Small Scale Industry And Rural Development In Nigeria.
ABSTRACT
However, the study examined small scale industry and rural development in Nigeria. The sample used for this study consisted of 50 staff of the 5 selected SMEs in Awka South LGA. Therefore, the research instrument was a Questionnaire developed by the researcher and validated by the supervisor.
Also, a response rate of 50 (100%) was recorded during the administration of the research instrument. Hence, data collected were analysed using frequency counts, mean, standard deviation and ANOVA.
Hence, the findings revealed that the role of small scale industries in rural development include the creation of employment, manpower training, promotion of competition, encourages the use of local resources, introduction to big business, encourages industrialization and reduction in urban-rural imbalance.
Therefore, the researcher then concludes that there is no major or weighty difference in the responses given by the respondents on the role of small scale industries which confirms that small scale industries will help in rural development and employment generation.
Also, It was also recommended that the government of this country should take a far reacting measure aimed at encouraging mass acceptance of made in Nigeria goods and services.
INTRODUCTION
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Background of the Study-Small Scale Industry And Rural Development In Nigeria
Firstly, Small Scale Industry And Rural Development In Nigeria-Small and Medium Enterprises (SMEs) have been discovered to be a key driver for a country’s rural development (Schmiemann, 2009) hence, SMEs cannot be overlooked in the rural development in any country.
Okongwu (2001) argues that SMEs are recognized as the main source of economic growth and a major factor in promoting private sector development and partnership, in developed and developing countries.
SMEs help to create employment and are often seen as very important for the growth and innovation of dynamic economies (Mutula and Brakel, 2006). Therefore, economic growth and development in Africa can be achieved through the emergence of strong SMEs, which will later grow to become major players in the developing economy.
Hence, SMEs help to diversify economic activities that have significant contributions to imports and exports, they are flexible and can adapt quickly to changing market demands (Ongori, 2009). Thus, SMEs contribute more and more to the national and international economies of the world.
However, some time ago, Ablert Hirschman (1958) said that development is like a jigsaw puzzle, it is easier to fit in a particular piece when the adjoining pieces are already in place; the pieces that are hard to find are those with only one neighbour in place.
Hence, this clever analogy evokes two very important economic principles that both researchers and policy-makers are rediscovering as Nigeria moves from the decade of adjustment to a new period of reform and growth.
Therefore, the first one is that during the early phases of development, when an economy is no more than a collection of fragmented markers and regions, the establishment of government institutions, the construction of infrastructure, and the direct participation of the government in some areas of the economy are not only desirable but indispensable preconditions for the growth process.
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