 2009 79% of the response were of the view that government economic and fisted policies such as structural Adjustment programmer (sap) after the operation of the business. It is therefore evident that there is a reasonable apprehension that small scale enterprises do not survive under such government policies in restructuring the economy. Question: Do you joy efficient supervision from government agencies to give necessary advice to you as regards your business operation?


Supervision from Government

Option Response Yes 2 No 12 Total 14 Source; Questionnaire 2009

Percentage(%) 14% 86% 100%

The above tables indicate 86%of the response agreed that small scale business do not often enjoy efficient supervision from the government agencies established to assist in the development of small scale sector. Question: Do you receive sufficient funds from government?


Funds from Government:

option Response Yes(sufficient fund) 3 No(insufficient fund) 11 Total 14 Source: Questionnaire 2009

Percentage(%) 21% 79% 100%

Research question: How does these enumerated problems of small. scale affect Dadin kowa Enterprises in joss and how are they better treated? To remain in business. In the high of the above the following question were asked.

Question: Do you experience difficulties in acquiring the capital needed for you business? Table9: Acquisition of needed capital


Option Response Yes (there is difficulty) 12 No (no difficulties) 2 Total 14 Source: questionnaire 2009

Percentage(%) 86% 24% 100%s

From the above table it can be seen that 86% of respondents experiences defaulters in acquiring capital needed for efficient operation of the business; Question: How do you rate the loan procurement procedure? Table10: Loan Procurement procedure Percentage(%) 100% _ _ 100%

Option Response High 14 Moderate _ Low _ Total 14 Source: Questionnaire 2009

The above table vividly indicates that all the respondents (%)were of the view that loan procurement for small scale industry operator is very vigorous, which demoralized most of the operator often. Question: What is your opinion about the interest rate charged on small scale industry by financing institutions Table11: Interest rate Percentage(%) 100% _ _ 100%

Option Response High 14 Moderate _ Low _ Total 14 Source: Questionnaire 2009


All the respondent rate of the view that small scale business find it difficult to contributed its quota toward changing a depressed economy for the fact that by interest rate charge on loan advances by financing institution otter very high. Question: Do Disbursement? Table12: Option Yes(there Loan Disbursement is Response bias 14 Percentage(%) 100% _ 100% you think there is bias treatment in the loan

treatment) No(there is no bias _ treatment) Total 14 Source: Questionnaire 2009

The whole respondents were of the view that small scale experience was treatment from official concerned about loan disbursement which make difficult for small scale sector to contribute it quota toward changing a depressed economy.


TEST OF HYPOTHEIS The hypothesis was formulated prior to view of the relevant from literature. The first of hypothesis is a contribution of finding response in the questionnaire.


Indeed business of ease of application and accuracy, method used for the research is the chi-square donated by Greek letter x2, it is frequently used in a hypothesis concerning the difference between a set of expected or theoretical frequencies. Sex Group of the Respondents. Response Male Yes 7 No 2 Total 9 Sources: Questionnaire 2009 Female 4 1 5 total 11 3 14

The above table is known as observed table or critical vane. But to complete the expected frequency table we adopt this formula: = (O – E) 2 E

Where: 0=observed frequency E=expected value of frequency then to get expected value ($) it will be: Total row x total columns Overall total

For Yes row (A) 11 x 9 14 = 99 14 = 7.1

(B) 11 x 5 14

= 55 = 3.9 14

For “No” row
(a) 3 x 9


= 27 14

= 1.9

(B) 3 x 5 14

= 15 14

= 1.1

Formulation of contingency table (observed frequency and expected values Sex Group of the Respondents Responses Yes No Male 7(7.1) 2(1.9) Female 4(3.9) 1.(1.1)

