THE EMPLOYMENT CREATION POTENTIALS OF SMALL SCALE BUSINESS

1.0 Introduction

1.1 Background Of The Study

There is no doubt whatever that small scale and medium scale enterprises constitute the real public of a nations economy. And to say that the present and future economic advancement of this our great country (Nigeria) and Aniocha local government area (which is the topic of this study). Lies in the dynamism and growth of small scale business is not an overstatement. At least this is the unanimous is opinion of an economic conference at the instance of two bodies.

1. The Nigeria institute of social and economic research (NISER)
2. The National Association of small scale industries (NASSI) and Riedrich Allber foundation held in Lagos in 1989.

In other words, small scale business constitute a vital engine to economic growth and development. Hwoever, the environment in which this sector operates in Nigeria is both challenging and rewarding it is challenging because it is fraught with the dangers of risks ensuring from having in the first place to invest money in small-scale business in Nigeria and the problems of managing it in the country recessed economy. Nevertheless, this study shows that, there is, the smiling countenance of success should the small scale business be given dynamic leadership and be properly managed in the present economically recessive climate in the country.

This introductory chapter will attempt to highlight the basic facts the reader should know about small scale business in Nigeria and Aniocha local government Area in general.

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1.2 Statement Of Problems

At this time and age, being a paid employee is a very risky business, because the state of economic well being of the Nigeria economy is in the least stable. This has motivated both the government and individuals, to focus their interest on small scale industrial development etc. least to solve the problems of unemployments for owners and create some employment opportunities for others.

This enthusiasm not withstanding only very few individuals in the final analysis succeed in establishing their own small scale business. This further delays our desire t attain to great economic heights. The dynamic role of small scale business in our national economic progress and the motivation of entrepreneurs are into being realized to the great disadvantages of the whole economy.

The problem that now arises are if encouragement of small scale business has the potential of solving the nations unemployment problems. This major problems crops up a number of question as follows:

1. Does small scale business have enough employment potentials for the over growing Nigeria.
2. What favour constraints the growth of small scale business
3. How significant are lack of capital and infrastructure in the establishment of small scale business as it relates to Aniocha Local government area
4. What role does government policy play to encourage small scale business in Aniocha local government area.

With all these challenges, this study intends to reveal how the low productivity of small scale business in Aniocha Local government area caused by the prevailing economic recession has affected their performance.

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1.3 Scope Of The Study

The study’s area of coverage is Aniocha local government area but due to some other limiting factors small scale how to be shortened to some selected small scale business firms in Aniocha. Also this study will show how small scale business help to build up management skills in the local populace. The study will also show the basic characteristics of small scale business in the country.

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1.4 Objective Of The Study

Realizing the employment and other prospects of small scale industrial development in any up and coming economy such as ours, the fundamental question that arise is, how can the dynamic role of this sub-sector be more effective and economically enhanced.

Infact, there are two ways about it other than, by creating serious awareness among be people emphasizing more on small scale Monday as best alternative to our more towards industrialization and all talk about technology transfer.

Most importantly, if we believers economists that then half of our total economic problems area over when we have full employment than there is need to see if small scale business among all sectors can help us attain full employment of human and material resources. Thus, the reed for this study,

Consequently, upon the above, this research is armed at identifying the core problems that hinder people from establishing and operating their own small scale business, find out what remedial actions that have taken to ameliorate the problems it is also armed at finding possible suggestions as to show the problem can be solved.

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1.5 Statement Of Hypothesis

1. Ho: Small business holds no employment creation potentials in Aniocha
   HI: Small business holds no employment creation potentials in Aniocha
2. Ho: There is no relationship between the establishment of small scale business and increased employment opportunities in Aniocha.
   HI: There is no relationship between the establishment of small scale business and increased employment opportunities in Aniocha
3. Ho: Besides other problems lack of capital and infraturctural facilities do hinder the establishment of small scale business in Aniocha.
   HI. Besides other problems lack of capital and infrasturctural facilities do hinder the establishment of small scale business in Aniocha.

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1.6 Significance Of Study

Small scale industry ownership is the route to the ownership of capital and of course participation or contribution towards, the economic and industrial growth of the nation. Therefore, “people are beginning to see a blind alley in purely distributed trade and are exploiting possibilities in the small scale sector”.

Based on the problems and objective of this research the following questions have to asked: –

1. Does small scale business hold any employment potential in Aniocha?
2. Is there any relationship between the establishment of small scale business and increase in employment in Aniocha?
3. Besides other problems, are lack of capital and infrastructure hinder the establishment and growth of small scale business in Aniocha?

All these questions are very important as it provides an opportunity to person who may read it to appreciate what constitute a small scale business expected problems to be encountered by new entrants. This study is particularly significant to the Nigeria government as it afford the government an opportunity to appreciate the problems facing the establishment of small scale business in Aniocha.

However, only very few have actually realized their aspirations in this direction thereby cutting short too soon their enthusiasm and aspirations. On the other hand there has been a negative perception on the part of most indigenous citizens for having business their own. The practice for themselves is to work for others for payment. It then becomes apparent to note that existing business and up and coming ones are owned and operated by setters.

This research is particularly of importance to this group of people as it provides an opportunity to person who may read it to appreciate what constitute a small scale business and the expected problems to be encountered by new entrants, their profit and employment potentials among others.

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1.7 Limitations Of The Study

There was numerous problems and limitations faced by the researcher, but out of all, time and finance imposed great limitation to the work as enough time and money had to be made available to travel to Aniocha as often as necessary in order to successfully accomplish the set goals. And as a poor students still striving to find a career, these are what I do not have.

Again the unco-operative attitude of the owners and makers of small scale business who despite the researchers elaborate explanation will believe that the study in are way or the other will jeopardize their business and therefore with holding information imposed another constraint to this work. There was even the year that they would be unwilling to fill the questionnaires when given. Given the use of the questionnaire was discouraging because may only of the respondents are either illiterates or semi literates, so the researcher was forced to adopt empirical observation interview and documentation to obtain the necessary and available data for the study.

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1.8 Definitions Of Terms

1) What Is Business:

For the purpose of this study, business is taken to mean an organized efforts of individuals to produce and sell goods and services geared at profit oriented. .

2) Entrepreneurs:

They are the risk take, who create business, the people who assemble all the other factors of production in an effort to start and operate a business and to make profit.

3) Productivity:

This is the measurement of efficiency by company how much is produced with the resources used.

4) What Is Small Business:

A small business is one that is independently owned and operated for a profit and is not dominant in its filed.

5) Management:

Working with and through people and other organizational resources to achieve the organizational goals and objectives.