Role of Small Scale Business in Economic Development (a Case Study of West-end Micro Finance Bank, Igbesa)
Chapter One
OBJECTIVES OF THE STUDY
The objective of this study can be stated as follows:
- To evaluate the contribution of Nigeria Labour Congress to youth.
- To identify the problems associated with unemployment in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
Many scholars have written widely on entrepreneurship and its potency to generate employment, thus, underscoring the quintessence, significance and relevance of this sub-sector in the development of any given economy. The experiences of developed economies in relation to the roles played by entrepreneurship buttresses the fact that the importance of entrepreneurship cannot be overemphasized especially among the Developing Countries. In order to highlight its significance in relation to the growth and development of a given economy, entrepreneurship has been variously referred to as a “source of employment generation”. This is because Entrepreneurial activities have been found to be capable of making positive impacts on the economy of a nation and the quality of life of the people (Adejumo, 2000). Studies have established its positive relationship with stimulation of economic growth; employment generation; and empowerment of the disadvantaged segment of the population, which include women and the poor (Oluremi and Gbenga, 2011; Thomas and Mueller, 2000; Reynolds, 1987). Nigeria as a country has numerous business and investment potentials due to the abundant, vibrant and dynamic human and natural resources it possesses. Tapping these resources require the ability to identify potentially useful and economically viable fields of endeavours. Nigerians have made their marks in diverse fields such as science, technology, academics, business and entertainment. Thus, entrepreneurship activities and innovative ingenuity in Nigeria have developed enterprises in the following areas. Agricultural/agro-allied activities where there are foodstuffs, restaurants, fast food vending etc. In the area of solid minerals, there are quarrying, germ stone cutting/polishing and crushing engineering. In power and transport, there are power generations, Haulage business (cargo and passengers). In the area of information and telecom business, there are manufacturing and repairs of GSM accessories and the printing and selling of Recharge cards. In hospitality and tourism business, there are hotels, accommodation, resorts centres, film and home video production; in oil and gas business, there are construction and maintenance of pipelines, drilling, refining bye products. In the area of environmental and waste management business, there is refuse collection/disposal, recyclement, and drainage/sewage construction job. In the area of financial banking services, there are banking, insurance and stock trading. In engineering and fabrication work, there are machines and tools fabrications. There is also the building and construction, where there are plan and design services and material sourcing (Agbeze, 2012).
SMALLL SCALE BUSINESS. (ENTERPRISE)
The role of small scale industries has been emphasized from time to time, keeping in view the overall plan objectives of the economic growth coupled with social justice. The small sector has distinct advantage of low investment with high potential for employment generation. It is also brings out dispersal of industries in rural and semi-urban areas with definite advantage of equitable distribution of national income. This sector has been identified in all the National development plans of Nigeria.
It is widely acknowledged that the creation, sustenance and growth of small and medium enterprises (SME) is a key ingredient for the sustainable develoopment of any Nation. The role of SME has also been emphasized from time to time, keeping in view the overall plan objectives of the economic growth coupled with social justies. The small business sector has distinct advantage of low investment with high potential for employment generation. It also brings out dispersal of industries in rural and semi-urban areas with definite advantage of equitable distribution of National income. Consequently, Nigeria, like other similar developed Nations of the world, has initiated a number of sector reforms on SMES aimed at transforming the Nigerian Economy from its present prostrative statue to a highly industrialized one, as achieved by some Asian countries in the second half of the last century. According to llpo, et al, (2004), these reforms aimed at creating employment, reducing poverty and improving the welfare of people, are in agreement with the goals of industrialized countries of the world.
There is no concensus on the definition of SMES throughout the world due to differences in general economic development and the prevailing social conditions within each country (pacific Economic Coorperation Council 2003). Thus, various indicies such as number of employees, invested capital, asset employed, sales volume, production capability and a combination of these variables are ued by various countries to classify a business under the SME sector (Ownalah, 1999; and Allal, 1999).
Essien (2001) defines a small scale enterprise as an enterprise with a total capital employed of over N1.5m but not more than N50million, including working capital but excluding cost of land and/or a labour size of 11-100workers. This depicts small businesses. However, majority of small business in Nigeria might not be able to boast of capital employed of N1.5m due to low per capital income of the citizens. Small business is defiined by Holmes (2001) as a business which is independently owned and operated with close control over operations and decisions held by the owners. Business equity is not publicly traded and business financing is personally guranteed by the owners. The business will have less than twenty employees. This paper align with this definition as it tries to capture small business in terms of ownership and operations.
CHAPTER THREE
RESEARCH METHODOLOGY
Research methodology shall be adopted in this project, this is because the impact of entrepreneurship development and employment generation in small scale business in Nigeria which is the main concept in the project cannot be qualified nor captured by a single research method.
RESEARCH DESIGN
The success and failure of this research depends on the degree of facts gather during the data collection period.
As a result, this data collection was not based only on questionnaire but rather face-to-face interview with employee and top management of the company was highly used. Basically both primary and secondary sources of data are also used in collecting information.
POPULATION SIZE
Population: this refers to the entire groups of people, events or things of interest that the researcher wishes to investigate.
The size of the population is drawn from all employee of the organization. A careful look is taken in all sectors of the organization e.g the employees and the directors. In order to get the accurate population size of the establishment. For the purpose of this research work, the researcher will base on 100.
