Role Of Small Scale Business In Creating Employment
(A Case Study Of Selected Firms In Owerri Imo State)
Small-scale businesses play a crucial role in fostering employment opportunities within local economies. These enterprises, characterized by their modest size and often entrepreneurial nature, serve as vital engines of job creation, particularly in sectors such as retail, hospitality, and services. By virtue of their agility and adaptability, small businesses can swiftly respond to shifts in consumer demands and market dynamics, leading to the generation of diverse employment opportunities. Moreover, these ventures often operate in close proximity to their communities, enabling them to forge meaningful connections and contribute to the socioeconomic fabric by providing accessible employment options. Furthermore, small-scale businesses are instrumental in nurturing entrepreneurship and cultivating skills among individuals, thereby empowering them to enter the workforce and contribute meaningfully to economic growth. In essence, the role of small-scale businesses in creating employment is pivotal, driving not only job creation but also fostering resilience and dynamism within local economies.
This research focuses on the ole small scale business in creating employment in Imo state. Using small scale business in Imo state. Owerri north local government area. As a case study the object of this study include to determine the role of small scale business in Imo sate and to discover possible ways of tackling the problems facing small scale business. It also sought to address problems of capital shortage, infrastructural problems etc. The researcher handles question raised in this tested using chi-square (x2) null hypothesis that were vital in creating employment in imo state. The researcher made use of 200 staff of which 133 were used as sample size. questionnaire were printed and distributed data collected was analyzed in chapter four (4) the findings proved that desire problems experienced by small scale business, vital role is being played them in regards to provision of employment opportunity in Imo state.
Title page
Approval page
Dedication
Acknowledgement
Table of content
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objective of the study 4
1.4 Research question
1.5 Significance of the study 5
1.6 Scope and limitation of the study 6
1.7 Definition of term 6
CHAPTER TWO
2.0 Review of related literature 8
2.1 The concept of small scale business 8
2.2 Theoretical definitions of small scale business 9
2.3 Promotion of small scale in Imo State 11
2.4 Small scale industries division of federal ministries of industries 12
2.5 Summary of the Literature Review 17
CHAPTER THREE
3.0 Research methodology 19
3.1 Design of the study 19
3.2 Area of the study 19
3.3 Population of the study 19
3.4 Sample and sample techniques 20
3.5 Method of date collection 22
3.6 Method of data collection 23
CHAPTER FOUR
4.0 Presentation and analysis of data 24
.1 questionnaire retrieved 24
CHAPTER FIVE
5.0 Summary, conclusion and recommendation 38
5..1 Restatement of the problem 38
5.2 Summary of findings
5.3 Conclusion
5.4 Recommendation
References 41
Appendix
Questionnaire
INTRODUCTION
1.1 BACK GROUND OF TKE STUDY
The role of small-scale business in cresting employment in most
states such as Imo, State has come out as a result of Special
interest and efforts of administrations, entrepreneurs and scholars concerned with the overall creating of employment of the
state, small scale business are considered as one of the forces in creating ownership and entrepreneurs skills.
Though there is no generally accepted definition of small scale business is usually based on the qualitative quantitative variable. The most commonly used Quantitative element in defining small scale business in the number of employees of the firm. Other critical used are relative size, initial capital management style and the type of business in Imo state. The 1981 industrial policy defined small scale enterprises as organization whose investment total is between 42 million and N5 million according to land but including
working capital.
Also for the purpose of a recent small scale enterprise as those with of Nigeria defined small and medium scale enterprise as those with tc1al assets of N1 million (maximum) excluding land and working capital. However, this has been criticized widely as one being representatives of the real small-scale enterprise position in Imo State. The introduction of structural adjustment program (SAP) by Babamgida” administration in 1986 was a spur to the development of small scale business in Imo State to the development of technological embossment it served as an essential tool to innovation.
Small-scale enterprise serve as a major source of employment. This impact has been creating employment in this state.
The presence of small-scale business has provided forum for the training of enterprises in several areas of the economy small scale business/enterprises are a major source of domestic capital formation through their mobilization of private and channeling of such into productive investment.
Marilyn (1981) has righty argued that the characteristics of small-scale enterprises devoted well with the social economic objectives f many of the countries. He said that small sale business are labour intensive employment operating capital saving and capable of operating on a decentralized basis in Imo State.
In Imo State today the role of small scale business has not been fully felt because of some constraints inherent in the system. Therefore the researcher feels the government should play vital role by promoting good governance.
Effective marketing of the products of small-scale business and creating enabling environment for these small-scale business to operates by proving required infrastructure.
