ROLE OF SMALL SCALE BUSINESS TO THE NIGERIA ECONOMY DEVELOPMENT

THE ROLE OF SMALL SCALE BUSINESS TO THE NIGERIA ECONOMY DEVELOPMENT (CASE STUDY OF GLOBAL SOAP AND DETERGENT INDUSTRY, ILORIN)

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND TO THE STUDY

The Nigeria federal, state and local government have been taking the development of industries as a master of importance. The government is encouraging the establishment of small scale indigenous industries by creating favourable condition to the industrialist especially by granting them short and long term loans. The government also exempts the infant industries from taxation and grant loans to them for further establishment.

In view of the above, it is observed that many industries have been in existence for quite a while. Some of such industries are soap and detergent industry, leather factory, Tailoring, weaving to mention but few. The effort of government in encouraging the citizens of Nigeria to engage upon primitive investment has led to the

establishment of many local industries by the people of Nigeria. The government also educates the citizens through social and political means to enhance the nation becoming great through economic self reliance, industrialization that will make Nigeria economy less dependent on foreign Nations. However, all these can only be achieve, if the government will provide some more favorable terms, like provision of more loans, free education and  as well as provision of infrastructural facilities to enhance and encourage a large number of small scale industries.

  1. FORMATION AND DEVELOPMENT OF THE STUDY

The small scale industries have no special structure for its formation. The nature of the business or industry most often, determine the capital requirement, numbers of labour and the category needed for it operation. In many community, production of goods on small scale generate higher saving and higher capital formation. These stimulate the growth and development of small scale industries.

It is pertinent here to explain some of the factors that can help the development of small scale industries such factors includes the level of savings and investment, human resources, good and thoughtful planning, availability of capital, transport facilities, raw material. However, capital among other is very important in the development of small scale industries.

Due to the inability of small scale business to secure these necessary factors, there is need for government as well as investors to explore ways to stop the wave of industrial failure in other to build standardized structures that will enhance effective growth and development in businesses.

  1. OBJECTIVE OF THE STUDY

The small scale business has always played important roles in the sustenance of any economy. The objective of this study will

therefore, includes the following.

  1. To analysis the meaning of small scale and the various role and function it performs in the economy.
  2. To determine their role in investment appraisal
  3. To also determine the benefits to individuals in the society.

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