CHAPTER ONE
1.1
BACKGROUND OF THE STUDY
The question for
economic development ensures overall improvement in individual well being of
citizen as been the pre occupation of every nation. The process involves a
number of approaches. One of these is the adoption of an industrialization
strategy at a point in time relevant to the prevailing needs of development.
Developing countries are under much pressure in this regard because of their general peculiar
features which among other include
concentration of high proportion
growth low level of savings,
general poverty of various dimension,
poor credit and marketing facilities etc
(on Wumere, 2000)
Many developing
countries have attached high priority to the industrial sector in their
development plans possibly as a result
of their attraction to many development theories that have tended to see industrialization as the gateway to
modernization Nigeria, like many of them had on gaining political independence,
adopted import substitution as her industrialization
strategy. Thus should not be surprising, because even as at today. Most of the rich advanced countries
are rich because they are industrialized.
Incidentally,
the past policies and strategies failed to generate self sustaining growth
largely because of their reference establishment of large scale firm. Resources
(human and material) had largely idled in the face of mounting problems
Since
the 1970s, therefore, developing countries have been compelled, in the face of
thus problems to look for alternative approaches to development. One of these
approaches has been the redirection o f efforts and encouragement of small and
medium scale enterprises (SMES).
Since the introduction.
However, the role of small scale
industries on the economic
development of Nigeria has help the economy to improve to a maximum level unlike
when Nigeria use to import all her need
from the overseas countries which of
course made the economy worse that time (Oshagbemi, 2000).
The
contribution of SMES to the
development process are such that any
country are such that any country can
only ignore its own peril. Hence, there is need to evaluate the impact of small
scale business on economic development
1.2
STATEMENT OF THE PROBLEM
Development strategies
in the past had favoured large scale concerns which had not yielded much desired not returns
to their economic. The quest for economic development to ensure over all improvement in individual well-being of citizens
then become the occupation of every nation, hence an attempt to
incorporate the small and medium scale
industries then become important
with the incorporation, has thus been able to foster economic
development in the Nigerian own situation? This become a problem which
this study tries to proffer solution to,
so as to evaluate its importance on the economic development of .
1.3
OBJECTIVE OF THE STUDY
The major objective of
carrying out this research is to evaluate small scale industry impact on the
economic development of .
I will also focus on the following areas
I. To
identify constraints such as fund
and management of SMES
II. To identify
strategies that would be used in operation of MES in kwara state
III. To examine
the economic potential of SMEs on
gross domestic products and creations
IV. To establish
the importance of SMES as an option of
economic developing recovery
growth in .
V. To identify the
role played in government towards the promotion and developing of SMES.
VI. To examine and identify the constraints such as funding and managing
of SMES.
Finally, the research work will lay emphasis on
the various agencies established by government to promote small-
scale industries in .
1.4
SIGNIFICANT OF THE STUDY
Small and medium scale enterprises in rely largely on own savings, not only to grow but
also to innovate. Firms often need real services support and formal finance
assistance, failing. Which under – investment he long term capabilities
(training and R& D) may result, (oyeleran, 2003).
Beside finance, there are critical elements
(including: knowledge, skill and experience staff: capacity and quality of
internal facilities information and knowledge of market, intellectual and
managerial leadership external infrastructure and the incentive system at the
micro and macro levels) that are lacking
within technology support institutions, these under line the effectiveness of
their support to SMES.
This study is
significant because it would help to evaluate the operations of a vital segment
of the industrial sector. Small and medium scale industries, which has been identified
as having very high potential in promoting economic growth and development. The
evaluation will be done with special focus on the small and operation in small
scale business. There by adding to the existing literature on the subject
matter.
1.5
SCOPE OF THE STUDY
This research covers the
area of promoting small and medium scale enterprises in the economy of . Paying
attention to the role of the government and other external factors that can
affect positively the development of small and medium scale enterprises in .
The research intends to study the essential
problems encountered by small scale operators in the economy of and
suggest ways by which they can be adequately efficiently financed and promoted.
1.6
LIMITATIONS OF THE STUDY
Carrying out any
research on any study cost is very important without enough in hand, it will be
very difficult to carry out the research effectively.
Further more, text books
and journals are not made available in the library the journal room is not
opened at the appropriate time for the student book, that can not give enough
data for the researcher.
Time was another
constraint, due to it was not possible to visit various small scale industries.
This gives room for the selection of a case study (Sawo Industry ), there
were also human problem of not meeting the respondent on seat either in the
site or at their main office each time. I visit the company concerned.
Unavailability of
necessary information’s as then staff and management of Sawo Industry. are
stalling from given out information about the company.