1.2 STATEMENT OF THE PROBLEM
The problem of this study is to find out if small-scale business make any significant. Contributions in creating employment in Imo State, Owerri North Local Government Area. Imo state small- scale business are faced with a lot of constraints. Which include capital shortage infrastructural problems, technological background, organizational constraints and employment synd rome.
For small-scale business to assist in creating employment, the above problem must be solved.
1.3 OBJECTIVE OF THE STUDY
This study has become necessary because of the belief that small-scale business have potentials for accelerating the pace of creating employment in Imo State. In this work therefore, the researcher intends to examine the following researcher object.
i. To determine the role of small-scale business in Imo State with a particular reference of Owerri North Local Government Area.
ii. To examine if the establishment of these business will be an appropriate strategy for accelerating employment in the area of study.
iii. To discover possible ways of tackling the problems facing small-scale business.
1.4 RESEARCH QUESTION
The questions the researcher intends to ask are:
To what extent does the small-scale business in Owerri North Local Government Area plays its role in creating employment.
ii. What strategy does small-scale business should us in creating employment in the area of understudy?
iii. What are the possible ways of tackling the problems facing small-scale business?
1.5 SIGNIFICANCE OF THE STUDY
The role of small-scale business has not been fully felt. This study will go a long way in creating awareness of these roles played by small-scale to embark on small-scale business. This will invariably increase the benefit of creating employment. This study will reveal the problems of small-scale business and possible solution to these problems. It will assist further researchers who would carry out research on this topic.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
Like any other scientific investigation, this research work has been done with several experimental limitations such as listed below.
i. The time limit at the researcher disposal has been too short considering the detailed and challenging nature of the work.
ii. The inability of some respondents to answer relevant question may be as result of fear or victimization by the authority was a big constraint.
1.7 DEFINITION OF TERMS
i. Small-Scale Business: according to the national council on industry (NCI) defined it as industry whose cost of fixed assets including working capital but excluding and is greater than N1.000 000 million but not greater than N4.0 million with a about size between 11-35 workers.
ii. Structural Adjustment Programmes (SAP): this was a programme formulated by the government to re-adjust the lining standard of populace. This has to do with the ability to cope in time of hardship.
iii. Survival: this means the state of continuing to exits or line, in spite of difficult or danger.
iv. Entrepreneurs: these an organization who utilized the available resources at his disposal in carrying out a business establishment.
Small-scale businesses play a crucial role in creating employment opportunities and fostering economic development in many countries around the world. Their significance lies in their ability to address various economic and social challenges. Here are some key roles that small-scale businesses play in creating employment:
- Job Creation: Small businesses are often labor-intensive and require a relatively small capital investment. As a result, they can quickly hire and train employees, contributing to job creation at the local and regional levels.
- Local Employment: Small businesses are typically rooted in their communities. They hire local residents, which means that they have a direct impact on reducing unemployment and underemployment in the immediate area.
- Diverse Employment Opportunities: Small businesses often provide a wide range of job opportunities, from entry-level positions to skilled roles, administrative roles, and management positions. This diversity allows people with different levels of education and experience to find work.
- Entrepreneurship and Self-Employment: Small businesses provide individuals with the opportunity to become entrepreneurs and start their own businesses. This can lead to self-employment and the creation of additional jobs as these businesses grow.
- Support for Vulnerable Populations: Small businesses often hire people who might face barriers to employment, such as individuals with limited formal education, disabilities, or those reentering the workforce after an absence. This inclusivity is crucial for reducing inequality and promoting social cohesion.
- Innovation and Economic Growth: Small businesses are often at the forefront of innovation and technological advancement. They contribute to economic growth by developing new products, services, and business models, which, in turn, can lead to more job opportunities.
- Resilience and Economic Stability: A diversified economy with a strong base of small businesses can be more resilient to economic downturns. These businesses are often more adaptable and able to pivot during times of crisis, helping to stabilize local economies and prevent job losses.
- Supply Chain Development: Small-scale businesses can become part of larger supply chains, creating indirect employment opportunities through subcontracting and supplier relationships.
- Community Development: Small businesses contribute to the development of vibrant and dynamic local communities. They often support local initiatives, contribute to tax revenue, and invest in community improvement projects, indirectly creating an environment that attracts more businesses and jobs.
- Reducing Urban Migration: Small businesses in rural and semi-urban areas can deter the mass migration of people to large cities in search of employment opportunities. This helps balance the distribution of population and resources.
In conclusion, small-scale businesses are essential for creating employment opportunities, reducing unemployment, fostering innovation, and promoting economic development. Governments and organizations often support these businesses through policies, financial assistance, and training programs to maximize their positive impact on employment and the overall economy.