Economics Project Topics

The Role of Small-scale Businesses in Reducing Unemployment in Niger State (Study of Some Selected Small-scale Businesses in Minna Metropolis)

The Role of Small-scale Businesses in Reducing Unemployment in Niger State (Study of Some Selected Small-scale Businesses in Minna Metropolis)

The Role of Small-scale Businesses in Reducing Unemployment in Niger State (Study of Some Selected Small-scale Businesses in Minna Metropolis)

Chapter One

Objectives of the Study

The main objective of this study is to investigate the role of small-scale businesses in reducing unemployment in Niger state (study of some selected small-scale businesses in the Minna metropolis). Specific objectives of this study include to:

  1. Identify the impact of the performance of small-scale businesses on unemployment in the Minna metropolis.
  2. Investigate the effect of socio-economic characteristics on the performance of small-scale businesses in the Minna metropolis.
  3. To examine the challenges militating against the performance of small-scale businesses in the Minna metropolis.



Theoretical Review

This section entails the review of theories in tandem with the objective of this study. These theories are evaluated as follows:

Economic Theory

An entrepreneur was viewed by the thinkers as a force for economic development. They maintained that transformations can happen as a result of the response of some economic forces, whether those transformations are in the environment or an organisation. Economists believe that business owners respond logically to certain economic forces (business prospects, resources, etc.) that cause the environment to change and the nature of an enterprise. Every economic revolution was considered as involving or resulting from entrepreneurship (Pedraza, 2021). Without entrepreneurs, other production elements like capital, labour, and land cannot be converted into economic value (products and services). Entrepreneurs “have a particular function in the market system through their evaluation of sources of production,” according to certain theorists (Pedraza, 2021). Entrepreneurs judge the worth of the factors of production in producing value that is beneficial to customers while consumers assess the productivity of commodities towards generating value in usage.

Economic theory, in contrast to previous theories, assigned values to each of the production elements and viewed them as separate economic agents engaged in the production process. With this distinction, the contribution of each of these agents could be distinguished and evaluated separately to prevent confusion. As a result, it was easy to discriminate between entrepreneurs and other production factors. According to Mackenzie’s further justification, “These divisions make the categorization of labourers, customers, and entrepreneurs easy, unambiguous, and consequently enable us to avoid confusion when we sort out the contributions of various theories. Yet, to evaluate their contributions, we must relate the fundamental entrepreneurial functions to additional entrepreneurial tasks as well as to the responsibilities of other actors ( Al-Khatib, Dant, & Vitell, 2019).  Small and medium-sized businesses are not exempt from this economic viewpoint on the study of entrepreneurs. Due to their unique ability to regulate and control other production aspects, small and medium-sized businesses have a strong incentive to become entrepreneurs. In turn, the more these businesses are seen as agents of the economic revolution, the stronger this incentive becomes (Al-Khatib, Dant, & Vitell, 2019).

Sociological Theory

The study of Small and Medium Size Businesses is also underpinned by sociological theory. In support of McClelland’s need theory, he was less focused on the precise coincidental relationships between such wants and the selection of entrepreneurs and more focused on the socio-historical processes that develop the psychological “needs” underlying the entrepreneurial disposition (Eisenhauer, 2015).

Hagen integrates additional requirements, such as intelligence, global news, and environmental concerns, in addition to the “n” Achievement of McClelland (Eisenhauer, 2015). Although sociological entrepreneurship theorists were obsessed with the analysis of how needs were distributed throughout society, they vigorously disagreed with the idea that psychological variables were the primary causes of the emergence and success of entrepreneurs. This is predicated on the claim that the psychological approach, particularly when used to explain corporate performance and design, is oversimplified and deceptive (Ramanauskiene & Martinkus, 2019).

argued that entrepreneurship is the outcome of “adaptation” in support of this. One needs to be able to adapt to their surroundings to be an entrepreneur. He claims that the ability to adapt is an element in environment analysis that aids in the discovery of business opportunities and areas of unmet demand in a given environment. No matter how amazing an idea sounds, it won’t transform into an enterprise reality without adaptation (Ramanauskiene & Martinkus, 2019).