SAMPLE SIZE
The sample size was chosen as a fair representation of the study population. The determination of those who falls into the sample size are calculated with the appropriate formula e.g. SX=s/n
Where: SX=Standard error
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION OF RESULT
INTRODUCTION
This chapter presents the description of the result of data collection and discussion of findings. According to the questionnaire administered the table below gives a clear picture of the view of respondents.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY OF THE STUDY
The appeal of Entrepreneurship as a solution to the problems of unemployment can be traced in many countries to its size as well as its ability to grow and provide jobs in spite of formidable obstacles. Yet, there are many scholars who question this line of thinking. They argue that entrepreneurship, especially in the Nigerian context is not a source of economic dynamism and presents a little more than survival activity. At best, according to this line of reasoning, EDPs in Nigeria provide a type of training ground that is inadequate at preparing individuals to become self-employed or to compete for formal sector jobs. EDPs have been described as a short-term approach to the unemployment crisis, designed for new entrepreneurs, introducing them to the basic elements of starting and managing a business.
CONCLUSION OF THE STUDY
That youth unemployment in Nigeria is endemic is stating the obvious. Its concomitant consequences on both the youth and the entire country cannot be relegated to the background hence the waning of agricultural practices, lingering poverty, hunger, social vices and insecurity at a very alarming rate have so characterized the Nigerian society. This is considering the fact that about 70% of the entire Nigeria’s 150 Million populace are Youths whose about 71% are unemployment majorly graduates who are from 20 years and above, affecting adversely the workforce utility of the country.
It is a pity that youths and graduate who are qualified, willing and able to work cannot find a job and as such earn nothing. They cannot handle any family or societal responsibility which broods at them every second. Such individuals are frustrated hence time bond. They are vulnerable and Entrepreneurship is a process by which individuals pursue opportunities, fulfilling needs and wants through creativity and innovation, without regard to the resources they currently have. The concepts of risk-taking, innovation and creation of wealth constitute the web around which entrepreneurship have be woven. The decision to start a venture consists of several steps including the decision to leave a present career or life style, the conviction that the venture is desirable and worthwhile, and the belief that both external and internal factors can make the venture creation possible. Allawadi (2009) has suggested that there are both “pushing” and “pulling” influences active in the decision to leave a present career: the “push” resulting from dissatisfaction or even layoff, and the “pull” towards entrepreneurship of seeing an unfulfilled need in the market. Any of these factors can function as a source of encouragement for entrepreneurship together with support from government, relations, family or role models. The study of entrepreneurship helps entrepreneurs to better fulfill their personal needs as well as the economic contribution they make. Beyond increasing the national income through job creation, entrepreneurship acts as a positive force in economic growth by serving as a bridge between innovation and the market place. Although an entrepreneur frequently lacks both technical and business skills, they nonetheless serve as the major link in the process of innovation, development and economic growth. The literature suggest that success in highly competitive business environment depends on entrepreneurship. And managing a small business is different from entrepreneurship, just as not all business managers are entrepreneurs. can be used by scrupulous elements in the society to pervade all sorts of crime and mayhem, which they would outrightly abhour should they were productively engaged or gainfully employed; A succor that youth development brings to both the individuals and the society at large.
RECOMMENDATION OF THE STUDY
In line with the findings of the study the following recommendations are made:
- Adequate financial, physical and human resources should be provided by various stakeholders not only for potential but also for existing entrepreneurs.
- Private sector should be proactively involved in the design and implementation of EDP, and private sector involvement should extend to funding.
- The scope of the training programme by EDP should be extended to include technical skills, managerial skills and business skills.
- Capacity building in terms of skills and attitude, ability to set and pursue goals; and good management practices are essential requirements for entrepreneurial success, as such the government and private sector should accord much priority to these elements.
- Career guidance services should be made compulsory and provided for all levels of education to help students in making realistic career choices. The efficiency of any career guidance effort will be dramatically enhanced if it begins early in life and becomes a way of thinking.
- The government should ensure that the policy measures be strictly adhered to by encouraging the various financial institutions to grant soft loans to potential and prospective youth entrepreneurs in order to encourage small scale businesses.
- Vocational and technical education should be introduced at all levels of education. It is an indisputable means of reducing youth unemployment since it is skilled-oriented and employment motivated.
- Entrepreneurship education should be incorporated into the curricula of secondary schools and tertiary institutions. This will help shift the youth from being “job seekers” to “job creators” and also from social dependence to self-sufficient people.
- For job creation. The Nigerian government should therefore explore how the ICT industries can provide new jobs and entrepreneurial opportunities for the youth. They could then take advantage of these exploration activities to mobilize the energies of the youth from destructive tendencies to productive people.
- School-to-work transition skills should be introduced into the curricula of senior secondary school and tertiary institutions in the nation, specifically, for the final year students who are about to enter into competitive labour market. The training should create avenues for providing experience with a view to promoting and developing desirable work ethics and culture for national development. Youth should be trained to possess skills that are congruent with real labour market demands.
REFERENCES
- Camp, W.G. (1983). “Social efficiency and vocational education: An examination of our changing philosophies”. Journal of Vocational Education Research 8(3), pp. 10 – 19.
- Chiguta, F. (2001). Youth livelihoods and Enterprise Activities in Zambia. Report to IDRC Canada.
- Adejumola, A.S. and Tayo-Olajubutu, T.O. (2009). Spinning off an Entrepreneurship culture among Nigerian university studies: Prospect and challenges. African Journal of Business Management, Vol. 3(3), pp.80 – 88.
- Alanana, O.O. (2003). Youth Unemployment in Nigeria: Some Implications for the Third Millennium. Global Journal of Social Sciences, 2(1), 21 – 26.
- Anasi, S.N. (2010). Curbing youth restiveness in Nigeria: the role of information And libraries. Library philosophy of practice. Retrieved 20/1/12.
- Oyebade, S. A. (2003): “Education and Employment of youth in Nigeria, causes, Impacts and suggestions in NEEDS document (2004). P 94.