Note: The bracket figures are expected frequency to get x2 X2 = (0 - E) 2 E

X2 = (7-7.1) 2 x (4-3.9) 2 x (2-1.9) 2 x (1-1.1) 2 1.1 7.1 3.9 1.9


= (-0.1) 2 x (0.1) 2 x (0.1) 2 x (-0.1) 2 7.1 1.9 1.1 3.9 =0.0014 + 0.0026 + 0.0053 + 0.0091 x 2 =0.0275 Computation of Degree of frequency (DF) Where R=Row

K= Column From the observed table 2 column and we have Two (2) rows (2-1)(2-1) 1x1=1 DF=1


RESEARH FINDINGS From the demographic date it can be seen that out of 100%of the respondent that answer the question the ration percentage was 62:75 for the made and female respectively. Consequently the contribution of small scale business in clanging depressed economy cannot be over emphasized. As such effects it has on the economy includes, creation of employment aid s the development of entrepreneurship cost consciousness is created encourage nation to be self


as well






technology. More so the various government agencies possible for small enterprises d development such as federal ministry of industry and l scale industries the bank of industries and other establishment under this umbrella should invariably pave ways for the successes recorded by smalls scale business in changing depressed economy.


CHAPTER FIVE SUMMARY CONCLUSION AND RECOMMENDATION 5.0 A. SUMMARY The researcher found out that most writers, these served with questionnaires and those interviewed, viewed small scale business as a tool to development of the Nigeria depressed economy since it creates employment opportunities. That employment generation accounted for about 4% of the contribution made by small scale industries in changing a depressed economy like Nigeria economy. By creating employment, it has added to the growth of standard of living of people which is a major factor in determining the economy development in any nation, provide that small sector are effectively and efficiently managed. B. Government, in its effort in promoting the growth of small scale business in order to contribute mean fully to the depressed economy in the process, there are certain problems that hinder the effort of the government towards the development of small scale sector which make it difficult for small scale industries to contribute to the development of a depressed economy. These problems in the domain of government are highlighted below:



Man power shortage:- Government specialized institution for industrial development and promotional agencies are

inadequate skilled man power to evaluate and asses loan applicants. ii. Ineffective supervision:- monitoring of business performance of the enterprise to which loans have been given, provision of efficient and effective extension etc do not receive the attention they deserve. iii. Insufficient fund:- In the face of competing needs of government researches, sufficient funds are not available to promote the needs of the small scale industries. iv. Effects of government economic policy:- There is apprehension that small scale enterprise does not survive the government fiscal and monetary policies such SAP, SFEM etc. 5.2 CONCLUSION The future of small business in Nigeria bright and promising, considering the growing awareness of the importance of small scale industries by the government, financial institution and other agencies to sustain this, the financing of small scale sector needs the combined and concentrated efforts of the government and the provide sectors for it has become evident that both developed and developing countries. The government importance and potential

contribution of small scale business in changing a depressed economy cannot be ignored. This research work has shows the contribution of small scale business in changing a depressed economy. It has also shows that small scale business in Nigeria are confronted with problems, these problems are disserve and cannot be combusted by just are measure but through different means. With various bodies concerned unrelated efforts and sufficient enlightenment about the prospect that lies ahead of would be operated self interest development will arise and this will guaranteed industrial development. Finally, this study calls for government cementation of suggested solution which she believes would bring industrial improvement and economic buoyancy for small scale business. 5.2 RECOMMENDATION Small scale business has greatly helped the macroeconomic aggregate of the nation by generating

employment, Reducing regional depositories and the development of indigenous technology. Government has also contributed to the development of the sub sector by establishing agencies associated to it.

Such agencies as the federal ministry of industry, the National planning commission, the federal ministry of science and technology, the Agricultural or industrial research institutes, the indigenous fabricators and manufactures of machinery the federal ministry of finance, the development Banks for industry, the manufacturer Association of Nigeria . Director General of the Agency is to contribute or coordinate, financial and boost their moral of small scale industries and to increase their productive base. Therefore in order to effect the development, growth and structural of small scale industry in Nigeria and to be consistent with this study, recommendation for tackling those problems are also considered in there part in starting with the government, the commercial banks and small scale business operations.


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