Furthermore stated that even when “success” is defined as McClelland defines it in terms of profitability, percentage control of the market, sizes of enterprises, and rate of expansion, “high „n“ Achievement does not always or always ensure commercial success (Ramanauskiene & Martinkus, 2019). The sociologists stated that a person’s environment is the main motivating factor that might propel him or her towards entrepreneurship in contrast to the ideological factor in the study of entrepreneurship. Concepts, characteristics, and motivations by themselves are insufficient for entrepreneurship to take root. For a new enterprise to succeed, there needs to be an enabling environment and business prospects (Ramanauskiene & Martinkus, 2019).

Conceptual Review

The Concept of Unemployment

Unemployment is the inability to find employment while having the necessary skills and readiness. Some people work, but they receive inadequate pay. Underemployment is the term used to describe this kind of work. The Federal Government implemented entrepreneurship courses in all postsecondary institutions to alleviate the daily worsening of the unemployment issue. The government wants people to complete their education, obtain something of value, and find employment after they leave higher institutions (Naja’, 2017). Depending on their financial resources and aptitude to manage a business after receiving entrepreneurship training, the beneficiaries may begin as small- or medium-sized business owners. Several students who were unable to continue their schooling learned trades with the assistance of their parents; tiny businesses begin as soon as the trainees are released from their masters. According to Oyewole (2016), small-scale enterprises are a hazy phrase that conceals significant variability in the types of firms.





This chapter will cover the research design, the study’s population, the sample size and technique, the instrument for data collection, the validity of the research instrument, the reliability of the research instrument method of data collection, and the method of data analysis.

Research Design

The research design is the general plan selected to integrate the several study components logically and coherently.  It serves as a guide for data collecting, measurement, and analysis(Kamangar & Islami,2017). A descriptive survey research design will be adopted for this study. In other words, information will be collected from a host of respondents. This will be done to analyse the qualitative and quantitative information that will be obtained.

Population of the Study

This is the summation of the characteristics that are of interest in a statistical investigation. It comprises every unit that can be used to apply research findings. In other words, a population is a grouping of all the units that have the variable attribute that is the subject of the study and for which general conclusions can be drawn (Shukla, 2020). A target population size of 200 small-scale business operators in the Minna metropolis of Niger State was adopted for this study.



Data Presentation





Findings based on the empirical analysis made in this study revealed that the majority of respondents (70.6%) affirmed that they make money every day at their company. These findings show that the majority of survey participants generated daily revenue from their businesses. It was revealed in this research that 87.5% of respondents agreed or strongly agreed that make a profit when selling their products and services. 4.5% were undecided, while 8.1% disagreed and objected strongly. Our analysis shows that most respondents saw increases in the sales of their products and services.

The Empirical evaluation carried out in this research shows that 82.2% of respondents agreed and strongly agreed that they should employ people to help them sell their products and services. This analysis shows that most business owners sampled for this survey hire people to assist them in marketing and selling their products. The estimates made in this study revealed that 75% of respondents asserted that their customers are satisfied with their products and services. This analysis shows that most of the businesspeople sampled for this study have satisfied customers who are pleased with their products and services.

It was found that 87.5% of survey participants agreed and strongly agreed that their companies’ revenues exceeded their costs. This analysis demonstrates that the businessmen and women sampled for this study consistently generated profits. Analysis in this study shows that 81.8% of respondents agreed that there are few employment opportunities in their area. This information indicates that there aren’t many employment opportunities in the areas where the study participants reside.

77.7% of respondents maintained that Minna’s high unemployment rate is a result of its economic progress. This analysis suggests that Minna’s unemployment is a function of the status of the regional economy. 75.5% of respondents agreed and strongly agreed that Minna’s traditions and customs would affect their ability to find work there. This analysis suggests that Minna’s customs and practices may be to blame for the high unemployment rate in the nation.

In Minna, there are more job seekers than employment opportunities, according to 82.1% of respondents who agreed and strongly agreed with this notion. According to this analysis, Minna is unable to provide more job prospects for people who are qualified and motivated to work there. 71.5% of respondents agreed and strongly agreed that few companies in Minna are willing and able to hire job seekers. This analysis demonstrates that there aren’t many businesses in Minna that are willing and able to hire people who are ready and willing to work.

