THE ROLE OF SMALL SCALE INDUSTRIES IN RURAL DEVELOPMENT

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

Large-scale manufacturing has been the main thrust of Nigeria’s development programme over time.  However 16 is being widely acknowledged that rural development should be the centre piece for effective short and long run development of any nation such as Niger.  Both the federal and state governments on one hand and general public on the other hand attest to the fact through their efforts toward the development of the countryside of Nigeria.

In realization of this and in pursuance of its attainment the federal government created the directorate for Foods, Roads and Rural Infrastructure (FRRI) to work in partnership with the rural communities toward the provision of Amenities such as rural roads, water boreholes and production of more foods.  As well several states, which  Ngwo is one of the an, have adopted rural developmental programme which is charged with the responsibility of developing and coordinating rural development activities in the state.

From the on-going, therefore, it is clear that the governments and people of the country now attach much importance to rural development.  It is, therefore, the need to achieve integrated rural development vis-a vis national development that prompted this study with the objective of determining the role of the establishment of small scale industries in the rural areas can play in this regard.

1.2       STATEMENT OF THE PROBLEM

Since independence, Nigeria has had your national development plans, but unfortunately we are still in search of a development strategy to launch us on the plan of developed nations.  Hitherto, the development plans have laid emphasis on large manufacturing concerns.

It therefore, becomes imperative that other strategies such as small-scale industries programmes be given a tairs trial in over search for a “messiah strategy”.  Thus the study aims at addressing the problems of searching to the best development plan by finding out and analyzing the benefits of small-scale industries with view of determining their relevance in rural development and ultimately natural development.

The study aims at doing this by identifying the specific contributions of the establishment of small scale industries can make especially in the rural development it will equally identify the categories of business that qualify as small-scale business and the types needed in the rural areas.

1.3   OBJECTIVE OF THE STUDY

The study will address the following purposes:-

1.            To determine the extent of managerial incompetence of owners of small scale in Ngwo.

2.            To determine why there is poor human relations with small scale in John Mark Pure Water.

3.            To find out the causes of low productivity in small scale business

4.            To determine the extent of financial stringency in the operations of some scale hotels.

1.4      RESEARCH QUESTIONS

To accomplish the objectives of the study, the following research questions will be addressed.

1.            What are the specific contributions of small-scale industries can make in rural development?

2.            Should small-scale industries be the basis (take off point) to rural development?

3.            What are the overall impact small-scale industries can make in the rural areas?

4.            What is a small-scale industry and what types are needed in the rural areas?

1.5    RESEARCH HYPOTHESIS

The following hypothesis will be used in the study:-

1.         Ho:      Most small scale industries do not perform below standard.

            Hi:       Most small scale industries perform below standard.

2.         Ho:      There is no financial stringency in small business.

Hi:       There is financial stringency in small business.

4.         Ho:      There are good human relations in small scale business.

            Hi:       There are good human relations in small scale business.

1.6    SIGNIFICANCE OF THE STUDY

The importance of the study pervades all state of the society.  It will a clear picture of small scale industries as a sure route to effective and sustained industrialization as they are the progenitors of large-scale enterprise.  Thus, the government and individuals will appreciate the obvious need to encourage and set up small-scale industries in the rural areas and act in that as a result of their establishment may employ unemployed people.  Consequently more goods and services will be produced.  Besides, economic planners will find it useful and thus include small-scale industries in planning for the development and growth of the economy.

Moreover, students will find the study as a good reference material.  And, the rural populace will also benefit as quality of lives be outstandingly enhanced.

1.7     SCOPE OF THE STUDY

This study has as its scope to investigate the contributions of small-scale industries in relation to effective rural development using John Mark Pure Water, Ngwo as a case study.

1.8   DEFINITION OF TERMS

In a study of nature some terms/words are often used technically.  Such terms/words used are defined here under to bring out their meaning in the study.

Development:          Availability of amenities such as good roads, electricity, good drinks, water, existence of efficient – transport system and marketing facilities leading to overall well being of citizens

Data:                          Information procures from the questionnaire distributed to and filled out by the respondents.

John Mark Pure Water, Ngwo:

This is situated at Ngwo Town as Headquarters representative.

Rural Areas: Undeveloped area.

Small scale: One man person with little income , management.

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