91.1% of respondents agreed and strongly agreed that a small business location could affect how well it performs. According to this investigation, a small business’s location may have an impact on how well it performs. 76.7% of respondents agreed and strongly agreed that business operators’ exposure to and degree of education are key determinants of their performance in the industry. This investigation demonstrates that business owners’ exposure and educational background have a significant role in determining their ability to succeed.

76.8% of respondents agreed and strongly agreed that cultural traditions might have an impact on the profitability of businesses in the Mina metropolis. This study shows that a community’s culture may affect how well its small businesses perform. 77.7% of respondents agreed and strongly agreed that a community’s quality of life may affect how well small businesses do there. This investigation shows that a community’s citizens’ quality of life may have an impact on the performance of local businesses.

Following empirical estimates made in this study, 87.5% of respondents agreed and strongly agreed that the overall level of education of residents in a given geographic location might have an impact on the performance of firms. This analysis demonstrates how the success of small enterprises within a community may be impacted by the residents’ standard of living. 82.2% of respondents agreed and strongly agreed that a shortage of capital affects the performance of small-scale business operators in Minna, whereas. This investigation demonstrates that small business operators in Minna are significantly impacted by a shortage of finance.

It was found that 71.5% of respondents agreed and strongly agreed that inadequate infrastructure impacts the performance of small enterprises in Minna. According to this investigation, underdeveloped infrastructure has an impact on how well small-scale businesses perform. 91% of the respondents agreed and strongly agreed that the performance of small enterprises in Minna is impacted by low demand for goods and services. This analysis demonstrates how the performance of small companies in Minna is negatively impacted by a decline in consumer demand for goods and services.

76.8% of respondents agreed and strongly agreed that inadequate training and experience have a negative impact on the performance of small firms in Minna. This investigation demonstrates that a barrier to the success of small firms in Minna is inexperience and a lack of training. Poor management has a negative impact on the success of small enterprises in Minna. This analysis demonstrates how poorly managed small enterprises in Minna perform poorly.


based on the empirical and statistical analysis carried out in this study, the following conclusion was reached:

  1. There is a significant impact of the performance of small-scale businesses on unemployment in Niger State.
  2. There are significant socio-economic characteristics affecting the performance of small-scale businesses in Niger State.
  3. There are significant challenges militating against the performance of small-scale businesses in Niger State.


The following recommendations were made in this study:

  1. Infrastructures: The government should provide infrastructural facilities for rural development and invariantly draw the attention of investors to the local government areas. Unemployment has persisted due to inadequate infrastructure to sustain development provision of infrastructure like water, steady electricity, access roads and other means of communication will encourage people to establish a small businesses in Nigeria.
  2. Finance: Government should provide enough incentives to the already existing small-scale business as a way of solving unemployment through the effective management of small-scale businesses. There is no doubt that every small-scale business unit is under-capitalized and to remedy the situation, individuals should help themselves by forming themselves into corporative to be able to attract government financial assistance and also to get exemption from some taxes.
  3. Enlightenment programmes

This exercise will create awareness among the people knowing the importance of establishing small-scale businesses. Government should also embark on massive enlightenment programmes to let the people understand the need and advantages associated with the effective management of their business. Since most of the small-scale businesses are stack illiterates they should be equipped through heavy enlightenment programmes with the language they will understand. Technology: This is another factor that should be looked into, since we depend solely on imported technology to develop our already existing small-scale industries, the government should make it a priority to see that the technology is in place. On the other hand, the government should promote the development of our indigenous technology to reduce drastically the dependence on foreign ones. If this can be achieved it will invariably sustain the already existing small-scale industries. Good Management

The root of every successful business is solely dependent on how effectively the management operates. This is one basis on which this research project takes its stand. To achieve organizational objectives, the management must be able to identify the problem areas, plan, have proper accountability, control credit and finally must be able to utilize professional assistance in improving the business knowledge. If this factor is sufficiently tackled, it will help to create expansion which invariably will lead to the employment of more people and therefore serve as a means of reducing unemployment.


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